introduction to housing: housing and delivery processes

INTRODUCTION TO HOUSINGINTRODUCTION TO HOUSING

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PRESENTED BY:

ALLONA ALEJANDRE, JEROME ALMENARIO, REYMALYN ALMENARIO

HOUSING &

THE DELIVERY PROCESSES

HOUSING&

THE DELIVERY PROCESSES

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HOUSINGBuildings 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.


INTRODUCTION TO HOUSING

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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

o Availability of land

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

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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.

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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.


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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.



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.


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Government Agencies Concerned with Housing

HOUSING AND THE GOVERNMENT AND ITS DELIVERY PROCESS/SYSTEM

o Home Development Mutual Fund



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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 and Urban Development Coordinating Council



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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 Housing Guaranty Corporation

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 Government Service Insurance System



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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.

o National Housing Authority



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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.



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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”



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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”



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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”



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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.



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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.

o NHA-Administered Resettlement Program Resettlement Programs



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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.



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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.



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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.



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C. FINANCEThe 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 HDMF’s Expanded Housing Loan Program Ø NHMFC’S Unified Home Lending Program (UHLP)



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Ø SSS and GSIS housing programs

Ø Home Insurance and Guaranty Corporation’s Retail Guaranty Program

The government provides private developers financing for large-scale housing production under the following:

Ø HIGC’s Development Guaranty Ø Social Housing Development Loan

Ø SSS corporate housing program Ø HDMF’s Group Land Acquisition Development



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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.



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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)



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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.



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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.

THE ENDTHE END

introduction to housing: housing and delivery processes

Economy & Finance