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HOUSING

Introduction to Housing

HOUSING
&
THE DELIVERY PROCESS

PRESENTED BY:

ALLONA ALEJANDRE, JEROME ALMENARIO, REYMALYN

ALMENARIO
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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.
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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 / Social Issues

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:

o Money
o Availability of land
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Other issues hampering pro-poor land and housing programs:

o high transaction costs due to the confusing and unclear

land use policies .
o non-cooperation of land owners to engage in the
Community Mortgage Program (CMP)
o misinterpretation and/or non-implementation of local
government units (LGUs)

Other problems pertaining to housing is the provision of

land and housing to internally displaced persons (IDPs)
due to natural hazards and armed conflicts.
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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 higher
density
housing strategy if the addressed. Beyond the sector, new
approaches housing deficit is to be effectively provision of
housing by the public are needed especially since rural-
urban migration is expected to continue and will exacerbate the
housing problem.
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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 large- scale squatter problem. The street
homeless have been regarded as a part of the squatter
homeless.
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HOUSING AND THE GOVERNMENT AND

ITS DELIVERY PROCESS/SYSTEM

Government Agencies Concerned with

Housing
o Home Development
The Home Mutual
Development FundFund (HDMF), popularly
Mutual
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.
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o Housing and Urban Development Coordinating Council

Housing and Urban Development Coordinating Council
(HUDCC), created thru Executive Order No. 90, is the highest
poicy making and coordinating office on shelter. 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).
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o Housing Guaranty Corporation

Processing of guaranty line application, interchangeably known
as guaranty facility, under RA No. 8763 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.
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o 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
insurance, retirement benefits, disability benefits for work-
related contingencies and death benefits.
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o 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.
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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.
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Examples of Laws and Regulations pertaining to Housing

REPUBLIC ACT NO. 7279
“AN ACT TO PROVIDE FOR A COMPREHENSIVE AND CONTINUING
URBAN DEVELOPMENT AND HOUSING PROGRAM, ESTABLISH THE
MECHANISM FOR ITS IMPLEMENTATION, AND FOR OTHER
PURPOSES.” Otherwise known as "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 FROM THOSE
PROVIDED UNDER PRESIDENTIAL DECREES NUMBERED NINE
HUNDRED FIFTY-SEVEN, TWELVE HUNDRED SIXTEEN, TEN HUNDRED
NINETY-SIX AND ELEVEN HUNDRED EIGHTY-FIVE”
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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”
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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”
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Tenurial Assistance
Community resources are mobilized for 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 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.
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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 posting performance bonds with
after
companies insurance
.procurement of
They are and supplies
materials responsible for of
to construction
everything
the housing units. Payment is made onfrom
turn-key basis.
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Resettlement Programs
o NHA-Administered Resettlement
Program
This involves 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 danger areas such as waterways, esteros and
railroad tracks.

o 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 joint undertaking between the LGU and NHA. The LGU's
primary contribution is land while the NHA provides funds to cover cost
of land development. LGUs recover project cost from beneficiaries and
utilize proceeds exclusively for project maintenance or to acquire
and/or develop new resettlement sites.
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Core Housing Programs

Entails acquisition and development of raw land as well as

construction of housing units. 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. Partners invest or contribute equity in the
project in terms of land or funds for land development and
house construction.
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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. On the other hand, the
Medium Rise Private Housing Program is implemented directly
by NHA or in joint venture with other government agencies
and/or the private sector.
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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. The Home Insurance and Guarantee Corporation insures
development loans. Under the mortgage take out scheme are the
following:

Ø NHMFC’S Unified Home Lending Program (UHLP)

Ø HDMF’s Expanded Housing Loan Program

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Ø Home Insurance and Guaranty Corporation’s Retail Guaranty

Program

Ø SSS and GSIS housing programs

The government provides private developers financing for large-scale

housing production under the following:

Ø Social Housing Development Loan Ø HIGC’s

Development Guaranty
Ø HDMF’s Group Land Acquisition Development
Ø SSS corporate housing program
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D. 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.

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.
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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.

Housing Delivery Performance Review

(From The State of Philipine Cities by Dr. Anna Marie Karaos
and Gerald Nicolas of the John J. Carroll Institute on Church and
Social Issues)
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The rapid increase in the urban population produces an enormous
demand for shelter and tenure security.
Slum areas are often blighted, overcrowded, and lacking
in standard conveniences such as electricity, water, drainage
and health services. While around 44 percent of the urban
population in Metro Manila live in slums, 25 percent are not
necessarily income- poor.

The rapid increase in the urban population produces an enormous

demand for shelter and tenure security. Housing assistance
programs extended by government institutions such as the Social
Security System (SSS) and Pag-IBIG also discriminate against
the poor, The Housing and Urban Development Coordinating
Council (HUDCC) reports that the 102 presidential issuances as
of 2006 covered 26,367 hectares, most of them in Metro
Manila and occupied by more than 195,000 informal settler
families.
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Despite having done little to halt the migration of people into cities,
both the local and national governments adopt squatter relocation
as a policy to curb the proliferation of illegal urban
poor settlements. The Urban Poor Associates (UPA), a non-
government organization monitoring eviction cases, reports that
from 1996 to June 2008, a total of 287 demolition cases have
rendered more than 85,000 families or more than 400,000 persons
homeless.

UPA also estimates that only half of the evicted families

receive relocation assistance. Relocation to sites far from their
sources of income has disrupted these families’ already meagre
cashflow, and the absence of viable livelihood opportunities in the
new sites is not easily remedied in the immediate term.