HOUSING AND THE DELIVERY

PROCESS

Introduction to Housing
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 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;

1. Money
2. Availability of land
Other issues hampering pro-poor land and housing programs:

• High transaction cost due to the confusing and unclear land use policies.
• Non-cooperation of land owners to engage in the Community Mortgage
Program (CMP).
• Misinterpretation and / or non-implementation of local government units
(LGUs).

Other problems pertaining to housing is the provision of land housing to internally

displaced persons (IDPs) due to natural hazards and armed conflicts.
Informal Housing

The magnitude of the housing need (defined as backlog plus new

households) is staggering and has been estimated to reach more than
3.7million 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 back log 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
problems.
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.
 HOUSING AND THE GOVERNMENT AND ITS
DELIVERY PROCESS / SYSTEM

Government Agencies Concerned with Housing

- Home Development Mutual Fund
The Home Development Mutual Fund (HDMF), popularly known
as Pag-Ibig Fund (Pagtutulungan sa Kinabukasan: Ikaw,
Bangko, Insdustriya at Gobyerno), was created by virtue of
Presidential Decree No. 1530 on June 11, 1978.
Housing and Urban Development Coordinating Council

Housing and Urban Development Coordination Council (HUDCC),

created thru executive order no. 90, is the highest policy 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 Regularity
Board (HLURB)
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.
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.
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 effort to
provide to homeless, low-income Filipino families.
* Over the years, the government has intervened in the housing
market through a variety of instrument

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.
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 1991”.

-BATAS PAMBANSA BLG. 220

“An act authorizing the ministry of human settlements to establish and
promulgate different levels if standards and technical requirements for
economic and socialized housing projects in urban and rural area from
those provide under presidential decrees numbered nine 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 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.
* Over the years, the government has intervened in the housing
market through a variety of instrument

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.
Resettlement Programs

-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.

-Resettlement Assistance Program for Local Government Units

NHA assist 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 LGUs primary contribution is
land while the NHA provides funds to cover cost of land development.
LGUs recover projects cost from beneficiaries and utilize proceeds
exclusively for projects maintenance or to acquire and/or develop new
resettlement sites.
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.
Medium Rise Housing Program

An in-city housing alternative that emails 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.
* Over the years, the government has intervened in the housing
market through a variety of instrument

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
Development Loan Program. The Home Insurance and Guarantee
Corporation insures development loans. Under the mortgage take out
scheme are the following:
- NHMFC’S Unified Home Lending Program (UHLP)
- HDMF’s Expanded Housing Load Program
• Home Insurance and Guaranty Corporation’s Retail Guaranty Program
• SSS and GSIS housing programs

The government provides private developers financing for large-scale

housing production under the following:

• Social Housing Development Loan

• HIGC’s Development Guaranty
• HDMF’s Group Land Acquisition Development
• SSS corporate housing program
 * Over the years, the government has intervened in the housing
market through a variety of instrument

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 alleys and basic services such as water and power.
Land tenure issue is resolved through sale of home lots to bonafide
occupants.
Sites and Services Programs

Entails acquisition and development of raw land into service home lots
to serve as alternative to informal settlement 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 Philippine Cities by Dr. Anna Marie Karaos and Gerald
Nicolas of the John J. Carroll Institute on Church and Social Issues)
Sites and Services Programs

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% of the urban population in Metro Manila live in slums,
25% 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 2066 covered 26,367 hectares, most of them in
Metro Manila and occupied by more than 195,000 informal settler families.
 The Despite having done little to halt the migration of people into cities,
both the local and national government 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.
 THE END

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