towards an affordable housing program by mr. ramon falcon

8/19/2019 Towards an Affordable Housing Program by Mr. Ramon Falcon

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TOWARDS AN AFFORDABLE

HOUSING PROGRAM

Mr. Ramon M. Falcon

National Economic and Development Authority

26 September 2013


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Outline of Presentation

Where do we want to go?Who are the targeted beneficiaries?How do we get there?

Imperatives for Action/Recommendation


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Where do we want to go?

BP 220 and PD 957 set the minimum requirements

within the generally accepted levels of safety, health,and ecological considerations

IRRs of BP 220 and PD 957 already incorporated the

provisions on Fire Code and the National Building Code

... they did not, however, integrate the latestdevelopment on green technology


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Who are the targeted beneficiaries?

Poverty Incidence for the Basic Sectors

Source: NSCB


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Number of Informal Settlers, 2011

Source: NHA


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“Socialized Housing” refers to housing programs and

projects covering houses and lots or homelots onlyundertaken by the government or the private sectorfor the underprivileged and homeless citizenswhich shall include sites and services development,long-term financing, liberalized terms on interestpayments, and such other benefits in accordancewith this Act.

-- Urban Development and Housing Act (UDHA), RA 7279


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“Economic and Socialized Housing” refers to housing

units which are within the affordability level of theaverage and low-income earners which is thirtypercent (30%) of the gross family income asdetermined by the National Economic andDevelopment Authority from time to time. It shallalso refer to the government-initiated sites andservices development and construction of economicand socialized housing projects in depressed areas.– BP 220


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Average Annual Income By Income Decile

Source: NSONote: Average Family Size is Five (5).

Family Income


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Total Family Housing Expenditure, 2009

Source: NSO

Housing Expenditure


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How do we get there? Existing Loan Packages


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Total Family Housing Expenditure, 2009

Source: NSO

Housing Expenditure


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Strategies to Enhance Housing Affordabilityand Delivery, PDP 2011-2016

1. Create alternative funds and mobilize resources, to spurhousing production through the revival of the SSS, GSIS andGFIs contribution in the housing sector pool; reinstate theentitlements of the housing sector under the CISFA (RA 7835);involve rural banks, coops, and MFIs in implementing ahousing microfinance program, catering tot he marginalized

sector and rural homebuyers; and develop an effective andviable secondary mortgage market and rationalization of theguarantee system.


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2. Build strong partnerships with LGUs to accelerate housingproduction through land use and local shelter planning, landinventory and creation of LHBs; rechannel development fundsto LGUs for housing projects for their constituents; and setaside lands socialized housing in accordance with UDHA

3. Engage private sector and CSOs in building and scaling upsocialized housing projects

4. Promote the use of “green” technology and materials inhousing construction and in building “disaster -resilient” homes


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5. Develop a strong cohesive and responsive shelter team (KSAsand stakeholders) to bring significant changes andinstitutional reforms, including simplifying loan applicationprocessing for development and homebuyers loans, andreducing red-tape in the issuance of land titles and housingand development permits, at the national and local levels;

and ensure transparency and good governance in the housingsector


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Strategies to Enhance Housing Affordabilityand Delivery, NUDHF 2009-2016

1. Increase funding and other resources fro proven and keyhousing programs and institutions

2. Streamline housing development transaction processes;reduce transaction costs and protect housing consumers

3. Provide incentives to unlock land for affordable housing4. Provide and encourage access to land for affordable housing5. Link local land use/physical and community development plans

with industry / local employment generating investmentprograms

6. Explore promising and viable financing sources and schemes


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Proposed Actions

HUDCC to provide policy coherence and operational guidelines on all existingand proposed housing loan packages/ceilings of key shelter agencies,

government financial institutions, and private developers.

Government to think of creative strategies to increase the capacity of thepoor to own a housing unit (e.g., incentivizing savings for housing; rentalhousing; making employment and economic opportunities available; housing

subsidies).HUDCC and KSAs to review the proposed MRB loan ceiling with the MRB in-city resettlement costing of NHA under the approved 5-year (2012-2016)housing program for 104,219 informal settler families (ISFs) in danger areas inMetro Manila.


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How do we get there? Promote Partnerships

Business Sector

- Associations of subdivision and real estatedevelopers- MicrofinanceCivil Society

Government- Production- Finance

- Policy


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Thank You!

towards an affordable housing program by mr. ramon falcon

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