HISTORICAL REVIEW

History of Affordable Housing Development in the Philippines

Social Housing came into fruition in 1938 directed by the then president, Manual Quezon, resulting in the creation
of the People's Home site Corporation (PHC) as a subsidiary of the National Development Company (NDC); later,
in 1947, the PHC and the National Housing Corporation (NHC) were merged to form the People's Home site and
Housing Corporation (PHHC) (Ballesteros, 2002). In the 1950s, the Philippines witnessed significant housing
progress as ACT NO. 222, passed in 1948, authorized the government to guarantee up to fifty percent of potential
losses on loans for home construction from banks and credit institutions, complemented by initiatives such as slum
clearance, resettlement, and a mortgage insurance program encouraging favorable terms from private financial
entities. (Ballesteros, 2002). However, high demand and low housing supply created a shortage, driving up housing
prices; with minimum costs for P150 thousand units 3.8 times the yearly wages of unskilled laborers, exacerbated by
the high cost of land due to poor planning, infrastructure limitations, and weak land laws leading to delays in
converting agricultural to urban lands, alongside weak law enforcement causing issues like fake titling and property
rights disputes, ultimately increasing transaction costs in the long term (Ballesteros, 2001).
The 1940’s and 1950’s brought about further demand for housing, which was ongoing even before the onset of the
Second World War (Sencilla, 2023). At the turn of the sixties, the rapid urbanization of Manila after the war lead to a
surge of migration from rural areas to the urban areas in search of improved economic prospects (Sencilla, 2023).
By the 70’s, another era of housing progress ensued, with the Ministry of Human Settlements (MHS) running 9
shelter programs under one umbrella. The “Central Institute for the training and Relocation of Urban Squatters” was
established under the Executive Order No. 79 by the then president, which aimed to carry out devise solutions to the
problems of urban squatting and rehabilitation of urban squatters (The Official Gazette, 1967). By the 2000’s the
housing industry further evolved to accommodate the rapidly increasing population as a result of high levels of
urbanization and thereby urban migration (Aquino, 2011).
Safety in Housing Developments
Ensuring safety is a crucial aspect of affordable housing, and it is recognized by the United Nations as a key
component of the sustainable development goals related to community well-being. Concerns like habitability,
appropriateness, insufficient maintenance, structural flaws, and subpar craftsmanship collectively jeopardize the
safety of occupants. Emphasizing that the safety of a structure is directly linked to its overall quality is crucial
(Husin, et al., 2014). In an article by Husin, et. al (2014), a previous study by said authors in 2012 was cited wherein
it was stated that buildings constructed with inferior workmanship and substandard materials are susceptible to
deterioration and a lackluster appearance; inadequate maintenance can exacerbate the decline, ultimately classifying
these structures as unsafe due to their subpar construction. Among the many indicators of safety in housing is
physical quality, which refers to condition and maintenance of the housing unit, including factors such as the
presence of lead, mold, or asbestos, poor air quality, and overcrowding (Healthy People 2030, 2020).
In Malaysia, various studies have been made in regards to safety of affordable housing. Urbanization has increased
the rate of migration from rural to urban, raising the concerns of the people regarding the safety of their residences
that will affect their quality of life (Ali, et al., 2022). In the article by Husein, et al (2014), a previous article by Goh
and Amad in 2012 accentuated the criticism the Human Rights Commission of Malaysia made in 2003 against the
Malaysian Government for their failure in addressing the issues about the physical safety of occupants. In the same
article, other issues were cited including habitability, suitability, lack of maintenance, defects and shoddy
workmanship; safety features of a building are related to the quality of the building. To handle these issues, several
initiatives were designed and implemented in the country to ensure a concept of a safe city (Ristvej, et al., 2020).
Despite the enforcement of Construction Industry Standard 1 and Construction Industry Standard 2 in 1998,
Malaysians still face many safety problems in their affordable housings (Husin, et al., 2014).
In the Philippines, the poor face a significant housing challenge due to limited access to decent housing options.
With a shortage of suitable alternatives, many impoverished individuals resort to informal settlements, occupying
inadequate and often unsafe spaces such as bridges, riverbanks, and streets (Philippine Institute for Development
Studies, 2024). The increasing population and rising property prices create a heightened demand for housing, posing
challenges in finding cost-effective options for those in the lower income bracket; nevertheless, it is imperative to
ensure universal access to affordable, secure, and dignified housing (Richest Philippines, 2023). To address these
issues, organizations like Habitat for Humanity has been addressing housing challenges in the Philippines for over
26 years, striving to offer resilient and affordable homes, rebuild lives, and enhance resilience against calamities;
yet, further initiatives are essential to guarantee access to secure housing for all Filipino families, especially given
the country's expanding population, poverty rates, and susceptibility to disasters (Habitat for Humanity, 2017).
In Davao City, initiatives have been undertaken to offer secure and affordable housing for low-income households,
classifying them into various types ranging from informal to formal (Malasque, et al., 2016). The city has embraced
self-help provision and incremental construction methods, particularly focusing on the urban poor (Malague &
Bartsch, 2015). This approach is recognized as a key driver of progressive development in developing nations.
Additionally, the city has undergone an architectural evolution, transitioning from traditional tribal structures to
contemporary urban designs, symbolizing the city's cultural heritage and promising future (Kurby, 2023).

References
Ali, S. et al., 2022. Assessing Safety Level of Affordable Housing Based on Safe City Concepts. IOP
Conference Series: Earth and Environmental Science, 1064(2022).

Aquino, B., 2011. Philippine Development Plan, 2011-2016, s.l.: National Economic and Development
Authority.

Ballesteros, M., 2002. Reforming housing for the poor in the Philippines. [Online]
Available at: http://www.eastasiaforum.org/2010/03/27/reforming-housing-for-the-poor-in-the-
philippines/
[Accessed 23 January 2024].

Ballesteros, M., 2002. Rethinking Institutional Reforms in the Philippine Housing Sector. PIDS Discussion
Paper Series, 2002(16).

Ballesteros, M. M., 2001. The Dynamic of Housing Demand in the Philippines: Income and Lifecycle
Effects. PIDS Discussion Paper Series, 2001(15).

Habitat for Humanity, 2017. Housing poverty in the Philippines. [Online]

Available at: https://www.habitatforhumanity.org.uk/country/philippines/
[Accessed 25 January 2024].

Healthy People 2030, 2020. Quality of Housing. [Online]

Available at: https://health.gov/healthypeople/priority-areas/social-determinants-health/literature-
summaries/quality-housing
[Accessed 25 January 2024].

Husin, H., Nawawi, A., Ismail, F. & Khalil, N., 2012. Preliminary Survey of Integrated Safety Elements into
Post Occupancy Elevation for Malaysia’s Low Cost Housing. Procedia - Social and Behavioral Sciences,
36(2011), pp. 583-590.

Husin, H., Nawawi, A., Ismail, F. & Khalil, N., 2014. Correlation Analysis of Occupant’s Satisfaction and
Safety Performance Level in Low Cost Housing. Procedia - Social and Behavioral Sciences, 168(2015), pp.
238-248.

Malague, I. & Bartsch, K. S. P., 2015. Learning from informal settlements: provision and incremental
construction of housing for the urban poor in Davao City, Philippines. Living and Learning: Research for a
Better Built Environment: 49th International Conference of the Architectural Science Association , Issue
2015, pp. 163-172.
Malasque, I., Bartsch, K. & Scriver, P., 2016. Modelling the evolution of housing and socio-spatial
processesin low income settlements: case of Davao City, Philippines. 50th International Conference of
the Architectural Science Association, Issue 2016, pp. 89-98.

Philippine Institute for Development Studies, 2024. Housing. [Online]

Available at: https://serp-p.pids.gov.ph/feature/public/index-view?feauredtype_id=1&slug=housing
[Accessed 24 January 2024].

Richest Philippines, 2023. Philippine Affordable Housing: Challenges and Solutions. [Online]
Available at: https://richestph.com/philippines-affordable-housing-challenges-solutions/
[Accessed 24 January 2024].

Ristvej, J., Lacinak, M. & Ondrejka, R., 2020. On Smart City and Safe City Concepts. Mobile Networks
Applications, 25(2020), pp. 836-845.

Sencilla, K., 2023. Trends in Socialized Housing. [Online]

Available at: https://www.studocu.com/ph/document/national-university-philippines/architecture/
47091616-history-of-housing-development-in-the-phil/44557506
[Accessed 24 January 2024].

The Official Gazette, 1967. Executive Order No. 79, s. 1967. [Online]
Available at: https://www.officialgazette.gov.ph/1967/07/22/executive-order-no-79-s-1967/
[Accessed 24 January 2024].