AR 551 - HOUSING
reporting
According to the Department of Human Settlements and Urban
Development (DHSUD), the housing backlog is estimated at 6.5
million homes.
From 2021 to June 2022, the DHSUD reportedly produced 294,142
housing units.
This number is actually what was reflected in 2030 projections shared
by the Board of Investments, assuming that production of housing
units would average 200,000 units every year from 2012 to 2030.
In a previous finance committee hearing at the Senate, DHSUD
Assistant Secretary Avelino Tolentino III said that if housing
production continues “business as usual,” the backlog might end up
rising to 10.9 million by the end of the current administration.
Recognizing such alarming occurrences, a new housing production
target has been set for the next six years.
Under the “Pambansang Pabahay Para sa Pilipino” program, DHSUD
is given a directive to work towards clearing up the backlog by
building one million houses, particularly affordable and accessible
ones in selected areas every year, until the President completes his
term.
As BusinessWorld reported about the announcement of this program
last October, the housing program will require P1 trillion to realize at
a cost of P1 million per home, which will need to be subsidized.
What is community development?
• is the planned evolution of all aspects of community well- being
(economic, social, environmental and cultural).
• means that a community itself engages in a process aimed at
improving the social, economic and environmental situation of
the community.
FACTORS THAT AFFECT COMMUNITY DEVELOPMENT:
1. Natural Resources
– Land, air, water
– Minerals and surface/subsurface metals and ores
– Oil, gas, and petroleum
– Trees and other plants
– Wildlife
– The standards, legislation, and policies relating to the above
2. Human Resources
– Healthy families and lifestyles
– Skills building, education, and training
– Career planning and employment
– Effective and legal hiring practices
– Workers' compensation and pensions
– Human rights and labor law
3. Financial Resources
– Fundraising and grant-seeking
– Banks and other financial institutions
– Community loan funds and lending circles
– Access to capital and investment funding
– Government loans and program funds
– Cooperatives and other forms of investment
– Policies and guidelines related to finance lending and
4. Infrastructure Resources
– Physical buildings and structures
– Transportation and access
– Communication systems
– Electrical, hydro, sewage, garbage and heating
PEOPLE ENCOUNTER THESE PROBLEMS IN DEVELOPING COUNTRIES:
• Social justice
• Low-income generating
• Limited access to medical health services
• Lack of food security
• Land grabbing from the high-ranking official or billionaire
tycoons in the society
Policy Implications Republic Act 7279
"Urban Development And Housing Act Of 1992"
An appropriate piece of legislation
It provides for the implementation of a "comprehensive and
continuing" urban development and housing program
The aims of which are 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" and;
"adopt workable policies to regulate and direct urban growth and
expansion towards a dispersed urban net and more balanced urban-
rural interdependence"
HOWEVER, Community empowerment and livelihood programs are
clearly not central strategies as envisioned by the law, which
expectedly focused on the following ideas:
a. land use, inventory, acquisition, and disposition
b. socialized housing procedures
c. resettlement
d. the community mortgage program
e. program implementation
f. funding
National Housing Authority
The National Housing Authority (NHA), established by virtue of
Presidential Decree No. 757 dated July 31, 1975, is a government-
owned and controlled corporation operating under the policy and
administrative supervision of the Housing and Urban Development
Coordinating Council (HUDCC).
The NHA is mandated by Executive Order No. 90 as the sole
government agency to engage in shelter production, focusing its
efforts to provide to homeless, low-income Filipino families.
Over the years, the government has intervened in the housing
market through a variety of instruments:
A. Regulation, including rent control
Government intervenes through the regulation of land use and land
tenure. Private developers intending to develop raw lands for housing
must secure the necessary permits and clearances from the Housing
and Land Use Regulatory Board and the local governments
concerned.
A bidding process determines the private developer that would be
allowed to develop government-owned raw lands for housing. Many
local government units still have to issue their respective local land
use policies and regulation that will guide the utilization of lands
within their territorial responsibility. The absence of a National Land
Use Code has been a major reason for the inconsistent land utilization
policies at the local level.
LAWS AND REGULATIONS PERTAINING TO HOUSING:
Batas Pambansa Blg. 220
"An act authorizing the ministry of human settlements to establish
and promulgate different levels of standards and technical
requirements for economic and socialized housing projects in urban
and rural areas from those provided under presidential decrees
numbered nine hundred fifty-seven, twelve hundred sixteen, ten
hundred ninety-six and eleven hundred eighty-five"
Presidential Decree No. 957
"Subdivision and condominium buyer's protective decree" as
amended by pd 1216 - regulating the sale of subdivision lots and
condominiums, providing penalties for violations thereof.
Republic Act No. 4726
"An act to define condominium, establish requirements for its
creation, and govern its incidents." otherwise known as "the
condominium act"
Republic Act No. 6552
"An act to provide protection to buyer of real estate on installment
payments" otherwise known as "realty installment buyer protection
act".
Republic Act No. 9653
"An act establishing reforms in the regulation of rent of certain
residential units, providing the mechanisms therefor and for other
purposes." otherwise known as the "rent control act of 2009".
Presidential Decree No. 1517
"Proclaiming urban land reform in the philippines and providing for
the implementing machinery thereof" otherwise known as the
"urban land reform act".
TENURIAL ASSISTANCE
Community resources are mobilized for the resolution of land tenure
issues and/or site development through the Land Tenure Assistance
Program (LTAP), Community Mortgage Program (CMP), and
Community Land Acquisition Support Program (CLASP). Under LTAP,
the NHA extends credit assistance to Community Associations for the
acquisition of land they occupy or intend to be resettled.
Under other community-based approaches, the NHA acts as a conduit
between community associations/ cooperatives and financing
institutions such as the National Home Mortgage Finance
Corporation (NHMFC), Home Development Mutual Fund (HDMF OR
Pag-IBIG Fund) and other government and non-government
institutions.
PRODUCTION OF HOUSING UNITS
The National Housing Authority and the Home Insurance and
Guarantee Corporation operate joint venture programs with the
private sector. In general, private builders construct housing units
after posting performance bonds with insurance companies.
They are responsible for everything from the procurement of
materials and supplies to the construction of the housing units.
Payment is made on a turn-key basis.
RESETTLEMENTS PROGRAMS
Targeting Informal Settler Families (ISFs), the NHA implements the
RP through different modalities classified as either by method or by
location. Under the by-method modality are three approaches:
a) Completed Housing Resettlement Projects or Developer-
Constructed projects;
b) Home Material Loan Project or Incremental Housing Project;
c) the Local Government Unit (LGU)-NHA joint venture scheme or
RAP-LGU.
Meanwhile, by location RP is classified as either:
a) In-City wherein the resettlement site is within the same LGU, or
b) Off-City where settlements are located outside the
administrative boundaries of the LGU. In addition, resettlement
by location may involve either completed housing or
incremental housing strategies or both.
A recent initiative under the RP is the five-year (2011-2016) 50 billion
Oplan Likas (Lumikas para Iwas Kalamidad At Sakit) housing program
for the relocation of around 104,000 ISFs residing along danger areas
in Metro Manila.
a. Nha-administered resettlement program
This involves the acquisition and development of large tracts of
raw land to generate service lots or core housing units for
families displaced from sites earmarked for government
infrastructure projects and those occupying dangerous areas
such as waterways, esteros and railroad tracks.
b. Resettlement assistance program for local government units
NHA assists in the development of resettlement sites by LGUs
under its Resettlement Assistance Program for LGUs. This is
implemented as a joint undertaking between the LGU and NHA.
The LGU's primary contribution is land while the NHA provides
funds to cover the cost of land development. LGUs recover
project costs from beneficiaries and utilize proceeds exclusively
for project maintenance or to acquire and/or develop new
resettlement sites.
CORE HOUSING PROGRAM
Entails the acquisition and development of raw land as well as the
construction of housing units. The Program provides service lots with
core housing designed to match the affordability of the target market
consisting mostly of low-salaried government and private sector
employees.
Under this program, projects are implemented under joint venture
arrangements with the private sector or LGUs. Partners invest or
contribute equity in the project in terms of land or funds for land
development and house construction.
FINANCE
The government provides development loans, mortgage take outs,
guarantee and tax breaks to private developers and builders who
participate in the National Shelter Program. Development loans for
socialized and economic housing are given at subsidized rates of
interest.
The Community Mortgage Program charges a subsidized rate of 6%
per year while developers of low-cost housing pay interest rates
ranging from 9.5% to 16% under the Abot Kaya Pabahay and the
Social Housing Developmental Loan Program. The Home Insurance
and Guarantee Corporation insures development loans. Under the
mortgage take-out scheme are the following:
a) NHMFC'S Unified Home Lending Program (UHLP)
b) HDMF's Expanded Housing Loan Program
Home Development Mutual Fund (HDMF)
(RA 9679 - enacted through "An Act Further Strengthening the Home
Development Mutual Fund, and for other Purposes")
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.
a) Home Insurance and Guaranty Corporation's Retail Guaranty
Program
b) SSS and GSIS housing programs
The government provides private developers financing for large-scale
housing production under the following:
a) Social Housing Development Loan
b) HIGC's Development Guaranty
c) HDMF's Group Land Acquisition Development
d) SSS corporate housing program
PROVISION OF INFRASTRUCTURE
The government builds the primary infrastructure. Secondary
infrastructure such as on-site water supply, sewerage and power lines
are for the responsibility of the private developers. The developers
may build the housing units or contract private construction
companies to produce the units. On the other hand, homeowners or
communities may be involved in the development of sites and
services in community development programs.
Slums Upgrading Programs
Entails acquisition and on-site improvement of occupied lands
through the introduction of roads or alleys and basic services such as
water and power. The land tenure issue is resolved through the sale
of homelots to bonafide occupants.
Sites And Services Programs
Entails acquisition and development of raw land into service home
lots to serve as alternative to informal settlements as well as
catchment areas for immigration and population growth.
This approach is adopted in urban centers where population growth
and overspill is anticipated and where beneficiaries intend to acquire
housing on incremental basis.
DEPARTMENT OF HUMAN SETTLEMENTS AND URBAN
DEVELOPMENT (DHSUD)
The primary government agency responsible for the management of
housing, human settlement, and urban development. It was created
on February 14, 2019 by virtue of Republic Act 11201.
The Department is the sole and main planning and policy-making,
regulatory, program coordination, and performance monitoring
entity for all housing, human settlement, and urban development
concerns, primarily focusing on the access to and affordability of basic
human needs.
The DHSUD also exercises oversight functions on its attached
agencies or key shelter agencies –
1) National Housing Authority, which acts as the country’s primary
shelter production arm;
2) Home Development Mutual Fund or Pag-IBIG Fund, which
focuses on national savings program and affordable shelter
financing for Filipino workers;
3) Social Housing Finance Corporation, which undertakes social
housing programs catering to the formal and informal settlers
belonging to the low-income bracket; and
4) National Home Mortgage Finance Corporation, which ensures
the availability of affordable housing loans to finance
homebuyers through the secondary market for home
mortgages.
Three (3) bureaus of DHSUD
1) Environmental, Land Use, and Urban Planning and Development
Bureau
2) Housing and Real Estate Development Regulation Bureau
3) Homeowners Association and Community Development Bureau
The Department’s operations are complemented by one technical
service, the Public Housing and Human Settlements Service, and
seven support services.
It also has 16 regional offices strategically located around the country
to cater to the needs of the localities.