Introduction to Housing

What is Housing?

 Buildings or structures that individuals

and their family may live in that meet
certain federal regulations. Different
housing situations vary for individuals
and may depend on age, family and
geography.
Housing in the Philippines

“Characterized by the emergence of

a continuing demand for affordable
housing units in response to
increasing population and
household size, both in urban an
rural areas.”
 Housing Problems
The Philippines is beset with a huge
backlog in providing for land security
and housing for the poor. Two basic
problems being faced by the
government in realizing a successful
housing program are:
Money
Availability of Land
 Informal Housing
The magnitude of the housing need
(defined as backlog plus new households) is
staggering and has been estimated to reach
more than 3.7 million in 2010. In Metro
Manila alone, the total backlog (to include
new households) has been projected to
reach close to 500,000 units.Addressing this
backlog will roughly require about 3,000
hectares of land if designed to
accommodate detached housing units, a
prospect that suggests the need for a
 Homeless
 In cities of industrial countries, the numbers of
homeless people have increased and their existence
has become a social problem since the 1980s. In
cities of developing countries, the numbers of street
homeless who cannot live even in squatter areas
have increased since the end of the 1990s. These
people face serious problems in surviving on the
streets. They are an urban minority deprived of
human rights and excluded from society. However,
the problem of the street homeless has not yet been
constructed as a social problem in developing
countries because it is overwhelmed by the
 Housing and the Government and Its
Delivery Process
Government Agencies Concerned with Housing
Home Development Mutual Fund (HMDF)
 Popularly known as Pag-IBIG Fund (Pagtutulungan sa
Kinabukasan: Ikaw, Bangko, Industriya at Gobyerno), was
created by virtue of Presidential Decree No. 1530 on
June 11, 1978.
Housing and Urban Development Coordinating
Council
It is an umbrella organization which consists of heads
of four housing agencies such as: National Housing
Authority (NHA), Home Guaranty Corporation(HGC),
National Home Mortgage Finance Corporation (NHMFC),
and Housing and Land Use Regulatory Board (HLURB).
 Housing Guaranty Corporation
 Involves the determination of the eligibility of a financial institution
for the guaranty and incentives provided under the law. The
Guaranty line extended to the financial institution by the HGC, is a
facility whereby the housing-related loans and financial transactions
may be enrolled for guaranty coverage.
Government Service Insurance System
The Government Service Insurance System (Filipino: Paseguruhan ng
mga Naglilingkod sa Pamahalaan, GSIS) of the Republic of the
Philippines, created by Commonwealth Act No. 186 passed on
November 14, 1936, is mandated to provide and administer the
following social security benefits for government employees:
compulsory life insurance, optional life nsurance, retirement benefits,
disability benefits for workrelated contingencies and death benefits.
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 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

 Republic Act No. 7279- Urban Development and Housing

Act of 1992
 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.
 Presidential Decree No. 957- Regulating the sale of
subdivision lots and condominiums, providing penalties
for violations thereof.
 Republic Act No. 6552- An act to provide protection to
buyer of real estate on installment payments
 Republic Act No. 4726- The condominium act.
 Republic Act no. 9653- Rent Control Act of 2009
 Presidential Decree No. 1517- Urban Land Reform Act

 B. 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 procurement of
materials and supplies to construction of the housing
units. Payment is made on turn-key basis.
 Core Housing Programs
 The Program provides service lots with core housing
designed to match the affordability of target market
consisting mostly of low-salaried government and
private sector employees. Under this program, projects
are implemented under joint venture arrangement with
private sector or LGUs.
Medium Rise Housing Program
An in-city housing alternative that entails the
construction of three- to five-storey buildings. The
Medium Rise Public Housing Program is implemented
directly by NHA, utilizing the allocation for the Program
under RA 7835 and units are made available under lease
arrangement.
 C. 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.
 D. Provision of Infrastracture
 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.

Slum Upgrading Programs

Entails acquisition and on-site improvement of occupied lands
through introduction of roads or alleys and basic services such as
water and power. Land tenure issue is resolved through sale of
homelots to bonafide occupants.
Site 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.