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 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:
 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 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.
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 it’s
delivery Process/System
Governent 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, Industriya 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 Coordinating 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 Regulatory 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
(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 (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.

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”

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.

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 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.
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 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.
 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:

• 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
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

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 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 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.