AR 563: HOUSING

LESSON and ACTIVITY PLAN: Week No. I

Preliminary

Specific Learning Objectives:

1. Identify basic concepts of housing.
Topics and Activities
1. Course Introduction
2. Scope of study and housing definition.

Abstract
It is anticipated that within the next years it will be necessary to construct as many new housing units as have been constructed. This need for
new housing considered against a background of continuing urbanization, clearly indicates that an increasing proportion of an expanding housing
market will be devoted to multi-family types of housing or apartments. The inevitability of this trend contains a challenge to the architect to do more
than merely meet statistical demand. He must rather address, identify and solve the problems of multi-family building types as an attractive to free
standing single family buildings.

Definition of Housing and Related Terms

A building designed or used as the living quarters for one or more families.
Dwelling A place of residence; abode; house.
One or more rooms in a building designed as living accommodations for one or more families A
Dwelling Units building or dwelling for human residence.
House A building intended as a dwelling for human beings, especially one used as the residence of a family or a single
tenant. A household; family

Housing A shelter or dwelling, place or a collection of such places.

Housing Project A planned, large apartment building or housing complex, usually built at a minimum cost with government funds
low- income families.

The total construction designed by the architect, of which the work performed under the contract documents may
be whole or in part.
Residential Occupancy Occupancy of a building in which sleeping accommodations are provided for normal residential purposes; including
all buildings designed to provide sleeping accommodations except those classified under institutional occupancy.
That which covers or shields from exposure or danger; a place of safety.
Shelter
To provide protection or shelter for; shield as from danger or inclement weather.

Structures for Residential Use

BasicSpaceAllocations
a. Living Area a. Detached Houses
b. Dining Area b. Apartments
c. Combined Spaces Apartment Buildings
c.
c.i Combined Area - Dining Area d. Row Houses
c.2 Combined Dining Area - Kitchen e. Special Housing for:
C.3 Combined Living — Sleeping Areas e.1 Elderly
d. Bedrooms e.2 Handicapped
e. Kitchens e.3 Senior Citizens
f. Laundry Area f. Youth Hostels
g. Bathrooms
h. Closets
AR 563: HOUSING
LESSON and ACTIVITY PLAN: Week No. 2
Preliminary

Specific Learning Objectives:

1. Discuss the history of housing in the Philippines.
Topics and Activities
1. Pre-war to 1972
2. 1972 to 1986: Marcos Years
3. Aquino and Ramos Years
4. Estrada and Arroyo Years

Introduction

The history of national policies on housing in the Philippines registers a long list of unsuccessful programs. Hundreds of thousands of people still
trapped in poor and unacceptable living conditions today, a problem which remains unresolved. Major causes of this problem emanate from the
fragmented and uncoordinated approach to housing taken by the authorities. Further resources are insufficient to sustain these programs while
mismanagement remains widespread.

The government's responsibility to ensure that every Filipino enjoys a decent home has long been accepted as an important aspect of public policy.
This is basically hinged on the constitutional mandate that the state shall "establish, maintain and ensure adequate social services in the field of
housing..., to guarantee enjoyment by the people of a decent standard of living."
However resources are limited and competing claims of health and education on the governments resources may win over housing. The housing
problem has worsened over the years as evidenced by the widening gap between the people's housing needs and supply especially in the 70s. This
occurred despite increased housing investments undertaken by both the government and the private sector.
In 1983 the total housing investment amounted to 14.76 million and this constituted 4.8 % of GNP: Gross National Product. This increasing
awareness of the seriousness of the problem and the subsequent involvement of both the private and public sectors had little impact on researchers
and very few serious attempts to study the problems of the housing sector have been recorded.

History of Housing in the Philippines

Trends and Patterns, 1960 to 1980

 There have been significant increases in the housing stock in the Philippines during the past three decades. From a total of 4,790,594 dwelling
units in 1960, the number has gone up to 8,767,604 units in 1980 reflecting an overall increase of 83 %.
 The regional distribution of the total housing stock indicates the prominence of the National Capital Region (NCR) and Region 4. The
total number of dwelling units in these two regions constitutes about 25 % of the total in the country. Region 12 has the least number.
 In terms of occupancy rate, the highest was recorded in 1970 when only about 1.5% of total dwelling units were found unoccupied. In
1960 and 1980 the occupancy rate was 97% Most of these occupied dwelling units were classified as single houses accounting for 85% of the
total in 1960, 89% in 1970 and 93% in 1980. It should be noted also that some non-residential structures are being occupied as dwelling units.
From a total of 41,571 in 1960, it went up by 26% in 1970.
Brief Historical Background
 Prewar housing conditions must have warranted some form of government intervention. As early as the American regime. some efforts to
develop a housing policy were evident but concentrated in Manila on account of its overcrowding and sanitation problems. The initial steps
taken under the American regime were in the form of sanitation drive.
This was carried out by setting new sanitation and building standards that were adopted to native dwelling construction and establishment of
"sanitary barrios which served as relocation areas for families whose nips houses originally located in congested areas were demolished.
These barrios were located within city boundaries and supplied with basic facilities not available in nips neighborhoods (e.g., surface drainage,
street and alleys, fire hydrants, public bath and public laundry). Relocation was made at public expense but the relocated families had to pay
some rent to the landowners.
 Two years of implementation, funds for the project dwindled and sites became more difficult to acquire. This was also accompanied by a
change in the housing program's thrust to sanitary models of single-family and apartment units. However, /hese model houses were built for
demonstration purposes only since the government did not actually supply new houses in the sanitary barrios"

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AR 563: HOUSING
LESSON and ACTIVITY PLAN: Week No. 2
Preliminary

By 1920s as a result of labor agitation, barrios obrerox were established and this scheme was merely superimposed on the previous sanitary
barrio scheme with additional features like renting out of some houses and lots. Evidently the government under the American regime carried out
housing programs for maintaining public health and safety and avoiding of breeding grounds for crime and sedition.

 The programs basically involved slum clearance and some relocation. With the influence of the private sector, the evolving housing policy of the
American regime was "something less than pure altruism for the poor". For example, the Housing Committee recommended the construction
of dwellings for slum families who could afford them and this was in spite of the fact that during the period circa 1930s, about 60% of the slum
families could not afford and kind of suitable home, and 40% of slum dwellers in Manila "live in extreme poverty and squalor, and in many
instances on the verge of starvation.

 During the Commonwealth Period, a program of social justice emerged and while the period's housing policy tried to respond to the needs of
the labor group, it remained in part just an extension of the previous period's program. Hence, the slums were still seen as the source of crime
and diseases as well as the breeding place of rebels. Officials of the Commonwealth Government also felt that slums were an eyesore and
there were efforts to make the city presentable to the eyes of the foreigners

 More direct government intervention started in the 1930s. In 1938, the laborers tenement project was completed in Barrios Vitas, Tondo. Eleven
2-storey builcings were constructed and provided 262 dwelling units with modem toilets, water supply and electrical installations. Rents were
low ranging from P 4.70 and P 12.70 per months and required monthly income was between P 30 and P100.
However, the project's name was a misnomer since a good proportion of the tenants were classified as employees and not laborers. This
resulted because applicants without stabled jobs were not considered. This project was followed by a series of broader legislations and the
creation of housing agencies to directly implement housing programs.

 On July 11. 1936, Commonwealth Act No. 620 or the Homesite Act was passed which authorized the government to acquire lay as well as
friar states which were eventually subdivided into home lots or small farms. One major acquisition made in 1938 was the Diliman Site which
was intended to be a "social experiment" to be replicated in all parts of the country where there are laborers.
The People's Homesite Corporation was created to develop this area. Its charter evidently did not reflect the bias towards the working- class
ascribed to the Diliman project at the start of its implementation, although aimed at general welfare, it actually reflected an orientation towards the
middle class.
 In early 1941, a shift towards a more social orientation in the government's housing program was observed. Policy was geared towards social
responsibility which required state intervention & assistance in behalf of the poor particularly wage earners residing in the slums.
The National Housing Commission was created by virtue of Commonwealth Act 648 to undertake programs in urban housing, subdivision
and slum clearance programs. Its objectives were basically urban-oriented but while they emphasized the elimination of slums, they also
considered replacement of slum dwellings. Also instead of 'middle class", these objectives were aimed broadly at the needy and the very poor.
The organization was not carried out immediately on account of the war.
Early postwar housing programs retained the previous period's thrust: slum, clearance, subdivision development and relocation activities as
authorized under the PHC and the NHC charters.

 In 1940, the People's Homesite and Housing Corporation (PHHC) was created through Executive Order No. 93. This new agency was
the result of the merging of the People's Homesite Corporation and National Housing Commission and it had the following corporate objectives:
1. establishment of public-housing for low-income families;
2. slum clearance
3. establishment of housing for the destitute; and
4. acquisition, subdivision and resale of landed estates.
Again the agency's program focused on housing and subdivision development catering basically to the needs of the middle-income groups.
Its slum clearance and relocation functions were carried out only in collaboration with other agencies of government, specifically those
involved in social welfare services delivery.
It was also during this decade that the social security agency for government employees of the Government Service Insurance System (GSIS)
started to extend inter-agency project loans to finance PHHC projects.
By 1955, it started granting housing loans to its members. In 1957, the Social Security System also began to extend housing loans to its
members. In 1960, the Development Bank of the Philippines also started a small-loans program for low income borrowers.
Similar to the housing programs launched before, a very small proportion of the low-income group availed of the loans from these institutions
since the rules governing the program favored only the middle-income groups and even the upper classes.

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AR 563: HOUSING
LESSON and ACTIVITY PLAN: Week No. 2
Preliminary

 During the 1960s, the directions of the governments housing program were as follows:
1. expansion of housing finance scheme by geographical coverage:
2. tenement housing:
3. construction of pre-fabricated dwelling units; and
4. Increasing resettlement and relocation programs cure industrial development
 The Tenement Law or Republic Act 3469 was passed reviving the construction of multi-storey tenement houses which were rented out to
low income families.
It was also during this period Congress passed Republic Act 3802 mandating PHHC to sell all its rented housing units to the tenants at cost
and payable within 10 years at 6% per annum interest and with all the previous rental payments applied to the purchase price. Likewise, several
resettlement and relocation activities of squatters were undertaken.
The National Housing Corporation was created with primary functions of manufacturing prefabricated dwelling units for low and middle
income groups to help in coordinated massive housing program of the government.
The National Special Housing Act or Republic Act No. 6026 was also passed to introduce a new approach to the resettlement program of the
government through a balanced residential-industrial development program. Under this approach, resettled squatters were given necessary and
appropriate means of livelihood so they would not abandon the resettlement areas.

 In the 1970s, the low income families remained the target group of government administered housing projects. Urban redevelopment through
the sites and services approach became the primary focus of the government, specifically the Tondo Foreshore and Dagatdagatan Area.
Government lending institutions provided substantial contributions through individual residential loans & participation in mass housing projects.
This decade also witnessed the creation of the new government agencies to take care of its housing program:
1. Task Force on Human Settlements (1973)
2. Inter-Agency Task Force on Nabaooan Relocation (1973)
3. Tondo Foreshore Development Authority (1974)
4. National Housing Authority (1975)
5. Human Settlements Regulatory Commission (1976)
6. National Home Mortgage Finance Corporation (1979)
7. Ministry of Human Settlements (1978)
8. Home Development Mutual Fund (1978)

 The concept of housing in the Philippines had undergone remarkable changes over the years. Initially considered simply as a "public problem"
involving slum dwellers and squatters (i.e., the low income groups), housing has evolved into a program considered in the context of a "human
settlements approach" where provisions of shelter is complemented by the other dimensions of human settlement.
Self reliance is emphasized so the program really becomes a "partnership" between the government and the beneficiaries.
Until the last few years of the 1970s, the proliferation of government housing bodies evidently resulted in many duplications and confusions.
There was little coordination among these agencies that a more cohesive and sustained housing program was never accomplished. Piecemeal
legislation was abundant and each one was serving only a particular purpose and a particular group for a limited period of time. This resulted in
very superficial and short-lived effects and as a whole, a waste of scarce resources.
 In 1967 , the National Shelter Programs was formulated putting all housing agencies of the government under one Ministry responsibility. It was
during this year that the Ministry of Human Settlements was established for this very purpose. Under this program, maximum participation of the
private sector was encouraged.
A Sketch of Urban Policies
 Public interventions in land and housing markets go back to the early decades of American rule when Manila had a mere population of 329,000
inhabitants compared to 88,574,614 populations for 2007. For a long time measures lacked the scope and focus needed for effective urban
development.
Under the Americans, some traditional thatched nipa houses were demolished in congested districts and poor families were moved to new
'sanitary barrios" of 'barrios obreros"with streets, water mains and drainage.
During the Commonwealth period of the 1930s, a Homesite Act authorized public acquisition and subdivision land for laborers, but programs
were too costly for the target group.
After the Japanese occupation. A People's Homesite & Housing Corporation took on the task of clearing slums, subdividing Land Estates &
building public housing for the poor. Land was acquired at unaffordable high prices for target group of low income families.

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AR 563: HOUSING
LESSON and ACTIVITY PLAN: Week No. 2
Preliminary

 From 1947 to 1970, none of the 17 national development plans actually addressed the housing sector. In the early 1970s, a Human Settlement
Commission under the Office of the President began to develop land use for all urban areas. Better housing was to be promoted with loans
from social security funds for the development of experimental pre-fabricated housing for the middle class. Thousands of squatters were
resettled in core houses at Dasmarinas, Carmona and other distant areas.

 In 1976, with World Bank assistance, a site and services program was initiated at Dagat-Dagatan, north of Tondo. Contrary to their stated aims,
none of these programs had much impact on general land and housing costs.
 In 1978, President Marcos decreed an Urban LandReform with provisions for regulating ownership, prices, rent and land in Metropolitan Manila. A
number of agencies were set up and consolidated in a Ministry of Human Settlements, under Imelda Marcos, Governor of Metro Manila, but
these did not concern themselves with the basic problem of undoing the incentives for keeping land idle, nor was finance provided for inducing
land sales.
Of the 244 areas for priority development (APDs), only one had vacant land. An important step forward was a modification of building and urban
layout codes for low-cost housing Batas Pambansa 220, which allows lower standards and lots as small as 32 sqm.
 In the subsequent government of President Corazon Aquino, the Ministry of Human Settlement was replaced by a Housing and Urban
Development Coordinating Council (HUDCC). A medium term development plan for 1987-1992 made housing a priority, and substantial
progress was made by integrating financial intermediaries.

 By mid-1980s, the emphasis was thus less on the physical and more on strengthening the ability of responsible institutions to finance housing.
Part of the work was the RPTA and its Real Property Tax Enhancement Program that was supposed to improve tax mapping (identifying
untaxed properties), assessments and collections.
The aim was to identify and to computerize all sites and their values. Parcels that have previously gone undetected were successfully identified.
But the effort to tax the parcels including arrears succumbed to political pressures. When Mayor Simon of Quezon City tried to raise the tax base
by quadrupling valuations, the increase was challenged in the courts, and the mayor was defeated in the election a year later. Even his
quadrupling assessments; however remained less than a fourth of market prices.
In the Philippines, property tax is assessed and collected locally, but national legislation now limits the maximum rate on land to 3% including the
1% ear marked for education. These percentages have actually been only 0.6% and only 0.2% of "assessed fair market value." It is possible,
however, where multiple owners claim the same parcel, more than one payment maybe made to the City Assessor.
To keep tax records up-to-date, surveyors, sellers and buyers are all supposed to notify the tax authorities, but such is not enforced. The RPTA
program raided identification and assessment by shifting to map-based inventories from owner-declarations. Valuation rose by 20% due to the
inclusion of missing plots and by another 20% due to more accurate information about known plots.
Political pressures soon forced the national government to intervene, and assessments were compelled to lag from one to five years behind
current market values. With inflation at around 15%, the net effect was that reform raised collections by only 1.1%. Local officials "refrained from
any provocative collection enforcement, allowing average collection rates drop to below 50W. A 1991 law, RA 7160 mandates reassessment
every three years
 As population, income and both foreign and national investment grew, land prices continued to escalate as well, making standard dwellings and
sites unaffordable for more and more households. The difficulty is partly due to obstacles in converting peripheral farm lands to urban use in
accordance with the Comprehensive Agrarian Reform Law or Republic Act 6675 of 1988.
 In 1992, the Philippine Congress passed an Urban Development and Housing Act that called for the "equitable utilization of residential
lands... not merely on the basis of market forces" (RA 7279, Congress of the Philippines).
The act primarily seeks to provide land and housing for the poor is not a general reform of land and housing markets. Nevertheless, a section
calls for the expropriation (with compensation at market prices) of public domains of all unimproved sites exceeding 300 sqm. in highly-urbanized
areas and 800 sqm. elsewhere.
Improvements have to be structures worth at least half as much as the land value. Local governments are supposed to implement these and
other provisions using guidelines to be developed by the Housing and Land Use Regulatory Board (HLURB) with the advice of the Housing and
Urban Development Coordinating Council (HUDCC).
 The government of President Fidel Ramos, elected in 1992, has set a target of helping in the construction of 1.2 million dwellings by 1998.

Providing Affordable Housing for Urban Poor in the Philippines

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AR 563: HOUSING
LESSON and ACTIVITY PLAN: Week No. 2
Preliminary

 In 1981, government officials placed the need for new housing at over 1.1 million units. Tens of thousands of barrios are scattered through out
the Philippines, each consisting of a double row of small cottages strung out along a single road.
 The Ministry of Human Settlements created in 1978sets housing programs in motion. Its first major program was the Bagong Lipunan
Improvement of Sites and Services (BLISS), which undertook 445 projects involving 6,712 units housing 40,272 people. As with many
programs begun during the Marcos administration, projects became ridden with scandal.
More credible was the Pag-1BIG fund, which was set up to promote savings for housing and provide easy-term housing loans with contributions
from individuals, banks, industries and the government.
By the end of 1985, P 98 million in loans had been provided to 171,585 members. In 1985, membership contributions totaled to P 1.34 billion
and 1,451 housing loans were approved.
The Aquino Administration offered tax exemptions to domestic corporations and partnerships with at least 300 employees that invest funds in
housing. From 1984 to 1987, an annual average of about 103,150 units was built by the private sector with minimal assistance from the
government.

According to recent estimates, at least 90% of all housing units were detached houses. Owners occupied about 80% of all dwellings. In 2000,
there were 15,278,808 households with an average of five people per household.
 in December 19, 2003, the Asian Development Bank (ADB) working together with the Development Bank of the Philippines (DBP) and the
Housing and Urban Development Coordinating Council, will help provide affordable housing for some 20,000 urban poor families outside Metro
Manila through a US $ 30 million loan and $ 1.5 million technical assistance (TA) grant that has been approved.
 Housing and land markets have not kept pace with rapid urban growth in the Philippines, where half of the population now lives in urban areas.
This figure is expected to reach 60% by 2010. Shelter is not for the poor and more than 40% urban families live in makeshift dwellings in
informal settlements. The Development of Poor Urban Communities Sector Project has three components:
1. Local Government Units (LGUs) will be given funds to develop the sites and to distribute land titles to informal settlers, in partnership with
communities and non-government organizations.
2. Beneficiaries will be given access to micro credit for shelter finance and small enterprise development.
3. The capacity of communities, LGUs and government housing agencies to facilitate community-driven planning will be strengthened to
decentralize shelter delivery.
The six-year housing project will be patterned after ADBs pilot projects for the urban poor in Payatas and Muntinlupa both in Metro Manila, which
have been successful in community mobilization, shelter and infrastructure provisions & financing and livelihood support.
The project operationalizes the De Soto Principle", whereby idle and unproductive assets, mainly consisting of squatted landunder government
control, are put into use through empowerment of the poor.
Housing during Aquino and Ramos Administration

 Housing took prominence from a 0.37% annual growth rate in the last five years of the Marcos regime, it went up to an average of 3%. The two
administrations pitched in an aggregate of P 485 billion. The increase in shelter production was imminent as government housing agenda
became more brisk.
 Licenses to Sell issued reached 1,411,999. During the Ramos administration it increased at an average rate of 22%. Although figures in shelter
delivery improved, it was not able to cope with a population that has been increasing at an annual average of 2.6%. Population could grow to
130 million in less than 30 years.

 Momentum in housing delivery was not sustained due to several factors. One is the Asian Contagion, which brought a bust in the economy and
hurt the real estate industry. Others are programs and policies were either not sustained or failed to address the need of housing stakeholders.
Social behavior also added to the problems of housing.

 The programs of both administrations may be considered as producer and market friendly. They were designed to give incentives to the various
players of the housing industry and address the longings of the home seeking public.
 The programs that jump started the housing agenda of both administrations was the Unified Home Lending Program (UHLP) and the
Community Mortgage Program (CMP). They increased house production and encouraged real estate and construction practitioners.
 Housing lost its luster as the initial overwhelming response was replaced by a severe collection problem. The low 45.15% collection efficiency of
UHLP caused cash flow problems to the funding agencies (HDMF, SSS and GSIS) that later pulled their support from the program. The UHLP
was later cOscontinued. Factors that contributed aside from the insolvency to the ineffectivity of the UHLP are:

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AR 563: HOUSING
LESSON and ACTIVITY PLAN: Week No. 2
Preliminary

1. Formula lending policy did not consider the paying capabilities of borrowers. Borrowers whose houses were not properly constructed opted
not to continue their amortization.
2. Lack of collection windows Failure to pay of borrowers during weekday's cause of work and no collection windows on weekends.
3. Resettlement projects failure due to lack of other basic services such as schools, market places, others. Livelihood components are also
ineffective. Squatter syndicates hamper the government's relocation activities.
4. Paying capacity of most home seekers is incomparable to the escalating cost to build or buy houses. Commercial interest rates are
unaffordable. The dwindling land resources in urban areas bring land prices up. There are many provisions in the RA 7279 (UDHA) which
have not yet been implemented. Other provisions are even disincentives e.g. socialized housing tax.
5. The devolution of functions of HLURB to Local Governments (pursuant to the Local Government Code) has slowed down housing. Many
LGUs are still technically inadequate in the review of applications of Development Permits. Socio-demographic factors that affect housing
are: concentration of population in major urban areas, poor peace and order situation in the countryside. agricultural cartels and other.
Apartment
 Is a self-contained housing unit that occupies only a part of a building. It may be owned by an owner or occupant or rented by tenants.
 Some apartment dwellers own their apartments, either as co-ops, in which the residents own shares of a corporation that owns the
building or development. Most apartments are in buildings designed for the purpose but large houses are sometimes divided into apartments.
The word apartment connotes a residential unit or section of a building.
 Apartments can be classified into several types. One is a Studio, efficiency, bedsit or bachelor style apartment These all tend to be the smallest
apartments with the cheapest rents in a given area.
These kinds of apartment usually consist mainly of a large room which is the living, dining and bedroom combined. There are usually kitchen
facilities as part of this central room, but the bathroom is its own smaller separate room.
Moving up from the efficiencies are one-bedroom apartments where one bedroom is a separate room from the rest of the apartment. Then there
are two-bedroom, three-bedoom, and etc. apartments. Small apartments often have only one access. Large apartments often have two-access,
perhaps a door in the front and another in the back.
A garden apartment has some characteristics of a townhouse: each apartment has its own entrance, and apartments are not placed vertically
over one another. However, a garden apartment is usually one-storey high and never more than two-storeys; they are often one-bedroom and
almost never more than two-bedrooms.
Some garden apartment buildings place a one-car garage under each apartment, with pedestrian entrances from a common courtyard open at
one end. The grounds are more landscaped than for other modestly scaled apartments.
Alternately, "garden apartment' can refer to a unit built half below grade, putting its windows at garden level.
 In Philippine setting, when a part of a house is converted for the use of a landlord's family member, the unit may be known as an in-law
apartment or granny flat, though these (sometimes illegally) created units are often occupied by ordinary renters rather than family members.
Condominium
 A condominium, or condo, is a form of housing tenure where a specified part of a piece of real estate (usually of an apartment house) is
individually owned while use of and access to common facilities in the piece such as hallways, heating system, elevators, exterior areas is
executed under legal rights associated with the individual ownership and controlled by the association of owners that jointly represent ownership
of the whole piece. Colloquially, the term is often used to refer to the unit itself place of the word "apartment'.
 Condominium is the legal term used in the United States and in mist provinces of Canada. In Australia and the Canadian Province of British
Columbia it is referred to as strata title. In Quebec the term syndicate of co-ownership is used. In England and Wales the equivalent is
commonhold, a form of ownership introduced in 2004 and still uncommon in most places.
 Technically, a condominium is a collection of individual home units along with the land upon which they sit. Individual home ownership is
construed as ownership of only air space confining the boundaries of the home. The boundaries of that space are specified by a legal document
known as a Declaration, file of record with the local governing authority. Typically these boundaries will include the drywall surrounding a room,
allowing the homeowner to make some interior modifications without impacting the common area. Anything outside this boundary is held in an
undivided ownership interest by a corporation established at the time of the condominium's creation. The corporation holds this property in trust
on behalf of the homeowners as a group- it does not have ownership itself.

Architect Dennis C. de Villa, uap, csp

June 29, 2008

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AR 563: HOUSING
LESSON and ACTIVITY PLAN: Week No. 3
Preliminary

Specific Learning Objectives:

1. Evaluate the current housing problems.
Topics and Activities
1. Squatting
2. Housing Backlog/ Housing Need
3. Lack of Housing Finance
4. Insecurity of Tenure
5. Lack of Housing Policies

Squatting
General Information
 For the millions of poor people in developing areas of the world, urban areas have always been a means for improving their quality of living
and environment, besides getting better jobs and incomes. With little resource, financial or otherwise, skills or access to them, drastic option
of illegally occupying a vacant piece of land or to build a rudimentary shelter is the only one available to them.
 In Metro Manila, squatting or iskwater in Tagalog, is a major issue in Filipino Society, especially in industrialized areas of the society.
Squatting was started after World War II, as people built makeshift houses called barong-barong in abandoned properties.
 If police find squatters, there's not a whole lot they can do. Police uphold criminal law, not civil law. Civil law is worked out in the courts. Once
police determine that a squatter has established some sort of tenancy, the issue becomes a civil matter.
 The government tried to transfer those squatters to low cost housing project, especially in Tondo (in the former Smokey Mountain landfill),
Taguig (BLISS Housing Project), and in Rodriguez (formerly Montalban), Rizal.
 In its 2002 study, the Asian Development Bank (ADB) has cited the need to improve the lives of some 3.4 Million Filipinos (squatters) living
in the slums or Metro Manila.
 A National Housing Authority report revealed that, in the early 1980's, one out of four Metro Manila residents was a squatter.
 Metro Manila's problem on informal settlers or squatters can be solved by 2018 if the government would adopt the program drafted
by an inter-agency committee headed by Metro Manila Development Authority (MMDA) Chairman Bayani Fernando.
 The MMDA claims that Squatters are causing floods_ The perennial inundation has been due to at least 65,000 squatters living along
several esteros and waterways.
 It was noted that the flooding on Espana Street in Manila, which is caused by overflowing of the Antipolo Canal, is where squatter
families have settled.
Definitions
 Squatter is a person who settles on new especially public land without title; a person who takes unauthorized possession of unoccupied
premises. Therefore, a residential area occupied by squatters becomes a squatter settlement.
 Squatting is the act of occupying an abandoned or unoccupied space or building that the squatter does not own, rent or otherwise
have permission to use. It is significantly more common in urban areas than rural areas, especially when urban decay occurs.
 Squatter settlement, in general it is considered as a residential area in an urban locally inhabited by the very poor who have no access to
tenured land of their own, hence 'squat" on vacant land, either private or public.
 Squatter settlement can be defined as a residential area which has developed without legal claims to the land and/or permission from the
concerned authorities to build; as a result of their illegal or semi-legal status, infrastructure and services are usually
inadequate. There are essentially three defining characteristics that helps us understand squatter settlement

 Physical Characteristics A squatter settlement, due to its inherent "non-legal" status, has services
and infrastructure below the "adequate" or "minimum levels". Such
services are both network and social infrastructure, like water supply,
sanitation, electricity, roads and drainage. Water supply may be absent,
or a few public or community standpipes may have been provided,
using either the city networks, or a hand pump. Informal networks for the
supply of water may also be in place. Similar arrangements may be
made for electricity, drainage, toiler facilities and others with little
dependence on public authorities or formal channels.

 Social Characteristics Most squatter settlement households belong to the lowest income group,
zzzzzzzzzzzzzzzzzzzzzzzzzzzzzzzzzzzzzzzzzzzzzzzzz either working as wage labor or in various informal sector enterprises.
Z On an average, most earn wages at or

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near the minimum wage level. Squatters are predominantly migrants, either from rural to urban or urban
to urban. But many are also second or third generation squatters.
 Legal Characteristics The key characteristic that delineates a squatter settlement is its lack of ownership of the parcel
of land on which they have built their house. These could be vacant government or public land, or
marginal land parcels like railway setbacks or 'undesirable" marshy land. Thus when the land is not
under "productive" use by the owner, it is appropriated by a squatter for building a house. In general,
there are several attributes that act as generative forces and determine the quality and size of a
settlement such could be either internal to the settlement or external.
 One common confusion regarding squatter settlements is its relation to the term 'slum'. Slum as defined: are residential areas that are
physically and socially deteriorated and in which satisfactory family life is impossible. Bad housing is a major index of slum conditions. By
bad housing is meant dwelling that have inadequate light, air, toilet and bathing facilities; that are in bad condition; that do not afford
opportunity for family privacy; that are subject to fire hazard and that overcrowd the land.
While a slum settlement refers to the condition of a settlement, squatter settlement would refer to the legal position of the settlement There
are a number of names by which squatter settlement are described which are informal settlements, Low-income settlements, Semi-
permanent settlements, Spontaneous settlements, Un-authorized settlements, Un-planned settlements, Uncontrolled settlements and
Shanty Towns.
 Squatting is a natural outcome of the need for shelter of any population versus the iack of housing or affordable housing.
Historical Development of the term. "Squatter Settlement"

 Squatter settlements have been in existence from a long, in the sense that an individual other than the land owner has built houses
with or without the consent of the land owner. But they were not illegal "squatter settlements as defined and categorized today.
 The term 'squatter settlement" is in fact a more recent western-initiated development, which came about by the writings of Charles
Abraham and John Turner and particularly during and immediately after the Habitat Conference of 1976 in Vancouver, Canada.
 This delineation of such informal or spontaneous settlements as "squatter' settlements represented a growing change in attitude from
outright hostility to that of support and protection.
 Abrams (1964) illustrates the process of squatting as a 'conquest" of city areas for the purpose of shelter, defined both by the law of force
and the force of law.
 Turner (1969) takes a positive outlook and portrays squatter settlements as highly successful solutions to housing problems in urban areas
of developing countries.
 Payne (1979) similarly puts the development of squatter settlements in the overall perspective of urban growth in the third world and its
inevitability.
 A vast number of case studies at the Habitat Conference at Vancouver in 1976 highlighted the conditions in squatter settlements, calling for
a concerted and committed approach towards solving the problems.
The Development Process of a Squatter Settlement
 Why do people squat? There are two reasons; one is internal to the squatter, and the other is external. Internal reasons include: lack of
collateral assets; lack of savings and other financial assets; daily wage or low-income jobs (which in many cases are semipermanent or
temporary). External reasons include, high cost of land & other housing services; apathy & anti-pathy on the part of the government to
assist them; high "acceptable' building standards & rules & regulations; loop-sided planning & zoning legislation.
 These reasons leave no option for the low-income household to squat on a vacant piece of land. The actual squatting is done by either a
"slum lord' or simply an initial small group of core squatters.
 The core group squatters are a small number of families who, almost overnight, occupy a piece of land and build rudimentary and
temporary shelter. Later, depending on the degree of threat of eviction, this may be upgraded to a permanent and more families may join
the group. There are two distinct processes involved in the formation of a settlement:
 Organic Process Refers to the forces and pressures which are initiated from within the settlement and squatter. They
evolve naturally, without any outside intervention and using internal resources of the family or settlement for
development, such as labor, locally available materials, etc.
 Induced Process Refers to the "inducement" set up by agencies and organizations which are external to the settlement.
Operating with objectives and goals on a larger, city-wide scale, they initiate programs and projects for the overall
development of the settlement.
Both of these processes put together act on a growth of a squatter development, through a series of consolidated stages of

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development. These stages are conclusive in their outcome, in the sense that they represent a continuum with one stage or process
overlapping and even running parallel to each other. They are cumulative and not exclusive in their effects.
Approaches towards a Squatter Settlement
 Considering the magnitude and scale of the housing deficit and the lack of concerted action or inadequate response of government
agencies, there is no doubt of the positive roles that squatter housing plays in housing the millions of poor families. The main question of
land ownership and over-utilized infrastructure and services, will however, always remain unanswered.
 Successive generation of governments has recognized this and a number of approaches have been adopted in finding a solution to the
dilemma of squatting. The two popular approaches used by the public authorities have been settlement upgradation and sites-and -
services.
 It has been an option where a compromise has been reached by the land owner and on a sharing basis, the squatter has been
allowed to continue on the land parcel, but with a significant upgradation of the settlement's infrastructure and services, including in
some cases, land leases or ownerships. Where such land compromises or sharing has not been possible, the squatters have been
relocated to another location, where varying levels of "sites" and "services" have been provided, with again land lease or ownership.
 Land Sharing is an approach which has brought about considerable settlement improvements by the initiative of the people themselves.
The squatter after having organized themselves into a viable organization, have initiated negotiations with the land owner and have
"shared" the land, giving the prime locations of the land to the owner and using the remaining for their housing, but in a more organized
and improved manner.
 The role of non-government and voluntary organizations has to be emphasized in this respect, in mobilization of the people into an
organization, in training and educating them, in forming a link with the authorities, and in various other catalytic ways.

Future Role of Squatter Settlements in Urban Housing

 As long as urban areas offer economies of scale and agglomeration economies, large cities will always continue to grow attracting migrants
from the rural and smaller urban areas, leading to more squatting.
 Squatter settlements in urban areas shall always be inevitable phenomena.
 There is no universal "quick-fix" solution that can solve all the problems of squatting in all parts. Considering the inevitability of squatting, the
need is primarily for a change in attitudes towards squatting, squatters & squatter settlements.
 One such approach that has been receiving considerable attention from various government and public authorities has been the "enabling"
approach, where instead of taking confrontational attitude, governments have strived to create an enabling government, under which
people, using & generating their own resources, could find unique local solutions for their housing & shelter problems.
Laws on Squatting
 Squatting is not a crime. Republic Act 8368 has repealed the Marcos-era Presidential Decree 772 "Penalizing Squatting and Other
Similar Acts" which declared squatting as a crime.
 However the repeal of PD 772 does not nullify, eliminate or diminish in any way Section 27 of Republic Act No. 772 or any of its
provisions relative to sanctions against professional squatters and squatting syndicates.
 Section 27 (Action Against Professional Squatters and Squatting Syndicates) of RA 7279 states that 'The local government unit (LGU),
in cooperation with the Philippine National Police, the Presidential Commission for the Urban Poor, and the accredited urban poor
organization shall adopt measures to identify and effectively curtail the nefarious and illegal activities of professional squatters and
squatting syndicates.'
 Any persons or groups identified as such shall be summarily evicted and their dwelling or structures demolished and shall bedisqualified to
avail the benefits of any government program for housing."
 A public official who tolerates or abets the commission of the above mentioned acts shall be dealt with in accordance with existing
laws."
 For purposes of this Act, professional squatters or members of squatting syndicates shall be imposed the penalty of six (6) years
imprisonment or a fine of not less than Sixty Thousand Pesos (P60,0G0.00) but not more than One Hundred Thousand Pesos (P
100,000.00), or both at the discretion of the court
 Based on NAPOLCOM CIRCULAR No. 2008-908, any member of the PNP force who engages, tolerates or supports illegal activities
or otherwise acts as a leader of the professional squatters and squatting syndicates may be charged with an administrative case and
may be disqualified for promotion and other benefits for retirement.

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 Executive Order No. 129. Establishing an Institutional Mechanism to Curtail the Activities of Professional Squatting Syndicates
and Professional Squatters and Intensifying the Drive against Them. (Ordered by President Fidel V. Ramos, October 15, 1993)
 To arrest the proliferation of squatters in the urban areas, which is aggravated by the activities of squatting syndicates.
 To establish a "mechanism that shall ensure compliance with the provisions of the Urban Development Housing Act and its implementing
rules and regulations relative to demolition and eviction'.
 To effect the identification & registration of the rightful beneficiaries of the Urban Development and Housing Act, who will be affected by the
urgent infrastructure projects of government as against professional squatters & squatting syndicates.
 To protect the rightful beneficiaries of the UDHA from the squatter syndicates and professional squatters, who continuously prey on and
victimize the former by sowing disinformation, collecting fees and inflicting harm.
 Mandates the Local Government Units (LGUs), the Department of Interior and Local Government (DILG), and the Presidential
Commission for the Urban Poor (PCUP) to identify and effectively curtail the nefarious and illegal activities of professional squatters and
squatting syndicates, as well as to implement relocation and resettlement procedures.
 "Professional Squatter" refers to individuals or groups who occupy lands without the express consent of the landowner and who have
sufficient income for legitimate housing.
The term shall also apply to persons who have previously been awarded home lots or housing units by the Government but who sold,
leased or transferred same and settled illegally in the same place or in another urban area, and non-bonafide occupants and intruders of
lands reserved for socialized housing.
The tern shall not apply to individuals or groups, who simply rent land and housing from professional squatters or squatting syndicates.
 A National Committee against squatting shall be composed of the following: (Sec.2.1)
Chairman: Department of Interior and Local Government (DILG)
Co-Chairman: Housing and Urban Development Coordinating Council (HUDCC)
Member: Department of Justice (D0J)
Presidential Commission for the Urban Poor (PCUP)
Philippine National Police (PNP)
National Bureau of Investigation (NB!)
Representative of PCUP accredited National Urban Poor Organization
Representative of a Non-Government Organization

 Committee Functions (Sec.2.1.2)

a. Oversee and coordinate government activities relative to the intensified drive against professional squatters & syndicates.
b. Recommend appropriate measures and actions to curtail the activities of professional squatters and syndicates.
c. Provide assistance to local government units in the implementation of UDHA provisions relative to professional squatters & make
available through the PNP and DOJ, a consolidated list of squatting syndicates & professional squatters.
d. Update the Office of the President and submit reports thereof on the implementation of the EO.
 Action against Offenders (Sec.3)
a. The LGU's upon recommendation of their local committees shall summarily evict the offenders and demolish their dwelling units.
b. The LGU's, PCUP and PNP shall monitor and implement Section 30 of Republic Act No. 7279 regarding new illegal entrants,
defined as those guilty of squatting after the effectivity of said act
c. The concerned agencies herein identified shall enforce Section 45 (Penalty Clause) of Republic Act No. 7279 on new illegal entrants.
 Executive Order No. 153 amending Executive Orders Nos. 178, S. 1999 and 129 S. 1993 under the Arroyo Administration, December 10,
2002: Instituting the National Drive to Suppress and Eradicate Professional Squatting and Squatting Syndicates.

Housing Backlog/ Housing Need

 The Housing construction sector can spur economic growth and alleviate poverty by taking advantage of its multiplier effect. Housing has a high
multiplier effect of 16.6 times, meaning that every 10 Billion Pesos worth of housing units, it can contribute a total of 166 Billion Pesos of
economic activity for the country.
 Housing construction, relative to the huge housing need (3.6 million in 2001-2004) has been modest. Against a target of 1.2 million units of
housing assistance or shelter security units (i.e. a house, house and lot, or lot only), the housing sector, through the National Shelter Program
was able to provide 882,823 shelter security units as of June 2004. Table below shows of the total output, 60% or 493,496 units went to
socialized housing of which 93% (219,268 units) benefited the informal sector (i.e. non-members of the Home Development

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Mutual Fund, Pag-IBIG, GSIS of SSS) mainly through the Presidential proclamation of 73 sites. Forty percent (389,327 units) went to formal
housing. It may be noted that 52% of this (200,865 units) was provided by Pag-IBIG, the largest output by a single institution involving 48.53 Billion
Pesos.
Housing Targets and Accomplishments
Target Actual
Housing Package Households Accomplishment
2001-2004 2001 2002 2003 2004* Total
Socialized (below P 225,000) 880,000 207,940 118,987 84,716 81,853 493,496
Low Cost (P 225,000 to P
320,000 54,447 74,306 114,507 146,067 389,327
2M)

Total 1,200,000 262,387 193,293 199,223 227,920 882,823

Source:Housing and Urban Development Coordinating Council(HUDCC) Figures of June 2004

 In support of the Millennium Development Goal (MDG) target to significantly improve the lives of at least 100 million slum dwellers by 2020, the
government and the private sector through their programs provided shelter security units to 382,285 households during the period 2001 to 2004.
 The government programs included the HUDCC's Asset Reform Program, the National Housing Authority's (NHA) programs on slum
upgrading, sites and services, land tenurial assistance, community land acquisition support, grant-in-aid for housing, resettlement, emergency
housing assistance, housing materials assistance, medium-rise housing projects and completed housing; and the Community Mortgage
Program (CMP) of the National Home Mortgage Finance Corporation (NHMFC). The private sector through the Couples for Christ Gawad
Kalinga 777 (GK777) Project and the Habitat for Humanity Project provided a total of 8,979 units for the improvement of the plight of the slum
dwellers.
 Housing Need Per Region 2005-2010
Region Annual Backlog + New Households'
Backlog 2005 2006 2007 2008 2009 2010 Total
NCR 58,412 82,182 82,434 82,869 82,946 83,206 83,469 496,928
CAR 1,309 6,494 6,589 6,685 6,783 6,882 6,984 40,416
I 5,556 25,027 25,446 25,874 26,310 26,757 27,212 156,626
II 4.078 17,725 18,032 18.346 18,667 18,995 19,330 111,094
III 12,569 71,938 73,837 75,798 77,821 79,909 82,064 461,368
IV 23,827 127,872 131,742 135,757 139,920 144,239 148,718 828,248
V 12,267 28,288 28,557 28,830 29,109 29,392 29,679 173,855
VI 16,816 36,941 37,225 37,574 37.898 38,227 38,561 226,455
VII 10,578 45,880 46,865 47,877 48,918 49,988 51,087 290,616
VIII 7,281 18,766 18,940 19,116 19,294 19,476 19,660 115,252
IX 7,642 21,824 22,133 22,449 22,772 23,101 23,438 135,717
X 5,912 18,880 19,164 19,455 19,751 20,054 20,364 117,668
XI 11,158 41,922 42,722 43,542 44,384 45,248 46,134 263,952
XII 6,661 18,033 18,270 18,511 18,758 19,009 19,266 111,847
ARMM 5,126 22,800 23,482 24,190 24,926 25,691 26,484 147,574
CARAGA 5,942 12,791 12,902 13,016 13,131 13,248 13,367 78,456
Total 195,133 2
597,362 608,370 619,708 631,389 634,422 655,821 3,756,072
Refersto the annual Housing Backlog plus projected yearly New Households.
1

2
Annual Backlog is the Total Housing Backlog for the medium-term divided by six years.

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House Financing
 HDMF Lending Programs
The House Development and Mutual Fund or Pag-IBIG Fund has several programs to address the housing requirements not only of its
members but of private developers as well. These include:
a. Credit Facility for Individual Members
This is a financing program for Pag-IBIG members here and abroad who have completed the necessary monthly contributions. The
housing loan may be used to purchase a fully developed lot or house and lot, purchase of lot and construction of a residential unit thereon,
construction or completion of a house on a lot owned by the member, home, improvement and re-financing of an existing mortgage with an
institution acceptable to Pag-IBIG.
Under this program, Pag-IBIG members may borrow up to P 2.0 Million, which shall be paid at a maximum of thirty (30) years. The
prevailing interest rates under the Abot-Kamay Pabahay Program, approved by the board last November 23, 2006, are as follows:
Loan Ceiling Interest Rate (per annum)
Up to P 300,000 6.00%
Over P 300,000 to P 750,000 7.00 %
Over P 750,000 to P 2,000,000 10.50 %
b. Facilities for Private Developers
The Pag-IBIG Credit Facility for Developers aims to provide a liquidity mechanism for private developers to enable them to continue
developing housing projects pending the take-out of delivered and complete housing loan applications. Under this facility are several
schemes which the developer may avail of, such as:
 Pag-IBIG Development Loan Program, which seeks to create additional housing inventories through the provision of developmental
financing at easier terms and lower rates to developers or proponents of housing projects.
 Pag-IBIG City Program, which provides a ready inventory of completed housing units in a project to be known as a Pag-IBIG City, which
shall be available for sale at more affordable prices to Pag-IBIG members.
This program also intends to lower the project financing costs for housing development since HDMF shall provide a faster turn around of
the developer's investment, thereby increasing his capacity for housing production. This shall redound to the benefit of Pag-IBIG members
in terms of lower priced housing packages.
 Takeout Mechanism under the Developer's CTS/REM Scheme. In order to fast track the governments housing program, PagIBIG
opened the takeout mechanism under the developer's Contract to Sell/ Real Estate Mortgage (CTS/REM) mechanism by providing an
express take-out window for accredited developers who meet the standards set by Pag-IBIG Fund for the project development and house
construction.
 The program aims to enhance the asset quality of the Pag-IBIG mortgage loan portfolio by instituting a credit risk-sharing mechanism with
developers. It also defines parameters in the allocation and disbursement of funds allocated for housing, specifically for developer-assisted
member-loans.
 Program for the Development of Medium/High Rise Condominium Building (MHRB) Projects in Metro Manila and Highly Urbanized Cities.
This program aims to provide a ready inventory of condominium units for sale at more affordable prices to eligible Pag-IBIG members in
Metro Manila area and highly urbanized cities. Through this program, Pag-IBIG members who are working in the Metro Manila Area and
highly urbanized cities will have an opportunity to acquire condominium units in the area, thereby reducing transportation costs to and from
their places of habitat.
Through a faster turnaround of their investments in the construction and development of medium/ high-rise condominium buildings in
Metro Manila Area and highly urbanized cities, this program will provide developers with a liquidity mechanism that will increase their
capacity for housing production and reduce project financing costs.
c. Developmental Housing Loan Program for Local Government Units
 This program is geared towards sustaining the capabilities of LGU's to fast track the development and implementation of
housing projects in their respective localities, make housing accessible and affordable for its employees and constituents.
d. Group Land Acquisition and Development (GLAD) Program

 The GLAD Program aims to provide financial assistance to organized groups of formally employed Fund members for the acquisition and
development of raw land or partially developed land, which shall serve as the site of their housing units.

 Community Mortgage Program

 The Community Mortgage Program (CMP) utilizes an innovative system of mortgage financing whereby beneficiaries, through the
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concept of community ownership may require a privately-owned undivided tract of land. Financing through the CMP is intended primarily to
assist residents of blighted or depressed areas or the urban poor.
 The CMP, implemented by the Social Housing Finance Corporation, is a three-stage loan program: land purchase, site development, and
house construcbbni improvement. Depending on its present capacity and needs, the borrowing community association may avail itself of
the CMP loan either on three stages, or on a one-time basis.
 Development of Poor Urban Communities Sector Project
 The Development of Poor Urban Communifies Sector Project (DPUCSP) was envisioned to contribute to the Government's overarching
goal of poverty alleviation. It addresses the underlying deficiencies in the shelter sector that contribute to the prevalence of urban poverty,
and to vulnerability of the poor, causing their exclusion from mainstream society.
 The project was designed under the technical assistance grant funded by the Asian Development Bank (ADE). With the Development
Bank of the Philippines (DBP) as implementing agency and HUDCC as oversight agency, the DPUCSP shall provide different
stakeholders with financial facilities to:
 Improve access of the poor urban households to secure land tenure, affordable shelter, basic municipal infrastructure services, and
community facilities;
 Avail of financial services for micro-enterprise development, home improvements, and housing; and
 Assist in the decentralization of shelter sector activities and strengthen the role and capacity of the local governments to meet their
shelter sector responsibilities, as provided for in the Local Government Code.
 To attain the objectives of the DPUCSP, the proposed Project has been designed to consist of three parts:
 Part A Site Development and Tenure Distribution;
Under this component, existing slums and new sites will be developed to provide affordable basic infrastructure services and secure
land tenure to poor urban families belonging to the lowest five deciles of the Philippine income distribution. As of July 2007, five
projects have been approved under this component amounting to P 44.9 million as follows:
Pulungbulo Housing Project in Angeles City, Pampanga benefiting 66 families,
Barangay 21 Housing Project in Victories City, Negros Occidental benefiting 327 families,
Passi City Government Housing Project, Passi City, Iloilo benefiting 233 families,
Balangayan Butuan Land Site Development, Butuan City benefiting 633 families, and
Pinagmangalukan Homeowners Association in San Vicente, Palawan benefiting 35 families.
 Part B: Shelter Finance Provision:
Under Part B, delivery mechanisms will be established, using micro-finance institutions (MFI's) to enable poor urban families to access
financing for the following: (i) plots serviced with basic urban infrastructure services, particularly those developed under Part A (ii)
housing improvements, (iii) new housing units, and (iv) micro-enterprise development.
As of July 2007, a total of P 870 million has been approved, of which P 85.19 million has been released to six (6) MF1's, which targeted
10,547 families. These MFI's are:
CARD-NGO,
Negros Women for Tomorrow Foundation,
Enterprise Bank,
Taytay sa Kauswagan, Inc.
Kabalikat para sa Maunlad na Buhay, Inc. (KMBI), and
People's Credit and Finance Corporation (PCFC)
 Part C: Capacity building and Implementation Support:
In Part C, capacity building and project management support programs will be implemented to improve decentralized shelter delivery.
Technical assistance for project management, support for community-driven planning and implementation, and capacity building for
LGU's and MFI's will be provided under this component.

 HGC Developmental Guarantees

The Home Guaranty Corporation provides guaranty cover to investments and credits for housing through its guaranty facilities to encourage
banks and other financial institutions to channel their resources into home building and ownership. HGC provides risk cover on the outstanding
principal and interest yield up to 11%. HGC guaranteed loans and investments are exempt from all taxes up to 11% There are several types of
guarantees HGC offers such as:
 Retail Loan Guaranty Guaranty coverage on loans/credit facility extended for purchase/acquisition of a single-family residence.

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 Developmental Guaranty Loan Guaranty facility covering loas extended for the development of subdivision, townhouse,
dormitories, apartments and other residential dwellings.
 Guaranty for Securitization Scheme Guaranty cover on securities or financial instruments or on the receivables backing-up securities.
The issuances is backed-up by a proof of assets, such as receivables and/or real estate
properties.

 Special Project New Bilibid Prison

 The New Bilibid Prison property, which has an aggregate land area of about 531.08 hectares, was originally intended as a national
penitentiary for the safekeeping and rehabilitation of prisoners.
 Former President Corazon C. Aquino issued Presidential Proclamation No. 792 on September 5, 1991, which was amended by
Presidential Proclamation No 120 on December 15„1992, segregating 104.22 hectares as housing site intended for the Department of
Justice (DOJ) employees and other government employees and is now known as the Katarungan Village.
 When President Arroyo assumed office, she gave an instruction to HUDCC to "look into the rationalization of the segregation and allocation
of the areas for housing projects in the Muntinlupa Penitentiary to ensure that the remaining areas may be utilized wisely to address the
housing requests of low-salaried government employees and for socialized housing purposes".
The President issued Presidential Proclamation No. 234 on August 15, 2002, segregating fifty (50) hectares to be developed as socialized
housing site for the families affected by the Rail Linkage Project in Muntinlupa alignment estimated at 10,555 families.
On September 8, 2006, the President issued the following issuances to fast track the development of the NBP property into a residential
and mixed-use development:
a. Proclamation No. 1159, declaring the New Bilibid Prison Reservation as government and socialized housing sites with mixed-use
component to be dsposed to qualified beneficiaries. It also directed the HUDCC to rationalize the land use and prepare a Master
Development Ran to optimize the use of the remaining areas of the NBP property. The proclamation identified the land
uses/allocation of the 366.7 hectares, as follows:
 78 hectares for government housing purposes;
 22 hectares for mixed-income residential purposes (priority given to existing and qualified residents within NBP);
 44 hectares for institutional, public or quasi-public purposes;
 147 hectares for mixed-use/commercial/residential purposes;
 51 hectares for open space/park purposes; and
 24 hectares for the implementation of the Daang-Hari SLEX Road Link Project.
b. Proclamation No. 1158, the Proclamation allocates two hurled seventy hectares (270) of land allocated in Bgy. Cuyambay, Taney,
Rizal as the new site of the New Bilibid Prison Penitentiary facilities from Muntinlupa City.
c. Executive Order No. 568 tasked the Department of Justice (DOJ) to coordinate all tasks and activities related to the transfer of the
New Bilibid Prison. In particular, DOJ was tasked to coordinate with the Department of Budget and Management (DBM), the
Department of Environment and Natural Resources (DENR) and other concerned agencies to prepare and finalize the
implementation scheme and financing plan for the transfer of the NBP penitentiary facilities within six (6) months from the date of the
issuance of the said Executive Order.
 Abot-Kaya Pabahay Program
 The Abot-Kaya Pabahay Fund was created pursuant to Republic Act 6846 or the Social Housing Support Fund Act, with the objectives of
enhancing the affordability of low-cost housing by low-income families and providing developmental financing for low-cost housing projects
thus eliminating risks for the funding agencies involved in housing.
 The program was devoted to provide amortization support, expedite the development of land into suitable sites for social housing by
providing developmental financing to developers of low-cost housing projects, and establishes a strong guarantee system to ensure viable
cash flow for the funding agencies involved in housing.
 The program is divided into three components namely:
 Amortization Support A qualified borrower shall be eligible to apply for administrative support. Eligible borrowers with
the appropriate family income shall be entitled to a monthly amortization support for the first five years of
the loan amortization period.
 Developmental Financing Under this component, proponents of low-cost housing projects shall be entitled to a
developmental financing loan not exceeding 80% of the entire project cost.
Both the Amortization support and Developmental Financing Components of the Abot-Kaya Pabahay Fund are administered by the
Socialized Housing Finance Corporation (SHFC).

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AR 563: HOUSING
LESSON and ACTIVITY PLAN: Week No. 3
Preliminary

 Cash Flow Guarantee This program, with Home Guarantee Corporation (HGC) as trustee and administrator, seeks to
eliminate credit risk for funders of socialized housing loans.
Secure Tenure
 High in the priority programs of the government was the provision of secure tenure for the informal setfler-families particularly those belonging to the
lowest 30% income deciles.
 Implemented Asset Reform Program through Presidential Proclamations. The HUDCC continued to take the lead in implementing the asset reform
program through the issuance of Presidential proclamations that declared idle government lands as socialized housing sites and provided for their
disposition to qualified beneficiaries.
 Areas for Proclamation
 Development of Proclaimed Sites
 Resettled Families along Rail and Road Right-of-Way. The government relentlessly pursued a resettlement program for families living along the rail
light-of-way and road projects, to protect them from danger and enable them to have safe dwellings. The program also paved the way for the
development of priority infrastructure projects in line with the Presidents programs to decongest Metro Manila under her 10-Point Agenda and
develop super-regions.
 Pursued the Rail Resettlement Programs
 Northrail Resettlement Protect Relocation of families along the Pampanga segment
 Rail Linkage Project Rehabilitation of the existing 34 km. PNR Commuter Service Line.
 Relocated Families along North Luzon Expressway-Circumferential Road 5 (NLEX-05)
 Provided Resettlement Sites for Calamity-Affected Families
Housing Policies
 Capability Building
 IMPACT-Cities Alliance. The 'Integrated Approaches to Poverty Reduction at the Neighborhood Level-A Cities Alliance" is a two-year technical
assistance project implemented by HUDCC with funding assistance from the Cities Alliance and UN-Habitat. The project, which begun last
May 2005, seeks to institutionalize a Cities without Slums (CWS) approach in participating cities in improved physical and socio-economic
conditions of the socialized housing sector.
 Technical Assistance of LGU's. As part of the mandate of the Housing and Land Use Regulatory Board (HLURB) provides technical
assistance to local government units in the formulation and review of their Comprehensive Land Use Plan (CLUP). They also provide local
government units with the necessary technical support to formulate standards and guidelines as well as prepare town and land use plans.
 The CLUP is a document that plans for the future use of land in accordance with the future spatial organization of economic and social
activities and the traffic of goods and people and guides land use activities, hence it can be directly translated into a long-term zoning
plan or ordinance. The zoning ordinance is a legal document to enforce the LGUs land use plan.
 Likewise, the National Housing Authority also extends technical assistance to community association/ cooperative or Local Government
Units in terms of community organization, negotiation with the land owner, preparation of required development plans, formulation of
disposition and collection schemes and coordination with other national government agencies for the processing of required documents
relating to resettlement and relocation.
 Housing Regulation. Compliance to 20% Balanced Housing Requirement
 Section 18 of Republic Act 7279 or the Urban Development and Housing Act of 1992 requires every developer of subdivision projects to
develop an area for socialized housing equivalent to at least twenty percent (20%) of the total subdivision area within the same city or
municipality, whenever feasible, or total subdivision project cost at the option of the developer. The Housing and Land Use Regulatory Board
(HLURB) monitors the compliance of the developers of subdivision projects.
 The required balanced housing development may also be complied with by the developers in any of the following modes:
 Development of new settlement;
 Slum upgrading or renewal of APD either through zonal improvement, slum improvement and resettlement programs;
 Joint venture projects with the local government units or any of the housing agencies;
 Participation in the Community Mortgage Program (CMP);
 Purchase of Housing Bonds; and
 Accrediting housing projects engaged and developed by non-governmental and non-profit organizations and foundations for the
underprivileged and homeless sector.

Architect Dennis C. de Villa, uap, csp

July12, 2008
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