Housing Standards and Criteria

HOUSING STANDARDS
The Philippine housing industry believes that every Filipino family has the right to live
with dignity in the comfort of one’s own home regardless of economic status. It aims to
eliminate the housing backlog by the year 2030.
The Philippine housing sector has enormous potential for growth, as demand for living
spaces continue to increase. Through several industry-led initiatives, the sector hopes
to sustain its robust growth and development – at affordable prices for the Filipino
household.
Towards this vision, the industry’s objectives are:

1. Increase housing production capacity to sustain 12% annual volume growth
2. Implement a comprehensive government housing subsidy for targeted segments
3. Improve the regulatory environment for housing
4. Generate and mobilize funds for end-user financing
ABOUT HOUSING
The housing backlog is 3.9 million households. Assuming that production of housing
units would average 200,000 units every year from 2012 to 2030, the backlog would still
persist and hit 6.5 million households by 2030. The highest demand would come from
the economic housing segment, followed by socialized housing, and lastly by low-cost
housing.
The low-cost, socialized, and economic housing units account for a large share of
housing production. From 2010 to 2011, housing production in the high-end, mid-end,
and low-cost categories increased, while production of houses in economic and
socialized housing was relatively flat. From 2000 to 2011, economic, socialized, and
low-cost housing cornered close to 70% of total housing production. During this same
period, the socialized segment accounted for 27%, the economic segment accounted
for 29%, and low cost segment 13%.
As of 2011, there are 3,164 players in the housing industry. Despite the huge number of
firms engaged in housing, only a few firms dominate the industry. Most of these firms
are highly integrated developers that are engaged in various real estate developments
besides housing. Many other firms are into retail real estate, hotels, commercial office
buildings, and industrial estate development.
The Subdivision and Housing Developers’ Association (SHDA) is the largest
organization of housing developers in the Philippines, counting 160 members from its
chapters in Luzon, Visayas, and Mindanao. Other industry participants are members of
the Chamber of Real Estate and Builders’ Associations (CREBA), the Real Estate
Brokers Association of the Philippines, Inc. (REBAP), the Philippine Association of Real
Estate Brokers (PAREB), the National Real Estate Association of the Philippines
(NREA), and the the Organization of Socialized Housing Developers of the Philippines
(OSHDP).
FACTS AND FIGURES
Housing demand and supply profile, 2001-2011
Market Segment Housing demand Housing supply Surplus (Deficit)
Socialized Housing 1,143,048 479,765 (663,283)
Economic Housing 2,503,990 541,913 (1,962,077)
Low Cost Housing 704,406 242,246 (462,160)
Mid Cost Housing 72,592 322,995 250,403
High End Housing 18,235 242,246 224,011
Backlog: 3,087,520, excluding 832,046 households that can’t afford

New Housing Need, 2012-2030
Market Segment Price Range Units Needed % of TOTAL Need
Can’t Afford/Needs 400K & below 1,449,854 23%

Subsidy
Socialized Housing 400K & below 1,582,497 25%
Economic Housing 400K – 1.25M 2,588,897 42%
Low Cost Housing 1.25M – 3M 605,692 10%

Mid Cost Housing 3M – 6M No need
High End Housing > 6M No need
TOTAL Need 6,226,940
Total New Need Average: 345,941 housing units per year

Estimated Backlog by 2030*
Those who can’t afford 832,046
Backlog, as of 2011 3,087,520
Total Housing Backlog, as of 2011 3,919,566
New Housing Need, 2012-2030 (345,941 6,226,540

units/yr X 18 yrs.)
Housing Production Capacity (200,000 3,600,000

units/yr X 18 yrs.)
Backlog by 2030 6,546,106
*If no special housing program is created.
POLICIES
IPP 2014-2016
Economic and Low-Cost Housing (horizontal and vertical) (based on a price ceiling of
Php3.0 million and subject to geographical considerations) is among the preferred
activities listed in the IPP. This covers the development of economic and low-cost
housing and the manufacture of modular housing components.
a. Economic and Low-Cost Housing

The following are the qualifications for registration:
 The selling price of each housing unit shall be more than Php450,000.00 but not
exceeding Php3.0 million;
 Minimum of 20 livable dwelling units in a single site or building;
 Must be new or expanding economic/low-cost housing project;
 For vertical housing projects, at least 51% of the total floor area, excluding
common facilities and parking areas, must be devoted to housing units.
In cases of un-incorporated joint venture and similar arrangements between landowner

and developer wherein the sharing scheme is in terms of the number of lots or units
built, only the share of the developer may qualify for registration.
Projects that have already been completed and have incurred sales (booked sales) of
housing packages shall not qualify for registration.
Any of the following may be considered as an expansion project:
 Construction of additional floors or annexes intended for housing units;

 If the project will locate adjacent or contiguous to an existing housing project
owned by the same entity and shall share common facilities including access to
the existing project.
All economic/low-cost housing projects must comply with the following:
 Socialized housing requirement (SHR) by building socialized housing units in an

area equivalent to at least 20% of the total registered project area or total BOI
registered project cost for horizontal housing and 20% of the total floor area of
qualified saleable housing units for vertical housing projects.
This may be done through any of the following modes:
 Development of a new settlement directly undertaken by the registered entity;

 Development of a new settlement through joint venture arrangements with any of
the following:

1. Local Government Unit,
2. Affiliate or other related enterprise of the BOI-registered entity,
3. Developer accredited by the HLURB.
In the case of joint venture projects, the BOI registered entity shall be required to
provide proof of funds transferred to the implementing entity.
 Development of a new settlement through donation of land with basic

infrastructure facilities (roads, water system, etc.) and/or construction materials
intended for the calamity stricken areas as identified in the “Comprehensive
Rehabilitation and Recovery Plan of the Areas Battered by Yolanda” in
partnership either with any of the housing agencies, relevant LGUs, or with
HLURB accredited NGOs.
In lieu of the above modes for compliance with the SHR, vertical housing projects may
opt to donate provided: (1) the donation is made to BOI accredited NGO and (2) the
amount to be donated shall be equivalent to 30% of (20% of the building construction
cost based on the actual number or equivalent total floor area of qualified saleable low
cost housing units) or not less than 40% of the estimated ITH. Equivalent total floor area
refers to the sum total of the floor area of all the registered low-cost housing units.
 For purposes of ITH availment, compliance with the 20% socialized housing
requirement shall be computed based on the actual units sold during the ITH
availment period. Failure to submit proof of compliance shall result to forfeiture of
ITH for that particular taxable period.
 Non-compliance with the 20% SHR on previous registrations using the ITH-
based Compliance (IBC) shall result in denial of applications for registration for
succeeding projects.
 Project shall conform with the design standards set forth in the Rules and
Regulations to Implement B.P. No. 220/P.D. No. 957 and other related laws.
Eligible projects in NCR, Metro Cebu, and Metro Davao may only be granted three (3)
years ITH unless the SHR compliance of the said projects would be undertaken in any
of the identified calamity-stricken areas in the “Comprehensive Rehabilitation and
Recovery Plan of the Areas Battered by Yolanda”. In such cases, said projects may be
eligible to four years of ITH.
Interest income arising from in-house financing shall not be entitled to ITH.
Application for registration must be accompanied by a copy of the Development Permit

issued by HLURB or concerned LGU.
Prior to registration, horizontal housing project applicant must submit copies of License
to Sell (LTS) and Certificate of Registration (CoR) issued by HLURB. For vertical
housing project, applicant may submit a copy of its temporary LTS provided that the
copies of the final LTS and CoR shall be submitted prior to start of commercial
operation.
b. Modular Housing Components
This covers the manufacture of modular housing components preferably using

indigenous materials. These include roof/framing systems, wall/partition systems,
flooring systems, door/window systems, and finishing/ceiling systems.
Application for registration must be accompanied by an endorsement from Accreditation

of Innovative Technologies for Housing (AITECH).
CRITERIA
Site Criteria (Sec. 5, BP 220)
1. Availability of Basic Needs (Water, Movementand Circulation, Storm Drainage, Solid
and Liquid Waste Disposal, Parks/Playground, Power)
2. Conformity with Zoning Ordinances/ City or Municipality Land Use Plan
3. Physical Suitability
4. Accessibility
SITE SELECTION CRITERIA
LOCATION
– With consideration of both the regional and local context
– Housing projects shall be within suitable sites for housing and outside potential hazard
prone and protection areas
ACCESSIBILITY FROM MAJOR TRANSPORTATION FACILITIES
– Site shall have an existing legal road right of way from a major thoroughfare
ZONING AND LAND USE CLASSIFICATION
– Classification shall be Residential as defined under approved CLUP
TOPOGRAPHY AND SOIL CHARACTERISTICS
– Must be relatively flat (or filling requirement for rolling terrain shall not exceed max
cost)
– Slopes should not exceed 15% max gradient. For high density, slope should be below
5%.
– Soil characteristics must conform to the suitability standards for construction by DENR
through its Bureau of Mines and Geo-Sciences
WATER SUPPLY FACILITIES
– Source of potable water should be established whether from local water company,
from the ground, or other alternative source
POWER SUPPLY FACILITIES
– Presence of power utility company that will serve the needs of new community
DRAINAGE
– Natural waterways and outfalls shall be established on ground
SITE PLANNING PRINCIPLES
 Clustering of houses to mitigate wind impact
 Specify standards of settlements for upland, coastal, lowland areas both for site
development and vertical development
 Look into best practices from other countries on resiliency and climate change
adaptation
REFERENCE
 http://creba.ph/pdf/NHA_Regala.pdf
 https://essc.org.ph/content/wpcontent/uploads/2014/04/Day2Session3A_REGAL
A_NHA_Standards-for-Housing-Design-Construction.pdf
 http://industry.gov.ph/industry/housing/

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HOUSING STANDARDS

Towards this vision, the industry’s objectives are:

Socialized Housing 1,143,048 479,765 (663,283)

Economic Housing 2,503,990 541,913 (1,962,077)

Low Cost Housing 704,406 242,246 (462,160)

Mid Cost Housing 72,592 322,995 250,403

High End Housing 18,235 242,246 224,011

Backlog: 3,087,520, excluding 832,046 households that can’t afford

Can’t Afford/Needs 400K & below 1,449,854 23%

Socialized Housing 400K & below 1,582,497 25%

Economic Housing 400K – 1.25M 2,588,897 42%

Low Cost Housing 1.25M – 3M 605,692 10%

High End Housing > 6M No need

TOTAL Need 6,226,940

Total New Need Average: 345,941 housing units per year

Those who can’t afford 832,046

Backlog, as of 2011 3,087,520

Total Housing Backlog, as of 2011 3,919,566

New Housing Need, 2012-2030 (345,941 6,226,540

Housing Production Capacity (200,000 3,600,000

Backlog by 2030 6,546,106

*If no special housing program is created.

a. Economic and Low-Cost Housing

In cases of un-incorporated joint venture and similar arrangements between landowner

Any of the following may be considered as an expansion project:

 Construction of additional floors or annexes intended for housing units;

All economic/low-cost housing projects must comply with the following:

 Socialized housing requirement (SHR) by building socialized housing units in an

This may be done through any of the following modes:

 Development of a new settlement directly undertaken by the registered entity;

 Development of a new settlement through donation of land with basic

Application for registration must be accompanied by a copy of the Development Permit

b. Modular Housing Components

This covers the manufacture of modular housing components preferably using

Application for registration must be accompanied by an endorsement from Accreditation

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