HOUSING & THE DELIVERY PROCESS

ARS 505 | HOUSING

COLLEGE OF ENGINEERING AND ARCHITECTURE
DEPARTMENT OF ARCHITECTURE
 HOUSING
- It refers to the activity or a process of residing as well
as to the objects of dwellings and their environment.
- The main attributes of housing as a dwelling are its physical
structure, location (determining access to livelihood), tenure
arrangements, and cost. Housing is a physical as well as a social
structure, functioning at different spatial scales (homes,
neighborhoods, cities and other settlements, regions, and
countries).
- It is also a sector of the economy and an important category of
land use in cities and in other settlements. Linkages with the
national economy and with the overall urban system are an
integral part of the understanding of the concept of housing.
(LOCAL SHELTER PLANNING MANUAL, 2016)
The 1987 Constitution of the Philippines Mandate On
Housing

-[to] undertake, in cooperation with the private

sector, a continuing program of urban land
reform and housing which will make available,
at affordable cost, decent housing and basic
services to underprivileged and homeless
citizens in urban centers and resettlement
areas.
ARS 505 BSARCH ISAT U
 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:

o Money
o Availability of land
Other issues hampering pro-poor land and housing programs:

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.
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 addressed. Beyond the sector, new
approaches housing deficit is to be effectively provision of
housing by the public 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
ITS DELIVERY PROCESS/SYSTEM

Government Agencies Concerned with Housing

o 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.
o Housing and Urban Development Coordinating Council
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 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.
o 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.
o 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.
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.
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”
REPUBLIC ACT NO. 11201
DEPARTMENT OF HUMAN SETLEMENTS AND
URBAN DEVELOPMENT 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
o 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.

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.
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:

Ø NHMFC’S Unified Home Lending Program (UHLP)

Ø HDMF’s Expanded Housing Loan Program

 Ø Home Insurance and Guaranty Corporation’s Retail Guaranty
Program

Ø SSS and GSIS housing programs

The government provides private developers financing for large-scale

housing production under the following:

Ø Social Housing Development Loan Ø HIGC’s

Development Guaranty
Ø HDMF’s Group Land Acquisition Development
Ø 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 homelots 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.

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)
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.
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.