Housing

1. INTRODUCTION TO HOUSINGINTRODUCTION TO HOUSING
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PRESENTED BY:
ALLONA ALEJANDRE, JEROME ALMENARIO, REYMALYN ALMENARIO
HOUSING
&
THE DELIVERY PROCESSES
HOUSING
&
THE DELIVERY PROCESSES

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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.
INTRODUCTION TO HOUSING

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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.”
INTRODUCTION TO HOUSING
Housing Problems / Social Issues
o Availability of land
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

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Other issues hampering pro-poor land and housing programs:
INTRODUCTION TO HOUSING
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 housing deficit is to be effectively
addressed. Beyond the provision of housing by the public
sector, new approaches 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.
INTRODUCTION TO HOUSING

7. The Home Development Mutual Fund (HDMF), 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.
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Government Agencies Concerned with Housing
HOUSING AND THE GOVERNMENT AND
ITS DELIVERY PROCESS/SYSTEM
o Home Development Mutual Fund

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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).
o Housing and Urban Development Coordinating Council

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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.
o Housing Guaranty Corporation

10. 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.
o Government Service Insurance System
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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.
o National Housing Authority

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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 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.

18. o NHA-Administered Resettlement Program
Resettlement Programs
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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 HDMF’s Expanded Housing Loan Program
Ø NHMFC’S Unified Home Lending Program (UHLP)

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Ø SSS and GSIS housing programs
Ø Home Insurance and Guaranty Corporation’s Retail
Guaranty Program
The government provides private developers financing for large-scale
housing production under the following:
Ø HIGC’s Development Guaranty
Ø Social Housing Development Loan
Ø SSS corporate housing program
Ø HDMF’s Group Land Acquisition Development

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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.

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