Lhoopa Promoting Green Affordable Housing Project (Philippines)
The document outlines the collaboration between Lhoopa, Inc. and the Asian Development Bank (ADB) aimed at promoting green affordable housing in the Philippines. This partnership is significant as it addresses the pressing housing shortage while enhancing environmental sustainability.
Overview of the Partnership
In March 2024, ADB and Lhoopa signed a loan agreement for up to $20 million to support the development of affordable housing targeted at average-income earners, particularly those in jobs such as drivers, security guards, factory workers, teachers, and administrative staff. The average price for these homes is set at approximately Php 850,000 (around $15,000). A notable feature of this initiative is that at least 25% of the homes will meet the Excellence in Design for Greater Efficiencies (EDGE) certification, an internationally recognized green building standard
Objectives and Goals
The primary objective of this collaboration is to alleviate the housing shortage in the Philippines, which is projected to reach 6.5 million by 2030. The project aims to deliver up to 4,000 affordable houses annually by 2025 and increase this number to 8,000 by 2028. This effort is crucial as local developers typically focus on mid-to-high-end properties, leaving a significant gap in affordable options for lower-income families
Innovative Approach
Lhoopa employs a proprietary digital platform to identify areas with potential housing demand across the country. This technology-driven approach allows Lhoopa to engage over 100 local small-scale contractors and more than 4,000 real estate agents, thereby promoting local employment while ensuring accessibility to housing solutions. The company’s strategy not only meets housing needs but also supports economic growth within communities
Significance of the Project
The project marks ADB’s first private-sector housing initiative in the Philippines. ADB Director General for Private Sector Operations, Suzanne Gaboury, emphasized that this partnership aligns with ADB’s mission to foster resilience and sustainability in Asia and the Pacific. The initiative is particularly vital for communities that are vulnerable to climate change impacts, providing them with livable spaces that enhance their resilience
Financial Structure
The financing arrangement includes innovative features such as a revolving credit facility. This allows Lhoopa to repay loans and withdraw funds as needed without reapplying for financing—an advantageous structure for rapidly growing companies. This flexibility is expected to facilitate Lhoopa’s expansion and enhance its capacity to deliver affordable housing solutions efficiently
Background of Lhoopa
Founded in 2018 by Marc-Olivier Caillot and Sabrina Tan, Lhoopa has quickly established itself as a key player in the Philippine real estate market. The company collaborates closely with state-owned entities like the Home Development Mutual Fund (PAG-IBIG), which provides affordable housing financing. Lhoopa was recognized as one of PAG-IBIG’s top developers in 2022 and has sold over 2,500 affordable homes across more than 58 cities
Future Aspirations
With the new funding from ADB, Lhoopa aims not only to meet its ambitious housing targets but also to expand its operations into other Southeast Asian markets. The company envisions creating a paradigm shift in real estate by leveraging technology and local partnerships to deliver quality homes efficiently. This vision includes addressing the growing demand for affordable housing while ensuring environmental sustainability through green building practices
Conclusion
The collaboration between Lhoopa and ADB represents a significant step towards addressing the affordable housing crisis in the Philippines while promoting sustainable practices. By focusing on underserved communities and utilizing innovative financial structures and technology-driven solutions, this partnership aims to make a lasting impact on the lives of many Filipinos while contributing to broader social and economic development goals across the region.
Further reading: Vietnam Affordable Housing A Way Forward
ADB, Lhoopa Sign Deal to Expand Green Affordable Housing in the Philippines | Asian Development Bank
PH housing startup Lhoopa and ADB sign deal pushing for green … theindependentinvestor