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Local Housing Board

Rationale helter, one of the minimum basic needs, plays a vital role in economic growth of the country. While the Local Government Code of 1991 mandates the creation of six special bodies addressing health, education, peace and order, local bids and awards, local enforcement and local development, the creation of Local Housing Boards was not mandated. Nonetheless, many Local Government Units have created Local Housing Boards as well as Housing Offices on their own initiative. Housing is a multi-sectoral concern in the LGU and provides very positive contributions to its economy and its peoples well being. The increasing challenges on housing such as the growing number of illegal settlers/dwellers, low subsidies in housing, limited lands for socialized housing and other resettlement sites, and the push for urbanization and demand for new housing projects by the private sector

necessitate the creation of the Local Housing Board to address all these concerns. The Local Housing Board will plan for shelter, facilitate tenure security and access to affordable housing, ensure a system that will encourage private sector participation in housing production, and encourage multi-sectoral interaction.

Legal Bases
Republic Act 7160 (Local Government Code of 1991) Section 16, General Welfare Section 17, Devolution of socialized housing to cities and provinces LG Code IRR Rule 5 & 6: provides for the role of the LGUs in the provision of housing RA 7279 (Urban Development and Housing Act) Article IX, Section 39 - LGUs to provide low-cost housing facilities and exercise the regulatory powers over related housing activities Section 43, LGUs may impose an additional 0.5% tax on the assessed value of all lands in urban areas in excess of P50,000

Presidential Memorandum Order 74 dated September 13, 2002 directing LGUs to create their respective housing boards to implement post proclamation activities in areas proclaimed as socialized housing sites.

Suggested Composition LGU

MPDC, MSWDO, UPAO, MEnro, MLGOO, Chief of Police /PNP, Sanggunian, Head of Housing Committee

Representatives from Key Housing Agencies: National Housing Authority, Housing and Land Use Regulatory Board, HDMF, other stakeholders deemed necessary as member

Assist LGUs in the preparation of Local Shelter Plan Recommend/identify housing related projects Assist LGUs in review and approval of Subdivision Plans Assist LGUs in monitoring compliance to balanced housing Recommend use/allocation of Special Housing Fund LGUs

Role of Stakeholders
1. 2. 3. Implementation of housing related projects Creation of local housing office/ Designation of unit/personnel Review/process and approve application for housing development HUDCC and DILG

Private Sector
Representatives from Peoples Organizations, NGOs, Developers, Home Owners Associations, Neighborhood Associations Advisory body on housing matters

Functions of the LHB

1. 2. 3.

Assist in the organization of LHBs; and Capability Building of the LHBs. A. Coordination with other national government agencies Private Sector 1. Provide inputs to improve shelter planning and delivery 2. Advocacy for greater participation and partnership among civil society. 3. Monitor UDHA compliance B. 4. Monitor Implementation of Local Shelter Plan

Enabling Policies Issued by DILG Compliance to the provisions of UDHA (RA 7279) MC 2001-21 dated March 2, 2001- requiring all LGUs to conduct an inventory of all lands and update their list of areas identified for socialized MC 200-54 - requiring all LGUs to submit list of possible areas for Socialized Housing. MC 2002-136- directing all LGUs to adopt the 30 day time standards prescribed under EO 258 for the issuance of development permits for housing projects MC 2000-155 - guidelines that LGUs cannot anymore require developers to pay additional performance bonds on top of the

Incentives to Private Sector Participation

performance bonds they are presently required to pay to HLURB pursuant to PD 957. MC 2002-15 dated January 31, 2002 - establishment of One-Stop Shop Housing Processing Center thru the creation of LGU Urban Development and Housing Board and prescribing time frame for the issuance of development permits, locational clearance, land use conversions in relation to EO 45. Prohibition Against New Illegal Structures MC 94-11 dated January 19, 1994 and MC 93150 dated October 28, 1993LGU compliance to drive professional squatters and squatting syndicates. MC 98-202- enjoining all Punong Barangays to adopt regulatory measures against

proliferation of squatters in their respective jurisdictions. MC 98-234- supervising and monitoring barangay actions to prevent the proliferation of squatters in their communities.


LGUs with Organized LHBs Sta. Rosa, Laguna Naga City San Fernando City, La Union Sta. Rosa, Laguna The local housing board in Sta. Rosa, Laguna has a great participation in the Philippines National Railway Southrail project. The board initiated the Local-Inter Agency Committee (LIAC) meeting through their Urban Development and Housing Office. Naga City The Urban Development and Housing Board of Naga City is tasked to recommend to the city government a continuing inventory and identification of lands for socialized housing and as resettlement areas for the immediate and future needs of the urban poor, underprivileged and homeless in the urban areas. This board represents the city government in coordinating with

the Housing and Land Use Regulatory Board and the Housing and Urban Development Coordinating Council in formulating a National Urban Development and Housing Framework, as mandated by Republic Act No. 7279. The Kaantabay sa Kauswagan is a social amelioration program primarily designed to empower squatters and slum dwellers in Naga. It seeks to address the sector's 2 main concerns: the absence of security of land tenure; and the lack of infrastructure in urban poor communities. The program's strength comes from the institutionalization of a functional tripartite mechanism-involving landowners, land occupants and the city government as broker-- for permanently settling land tenurial problems. San Fernando City, La Union The San Fernando City Local Housing Board was created by virtue of Executive Order 19-98 to assist the city government in developing, implementing and monitoring policies on the provision for housing and

resettlement areas and on the observance of the right of the underprivileged and homeless to a just and human eviction and resettlement. In addition to the functions of identifying socialized housing beneficiaries, the LHB was instrumental in providing P3M allocation from the Citys IRA for land acquisition. The LIAC was created to implement Executive Order 48 that will provide 1,100 families tenure security in 3 projects to be developed from the PNR Non-Core properties in San Fernando City.

FUNDING LOCAL HOUSING PROJECTS Local Funds Socialized Housing Tax Local Governments are authorized to impose an additional one-half percent (0.5%) tax on the assessed value of all lands in urban areas in excess of Fifty Thousand Pesos (P50,000.00) pursuant to Section 43 of RA 7279, Socialized Housing Tax DOF Local Finance Circular No. 1-96 dated 10 April 1997 provides the implementing rules and regulations on the imposition, collection, and utilization of the Socialized Housing Tax. Utilization of Calamity Funds DBM-DILG Joint Memorandum Circular No. 2003-1 Issued March 20, 2003, Use Of Local Calamity Fund Appropriation For Man-Made Disaster Relief And Mitigation

This joint circular is issued to clarify that the annual lump appropriations of local government units for relief, rehabilitation, reconstruction and other works or services in connection with calamities which may occur during the budget year, mandated under Section 324 (d) of RA No. 7160, as amended by RA No. 8185, may be validly used for relief, rehabilitation, reconstruction and other works or services in connection with man-made disasters resulting from unlawful acts of insurgents, terrorists and other criminals as well as for disaster preparedness and other pre-disaster activities Such relief, rehabilitation, reconstruction and other works or services including pre-disaster activities in connection with such man-made disasters may, at the discretion of the local government unit concerned, include

Preparation of relocation sites/facilities, disaster preparedness training and other pre-disaster activities. External Funding Local Government Units may avail of the following financing assistance extended by the following agencies 1. National Housing Authority Resettlement (acquisition and development of land) through joint-venture whereby land or land cost is provided by the LGU Medium Rise Public Housing (maximum of five storeys, walk-up) through joint-venture Sites and Services (serviced homelots) joint-venture Local Housing (cost-recoverable, socialized project) joint venture

3. Home Development Mutual Fund Local Government Housing Program Direct loan to
LGU for land acquisition and development, including construction of housing units Expanded Home Lending Program Financial assistance to HDMF members through house, lot, or house and lot loans Group Land Acquisition and Development is a facility in which an organized group of at least 30 Pag-IBIG members organized as a cooperative or HOA is provided financing for the acquisition of rawland and its subsequent site development and further financial assistance for house construction.

PNP Housing Assistance - A program for the members of Philippine National Police (PNP) and active members of Pag-IBIG Fund and have passed prior screening and pre-screening of the PNP Housing Board as to capacity to pay Housing Facility For DECS - A program designed for active members of Pag-IBIG and regular employees of

Department of Education (DepEd) with a permanent appointment. 4. National Home Mortgage Finance Corporation Community Mortgage Program (CMP) A financing scheme that allows residents of blighted areas to own the lots they occupy and to construct houses therein. LGUs can act as loan originators. Abot Kaya Pabahay (AKP) Developmental Loan Program Assistance to localities identified by LGUs as priority areas in relation to socio-economic and housing development. 5. Development Bank of the Philippines Regular LGU Housing Program Long-term loan (maximum term is 15 years) for housing-related activities. The housing units or lots generated under the program will be sold to the target beneficiaries on installment basis. LGU Housing Loan with Take-out Mechanism (Bridge Financing) End-buyers secure housing loans from

either the DBP or GSIS Individual Housing Loan Program. The LGU in turn repay DBP the corresponding loan. Standby Credit Facility Convertible to a Term Loan (maximum term of 2 years) Joint venture undertaking by the LGU with a private developer. A DBP standby letter of credit will be issued to guarantee the LGUs payment to the developer. Collateral Requirements - Deed of Assignment with hold-out of a specified portion of the LGUs IRA 6. Land Bank of the Philippines Lending Program for LGUs The loan amount is based on the project requirement whereby the LGU shall contribute 25% of the total cost. Collateral can be 20% of IRA or 20% of regular income or net profits/income from the project. 7. Government Service Insurance System (GSIS) Mass Housing Program The LGU applies for loan with GSIS accredited banks (GSIS will shoulder the

LGUs corresponding loan). Payment is coursed through accredited private banks. 8. Philippine National Bank LGU Financing The loan amount is based on the project requirement (not to exceed 5x of the 20% of IRA or 20% of regular income). Collateral can be 20% of IRA, 20% of regular income or net profits/income from the project and mortgage of the LGUs other public properties (idle).