ARCHT 13

HOUSING
AND
DELIVERY PROCESSES
By: Liezle Aynaga & Edgar Samillano
HOUSING
• Dwellings for individuals and their family that meet certain
federal regulations. Different housing situations vary for
individuals and may depend on age, family and geography.
HOUSING IN THE PHILIPPINES
• Less than 1/3 of the Philippines can afford proper shelter with 3.1 informal settlers in Metro Manila. Factors
affecting housing include financing, government policies, institutional subsidies, and Filipino culture.

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 money and availability of Land
• Other issues hampering housing programs are High transaction costs 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 and housing to internally displaced persons (IDPs) due to natural hazards and armed conflicts.
 Informal Housing
• Informal housing or informal settlement can include any form of housing, shelter, or settlement (or
lack thereof) which is illegal, falls outside of government control or regulation, or is not afforded
protection by the state.

• In 2010, The housing need in Metro Manila is estimated to be over 3.7 million, with a backlog of
500,000 units. Addressing this requires 3,000 hectares of land, requiring a higher density housing
strategy. New approaches are needed due to ongoing rural-urban migration as expected to continue
and will exacerbate the housing problem.
 Homeless

• Since the 1980s, the number of homeless people in industrial

countries has grown, becoming a social problem. In developing
countries, street homeless have increased since the 1990s, facing
severe challenges and being a minority. However, this issue has not
been considered a social issue in developing countries because it
is overwhelmed by the large-scale squatter problem.
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.
 LEGAL BASIS PERTAINING HOUSING PROGRAM
• Executive Order No. 90 (December 17, 1986)
• created the Housing and Urban Development Coordinating Council (HUDCC).
• Republic Act No. 7279 (March 24, 1992)
• mandated HUDCC through the key shelter agencies to formulate a national Urban Development & Housing (UDH) framework
and to report on its implementation.
• Republic Act No. 7835 (December 16, 1992),
• or the Comprehensive and Integrated Shelter Finance Act, empowered HUDCC to determine the loanable amounts for
socialized/low-cost housing limit eligible for development financing.
• Executive Order No. 153 (December 10, 2002)
• directed HUDCC to take the lead in the identification, curtailment, and monitoring of
professional squatters and squatting syndicates.
• Memorandum Order No. 102 (s.2003)
• mandated HUDCC to oversee and fast track through appropriate project schemes and
contractual arrangements the implementation and development of housing projects in
areas proclaimed as housing sites.
• Executive Order No. 577 (November 17, 2006)
• placed the Urban Asset Reform Project Management Office (UARPMO) under the
supervision and control of the HUDCC.
HOUSING AFFORDABILITY AND DELIVERY

• A significant part of the problem plaguing the housing sector in the country is
the lack of affordability. The fundamental solution to this problem is again
rooted in economic growth, which provides employment and income to
households, which can then increase affordability levels. In the short to
medium term, increasing the availability of housing credit and financial
resources and lowering the cost of land and housing production can make a
significant difference.
HOUSE CATEGORIES UNDER HOUSING AND URBAN DEVELOPMENT AND COORDINATING COUNCIL
(HUDCC) AS PER MEMORANDUM CIRCULAR NO. 04 SERIES OF 2006

SOCIALIZED HOUSING
• Price Range : P 300,000 or lower Lot Area : 30 sqm to 50 sqm , Floor Area : 18 sqm to 30 sqm
• These are the lowest priced housing units in the category. Typically, the houses are row type with no amenities. The roads
are narrow, and in many cases, no sidewalks.

LOW COST LEVEL 1

• Price Range : From P 300,000 To P 1,250,000 Lot Area : 50 sqm to 100 sqm Floor Area : 35 sqm to 55 sqm
• Houses are usually bare or box type with only one toilet and bath, and the home interiors are left for the buyer to improve.
Sometimes the community would have a few amenities.
LOW COST LEVEL 2
• Price Range : From P 1,250,000 to P 3,000,000 Lot Area : 100 sqm to 150 sqm Floor Area : 80 sqm to 120 sqm
• The houses in this category are finished type with a minimum of 2 bedrooms. You will usually find a swimming pool or
clubhouse as standard amenities for this type of community.

MEDIUM COST
• Price Range : From P 3,000,000 to P 4,000,000 Lot Area : minimum of 100 sqm Floor Area : minimum of 70 sqm
• This type of project has improved amenities like guard house, entrance gate perimeter fence, club house and play
courts plus the usual swimming pool. Houses are of much better quality than the previous categories.
OPEN MARKET
• Price Range : From P 4,000,000 and above
• This development is sometimes referred to as High-end. It has all the amenities in the MEDIUM COST project and even
better ones. The buyers in this category are mostly educated, have money and know what they are buying. In many
cases, the buyers are the ones who hire their own architects to design the house according to their preferences.
GOVERNMENT HOUSING STRATEGIES
• The National Shelter Program (NSP) represents the Philippine action agenda for housing. It is a comprehensive
strategy of the government to assist homeless low- and middle-income families in meeting their housing
needs through affordable housing opportunities. Under the NSP are five major schemes categorized under two
main groups:
• Direct Housing which includes:
• (i) housing production; (ii) community programs; (iii) developmental loans;

• and Indirect Housing, which is composed of:

• (iv) home mortgages and ;(v) guarantees.

• In this regard, Executive Order (EO) 90, series of 1986 outlines the mandates of the government agencies
involved in the delivery of the NSP and recognizes the need to engage the private sector in housing delivery
and finance.
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.
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.
HOUSING AND THE GOVERNMENT AND
ITS DELIVERY SYTEM
• 1. National Housing Authority (NHA), in charge of social housing production specifically upgrading of sites and services
• 2. Human Settlements Development Corporation (HSDC), also into shelter production and New Town and Estate developments
• 3. National Housing Commission (NHC), supports the HSDC and NHA in shelter production
• 4. Human Settlements Regulatory Commission (HSRC), regulates subdivision development and socialized housing construction
• 5. Together, are the National Pollution Control Commission (NPCC) and the National Environmental Planning Council (NEPC)
• 6. Housing Finance Corporation (HFC), provides mortgage insurance or guarantees to encourage private banks and financial
institutions to grant housing loans on easy terms of payment
• 7. National Home Mortgage Finance Corporation (NHMFC), acted as a secondary market for housing mortgages
• 8. Home Development Mutual Fund (HDMF), a provident savings fund maturing after 20 years
 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:

• NHMFC’S Unified Home Lending Program (UHLP) , HDMF’s Expanded Housing Loan Program, Home Insurance and
Guaranty Corporation’s Retail Guaranty Program, SSS and GSIS housing programs
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.

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.
 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.

• 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
ADDITIONAL PROGRAM

Provision of Other 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.
THE END
 1. Which of the following statement is true
about Housing in the Philippines?
A. It is a dwelling for individuals and their family.

B. Different housing situations vary for individuals and may depend on age, family
and geography.

C. Housing has federal regulations.

D. All of the Above

 2. Which of the following Legal Bases Pertaining Housing Program
mandated HUDCC through the key shelter agencies to formulate a
national Urban Development & Housing (UDH) framework and to
report on its implementation?

A. Republic Act No. 7279

B. Memorandum Order No. 102

C. Executive Order No. 90

D. Republic Act No. 7835

 3. Which of the following Legal Bases Pertaining
Housing Program created the Housing and Urban
Development Coordinating Council (HUDCC)?

A. Republic Act No. 7279

B. Memorandum Order No. 102

C. Executive Order No. 90

D. Republic Act No. 7835

 4. What are the two (2) basic problems being faced
by the government in realizing a successful
housing program?

A. Water system and availability of Land

B. money and availability of Land

C. Money only

D. Money and Water

 5. What Government Strategies for housing that
include: community programs, developmental
loans, housing production?

A. Open Market

B. Indirect Housing

C. Socialized Housing

D. Direct Housing
 6. What Government Strategies for housing that
include: home mortgages and, guarantees?

A. Open Market

B. Indirect Housing

C. Socialized Housing

D. Direct Housing
 7. Which of the following housing categories where houses
are usually bare or box type with only one toilet and bath, and
the home interiors are left for the buyer to improve?

A. Low cost level 1

B. Low cost level 2

C. Socialized Housing

D. Medium cost
 8. Which of the following housing categories where the
houses are row type with no amenities. The roads are
narrow, and in many cases, no sidewalks?

A. Low cost level 1

B. Low cost level 2

C. Socialized Housing

D. Medium cost
9. Which of the following housing categories where this type of
project has improved amenities like guard house, entrance gate
perimeter fence, club house and play courts plus the usual
swimming pool. Houses are of much better quality than the
previous categories?

A. Low cost level 1

B. Low cost level 2

C. Socialized Housing

D. Medium cost
 10. Which of the following housing categories where the houses in
this category are finished type with a minimum of 2 bedrooms. You
will usually find a swimming pool or clubhouse as standard
amenities for this type of community?

A. Low cost level 1

B. Low cost level 2

C. Socialized Housing

D. Medium cost
11. What does NHA stand for?
A. National Housing Authority

B. National Household Authority

C. National House Authority

D. National Housing Agency

 12. Which of the following regulates subdivision
development and socialized housing construction?

A. Human Settlements Development Corporation

B. National Housing Commission

C. Human Settlements Regulatory Commission

D. National Housing Authority

 13. Which of the following is in charge of social
housing production specifically upgrading of sites
and services ?

A. Human Settlements Development Corporation

B. National Housing Commission

C. Human Settlements Regulatory Commission

D. National Housing Authority

 14. Which of the following supports the
HSDC and NHA in shelter production ?
A. Human Settlements Development Corporation

B. National Housing Commission

C. Human Settlements Regulatory Commission

D. National Housing Authority

 15. Which of the following is also into shelter
production and New Town and Estate
developments?

A. Human Settlements Development Corporation

B. National Housing Commission

C. Human Settlements Regulatory Commission

D. National Housing Authority

 ANSWER KEY

1. D 9. D
2. A 10.B
3. C 11.A
4. B 12.C
5. D 13.D
6. B 14.B
7. A 15.A
8. C
 SOURCES

• Introduction to Housing: Housing And Delivery Processes - [PPTX Powerpoint]

(documents.pub)