Laws Governing

Housing and
Urban
Development in
the Philippines
• Shelter is a basic need, but not all are able to meet this need
• Adequate and secure shelter is a basic human right
and is vital for the fulfillment of human aspiration.
• more than 1 billion have shelter unfit for human habitation, this number
will expand unless determined measures are urgently undertaken.
• UN’s ultimate objective to address the shelter crisis is
“housing for all”.
 RP Constitution on Shelter

1987 Philippine Constitution

• National perspective: Housing is a right.
• Article 13, Section 9 on Social Justice and Human Rights
• The State shall, by law and for the common good, undertake,
in cooperation with the private sector, a continuing program
of urban land reform and housing which will make available
at affordable cost decent housing and basic services to
underprivileged and homeless citizens in urban centers and
resettlement areas. It shall also promote adequate
employment opportunities to citizens. In the implementation
of such programs, the State shall respect the rights of small
property owners to just compensation.
3
Pasay City
MANGGAHAN FLOODWAY
WESTBANK
FLOODWAY
EASTBANK
FLOODWAY
MANGGAHAN FLOODWAY
SERVICE ROAD
MANGGAHAN
EMBANKMENT FLOODWAY
SIDE
BERM SIDE
 MANGGAHAN
FLOODWAY

SERVICE ROAD
BERM SIDE
EMBANKMENT
SIDE
 Modes of Addressing shelter problems
Off-site resettlement: transfer of informal communities to areas
identified by the appropriate national agency or by the LGU for
the underprivileged and homeless citizens

On-site development: process of upgrading and rehabilitation of

blighted and slum urban areas with a view of minimizing
displacements of dwellers in said areas, and with provisions for
basic services as provided for in Section 21 of UDHA

In-city relocation: process of transferring beneficiaries from a

current blighted and slum urban area to an area with improved
conditions within the same jurisdiction.

8
 RA 7279 - Urban Development and Housing Act of 1992

• The Urban and Development Housing Act was signed into law on
March 24, 1992 by President Corazon Aquino.
• Date of Effectivity: March 29, 1992
• aims to “uplift the conditions of the underprivileged and
homeless citizens in Urban areas and in resettlement areas by
making available to them decent housing at affordable cost, basic
services, and employment opportunities”
• seeks to “provide for the rational use and development of urban
land in order to bring about access to land and housing by the
underprivileged and homeless citizens”
• The private sector, non-government organizations - will be
granted incentives to invest their resources in socialized housing
• The project beneficiaries - should be involved in the house
provision programs
 RA 7279 – UDHA of 1992 - objectives

1. Provide decent shelter to the underprivileged and

homeless citizens in urban areas and resettlement
areas whose lives are generally marked by
economic insecurities and whose occupancy on
the land is uncertain
2. Provide for the rational use and development of
urban land
3. Adopt workable policies to regulate and direct
urban growth and expansion towards a dispersed
urban net and a more balanced urban-rural
interdependence
 RA 7279 - Urban Development and Housing Act of 1992

4. Provide for an equitable land tenure system that

shall guarantee security of tenure to socialized
housing beneficiaries but also shall respect the
rights of small property owners and ensure the
payment of just compensation
5. Encourage a more effective people's participation
in urban development process, and
6. Improve the capability of local government units in
undertaking urban development and housing
programs and projects
 RA 7279:
Urban Development and Housing Act (UDHA)

• Within one year from the effectivity of this Act, all

city and municipal governments conducted an
inventory of all lands and improvements thereon
within their respective localities. (Section 7)
• After the inventory, the LGUs, in coordination with
the NHA, the HLURB, the National Mapping Resource
Information Authority, and the Land Management
Bureau identified lands for socialized housing and
resettlement areas for the immediate and future
needs of the underprivileged and homeless in the
urban areas. (Section 8)
 Classification of Land

Patrimonial Property
• government property but private in nature
(say, property of MWSS is acquired by and exclusive to them)
Presidential Proclamation
• public domain, title is Republic of the Philippines or no title at all
• only DENR can dispose this land
 Urban Development and Housing Act (UDHA)
Priorities in the Acquisition of Lands

1. idle government lands;

2. those owned by the Government of or any of its
subdivisions, instrumentalities, or agencies,
including government-owned or controlled
corporations and their subsidiaries
3. alienable lands of the public domain
4. unregistered or abandoned and idle lands;
 Urban Development and Housing Act (UDHA)
Priorities in the Acquisition of Lands

5. those within the declared Areas for Priority

Development, Zonal Improvement Project sites and
Slum Improvement and Resettlement Program sites
which have not yet been acquired;
6. Bagong Lipunan Improvement of Sites and Services
sites which have not yet been acquired;
7. abandoned privately-owned lands;
8. idle privately-owned lands.
 Urban Development and Housing Act (UDHA)
Modes of Land Acquisition

1. donation to the government

2. land swapping
3. community mortgage
4. land assembly
5. land banking
6. joint-venture agreement
7. negotiated purchase
8. expropriation
9. transfer to the NHA
10. by presidential proclamation
 Urban Development and Housing Act (UDHA)
Eligibility Criteria for Socialized Housing
Program Beneficiaries

a. must be a Filipino citizen

b. must be an underprivileged and homeless citizen
c. must not own any real property whether in the
urban or rural areas
d. must not be a professional squatter or member of
squatting syndicates
RA 7279 - Urban Development and Housing Act of 1992

1 Strategies for land acquisition that called for

varying degrees of government intervention
included: community mortgage, land swapping,
land consolidation, land banking, joint venture
agreements and expropriation.

2
The act aimed at balanced housing by requiring
developers to allot twenty percent (20%) of
the area of their projects for socialized housing.
RA 7279 - Urban Development and Housing Act of 1992

3 To fully tap the private sector in producing

socialized housing, incentives in the form of
simplifying accreditation and financing procedures were
extended. Socialized housing developers were also
granted exemptions from certain types of taxes.

4 UDHA also espoused consultation and community

participation.

5
.
A related strategy had to do with stimulating
economic growth and promoting socio-
economic development in the countryside.
RA 7279 - Urban Development and Housing Act of 1992

• Sections 9, 12 and 14 - acquisition, valuation,

disposition and utilization of lands for socialized
housing
• Section 13 - valuation of lands for socialized housing
• Section 17 - the registration of socialized housing
beneficiaries
• Section 18 - balanced housing development
• Section 20 - incentives for private sector
participating in socialized housing
• Sections 28 and 44 - demolition and eviction
• Section 43 - proposed social housing tax
 RA 7279 - Urban Development and Housing Act of 1992

Taken from Policy Note by the Philippine Institute for

Development Studies
Accomplishments of UDHA

For the period 2005–2010, the housing sector shows an

acute housing shortage estimated at over one million units.

In terms of housing targets, they only meet one-third of the total housing need
while in terms of actual accomplishments, they barely cover the housing backlog.

NSP has only delivered 26 percent, on the average, of its

target or less than 10 percent of total housing need and
actual accomplishment for socialized housing has also only
been about 26 percent of the backlog.
 RA 7279 - Urban Development and Housing Act of 1992

Taken from Policy Note by the Philippine Institute for

Development Studies
Reasons behind the Shortfalls

Increasing resettlement costs

Opposition from LGU’s

Difficulty in Identification of Beneficiaries

Legalization Process and Valuation Issues
 RA 7279 - Urban Development and Housing Act of 1992

Taken from Policy Note by the Philippine Institute for

Development Studies
Issues and Gaps

Selection of beneficiaries of housing subsidy

Curtailment of professional squatters and squatting syndicates
Eviction and demolition
Private sector participation
Resettlement policy, basic services, and livelihood
Program implementation
Selection Process of Indigent Households/Beneficiaries

Courtesy call to the concerned LGU

Preliminary
Activity
Inspection of the project area to determine viability

Operational Coordination w/ Brgy for conduct of community dialogue

Activity
Community dialogue – inform resident-occupants the
documents to be submitted
Evaluation & Prepare schedules; coordinate w/ LGU re: security,
Selection accommodation, and food
Prepare necessary equipment, personnel requirements,
tag number, and household listing form

Undertake training of LGU personnel

Facilitate w/ LGU re: the Residence Certificate and

Barangay Certificate of Residency in the area
Selection Process of Indigent Households/Beneficiaries

Tagging of structures, household listing, structure mapping

Preliminary
Activity
Prepare list of structure owner/HH head

Inform Brgy/Community leaders the date, processing site

Operational
and the requirements
Activity
“Pahayag”, w/c contains list of required documents shall be
posted in conspicuous places
Evaluation &
Selection Coordinate w/ Brgy/Community leader on the
manner/cconduct of processing
Identify the secretariat/repository of all processed
applications

Maintain records of processed applications

Prepare list of processed applicants and corresponding data

 Application Process of Beneficiaries

Preliminary The Beneficiary Selection Awards and

Activity Arbitration Committee
• empowered by the Proclamation Inter-
Operational Agency Committee to evaluate and select
Activity
the beneficiaries of homelots, and to
resolve and render decisions on cases
Evaluation &
Selection
arising from the disposition of homelots
 The Application Process of Beneficiaries

Preliminary The Beneficiary Selection Awards and

Activity Arbitration Committee shall be composed of the
following:
Operational • Representative from the LGU concerned
Activity • Representative from the HUDCC
• Representative from the PCUP
Evaluation & • Representative from the NHA
Selection • Representative from the Brgy concerned
• Representative from the PO/Association
concerned
• LGU-designated officer (non-voting member)
• Representative from other
stakeholders/identities as may be determined
by the PIAC
Selection Process of Indigent Households/Beneficiaries

Preliminary Secretariat shall prepare a List of Households

Activity Post List of Households in conspicuous places

List of Households shall include a notification to submit

Operational comments, reactions or corrections on the data appearing on
Activity the list w/in 15 calendar days of posting

Secretariat shall file all documents in individual folders

Evaluation &
Selection Secretariat shall schedule a meeting of the BSAAC to deliberate
the folders w/ complete documents
The BSAAC shall sign the case information sheet

Notification letter shall be issued to disqualified HH head

Qualified HH heads shall be included in the list of beneficiaries.

List of qualified shall be posted in conspicuous places

 Batas Pambansa 220

Economic and Socialized Housing in

Rural and Urban Areas
 Batas Pambansa Bilang 220
is an act that authorizes the Ministry of Human
Settlements which pertains to the establishment
and promulgation of various economic and
socialized housing projects in urban and rural
areas as stated under the Presidential Decrees 957,
1216, 1096 and 1185.
It encourages the private sector to include in their
developments economic and socialized housing to
“make available adequate economic and socialized
housing units for average and low-income earners
in urban and rural areas”.
 APPROVED
• Approved, March 25, 1982. (P.B. No. 1880)

• (SGD.) IMELDA ROMUALDEZ MARCOS

Minister, Ministry of Human
Settlements
Chairman, Human Settlements
Regulatory Commission
ATTESTED:
(SGD.) ERNESTO C. MENDIOLA
Commissioner and
Chief Executive Officer
SECTION 1. To promote and encourage the development of economic and
socialized housing projects


SECTION 2. Economic and socialized housing refers to housing units which are
within the affordability level of the average and low-income earners which
is thirty percent (30%) of the gross family income 



SECTION 3. To establish and promulgate different levels of standards and

technical requirements for the development of economic and socialized
housing projects and economic and socialized housing units 



SECTION 4. Being established under Section three hereof shall provide for
environmental ecology, hygiene and cleanliness, physical, cultural and
spiritual development and public safety 


SECTION 5. The different levels of standards and technical requirements that

shall be established and promulgated by the Ministry of Human Settlements

SECTION 6. This Act shall take effect upon its approval.

 The Code is divided into five rules.

Rule I – General Provisions

Rule II – Minimum Design Standards and
Requirements for Economic and Socialized
Housing Projects
Rule III – Approval of Subdivision Plans and Building
Designs
Rule IV – Registration and Licensing of Economic and
Socialized Housing Projects
Rule V – Miscellaneous Provisions
 RULE I
GENERAL PROVISIONS
SECTION 1. Scope of Application. — applying to the
development of economic and socialized housing
projects to the development of either a house and lot
or a house or lot only.


SECTION 2. Declaration of Policies. — policy of the

government to promote and encourage the
development of economic and socialized housing
projects
 RULE II 
DEFINITION OF TERMS
SECTION 3. As used in this rules, the following words
and phrases are defined and understood to have the
meaning correspondingly indicated therein.

SOCIALIZED HOUSING : to moderately low income

families with lower interest rates and longer
amortization periods.


OPEN SPACE : Shall refer to areas allocated for the

following purposes:

Circulation/ Community facilities/ Park/Playground /
Easements / Courts
 RULE III
MINIMUM DESIGN STANDARDS AND
REQUIREMENTS FOR ECONOMIC AND SOCIALIZED
HOUSING

SECTION 4. Development of economic and

socialized housing project shall be in accordance
with the minimum design standards herein set
forth. 

SECTION 5. The minimum design standards set forth
herein are intended to provide minimum
requirements within the generally accepted levels of
safety, health and ecological considerations.

A. Protection and safety of life, limb, property and general

public welfare. 

B. Basic needs of human settlements, enumerated in
descending order as follows: 


Water / Movement and Circulation /

Storm drainage / Solid and Liquid Waste Disposal/
Power / Park/Playground

C. Affordability levels of target market


D. Location- Underdeveloped Area — utility systems or
networks, especially water supply, roads and power. 


Presidential Decree 957

The Subdivision and Condominium

Buyers’ Protective Decree
 What is it for?

• Signed on July 12, 1976

• By President Ferdinand Marcos
• Stipulates role of National Housing Authority
• Ensure that subdivisions and condominiums
provide the requirements of “decent human
settlements” and to basically improve the
quality of life.
 What does it guard against?
1. Real-estate developers failing to provide and
maintain properly:
a) Roads
b) Drainage
c) Sewerage
d) Water systems
e) Lighting systems
 What does it guard against?
2. Swindling and fraudulent manipulations
a) Failure to deliver titles or titles free from liens and
encumbrances to the buyers.
b) Failure to pay real estate taxes.
c) Fraudulent sales of the same subdivision lots to
different innocent purchases.
 Problems
• Outdated
– “Section 14. Contempt...The person found guilty of direct contempt
under this section shall be punished by a fine not exceeding Fifty
(P50.00) Pesos or imprisonment not exceeding five (5) days, or both.”
– “Section 38. Administrative Fines. The Authority may prescribe and
impose fines not exceeding ten thousand pesos for violations of the
provisions of this Decree or of any rule or regulation thereunder...”
– “Section 39. Penalties. Any person who shall violate any of the
provisions of this Decree and/or any rule or regulation that may be
issued pursuant to this Decree shall, upon conviction, be punished by
a fine of not more than twenty thousand (P20,000.00) pesos and/or
imprisonment of not more than ten years...”
 Problems
• False advertising
– “Section 19. Advertisements. Advertisements that
may be made by the owner or developer through
newspaper, radio, television, leaflets, circulars or any
other form about the subdivision or the condominium
or its operations or activities must reflect the real
facts and must be presented in such manner that will
not tend to mislead or deceive the public.”
– Travel time in brochures are always incredibly shorter
than reality.
 Issues
• Road cannot be closed off if it is access to a
public building
 Issues
– “Section 28. Access to Public Offices in the
Subdivisions. No owner or developer shall deny
any person free access to any government office
or public establishment located within the
subdivision or which may be reached only by
passing through the subdivision.”
– Delineation of rights of homeowners versus
general public. (us versus them)
National Urban Development and
Housing Framework
National Shelter Program
National Government Agencies
Local Government Units
Section 6 of RA 7279 (Urban Development and Housing
Act of 1992)
• The framework shall refer to the comprehensive plan for
urban and urbanizable areas aimed at achieving the
objectives of the Program.

• In the formulation of the framework, a review and

rationalization of existing town and land use plans, housing
programs, and all other objectives and activities of
government agencies and the private sectors which may
substantially affect urban land use patterns, transportation
and public utilities, infrastructure, environment and
population movement shall be undertaken with the
concurrence of the local government units concerned.
 Background
• Pursuant to SEC. 6 of RA 7279 the Housing and Land Use
Regulatory Board (HLURB) in coordination with the Housing
and Development Coordinating Council (HUDCC),
formulated the National Urban Development and Housing
Framework (NUDHF).

HLURB
NUDHF
HUDCC
 HUDCC
• The Housing and Urban Development Coordinating Council
(HUDCC), under the immediate control and supervision of
the President of the Philippines, is charged with the main
function of coordinating the activities of the government
housing agencies to ensure the accomplishment of the
National Shelter Program.
 HUDCC
• Formulate national objectives for housing and urban
development and to design broad strategies.
– SECTION 3. EXECUTIVE ORDER NO. 90 SERIES OF 1986
 HUDCC
• Vision
– "As the highest policy making and coordination body on
housing and urban development, HUDCC shall facilitate
access to a variety of housing options that are decent,
affordable and responsive to the diverse and changing
needs of homeless and underprivileged Filipino families."

• Mission
– "We envision HUDCC to provide overall direction for the
promotion of decent and affordable housing opportunities
and sustainable human settlements for families belonging
to the lowest income strata of our society."
Attached Agencies to HUDCC
• Home Guaranty Corporation

• Housing and Land Use Regulatory Board

• National Housing Authority

• National Home Mortgage Finance Corporation

• Home Development Mutual Fund

• Social Housing Finance Corporation

 HLURB
• The Housing and Land Use Regulatory Board (HLURB) is a
national government agency tasked as the planning,
regulatory and quasi-judicial body for land use
development and real estate and housing regulation. These
roles are done via a triad of strategies namely, policy
development, planning and regulation.
 HLURB
• Vision
– To attain well planned and self-reliant
communities via land and housing regulations.
• Mission
– To promulgate and enforce land use and housing
regulations which sustain a balance among
economic advancement, social justice and
environmental protection for the equitable
distribution and enjoyment of development
benefits.
 Background
• The government of the Philippines (2001) formulated and
adopted an innovative and forward-looking National Urban
Development and Housing Framework (NUDHF) to guide
management and development of the urban sector but, as
in most circumstances, implementation of this Framework
was the responsibility of a wide range of national and local
institutions.
 Objectives
1. Ensure that land is available to housing
2. Ensure that residential infrastructure is provided to
recognized housing development areas
3. Support housing finance systems
4. Provide mortgage guarantees
 The Government’s Role
1. Implement reforms in the housing market
2. Focus efficiently on targeted housing assistance to the
poor
3. Create a sustainable housing finance system
4. Involve local governments in addressing housing and
urban development problems
5. Promote greater private sector
 Rationale
• The Philippines is undergoing a high rate of urban growth.
But the growth process brought socio-economic inequity
among the various areas of the country.
 Rationale
• Problems:
1. Lack of urban-rural integration, inter-urban linkages,
linkages to international markets, internal inefficiencies
in urban centers
2. Inadequate urban governance capacities
3. Regional price disparities
4. Inequity in resource allocation
5. Urban poverty and homelessness
6. General inability of urban centers to contribute more
fully to global competitiveness
7. Equitable economic development
8. Democratization
 Rationale
• “There is an urgent need to address these
issues to adequately respond to the present
needs of the population without necessarily
compromising future generations needs”.
 Mandate
1. THE 1987 CONSTITUTION
• ARTICLE 2, SECTION 9
– “the state shall promote a just and dynamic social order that will
ensure the prosperity and independence of the nation and free the
people from poverty through policies that provide adequate social
services, promote full employment, a rising standard of living and an
improved quality of life for all.”
• ARTICLE 13, SECTION 9
– “The State shall, by law and for the common good, undertake, in
cooperation with the private sector, a continuing program of urban
land reform and housing, which will make available at affordable costs,
decent housing and basic services to underprivileged and homeless
citizens in urban centers and resettlement areas. It shall also promote
adequate employment opportunities to such citizens. In the
implementation of such program, the state shall respect the rights of
the small property owners.”
 Mandate
2. THE LOCAL GOVERNMENT CODE OF 1991 (RA
7160)
• The Code mandates the Local Government Units to adopt
comprehensive land use plan and enact integrated zoning
ordinances.
 Mandate
3. THE URBAN DEVELOPMENT AND HOUSING ACT
(RA 7279)
• ARTICLE 3, SECTION 6
– “There shall be a NATIONAL URBAN DEVELOPMENT
AND HOUSING FRAMEWORK to be formulated by the
Housing and Land Use Regulatory Board under the
direction of the Housing and Urban Development
Coordinating Council in coordination with all local
government units and other concerned public and
private sectors.”
 Development Vision and Philosophy
• 1. A better quality of life for residents of cities/urban
centers
• 2. Cities/urban centers that are economic hubs and major
contributors to national productivity and industrialization.
• 3. Cities and urban communities that are socially and
environmentally healthy places to live in.
• 4. Cities/urban areas that are centers for engagement and
productive and income-generating activities.
• 5. Cities that can house and deliver basic services to its
citizens particularly the poor.
• 6. Cities/urban centers that promote political
democratization through greater people participation in
decision-making.
 Development Vision and Philosophy
• 7. Urban governments that are capable and competent of
addressing the various urban issues and concerns.
• 8. Urban development as a major determinant in the over-all
national development shall reinforce and complement rural
development and agricultural productivity.
• 9. Urban growth and development shall be designed to
complement the natural and man-made environments.
• 10. The level of future growth will be sufficient in quantity, quality
and distribution to provide opportunities (employment, housing,
services, etc.) for all citizens.
• 11. Cities/urban centers are valuable resources which must be
supported and whose welfare is inextricably intertwined with the
country’s welfare.
• 12. Development of urban resources shall seek to achieve multiple
uses.
 Development Vision and Philosophy
• 13. Land use and growth decisions shall remain principally a local
prerogative and shall be supported by higher levels of government.
• 14. The people, private sector and other institutions shall play a
primary role in building the nation’s cities. The principle of popular
initiative and self-help shall be pursued with government as enabler
and facilitator.
• 15. Careful attention shall be accorded to the harmonious
relationship between the city/urban center and its environment,
the city and its rural surroundings and the harmonious growth the
city itself.
• 16. Enhancement or urban life is desired to allow similar
enhancement of individual welfare.
• 17. Preservation and continued production of prime agricultural
lands shall be paramount.
NUDHF Major Goals and Objectives
• 1. Increased national integration national integration
and cohesion through well defined and focused
policies and strategies for urban development.
• 2. Defined roles of urban areas/cities in national
development to attain rational spatial and economic
growth.
• 3. Guided rural to urban migration to attain proper
spatial arrangement of people and their activities.
• 4. Improved government efficiency and capability to
manage urban development.
NUDHF Major Goals and Objectives
• 5. Institutionalized participation of concerned sectors in
urban development.
• 6. Improved access and availability of land for urban uses
particularly for the housing needs of the urban poor and
other marginalized groups.
• 7. Adequate, equitable and efficient provision of urban
services
• 8. Protection of the natural environment and community
conservation.
 Review and Update
• The NUDHF shall be updated in conjunction with the
Medium-Term Philippine Development Plan (MTPDP) which
is prepared every (6) six years.
• Updating of the NUDHF shall also be linked to the pace of
urbanization experienced by the LGU’s.
• The NUDHF should, thus, be seen as a dynamic framework
which is updated as often as the pace of development and
urbanization in the country dictates.
 NATIONAL SHELTER PROGRAM (NSP)

• The National Shelter Program (NSP) is the

government's comprehensive strategy to
address the housing problem of the country.
 Vital Components:
• Resettlement Program
– involves land acquisition and site for families
displaced from sites earmarked for government
infrastructure projects, those occupying danger areas
such as water ways, esteros, railroad tracks
• Medium-Rise Public and Private Housing
– entails the construction of medium-rise residential
buildings by the government and/or private
developers in all high-density urban areas of the
country to maximize the utilization of scarce, high-cost
urban land for Low-income families and other
beneficiaries
 Vital Components:
• Community Mortgage Program
– assists organized community associations to acquire
tenure and ownership of the land they are presently
occupying adverse against the interests of
landowners.
• Cost Recoverable Programs
– involves the development of sites with housing
component and the provision of serviced homelots
through joint-venture schemes with the private sector
or local government units. Program beneficiaries shall
fully repay on installment basis the financial assistance
granted for the purchase of the housing units.
 Vital Components
• Local Housing
– To ensure the equitable distribution of housing
benefits across the country, the NHA is hereby
tasked to implement cost-recoverable socialized
housing projects in selected urban and
urbanizable areas in all congressional districts.
 EXECUTIVE ORDER NO. 90
• IDENTIFYING THE GOVERNMENT AGENCIES
ESSENTIAL FOR THE NATIONAL SHELTER
PROGRAM AND DEFINING THEIR MANDATES,
CREATING THE HOUSING AND URBAN
DEVELOPMENT COORDINATING COUNCIL,
RATIONALIZING FUNDING SOURCES AND
LENDING MECHANISMS FOR HOME
MORTGAGES AND FOR OTHER PURPOSES
 Key Agencies
• National Housing Authority
• the sole government agency engaged in direct shelter production.
• to provide housing assistance to the lowest 30% of urban income earners
through slum upgrading, squatter relocation, development of sites and
services and construction of core-housing units

• National Home Mortgage Finance Corporation

• the major government home mortgage institution.
• to operate a viable home mortgage market, utilizing long-term funds
principally provided by the Social Security System, the Government Service
Insurance System and the Home Development Mutual Fund to purchase
mortgages originated by both private and public institutions that are within
government-approved guidelines.
• charged with the development of a system that will attract private institutional
funds into long-term housing mortgages.
 Key Agencies
• Human Settlements Regulatory Commission/Housing and
Land Use Regulatory Board
• the sole regulatory body for housing and land development
• charged with encouraging greater private sector participation in low-cost
housing through liberalization of development standards, simplification of
regulations and decentralization of approvals for permits and licenses.
• Home Financing Corporation /Home Insurance and Guaranty
Corporation
• to assist private developers to undertake low and middle income mass housing
production and encourage private institutional funds and commercial lenders
to finance such housing development and long-term mortgage through a
viable system of guarantees, loan insurance and other incentives.
 Support Agencies
• Home Development Mutual Fund (HDMF)
• to administer provident fund contributions collected from
member employees and employers, utilizing funds not required
for provident benefits for housing loans for members, and, in
addition, will be charged with the development of saving
schemes for home acquisition by private and government
employees.
• Social Security System (SSS)
• the primary provider of funds for long-term housing mortgages
for low and middle-income private sector employees.
• Government Service Insurance System (GSIS)
• the primary provider of funds for long-term housing mortgages
for low and middle-income government employees.
Housing and Land Use Regulatory Board (HLURB)

The Housing and Land Use Regulatory Board (HLURB) is a

national government agency tasked as the planning,
regulatory and quasi-judicial body for land use development
and real estate and housing regulation.

Kalayaan Avenue Diliman Quezon City

HLURB enhances rational land use , housing and real
estate delivery through policy development, planning
and regulation.

Assist LGUs in CLUP and Zoning

 Issue & Register Permits and Licenses
 Hear and Decide Cases
 Monitor Land Development Projects
Register and Supervise Homeowner’s Association
 FUNCTIONS
Rational Land Use
Comprehensive Land Use Plan (CLUP)
prescribes the developmental pace, directions and strategies
for the optimum use of land resources in a community
 its role in provincial, regional and national development.
Enacted into zoning ordinance for purposes of enforcement.

Development Role
policy, planning and regulation
 defined in Presidential Decrees (PD), Letters of Instruction
(LOI), Republic Acts (RA), Executive Orders (EO), Office of
the President Memorandum Circulars (OP-MC) and Batas
Pambansa (BP).
OTHER ACTIVITIES:
 In attaining rational land use

1. Extend planning
assistance to Local
Government Units (LGUs)
(LOI No. 729, EO No. 648);

2. Review and ratify land use

plans of Metro Manila cities
and municipalities,
provinces, highly urbanized
cities and independent
component cities (EO No.
72);
OTHER ACTIVITIES:

3. Enforce zoning regulations (EO No. 648)

4. Investigate and adjudicate complaints

(EO No. 648);

5. Assist local government units assume

devolved functions via training and
consultation;

6. Coordinate land reclassification clearance

system (MC No. 54);
7. Update and revise rules, guidelines and standards on land use (EO No.
648); update and revise National Urban Development and Housing
Framework (RA No. 7279).

8. Assist LGUs  processing and approving the subdivision plans via

training and consultation (EO No. 71)

9. Approve expansion of a condominium corporation or integration of a

condominium project with another project (RA No. 7899)

10. Other types of subdivision and condominium projects (EO No. 648 and
related laws)
On Real Estate and Housing
Regulations

HLURB enforce laws, rules, standards

and guidelines through:

1. Approval of condominium plans (PD

No. 957);

2. Subdivision Plans: to protect buyers

of housing units and home lots, and
condominium units against
unscrupulous practices in the industry;

3. Issuance of License to Sell (PD No.

957).
 National Home Mortgage & Finance Corporation
The NHMFC is the major government home mortgage institution. Its
initial main function is to operate a viable secondary home mortgage market,
utilizing long-term funds principally provided by the Social Security System,
the Government Service Insurance System, and the Home Development
Mutual Fund to purchase mortgages originated by both public and private
institutions that are within government approved guidelines.

It is also mandated to
develop a system that will
attract private institutional
funds into long-term
housing mortgages.
The NHMFC intends to achieve its mission and vision by
pursuing its corporate objectives:

1. Provide liquidity to the housing sector

 securitization of mortgages/assets.
2. Promote stability to the housing finance system
 participation in the capital market.
3. Establishment of an efficient and effective organization
 with a professional workforce utilizing best practices.
4. Maintain efficiency in operation and efficacy in financial management
 to ensure sustainability of its programs.
5. Efficient and effective management of its subsidiaries.
 Home Development Mutual Fund (HDMF)
The birth of the Home Development Mutual Fund (HDMF), more popularly
known as the Pag-IBIG Fund, was an answer to the need for a national
savings program and an affordable shelter financing for the Filipino worker

Pag-IBIG is an acronym which stands for Pagtutulungan sa Kinabukasan:

Ikaw, Bangko, Industria at Gobyerno. To this day, the Pag-IBIG Fund
continues to harness these four sectors of the society to work together
towards providing Fund members with adequate housing through an
effective savings scheme.
PROVIDENT PROGRAMS

Membership Coverage
Republic Act 9679 Sec. 2. Declaration of Policy

It is the policy of the State to establish, develop, promote and

integrate a nationwide sound and viable tax exempt mutual provident
savings system suitable to the needs of the employed and other earning
groups, and to motivate them to better plan and provide for their
housing needs by membership in the Home Development Mutual
Fund, with mandatory contributory support of the employers in the
spirit of social justice and the pursuit of national development.
HOUSING LOAN PROGRAMS
 grants opportunities to Pag-IBIG Fund members to avail of housing
loans to finance:

1. Purchase of a fully developed lot (not exceeding 1,000 square meters

residential)
2. Purchase of a residential house and lot, townhouse or
condominium unit, inclusive of a parking slot.
3. Home improvement, (any alteration in an existing residential unit
intended by a homeowner to be a permanent integral part thereof,
which will enhance its durability and material value)
4. Refinancing of an existing mortgage with an institution acceptable to
the Fund, provided that:
 The loan is not in default within 12 months prior to the date of
application;

 The said loan has a repayment history of at least two (2) years with the
original mortgagee
OTHER HOUSING PROGRAMS:
1. “ Gabay Pabahay Program”
 this housing loan restructuring program seeks to assist Pag-IBIG
borrowers preserve their properties from foreclosure or
cancellation of Contract-to-Sell (CTS)
2. Socialized and Low-Cost Housing Loan Restructuring and
Penalty Condonaton Program
 To provide affordable terms, condonation of accumulated penalties
and a portion of accumulated interests, as well as non-interest bearing
scheme
3. “Maagang Pabahay, Disenteng Buhay” Program (Acquired
Assets)
 the Fund’s acquired assets are put up for sale, initially to
government employees, at reduced rates.

 Discounts of 15% and 20% are given to interested buyers who will
purchase properties through housing loan and through cash payment.
Social Housing Finance Corporation
History
– Jan. 20, 2004 – The creation of SHFC through the
Executive Order 272
– June 21, 2005 - Approved registration of SHFC from
the SEC ( Securities and Exchange Commission)
– Oct. 24, 2005 - inauguration and the First SHFC Board
Meeting
– Nov. 3, 2005 - Execution of Memorandum and Trust
Agreements between NHMFC(National Home
Mortgage Finance Corporation) and SHFC
Social Housing Finance Corporation
History
– Jan. 20, 2004 – The creation of SHFC through the
Executive Order 272
– June 21, 2005 - Approved registration of SHFC
from the SEC
– Oct. 24, 2005 - SHFC inauguration and the First
SHFC Board Meeting
– Nov. 3, 2005 - Execution of Memorandum and
Trust Agreements between NHMFC and SHFC
 Mission Vision
 Vision: "We are the lead financial institution
providing shelter to the underpriviledged sector
of society
 Mission: "We guided by the highest levels of
professionalism, excellence and work ethics, are
committed to:
– - Uplift the living conditions of the underpriviledged
Filipinos by providing access to access to affordable
shelter financing
– - Work in partnership with multi-sectoral stakeholders
for the development and implementation of
innovative and susyainable social housing programs
 Projects
Community Mortgage –
Program

– A housing program of the

government that ensures the less
privileged or the “informal
settlers” to the right of land
ownership.
 Projects
• Localized Community
Mortgage Program

– is an innovative scheme
whereby qualified partner-
LGUs may apply for an
Omnibus Commitment Line
(OCL), not to exceed P50
Million
 Projects
Abot-kaya
Pabahay
Fund
Program
 National Housing Authority
• Corporate Objectives

– To provide and maintain adequate housing for the

greatest possible number of people.
– To undertake housing development, resettlement or
other activities that would enhance the provision of
housing to very Filipino.
– To harness and promote private participation in
housing ventures in terms of capital expenditures,
land, expertise, financing and other facilities for the
sustained growth of the housing industry.
 Programs
 Resettlement and Slum
Upgrading
 Site and Services
 Pahanocoy Sites and
Services, Bacolod City
 Medium Rise Housing
 Tala MRH, Caloocan
City
 Core Housing
 Bantayan, Ilocos Sur 1
 Community Based
Housing Program
 Community Mortgage
Program Pagsabungan,
Cebu City
 Programs for Families affected by
Calamities
Emergency Housing
Assistance Program
Temporary Shelter
and Evacuation
Centers
Home Materials
Assistance Program
(HOMA)
Resettlement
 Other Projects
 NHA's Rail Linkage
Program
– Objectives:
• To clear the rail
rights-of-way of the
Philippine National
Railways lines.
• To relocate all
informal occupants
affected by the
Northrail
Development Project.
 Home Guaranty Corporation

provides guaranty cover to investments and

credits for housing through its guaranty
facilities. HGC provides risk cover on the
outstanding principal and interest yield up to
11%. HGC guaranteed loans and investments
are exempt from all taxes up to 11%.
 Guarantees:
Cash Flow Guaranty
– To eliminate credit risk for funders of socialized
housing loans.
Retail Loan Guaranty
– is a guaranty coverage on loans/credit facility
extended for the purchase/acquisition of a single-
family residence.
 Guaranty for Securitization Scheme
– is guaranty cover on securities or financial
instruments or on the receivables backing-up the
securities. The issuance is backed-up by a pool of
assets, such as receivables and/or real estate
properties.
 Developmental Guaranty
– is a guaranty facility covering loans extended for the
development of subdivisions, townhouses,
dormitories, apartments and other residential
dwellings.
 Key Housing Agencies

HUDCC - lead housing agency to undertake planning and to

provide technical assistance
NHA - augment and enhance local governments’ capabilities in
the provision of housing benefits to their constituents
HIGC - design an appropriate guarantee scheme to encourage
financial institutions to go into direct lending for housing
HLURB - develop a comprehensive plan for urban and urbanizable
areas, and review existing town and land use plans and housing
programs
NHMFC - administer the Community Mortgage Program
NEDA - provide the data and information for forward planning
LGUs - preparation of the comprehensive land use plans for their
localities
 Local Government Units
• Roles of LGU’s

– 1.Direct housing provider

they can buy and allot hectares of land for socialized or low cost
housing, and make housing packages suitable to the needs of their
communities

2. Partner through Joint Venture Projects

City and municipal governments can also become
partners of national government agencies or
private developer through joint venture
agreements. They can collaborate with a government or
private organization to set up and plan a sound housing
program for the poor.
 Local Government Units
• 3.Source of interim financing
• LGUs could also function as a source of interim financing that
• can assist people’s organizations working
• for land tenure.
• Cities in the municipalities w enough resources can first pay
• for the land bought by their constituents in cases when the
• national government is unable to release loans, and then
• collect the amount at a later time from the agencies
• concerned.

• 4. CMP Originator (Community

• Mortgage Program)
• LGUs can also assume the role of CMP originator. Cities
• and municipalities can make use of CMP and adapt
• it in their respective locales, depending on
• the need.
 Local Government Units
• 5. Site Developer
• GUs can take an active role in site
development after a
• community association has worked on its
• tenurial security. LGUs can provide
• water facilities, provide the road network or
do the
• community’s storm and drainage canal.