Session 4

In previous sessions, we have briefly

discussed the kind of products
available in the housing market.

In this session, let’s take a

closer look at housing
providers and why they provide
the kind of housing products
they provide.
Two elements that create dynamism in
the housing finance market

BUYER SELLER
 Government Contributions
(securities and insurances) PRODUCT
(Housing Unit)
SSS
( mandatory – private worker)
((optional – public worker)
WORK FORCE/ HLURB
SHELTER DELIVERY SYSTEM IN THE PHILIPPINES

GSIS
(mandatory – public worker) CONSUMERS/ BUYER (Regulation)
HoA
HDMF
(optional – private & public) HOUSING
SELLER
DEVELOPERS
Private
*SSS
Social Security System
Government
* GSIS
LENDING WINDOWS (Public) Government Service
Insurance System
LGU
*HDMF
NHA Home Developmemnt
Mutual Fund (aka Pag Ibig)
HIGC
(Government Private *HIGC
Housing Insurance
appraisal/ NGO
Guarantee Corporation

guarantee) *HoA
Corpo- Homeowners Association
rations
A regulatory body positions itself in between these elements to
monitor/control the housing market in the attempt to ensure that
both issues of availability and efficiency/ satisfaction are met

REGU
LATO
BUYER RY SELLER
BODY
Which institution is tasked to regulate
housing in the Philippines?
HOUSING AND LAND USE REGULATORY BOARD (HLURB)
“…A national government agency tasked as the (1) planning, (2) regulatory
and (3) quasi-judicial body for land use development and real estate and
housing regulation. The HLURB is responsible for the issuances of
regulating both housing provisions and housing acquisitions.
 (1) planning (2) regulatory (3) quasi-
judicial body

The institution is in The institution has the power The institution

charge of preparing to issue regulatory reserves the
and executing plans provisions, i.e. control the capacity to act as a
designed to address amount of housing to be judiciary entity in the
HLURB

housing issues supplied or the amount of case of disputes

loans to be allowed. related to the
housing industry

Issued by the Housing
Licenses
Land Use and Regulatory
Board (HLURB) to
to Sell
developers, indicating that
they may supply housing.
Before any
developer may go
into the business of
real estate, they The amount of licenses to
sell issued can also
must first apply for
indicate the behavior of
licenses to sell at the Philippine housing
the HLURB. market.
 SELLER
PRIVATE PUBLIC
SECTOR SECTOR
BUYER REGU
LATO
RY
BODY
What are we selling on the
Philippine Housing market?
Philippine real estate is subdivided into several categories,
namely: (1) Hotel, (2) Office, (3) Industrial, (4) Residential
 LICENSES TO SELL

SIMPLE
SUBDVIISIONS
Large-sized lots
belonging to one
mother title,
subdivided for selling
into smaller individual
units. Simple
subdivisions are often
converted from
agricultural lands.

Simple subdvisions
can either include civil
engineered facilities as
in that for the open
market, or not as in
that intended for the
socialized market

Source: HLURB
LICENSE TO SELL ISSUED FOR RESIDENTIAL PROJECTS
(UNITS BY REGION CY2011)

Source: HLURB 2011

 It’s important to note that
the real estate industry is
dynamic and is consistent
with the ebbs and flows of
the Philippine Economy. As
the socio-economic status
of the society continues to
change, the housing supply
market should also respond
to these movements.

COLLIERS DATA YEAR 2011 COLLIERS DATA YEAR 2014

 Take note of the quarterly market movement in each
real estate category

Colliers Data year 2014

 “Colliers believes that there is
PHILIPPINES | RESIDENTIAL Q4 2016 9 opportunity for developers to target
subgroups by implementing one or
more of the following strategies:

Tapping into the worker-

accommodation segment as Metro
Manila’s young workforce looks for
affordable studio or one bedroom units;

Targeting expatriates who prefer the

two and three-bedroom units within
CBDs; and
Colliers Quarterly

Establishing their own leasing teams

February 2017

to market to particular clients.”

Colliers Quarterly PHILIPPINES | RESIDENTIAL

Q4 2016 9 February 2017, p.5
Accessed here: http://www.colliers.com/-
/media/files/marketing%20reports/4q2016_c
olliers_real_estate_market_report.pdf
Who are the sellers and
what are they selling?
 Housing
providers in the FIRST TIER REAL ESTATE CORPORATIONS
Commercial
Private Sector
(Economic and
Higher)
Three biggest
housing providers in
the upper end of the
housing sector
(Philippines)

Housing providers in
NON GOVERNMENT
the Commercial Private
ORGANIZATIONS
Sector (Socialized)
 EXAMPLE (CONTENT ONLY)

OPEN MARKET
OPEN MARKET
MID-INCOME
ECONOMIC
SOCIALIZED
To better understand the housing delivery systems in the
Philippine context, it is necessary to first be familiar with
the historical evolution of its key shelter agencies
The HLURB is only one of many
government agencies tasked to
monitor the movements in the
housing industry.
 LINKAGES OF KEY GOVERNMENT AGENCIES/ PROGRAMS FOR HOUSING IN THE PHILIPPINES
OVERARCHING
AGENCY HUDCC Component Agencies

PRIVATE KEY SHELTER AGENCIES FUNDING/SECURITY

SECTOR AGENCIES (Insurance)
NHA
SHDA (Developer) •Housing Provider SSS
Subdivision and Private Sector
Housing Developers
Association HGC GSIS
SHDP (NGO) •Home Financing Guarantor
Organization of Government Sector
Socialized Housing •Housing Development Guarantor
Developers of the HDMF (Pag-IBIG)
Philippines HLURB •Housing Welfare
•Housing Development Regulator •Member Capitalization

GOVERNMENT NHMFC
SUPPORT AGENCIES •Mortgage-Finance Corporation

DOF SHFC
For Socialized formal and informal settlers
DBM
CMP
NEDA For community mortgages

DBP Abot Kaya Pabahay Fund

MMDA

PMS
(Philippine Military Service)
 CORY AQUINO
REGIME

MINiSTRY OF HUMAN
HUDCC
SETTLEMENTS

MARCOS REGIME
MARCOS REGIME
Outputs related to
systemization of the
housing delivery
system:

(1) Creation of the Department of Human Settlements
(Ministry of Human Settlements); (2) Establishment of
the National Capital Region; (3) Creation of the
Human Settlements Development Corporation
“In order to provide an adequate CORPORATE ARM
for the Department, especially in the discharge of its
functions relative to urban renewal, New Town and
estate development in Bagong Lipunan sites and real
property management, there is hereby created the
Human Settlements Development Corporation. The
Corporation shall be subject to the supervision of the
Department.

Where did the Purposes of the Corporation:

systemization of the (a) The development of new communities that are

economically viable and environmental sound, through
housing delivery innovative urban land mechanisms and self-financing
arrangements;

process begin? (b) The renewal of urban communities or parts thereof,

In the global historical context, through housing and other urban improvement
projects”
the Marcos Era was within the
post-industrial era of new town ~Excerpts from PD1396
developments and urbanization
 ESTABLISHMENT OF KEY AGENCIES
THAT THE MARCOS ADMINISTRATION
FORESAW AS CRITICAL TO THE
HOUSING DELIVERY PROCESS

~Excerpts from PD1396

The Marcos administration saw the HUMAN SETTLEMENT

DEPARTMENT acting as a Government Owned and Controlled
Corporation in charge of maximizing settlement development
whether financially or otherwise.
Powers and Functions of the
Department. The Department shall
have the following powers and
functions which it shall undertake by
itself or through the corporations,
commissions and authorities which are
placed under its supervision.
INSTRUCTIONS
Each group is assigned to one comment box below. Discuss
with your group your own understanding of each provision and
then present to the class. For open discussion.
Submit a text version of not more than four (4) sentences of
your collective interpretation to your instructor for grading. Text
content for 10 points. Presentation and live discussion for
another 5 points

GROUP 1 GROUP 2 GROUP 3 GROUP 4

•(a) Promulgate national
standards and guidelines for
human settlements which shall
govern land use plans and
zoning ordinances of local
governments, civil works and
infrastructure programs and
projects of the National
Government, and subdivisions
or estate development projects
of both the public and private
sectors;
•(b) Promulgate national
standards and guidelines for
environmental management
relative to air quality, water
quality, land use and waste
management which shall govern
development programs and
projects and other activities in
settled communities, urban or
rural, as well as in those areas
immediately contiguous thereto
and develop an environmental
impact assessment system for
the operationalization of said
standards and guidelines;
•(c) In coordination with
appropriate agencies, effect a
single regulatory system relative
to subdivision, zoning (including
architectural design), building,
fire and related regulations;
•(d) Prepare and submit to the
Board of the National Economic
and Development Authority a
National multi-year Human
Settlements Plan which shall
translate the Philippine
Development Plan into spatial
and temporal terms, based on
the locational distribution of
national resource endowments
(including energy), population,
climate, and production
capacity;
~Excerpts from PD1396
GROUP 5 GROUP 6
•(e) Formulate plans and •(f) Promulgate appropriate
programs and implement, either rules and regulations which
on its own initiative and shall have regulatory force for
operational responsibility or the enforcement of its standards
through the agencies or and guidelines;
corporations placed under its
supervision, projects for; •(g) Enter into contracts, either
•i. Urban renewal and domestic or foreign, under such
development, including terms and conditions as it may
but not limited to the deem necessary and
construction and reasonable;
management of social and
economic housing •(h) Receive, take and hold by
•ii. Estate or New Town bequest, devise, gift, purchase
development within sites or lease, either absolutely or in
designated by the Office trust for any of its purposes from
of the President as foreign and domestic sources,
Bagong Lipunan sites. any asset, grant or property, real
•iii. Land assembly and or personal, subject to such
real property management limitations as are provided in
•iv. Development and existing laws and regulations;
installation on a and to convey such assets,
community scale of waste grants or property; invest and
management systems and reinvest the same under this
so appropriate provision and deal with an
technologies. expand its assets and income in
such manner as will best
promote its public welfare
objectives;
GROUP 7
•(i) Develop and maintain in
conjunction with cooperating
agencies a responsive and
effective information system
through the establishment of a
data bank to support the
department at various levels in
the planning, monitoring,
execution, coordination and
control of its various activities,
programs and/or projects;
•(j) Determine, fix and collect
reasonable amounts to be
charged as filing fees,
inspection fees and other
administrative or service fees
necessary for the effective
implementation of all the laws,
Presidential Decrees and other
legal issuances enforced by the
Department;
GROUP 8
•(k) Supervise all corporations
placed under the Department;
•(l) Call on any department,
bureau, office, agency or
instrumentality of the
government and private entities
and organizations for
cooperation and assistance in
the performance of its functions.
•(m) Adopt rules and regulations
for the transaction of its
business; and
•(n) Perform such other
activities which are necessary
for the effective performance of
the abovementioned functions
and objectives.
Under the premise that the Marcos government was corrupted,
the Cory Aquino Administration sought to revisit all the decrees
drafted and approved by the Marcos regime. By virtue of
Executive order 90, the HUDCC was enacted by law in direct
replacement of the MHS.
 COMPARE AND
CONTRAST
EXECUTIVE ORDER
90 with PD 1396

CORY AQUINO
REGIME

PD 1396 E.O. 90

MARCOS REGIME
 INSTRUCTIONS
Powers and With the same group assignments, discuss with your group the
comparisons between EO 90 and PD1396 and present to the
Functions of
class for open discussion. Only look for the clauses relevant to
the Council the clause assigned to your group for PD1396

Submit a text version of not more than four (4) sentences of

your collective interpretation to your instructor for grading. Text
content for 10 points. Presentation and live discussion for
another 5 points

a. To formulate national b. To determine the c. To monitor, review and d. To assist in the

objectives for housing participation and evaluate the effective maximum participation of
and urban development coordinate the activities exercise by these the private sector in all
and to design broad of the key government agencies of their aspects of housing and
strategies for the housing agencies in the assigned functions; urban development;
accomplishment of these national housing
objectives; program;
e. To recommend new f. To formulate the basic g. To exercise or perform
legislation and policies, guidelines and such other powers and
amendments to existing implementing functions as may be
laws as may be mechanisms for the deemed necessary,
necessary for the disposal or development proper or incidental to
attainment of of acquired or existing the attainment of its
government’s objectives assets of the key purpose and objectives.
in housing; housing agencies which
are not required for the
accomplishment of their
basic mandates;
a. National Housing c. Human
Authority Settlements
Regulatory
Commission
KEY AGENCIES
b. National Home d. Home Financing
Mortgage Finance Corporation
Corporation

a. Home c. Government
Development Mutual Service Insurance
Fund System
SUPPORT AGENCIES
b. Social Security
System The key most important contribution of Executive Order 90
is the establishment of the HDMF, now more commonly
known as PAG-IBIG Fund
 HUDCC
LINKAGES OF KEY GOVERNMENT AGENCIES/ PROGRAMS FOR HOUSING IN THE PHILIPPINES

Component Agencies

PRIVATE KEY SHELTER AGENCIES FUNDING/SECURITY

SECTOR AGENCIES (Insurance)
NHA
SHDA (Developer) •Housing Provider SSS
Subdivision and Private Sector
Housing Developers
Association HGC GSIS
•Home Financing Guarantor Government Sector
SHDP (NGO) •Housing Development Guarantor
Organization of
Socialized Housing
HDMF (Pag-IBIG)
Developers of the HLURB •Housing Welfare
Philippines •Housing Development Regulator •Member Capitalization

GOVERNMENT NHMFC
SUPPORT AGENCIES •Mortgage-Finance Corporation

DOF SHFC
For Socialized formal and informal settlers
DBM
CMP
NEDA For community mortgages

DBP Abot Kaya Pabahay Fund

MMDA

PMS
(Philippine Military Service)
 READINGS/ REFERENCES

Senate Economic Planning Office, “Housing Sector at a Glance” 2011

World Population Reviewhttp://worldpopulationreview.com/countries/the-

philippines-population/

John F. C. Turner and Robert Fichter, “The John Turner Archive: Freedom
to Build, Dweller Control of the Housing Process”, Collier Macmillan,
New York, 1972, Chapter 7

Colliers International, “Research and Forecast Report: Philippine Property

Market” 2011.

Bondoc, J.R., “ Shifting Orbits: The Rise of Satellite Communities” Colliers

International Philippines 29 June 2019

Ballesteros, M. “Housing policy for the poor:

revisiting UDHA and CISFA” PIDS Policy Notes ISSN 1656-5266 No. 2009-
04 (November 2009)