ARHOUS1 – HOUSING
SOCIO-CULTURAL AND ECONOMIC ASPECTS OF
HOUSING
Housing in the Philippines
The Philippine housing industry believes that every Filipino family has
the right to live with dignity in the comfort of one’s own home regardless of
economic status.
The housing backlog is 3.9 million households. Assuming that
production of housing units would average 200,000 units every year from 2012
to 2030, the backlog would still persist and hit 6.5 million households by 2030.
The highest demand would come from the economic housing segment,
followed by socialized housing, and lastly by low-cost housing.
Socio-Cultural and Economic Aspects of Housing
Prepared by: Ar/EnP. Ryan M. Benaoe, MAEHP
The low-cost, socialized, and economic housing units account for a
large share of housing production. From 2010 to 2011, housing production in
the high-end, mid-end, and low-cost categories increased, while production of
houses in economic and socialized housing was relatively flat. From 2000 to
2011, economic, socialized, and low-cost housing cornered close to 70% of
total housing production. During this same period, the socialized segment
accounted for 27%, the economic segment accounted for 29%, and low cost
segment 13%.
As of 2011, there are 3,164 players in the housing industry. Despite the
huge number of firms engaged in housing, only a few firms dominate the
industry. Most of these firms are highly integrated developers that are engaged
in various real estate developments besides housing. Many other firms are into
retail real estate, hotels, commercial office buildings, and industrial estate
development.
Issues Regarding Housing and Urban Development:
Socio-Cultural Sustainability of Housing - As an important component
of the built environment, housing has a crucial role to play in the sustainable
development of cities. The sustainability of housing development embraces the
environmental, social, cultural and economic aspects of housing, which
intertwine with one another… …Social and cultural sustainability diverge
where "social well being" and "culture" respectively become the subjects of
sustainability.
Government’s Role in Low-Cost Housing - Provision of affordable housing
requires government intervention, and the degree of such intervention needs to
be defined. This is to ensure a balance in the roles/participation among
agencies/sectors involved in the housing program of the government. In the
process of meeting the housing needs of the people, the government must also
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focus on its ultimate objective of eventually empowering the people to enable
them to address their own housing needs.
Under EO no. 90, the NHA is mandated as the sole government agency
engaged in direct shelter production focused on providing housing assistance to
the lowest 30 percent of urban income-earners through slum upgrading, squatter
relocation, and development of sites and services and construction of core-
housing units.
Affordability Issue – Based on a formal survey conducted by the government,
up to 70% of the population is unable to access even the cheapest formal
financial housing package of Php 150,000.00; up to 80% of the population will
not be able to afford a finished socialized housing unit; Around 5 million
families belonging to the first three income deciles are best assisted by grants
and/or programs of prominent housing NGOs such as Gawad Kalinga and
Habitat for Humanity. Cost-recoverable and interest-bearing government
housing programs such as NHA and CMP-NHMFC programs for the poor may
cater to 40% of the population or 6.4M families covering those from the fourth
to seventh decile; Only 20% of the population, or only those falling within the
eighth to tenth deciles, can have access to formal housing finance packages.
Construction costs: (amended 2007)
Socialized Core house P 3,750 per sq. m.
Socialized Finished Unit P 6,000 per sq. m.
Low / Economic package P10,000 per sq. m.
Housing – generally refers to the social problem of insuring that members of
the society have a home to live in, whether this should be a house, or some other
kind of dwelling, lodging or shelter. This course mainly focuses on the aspects
surrounding the physical structure – which is the “house”. The following are
relevant terms to understand the difference between housing as a social
problem, and as a physical infrastructure design to house man and his family.
Socio-Cultural and Economic Aspects of Housing
Prepared by: Ar/EnP. Ryan M. Benaoe, MAEHP
1. House – a home, building or structure that functions as a habitat
for humans. The social unit that lives in a house is known as a
household.
2. Home – a place of residence or refuge.
3. Dwelling – a physical structure used for residential purposes
4. Lodging – a type of residential accommodation for temporary stay,
sleep, rest and shelter having access to common household
functions.
5. Shelter – a basic architectural structure or building that provides
cover.
BASIS ON HOUSING AS A NATIONAL AGENDA
Constitutional Mandate on the right to property
Section 1, Article III of the Bill of Rights
“No person shall be deprived of life, liberty and property without due
process of the law, nor shall any person be denied equal protection of
the laws”
Section 2, Article III, of the Bill of Rights
“The right of the people to be secure in their persons, houses, papers,
and effects against unreasonable searches and seizures of whatever nature and
for any purpose shall be inviolable, and no search warrant or warrant of arrest
shall issue except upon probable cause to be determined personally by the
judge after examination under oath or affirmation of the complainant and the
witnesses he may produce, and particularly describing the place to be searched
and the persons or things to be seized.
Type of Properties (Civil Code)
1. Movable Property (Personal property) such as jewelry, vehicles,
appliances, artworks, patent, literary works.
2. Immovable Property ( Real property) such as house, building, land,
residential lot
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Fundamentals of the Right to Ownership
Right to Own
General Rule : Only Filipino citizens and corporations or partnerships
at least 60% of the capital is owned by Filipinos are
entitled to acquire land in the Philippines
Exceptions: a. Acquisition before the 1935 Constitution
b. Acquisition thru hereditary succession, if foreign
acquire is legal heir (parents or other ascendants,
children or other descendants, spouse, legatee, devisee)
c. Purchase of not more than 40% interest in a
condominium project
d. Purchase by a former natural-born Filipino citizen
subject to the limitation as prescribed by the Foreign
Investment law and Section 15 Art. XIV of the
Philippine Constitution.
Types of Real Estate Ownership
1. Freehold
A freehold interest (also known as fee simple) is the more
precise term for what we ordinarily refer to as the absolute
ownership of a property. The owner by freehold has full use,
control and dominion over the real property in accordance to
the laws.
Example:
Diego acquires a Transfer Certificate of Title of a Land
formerly belonging to his ancestors.
2. Leasehold
It is the right to use a real estate property for a long, but limited
period of time. The owner (lessee) has a leasehold interest over
the leased property and may exercise his right of ownership in
all lawful manners for the established period of time.
Socio-Cultural and Economic Aspects of Housing
Prepared by: Ar/EnP. Ryan M. Benaoe, MAEHP
Leasehold interest terms – 25 years renewable for another 25
years maximum
3. Strata ( Condominium)
The strata form of ownership is designed to provide exclusive
use and ownership of a specific housing unit which is
contained in a larger property plus shared use and ownership of
the common areas such as halls, grounds, garages, elevators
etc.
4. Cooperative
In the cooperative form of ownership, each owner owns a share
in a company or cooperative venture, which in turn, owns a
property containing a number of housing units. Each
shareholder is assigned one particular unit in which to reside.
GLOSSARY OF HOUSING TERMS
Land and Legal Aspects
Human Settlement – the habitat or built environment of human beings encompassing
both rural and urban areas where man settles himself to live.
Land use – the manner of utilizing the land, including its allocation, development and
management.
Land use conversion – the act of putting a parcel of land into a type of use
other than that for which it is currently utilized.
Land use map – a map that supplies information on the spatial dimension of
the different land uses in a given area.
Land use plan – a component of the comprehensive land use plan which
describes how land shall be put to use in the next 5 years.(now 6 years)
Land values Map – a map that indicates the relative prices and value of land
in a given municipality.
Shelter plan – component of the CLUP focused on providing housing.
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Idle lands – agricultural lands in urban and urbanizable areas on which no
improvements have been made by the owner, as certified by the city, municipal or
provincial assessor.
Marginal lands – lands which are not effective for crop production due to constraints
such as topography or poor yields.
Abandoned land – lands devoted to any crop at least one year prior to the notice of
expropriation, but which was not utilized by the owner for his benefits for the past
five years prior to such notice of expropriation.
Improvements – all types of buildings and residential units, walls, fences,
structures and constructions of all kind of a fixed character or which are
adhered to the soil but shall not include trees, plants and other fixtures that
are mere superimpositions on the land, and the value of improvements shall
not be less than 50 % of the assessed value of the property.
Renovation – physical change done to a real property to increase value.
Repair – reconstruction or renewal of any part of a building for maintenance
purposes.
Agricultural land – land devoted primarily to planting of trees, raising of crops,
livestock and poultry, dairying, salt-making, inland fishing and similar aqua cultural
activities, and other agricultural activities.
Agricultural Zone – an area within a city or municipality intended for cultivation,
fishing and pastoral activities such as farming, fishing, cattle raising etc.
Prime Agricultural lands – lands capable of sustaining the economic productivity
levels of crops/ land use over time in a given climatic region without adversely
affecting the immediate and adjoining environment. These lands are “non-
negotiable” for land conversions because it ensures food security. All irrigated and
irrigable lands under the Bureau of Soils and Water Management.
Public domain lands – agricultural, forest or timber, mineral lands and national parks.
Agrarian Reform – redistribution of land to farmers who are landless irrespective of
tenurial arrangement.
Relevant maps:
Base map – a map that serves as the working map and provides the standard
configuration of the planning unit for the preparation of the thematic maps.
Vicinity map – a map that shows geographic location of the study area in
relation to the province or region.
Thematic map – simple outline map depicting one single feature of the
earth’s surface or representing a single theme or subject.
Socio-Cultural and Economic Aspects of Housing
Prepared by: Ar/EnP. Ryan M. Benaoe, MAEHP
Slope Map – shows degrees of inclination in a geographic area.
Zoning map – a map that reflects the subdivision of a community into zones
or districts according to present and potential uses of land to maximize,
regulate and direct their use and development according to the CLUP of the
community.
Blighted areas/lands – areas where the structures are dilapidated, obsolete and
sanitary, tending to depreciate the value of the land and prevent normal development
and use of the area.
Block – a parcel of land bounded on the sides by streets, alleys or pathways or other
natural and man-made features, and occupied by or intended for buildings.
Subdivision lot – any of the lots whether residential, commercial or industrial or
recreational in a subdivision project.
Subdivision project – a tract or parcel of land registered under RA 496 which is
partitioned primarily for residential purposes into individual lot with or without
improvements thereon and offered to public for sale in cash or installment terms.
Brushland – any tract of land of the production forest land covered dominantly with
shrubby vegetation.
Buffer zones – identified areas outside the boundaries of and immediately adjacent to
designated protected areas pursuant to Section 8 of RA 7586 that need special
development control in order to avoid or minimize harm to the protected area.
Buildable area- the remaining space in a lot after deducting the required minimum
open space.
Built-up areas – a continuous grouping of ten or more structures.
High density built-up area – more than 250 persons per hectare
Low Density built-up area – less than 150 persons per hectare
Medium density built-up area – 151 to 250 persons per hectare
Land Classification map – a map that shows the various land classification as
determined by the Forest Management Bureau.
Cadastral Map – a public record of land ownership. It is a careful plotted record of
land subdivision based on primary surveys of the Land Management Bureau.
Contour – line which passes through all points having the same elevation.
Conversion – the act of changing the current use of a piece of agricultural land into
some other non-agricultural use.
Residential land – principally devoted to habitation.
Residential Use
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 Residential Zone Low density (R-1 ) - 20 dwelling units and
below per hectare
Residential Zone, Medium Density (R-2) -21-65 dwelling units per
hectare; on the condition
that no building shall be
above 21 meters above
grade; midrise dwellings are
4-7 storeys high
Residential Zone, High Density (R03) - higher density than the
preceding zone, subject to
zoning and building code
requirements.
Real Estate – business which include subdividers and developers, agents or
appraisers etc, engaged in renting out, selling, managing or appraising lots,
establishments, both residential and non-residential.
Dominant Estate – the immovable in favor of which an easement is established.
Servient estate – the immovable that is subject to easement..
Easement /Servitudes– open space imposed on any land use/activities sited along
waterways, road-right of way, cemeteries, memorial parks and utilities.; an
encumbrance imposed upon an immovable for the benefit of another immovable
belonging to a different owner.
Apparent easements – easements which are made known and are continually
kept in view by external signs that reveal the use and enjoyment of the same.
Continuous easements – easement whose use is or maybe incessant, without
the intervention of any act of man.
Discontinuous easements – those which are used at intervals and depend
upon the acts of man.
Legal easements - those imposed by law for their object either public use or
the interest of private person.
Negative easement – one which prohibits the owner of a servient estate from
doing something which he could lawfully do if the easement did not exist.
Non-apparent easement – those easements which show no external indication
of their existence.
Positive easements – one which imposes upon the owner of the servient
estate the obligation of allowing something to be done or doing it himself.
Socio-Cultural and Economic Aspects of Housing
Prepared by: Ar/EnP. Ryan M. Benaoe, MAEHP
Eminent Domain – the right or power of the state or to those the power has been
lawfully delegated to take (or expropriate) private property for public use upon
paying to the owner just compensation to be ascertained according to law.
Empowerment – the provision of social, economic and or political power or authority
to certain individuals or groups.
Non-conforming use – use of building or land or any portion of it which do not
conform with the use and regulation of the zone where it is situated.
Eviction – the removal of persons and their belongings from a subject building/
structure or area, or both in accordance with law.
Exception – a device which grants a property owner relief from certain provisions of
a Zoning ordinance where, because of the specific use, will result in a particular
hardship upon the owner, as distinguished from a mere inconvenience or a desire to
make more money. Exception is synonymous to the term “Variance”
1. If exception will not adversely affect public health, safety, and welfare
keeping the general pattern of development in the community;
2. The project shall support economic based activities/provide livelihood,
vital community services and facilities while at the same time posing no
adverse effect on the zone/community.
3. The exception will not adversely affect the appropriate use of the
adjoining property in the same district.
4. The exception will not alter the essential character and general purpose
of the district where the exception sought is located.
Expropriation – the exercise of the power of eminent domain wherein the
government compulsorily acquires private properties for public use upon payment of
just compensation.
Summary eviction – the immediate dismantling of new illegal structures by the local
government units authorized to demolish in accordance with the affected urban poor
organization without the structure owner’s any benefits of the Urban Development
and Housing Program.
Geophysical environment – all the physical and natural characteristics of the area
resulting from its specific geographic position on the earth’s surface.
Highlands – areas located in elevations 500 meters above sea level or more.
Homestead – a portion of land in an unsettled area granted by the government to a
settler for development as a farm. 16 hectares for individuals; 1,024 hectares for
corporations. ( see Townsite homestead for Baguio City)
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Land reclassification – the subsequent classification, allocation and disposition of
lands of the public domain, classified as alienable and disposable into specific uses.
Housing terms ( National Building Code)
Occupancy – the purpose for which a building is used or intended to be used. Group
A – residential dwellings; Group B – residential hotels, apartments (multiple
dwelling units of with more than 10 occupants)
Lot – parcel of land on which a principal building and its accessories are placed
together with the required open spaces.
Lot line – the line demarcation between either public or private property
Types of lot
Corner lot – lot situated at the junction of two or more streets
forming an angle of not more than 135 degrees.
Front lot – the front boundary line of a lot bordering on the street and
in the case of a corner lot, it may be either frontage.
Inside lot – a lot fronting on but one street or public alley and the
remaining sides bounded by lot lines
Open lot – a lot bounded on all sides by street lines.
Width of lot – the average horizontal distance between the side lot lines.
Open space – areas allocated for circulation, community facilities, parks and
playgrounds, easements and courts.
Playlot – a safe recreation and play area designed for children.
Setback – the distance between the RROW to the building line, inclusive of
the driveways but not the parking area.
Types of yard:
Yard – vacant space left in a lot between the building and the
property line.
1. Rear yard
2. Side yard
3. Front yard
Accessoria or Row House – a house of not more than two storeys, composed of a row
of dwelling units entirely separated from one another by party walls or walls and with
an independent entrance for each dwelling units.
Alteration – any change, addition or modification in construction or occupancy.
Socio-Cultural and Economic Aspects of Housing
Prepared by: Ar/EnP. Ryan M. Benaoe, MAEHP
Barong-barong – improvised building or makeshift roughly constructed house built
with salvaged material
Basement – a portion of the building between floor to ceiling which is partly below
and partly above grade but so located that the vertical distance from grade to the floor
is not less than the vertical distance from grade to ceiling.
Ancillary building – a secondary building or structure located within the same
premises the use of which is incidental to that of the main building or structure.
Canal – channel or waterway artificially constructed or maintained for conveying
water or for connecting two or more bodies of water.
Canopy – a permanent roofed structure above a door attached to and supported by the
building and projecting over a wall or sidewalks.
Condominium – usually a high-rise building where the dwelling units are owned
individually but the land and other areas and facilities are commonly owned.
Construction Type:
Type I – buildings of wood construction
Type II – buildings of wood construction with fire-resistant materials and
one-hour fire resistive throughout.
Type III – building of masonry and wood construction.
Type IV – buildings of steel, iron, concrete or masonry construction.
Type V – buildings which are fire-resistive.
Court – an occupied space between building lines and lot lines other than the yard;
free, open and unobstructed by appendages from the ground upward.
Duplex – a structure intended for two households, with complete living facilities for
each.
Dwelling – a building designed or used as residence for one or more families.
Dwelling unit – one or more habitable rooms which are occupied or which are
intended or designated to be occupied by one family with facilities of living,
sleeping, cooking and eating.
Unacceptable Dwelling –the marginal/substandard housing units; improvised barong-
barong; commercial, industrial, agricultural and other premises not included for
human habitation but are used as living quarters at the time of the census, namely:
hotels, institutions, military camps and other natural shelter.
Indigenous Family Dwelling – a dwelling intended for the use and occupancy by the
family of the owner only. It is constructed of native materials such as bamboo, nipa,
logs or lumber, the total cost of which does not exceed 15,000 pesos.
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Multi-family dwelling – a dwelling on one lot containing separate living units for
three or more families, usually provided with common access, services and use of
land.
Multiple Dwelling – a building used as home or residence of three or more families
living independently from one another, each occupying one or more rooms as a
single housekeeping unit.
One family Dwelling – a detached building designed for, or occupied exclusively by
one family.
Single-family Attached dwelling – a dwelling containing two or more separate living
units each of which is separated from another by party or lot lines, walls and
provided with independent access, and use of land. Such dwelling includes duplexes,
row houses or terraces, and cluster housing.
Single-family attached dwelling – a dwelling for one family which is completely
surrounded by permanent open spaces, with independent access, services and use of
land.
Washroom – room providing facilities for washing; lavatory or toilet room
Egress – an exit or a means of going out.
Entrance – point of entry into a building, an exterior door, vestibule or a lobby.
Exit – a continuous and unobstructed means of egress to a public way.
Exit courts – a yard or courtyard providing egress to a public way for one or more
exits.
Walls
1.Firewall – a fireblock which extends vertically from the lowest portion of
the wall which adjoins two living units up to a minimum height of 0.30
meters above the highest portion of the roof attached to it.
2. Bearing wall – supports a load
3. Curtain wall – non-bearing wall between piers
4. Exterior wall – defines the exterior boundaries or courts of a building
5. Dead wall – wall without opening
6. Lot line wall – wall falling in between parcel of lands
7. Parapet wall – part of any wall entirely above the roof line
8. Retaining wall – used to resist lateral displacement of internal loads as to
the ground.
9. Party wall – a wall used jointly by two parties under easement agreements,
erected upon a line separating two parcels of lands of separate real estate.
Socio-Cultural and Economic Aspects of Housing
Prepared by: Ar/EnP. Ryan M. Benaoe, MAEHP
Fire block – any wall which separates two abutting units so as to resist the spread of
fire.
Horizontal exit – a means of passage from one building into another occupied by the
same tenant through a separation wall having a minimum fire resistance of one hour.
Passageway exits – an enclosed means of egress connecting a required exit or exit
court with a public way.
Floor area – the area included within the surrounding exterior walls of a building or
portion thereof exclusive of vent shafts and courts.
Floor area ratio (FAR) – ratio between the floor area of the building and the gross
area of the lot it is situated.
Footing – the portion of the foundation of a structure which spreads and transmits
load directly to the soil or the pile.
Foundation – all the portion of the building or structure below the footing, the earth
upon the structure rests.
Frontage – that part or end of a lot which abuts a street.
Parking area – allocated space composed of marked off portions for single motorized
vehicle on a short-time storage basis.
Grade – the lowest portion of elevation of the finished surface of the ground between
the exterior wall of a building and a point 1.50 meters distant from the said wall, or
the lowest point of elevation of the finished surface of the ground between the
exterior wall of the building and a property line if it is less than 1.50 meters distance
from the said wall.
Habitable room – any room meeting the requirements of the National Building Code
for sleeping, living, cooking or dining purposes, excluding such enclosed spaces as
closets, pantries, bath or toilet room, service rooms, connecting corridors, laundries,
unfinished attics, storage, space cellars, utility rooms, and similar spaces.
Passageway – a space connecting one area or room of a building with another.
Hotel – a building or part thereof with rooms occupied or intended to be occupied for
hire as a temporary aboding place of individuals with a general kitchen and public
dining room services, but no provision for cooking in any individual suite or room.
Complete house – a habitable dwelling which meet the minimum requirements for a
shell house with the following additional components being included as part thereof;
a) all windows and doors, b) partition walls for separating the functional areas.
Household – a social unit consisting of a person or a group of persons who sleep in
the same dwelling unit and have common arrangement for the preparation and
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consumption of food. A person who lives alone is considered one household.
Helpers, servants and maids are considered part of the household they stay in.
Extended family household – a nuclear family together with their relatives.
Housing unit – a structurally separate and independent place of abode constructed,
converted or arranged for habitation of one household.
Local Housing
Medium-rise private housing – cost recoverable residential buildings in high
density urban areas not less than 3 storey or the maximum limits for walk-up
medium-rise housing buildings in accordance with the National Building
Code, BP 220 and other pertinent laws, by the private sector in collaboration
with the NHA for disposition through direct sale or lease.
Medium -rise public housing – residential buildings in high-density urban
areas not less than 3 storeys or the maximum limits for walk-up medium-rise
housing buildings in accordance with the National Building Code, BP 220
and other pertinent laws, to be leased to low income families and other
beneficiaries under RA 7279.
Open Housing - housing packages with cost above the medium-cost
packages set in section 15 of RA 8763 but in no case more than five million
pesos.
Open Market Housing – housing constructed and financed by the private
sector as a business venture and sold at prevailing market prices and
interests.
Road Networks
Right-of-way (RROW) – the land secured and reserved to the public for highway
purposes.
Alley – any public space or thoroughfare that is dedicated to public use for
passageway with a width of not more than 3 meters.
Sidewalk – a paved footwalk at the side of a street or roadway
Shoulder – an area adjacent to the paved surface as to roads (air strip)
Public way – a parcel of land unobstructed from the ground to the sky, more than 3
meters in width, appropriated for free passage of the general public.
Socio-Cultural and Economic Aspects of Housing
Prepared by: Ar/EnP. Ryan M. Benaoe, MAEHP
Avenue – same as street or highway, frequently used to designate streets of a certain
direction.
Boulevard – a broad street of major importance, usually planted with trees or
receiving other park treatment.
Curb cut-out – a break in the sidewalk or traffic island provided with an inclined
surface to facilitate mobility of wheeled chairs, carriages or other similar
conveyance.;
Curb - a raised rim of concrete, stone or metal which forms the edge of the street,
sidewalk, planted area, etc.
Ramp – a sloped surface connecting two or more planes at different levels.
Embankment – raised surface such as a dike, built up by filling with earth or other
material.
Fire lane – the portion of the roadway or public way that should be kept opened and
unobstructed at all times for the expedient operation of fire fighting units.
Highway – a general term for a public way used for vehicular travel, including the
entire area within the right of way. Recommended usage: Urban area – highway or
street; Rural area – highway or road
Road Types:
1. Farm-to-market-road – links the market to the production site
2. Barangay road – minimum ROW of 10 meters and width travelled way
of 4 meters minimum
3. Municipal road – within municipalities and are not falling under
provincial or national road
4. Provincial road
5. National road
Streets – a highway in urban areas
1. Arterial and highway streets – for fast and heavy traffics
2. Collector streets – carries traffic from minor streets to the major system
3. Marginal access street – parallel streets to major system with lesser
traffic
4. Strip of 1000 meters – tract of land to be occupied by proposed
superhighways measure 500 meters from center
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Economic Aspects of Housing
Socialized Housing - RA 7279
- Refers to the projects intended for the
underprivileged and the homeless wherein the
housing package selling price is within the lowest
interest rate under the Unified Home lending
Program or any equivalent program.
Affordability – the paying capacity of housing beneficiaries to purchase or lease a
serviced lot, house and lot package or housing unit under any of the programs
outlined in RA 7835, taking into consideration the financial resources and
expenditures of the beneficiaries on minimum basic needs in relation to the cost of
housing development and viability of financing schemes.
Affordable Cost – the most reasonable price of land and shelter based on the needs
and financial capability of the program beneficiaries, under RA 7279 and with
appropriate financing schemes.
Value
Fair market value – the price at which a property may be sold by a seller
who is not compelled to sell and bought by a buyer who is not compelled to
buy.
Assessed value – the fair market value of a real property multiplied by the
assessment level. Synonymous to taxable value.
Deficit – excess of expenditures over revenue.
Equity – fairness and justice in the distribution of benefits and
responsibilities; “having stake in” or “having a share of”.
Real estate tax – ad valorem; levy imposed by the government on the
assessed value of lands, buildings or other improvements.
Economics of Scale – the decrease in unit cost as more units are produced due to the
spreading out of fixed costs over a greater number of units produced.
Balance Housing Development – a provision in RA 7279 which requires developers
of housing subdivisions to allot and develop an area for socialized housing
Socio-Cultural and Economic Aspects of Housing
Prepared by: Ar/EnP. Ryan M. Benaoe, MAEHP
amounting to 20% in cost or area in the same city or municipality under the standards
set by HLURB ( amended under RA 10884)
Cooperative – a duly registered association of at least 15 persons, majority of which
are poor, having a common bond of interest, who voluntarily join together to achieve
a lawful common social and economic end.
Development – the alteration of present use of the land other than for
agricultural purposes and the carrying out of buildings, engineering, mining
or other operations in, on, over or under land.
Conforming Use – a use which is in accordance with the zone classification
as provided for in the ordinance.
Expanded Housing loan Program – a regular program under PAGIBIG which
seeks to provide home ownership to households who are members of the HDMF. The
loan may be used to:
1. Purchase a residential lot
2. Purchase a residential lot and construction of a new house or dwelling
unit.
3. Purchase of newly-constructed residential unit, or a unit one-year old on
a first occupancy basis
4. Home improvement
5. Refinancing of an existing loan
6. Redemption of a foreclosed property
Economic feasibility – practicability of a project with regard to the economic returns
expected from its construction. A project is said to be economically feasible if when
the benefit cost ratio is 1 or more than 1.
Philippine Problem on Housing
Absolute Poverty – condition of the household below the food threshold
level.
Underdeveloped areas – characterized by the predominant absence of
utility systems or networks, especially water supply, roads and power.
Homeless – individuals with no form of shelter, living in parks, along
sidewalks and other similar places.
Professional squatters – individuals or groups who occupy a land without
the consent of the land owners who have sufficient income for legitimate
housing.
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 Housing backlog – a condition wherein the supply of livable dwelling units
is insufficient as a result of doubled-up household in acceptable housing
units.
Future Housing needs – dwelling units required to house the projected
increase in households and to replace acceptable housing units which will be
lost from inventory.
Investment – amount of money or other resources measured in terms of money
placed on activities or other forms of assets for the purpose of earning profits.
Small Property owner – residential units not exceeding 300 sq.meters. in highly
urbanized areas and 800 sq.meters in other urban areas.
Joint Venture – a commitment or agreement by two or more persons to carry out a
specific or single business enterprise for their mutual benefit, for which purpose they
combine their funds, land resources, facilities and services.
Ways to Combine parcels of land for housing projects
1. Land Consolidation – the acquisition of lots of varying ownership
through purchase or expropriation for the purpose of planned and rational
development and socialized housing programs without individual
property restrictions.
2. Land exchange /Land Swapping– the process of bartering land for
another piece of land and or shares of stocks of equal value in a
government or quasi-government corporation.
3. Land readjustment – the pooling of individual lots for the purpose of
development and re-plotting, unrestricted by individual property
boundaries, and according to an approved development.
Housing Loan
Lending Window – duly accredited financial institutions which grants loans to
individual homebuyers in accordance with the UHLP (Unified Home Lending
Program) guidelines
Loan Originator – an institution/entity engaged in the business of
processing, packaging and documentation of housing loan
applications/mortgages or borrowers indorsing the same to the lending
window for approval/tale out.
Broker- any person who, for commission or other compensation, undertakes
to sell or negotiate the sale of a real estate belonging to another.
Builder/developer – the person or entity who develops raw land for housing.
Socio-Cultural and Economic Aspects of Housing
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Loan and mortgage Agreement – a contract between the lending window and the
loan originator specifying the terms and conditions governing their working
relationship.
Loan carrying capacity
1. Percentage of income spent for housing
2. Potential percentage of income available for housing
3. National affordability level
4. Maximum loanable amount under UHLP Affordable housing
loan
Potential Percentage of Income Available for Housing – describes the maximum
percentage of income that could be made available for capital costs of housing after
excluding necessary basic expenses such as food, clothing, education, medical
expenses, transportation, income tax and recurrent cost of housing.
Housing Expenditures – the actual rent of the dwelling unit and lot or the imputed
rent if the family owns them or occupies them rent-free, and expenditures for house
maintenance and minor repair. ( faucet replacement, broken windows, leaking roof
and the like)
Mortage versus Lease
Mortgage - A legal document by which the owner (i.e., the buyer) transfers to the lender an
interest in real estate to secure the repayment of a debt, evidenced by a mortgage note
First Mortgage – advance payment
Mortgagor – the original borrower under a mortgage and its successors and assigns.
Lease – privilege granted to occupy or possess a real property with the prescribed
rental.
Lessee – person renting (tenant)
Lessor – owner, administrator or agent of a real property being leased or
rented.( landlord)
Financing – means by which a government or any entity provides financial resources
to cover a budget deficit or allocated financial resources arising from a budget
surplus.
Housing Finance – the comprehensive funds flow system covering the entire
housing provision cycle.
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 a. Identification of financial requirements d. Slum Improvement and Resettlement Program (SIRP) – improving blighted
b. Fund sourcing for various aspects of housing program (lot acquisition, areas in Metro Manila
development and construction, end buyers financing) e. UHLP - Unified Home Lending Program
Locational clearance – a certification that the proposed development or f. Land Government Pabahay Program - a municipal finance program
improvement is suitable in the location specified in the application pursuant to the which aims to provide the local government units with the necessary
general land use standards and guidelines of the Human Settlements Commission. financial support and assistance at affordable terms to fast-tract the
Developments development and implementation of housing projects in their
New Settlement – planned large scale development including housing, work respective localities. Maximum amount is 20 million pesos per
place within a self-contained environment. project phase per site.
New Town – deliberately planned town built to provide housing, g. GLAD –Group land Acquisition and Development ; a regular
employment, shopping, education, recreation, culture and other services program under PAGIBIG which provides financial assistance to
associated with a city or town. organized groups of fund members for the acquisition and
development of rawland or partially developed land which shall
Acronyms and Government Programs serve as the site of their housing unit.
Project Delivery Terms:
BLT – Build-lease-transfer
Municipal Pabahay Bonds –a municipal finance program which enables local
BOT – Build-Operate-transfer
government units to float municipal bonds as a means of generating funds for
BOO-Build-own-operate
housing or housing related programs/projects. Under HIGC with an interest of 8.5%.
BTO – Build-Transfer-operate
Slum Improvement – upgrading of sites and services
Ancestral Land Terms:
CLUP – Comprehensive Land Use Plan
CADT – Certificate of Ancestral Domain Title
CBA – Cost-Benefit Analysis ; a plan evaluation method which requires the
CALT – Certificate of Ancestral land Title
translation of costs and benefits of spatial strategies into monetary terms.
CALC – Certificate of Ancestral land Claim
NGCHP – National Government Center Housing Project
Type of Cities:
NIPAS –National Integrated Protected Areas System-all designated protected areas
Highly urbanize Cities – minimum population of 200,000 inhabitants
used to maintain essential ecological processes and life-support systems.
Component City/Municipality – cities which do not meet the requirements of
IRA – Internal Revenue Allotment – share of local government units in the national
a highly urbanized cities.
internal revenue taxes.
Housing Programs:
PUD – Planned Unit Development
a. CMP –Community Mortgage Program; a mortgage financing program of the
NUDHF – National Urban Development and Housing Framework – the
National Home Mortgage Finance Corporation (NHMFC) which assist
comprehensive plan for urban and urbanizable areas aimed at achieving the
legally organized associations of underprivileged and homeless citizens to
objectives of the programs under RA 7279
purchase and develop a tract of land under the concept of communal
ownership.
b. Expanded Housing Loan program
c. Zonal Improvement program (ZIP)

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 Primary Function: HGC mobilizes all necessary resources to broaden
the capital base for the effective delivery of housing and other related
services, primarily for the low-income earners through a viable system
HOUSING AND URBAN DEVELOPMENT
of credit insurance, mortgage guarantee, and securities. HGC takes the
Government Agencies Involved in Housing and Urban Development risk out of private investment in housing by providing risk covers and fiscal
Programs ( Key Shelter Agencies) incentives to housing credits extended by developers, banks and other
financing institutions.

2. HLURB – Housing & Land Use Regulatory Board (formerly Human

1. HUDCC – Housing and Urban Development Coordinating Council Settlement Regulatory Commission)

HUDCC was created through Executive HLURB is the sole regulatory for housing and
Order no. 90. It is the highest policy-making land development. It ensures rational land use
and coordinating office on shelter programs. for the equitable distribution and enjoyment of
development benefits. It is charged with
Primary Function: charged with main function
encouraging greater private sector
of coordinating the activities of the government
participation in low-cost housing through
housing agencies to ensure the accomplishment
of the National Shelter Program. liberalization of development standards,
simplification of regulations, and
decentralization of approvals for permits and
licenses. It extends comprehensive and
2. HGC – Home Guarantee Corporation (formerly
productive planning assistance to provinces,
Home Insurance Guarantee Corporation)
cities, and municipalities toward the formulation of Comprehensive
The Home Guaranty Corporation (HGC) is a Land Use Plans (CLUPs).
government-owned and controlled corporation
(GOCC) under the administrative supervision of the Primary Function: The HLURB is a national government agency tasked
Housing and Urban Development Coordinating as the planning, regulatory and quasi-judicial body for land use
Council (HUDCC). development and real estate and housing regulation. These roles are
done via a triad of strategies namely, policy development, planning and
regulation.
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3. NHA – National Housing Authority
The National Housing Authority is the sole
government agency engaged in direct shelter
production focused on providing housing
assistance to the lowest 30% of urban income-
earners through slum upgrading, squatter
relocation, development of sites and services,
and construction of core housing units. In
addition, it undertakes programs for the
improvement of blighted urban areas and provides technical assistance
for private developers undertaking low-cost housing projects.
4. NHMFC – National Home Mortgage Finance Corporation
The National Home Mortgage Finance
Corporation is the major government home
mortgage institution. Its initial main function is
to a viable home mortgage market, utilizing
long-term funds principally provided by the
Social Security System, the Government
Service Insurance System, and the Home
Development mutual Fund to purchase
mortgages originated by both public and private
institutions that are within government-
approved guidelines. It is also charged with the development of a
system that will attract private institutional funds into long-term housing
mortgages.
Socio-Cultural and Economic Aspects of Housing
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5. HDMF – Home Development Mutual Fund (more commonly known as
the Pag-Ibig Fund)
The Development Mutual Fund focuses on the
administration of a nationwide provident fund for
the government’s housing program, and
formulates other investment strategies relative to
housing as well as improve its collection
efficiency.
Primary Function: responsible for the administration of the national savings
program and affordable shelter financing for Filipinos employed by local and
foreign-based employers as well as voluntary and self-employed members. It
offers its members short-term loans and access to housing programs.
Other Government Agencies Responsible for Housing Projects:
BIR – Bureau of Internal Revenue ( audits government shelter agencies)
BLISS – Bagong Lipunan Improvement of Sites and Services
BSWM – Bureau of Soils and Water Management ( assists in the
determination of soil and ground water suitability of sites)
CHR – Commission for Human Rights ( agency in charge of human rights
abuses related to housing)
DA – Department of Agriculture ( identifies agricultural lands which cease
to be one and is already suitable for housing use)
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 DAR – Department of Agrarian Reform ( determines non-negotiable
agrarian lands)
Laws on Housing and Urban Development:
DENR – Department of Environment and Natural Resources ( tasked to
maintain ecological balance in all housing developmental projects) Latest legislations:
Republic Act 11201 – “Creating the Department of Human Settlement
DILG – Department of Interior and Local Government ( joint task with and Urban Development Act”
LGU) Republic Act 10884 – “ Balanced Housing Development Program of 2016
amending RA 7279 Section 18”
DOE – Department of Education ( on housing advocacy)
Coverage of the Course (highlighted)
DSWD – Department of Social Welfare and Development ( on the welfare Republic Act 9266 - "The New Architecture Law”
of displaced population and provisions for temporary or permanent social Republic Act 7279 - "Urban Development and Housing Act of 1992"
welfare solutions) Republic Act 9161 - "Rental Reform Act of 2002"
Presidential Decree 1267 - "Creating a National Home Mortgage Finance
EMB – Environment Management Bureau ( branch of DENR inclined to Corporation (NHMFC)"
environmental management) Presidential Decree 1752 - "Amending the Act Creating the Home
Development Mutual Fund (HDMF)"
LGU – Local Government Units ( barangays, cities, municipalities and Presidential Decree 757 - "An Act Creating the National Housing Authority
provinces) (NHA)"
Presidential Decree 933 - "An Act Creating the Human Settlement
LMB – Land Management Bureau ( branch of DENR aligned in land Commission (HSC)"
allocation) Presidential Decree 1216 – “Law Defining ‘Open Space’ in Residential
Subdivision” (Amendment to PD957)
NAMRIA – National Mapping and Resource Information Authority Presidential Decree 1396 - "Human Settlement Regulatory Commission”
(Amendment to PD933)
NEDA – National Economic and Development Authority ( the national Republic Act 7835 - "Comprehensive and Integrated Shelter Financing Act of
economic planning arm) 1994”
Presidential Decree 957 -"Subdivision and Condominium Buyer’s
PSA – Philippine Statistics Authority Protective Decree”
Republic Act 4726 - "Condominium Law”
PCUP – Presidential Commission for the Urban Poor Batas Pambansa bilang 220 - "Standards for Socialized and Economic
Housing”
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Republic Act 8763 - "Creating the Home Guarantee Corporation” (renaming
the HIGC)
Presidential Decree 772 - "Anti Squatting Law”
Republic Act 8368 - "An Act Decriminalizing Squatting”
Republic Act 6657 – “Comprehensive Agrarian Reform Law”
Republic Act 7160 – “Local Government Code”
Act 496 – “Land Registration Act” (Amended by RA 440)
REPUBLIC ACT NO. 11201
The law creating the Department of Human Settlements and Urban
Development, in an effort to ensure that underprivileged and homeless citizens
have an access to "adequate, safe, secure, habitable, sustainable, resilient, and
affordable home."
RA 11201, inked February 14, 2019, creates the department through the
consolidation of the Housing and Urban Development Coordinating Council
(HUDCC) and the Housing and Land Use Regulatory Board (HLURB).
Primary Function: delegated as the primary national government entity responsible
for the management of housing, human settlement, and urban development.
Mandate: to be the "sole and main planning and policy-making, regulatory, program
coordination performance monitoring entity for all housing settlement and urban
development concerns, primarily focusing on the access to and the affordability of
basic human needs."
to discharge all responsibilities of government that may arise from treaties,
agreements, and other commitments on human settlement and urban development to
be extended through bilateral or multilateral loans and programs.
Powers:
1. The Department of Human Settlements and Urban Development has the power to
exercise policy development, coordination, monitoring and evaluation;
Socio-Cultural and Economic Aspects of Housing
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environmental, land use and urban planning and development; housing and real estate
development regulation; and homeowners association and community development.
2. The department is also allowed to enter into contracts, joint venture agreements or
understanding, public-private partnerships, and memoranda of agreement or
understanding, either domestic or foreign, under such terms and conditions deemed
proper and reasonable.
3. It can also receive, take and hold by bequest, device, gift, purchase or lease, either
absolutely or in trust for any of its purposes from foreign and domestic sources, any
asset, grant or property, real or personal, subject to such limitations provided under
existing laws and regulations.
4. The department can also determine, fix, and collect reasonable amounts to charge
as fees and charges necessary for the effective implementation of all laws, rules and
regulations enforced by the department and impose reasonable fines and penalties for
violation thereof.
5. It also has the power to recommend new legislation and amendments to existing
laws as may be necessary for the attainment of government's objectives in housing.
6. The new department has the authority to promote, accredit and regulate the use of
indigenous materials and technologies in the housing construction.
7. It can also implement prototype projects in housing and urban development
undertakings, with the right to exercise the power of eminent domain, when
necessary.
8. The Department of Human Settlements and Urban Development is also tasked to
open roads of subdivisions to the public, when the general welfare requires it upon
consultation with stakeholders.
9. The Department of Human Settlements and Urban Development has the
administrative supervision over National housing Authority, National home
Mortgage Finance Corporation, Home Development Mutual Fund, and Social
Housing Finance Corporation.
Under RA 11201, the HLURB is reconstituted as the Human Settlements
Adjudication Commission (HSAC) attached to the department for policy,
planning and program coordination only.
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P a g e | 15

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
TITLE, POLICY, PROGRAM AND DEFINITION OF TERMS
Section 1. Title. – This Act shall be known as the “Urban Development and
Housing Act of 1992.”
Section 2. Declaration of State Policy and Program Objectives. – It shall be the
policy of the State to undertake, in cooperation with the private sector, a
comprehensive and continuing Urban Development and Housing Program,
hereinafter referred to as the Program, which shall:
1. Uplift the conditions of the underprivileged and homeless citizens in
urban areas and in resettlement areas by making available to them
decent housing at affordable cost, basic services, and employment
opportunities;
2. Provide for the rational use and development of urban land in order to
bring about the following:
a. Equitable utilization of residential lands in urban and
urbanizable areas with particular attention to the needs and
requirements of the privileged and homeless citizens and not
merely on the basis of market forces;
b. Optimization of the use and productivity of land and urban
resources;
c. Development of urban areas conducive to commercial and
industrial activities which can generate more economic
opportunities for the people;
Socio-Cultural and Economic Aspects of Housing
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d. Reduction in urban dysfunctions, particularly those that
adversely affect public health, safety and ecology; and
e. Access to land and housing by the underprivileged and
homeless citizens.
3. Adopt workable policies to regulate and direct urban growth and
expansion towards a dispersed urban net and more balanced urban-rural
interdependence;
4. Provide for an equitable land tenure system that shall guarantee security
of tenure to Program beneficiaries but shall respect the rights of small
property owners and ensure the payment of just compensation;
5. Encourage more effective people’s participation in the urban
development process; and
6. Improve the capability of local government units in undertaking urban
development and housing programs and projects.
Section 3. Definition of Terms.
1. “Affordable cost” refers to the most reasonable price of land and
shelter based on the needs and financial capability of Program
beneficiaries and appropriate financing schemes;
2. “Areas for priority development” refers to those areas declared as
such under existing statutes and pertinent executive issuances;
3. “Blighted areas” refers to the areas where the structures are
dilapidated, obsolete and unsanitary, tending to depreciate the value of
the land and prevent normal development and use of the area;
4. “Joint venture” refers to the commitment or agreement by two (2) or
more persons to carry out a specific or single business enterprise for
their mutual benefit, for which purpose they combine their funds, land
resource, facilities and services;
5. “Land assembly or consolidation” refers to the acquisition of lots or
varying ownership through purchase or expropriation for the purpose of
planned and rational development and socialized housing programs
without individual property boundary restrictions;
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 6. “Land banking” refers to the acquisition of land at values based on
existing use in advance of actual need to promote planned development
and socialized housing programs;
7. “Land swapping” refers to the process of land acquisition by
exchanging land for another piece of land of equal value, or for shares
of stock in a government or quasi-government corporation whose book
value is of equal value to the land being exchanged, for the purpose of
planned and rational development and provision for socialized housing
where land values are determined based on land classification, market
value and assessed value taken from existing tax declarations: Provided,
That more valuable lands owned by private persons may be exchanged
with less valuable lands to carry out the objectives of this Act;
8. “Land use plan” refers to the rational approach of allocating available
land resources as equitably as possible among competing user groups
and for different functions consistent with the development plan area
and the Program under this Act;
9. “On-site development” refers to the process of upgrading and
rehabilitation of blighted and slum urban areas with a view of
minimizing displacement of dwellers in said areas, and with provisions
for basic services as provided for in Section 21 hereof;
10. “Professional squatters” 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 homelots or housing units
by the Government but who sold, leased or transferred the same to settle
illegally in the same place or in another urban area, and non-bona fide
occupants and intruders of lands reserved for socialized housing. The
term shall not apply to individuals or groups who simply rent land and
housing from professional squatters or squatting syndicates;
11. “Resettlement areas” refers to areas identified by the appropriate
national agency or by the local government unit with respect to areas
within its jurisdiction, which shall be used for the relocation of the
underprivileged and homeless citizens;
Socio-Cultural and Economic Aspects of Housing
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12. “Security of tenure” refers to the degree of protection afforded to
qualified Program beneficiaries against infringement or unjust,
unreasonable and arbitrary eviction or disposition, by virtue of the right
of ownership, lease agreement, usufruct and other contractual
arrangements;
13. “Slum Improvement and Resettlement Program or SIR” refers to
the program of the National Housing Authority of upgrading and
improving blighted squatter areas outside of Metro Manila pursuant to
existing statutes and pertinent executive issuances;
14. “Small property owners” refers to those whose only real property
consists of residential lands not exceeding three hundred square meters
(300 sq. m.) in highly urbanized cities and eight hundred square meters
(800 sq. m. ) in other urban areas;
15. “Socialized housing” refers to housing programs and projects covering
houses and lots or homelots only undertaken by the Government or the
private sector for the underprivileged and homeless citizens which shall
include sites and services development, long-term financing, liberalized
terms on interest payments, and such other benefits in accordance with
the provisions of this Act;
16. “Squatting syndicates” refers to groups of persons engaged in the
business of squatter housing for profit or gain;
17. “Underprivileged and homeless citizens” refers to the beneficiaries of
this Act and to individuals or families residing in urban and urbanizable
areas whose income or combined household income falls within the
poverty threshold as defined by the National Economic and
Development Authority and who do not own housing facilities. This
shall include those who live in makeshift dwelling units and do not
enjoy security of tenure;
18. “Unregistered or abandoned lands” refers to lands in urban and
urbanizable areas which are not registered with the Register of Deeds,
or with the city or municipal assessor’s office concerned, or which are
uninhabited by the owner and have not been developed or devoted for
any useful purpose, or appears unutilized for a period of three (3)
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P a g e | 17
 consecutive years immediately prior to the issuance and receipt or
publication of notice of acquisition by the Government as provided
under this Act. It does not include land which has been abandoned by
reason of force majeure or any fortuitous event; Provided, that prior to
such event, such land was previously used for some useful or economic
purpose;
19. “Urban areas” refers to all cities regardless of their population
density and to municipalities with a population density of at least five
hundred (500) persons per square kilometer;
20. “Urbanizable areas” refers to sites and lands which, considering
present characteristics and prevailing conditions, display marked and
great potential of becoming urban areas within the period of five (5)
years; and
21. “Zonal Improvement Program or ZIP” refers to the program of the
National Housing Authority of upgrading and improving blighted
squatter areas within the cities and municipalities of Metro Manila
pursuant to existing statutes and pertinent executive issuances.
COVERAGE AND EXEMPTIONS
Section 4. Coverage. - The Program shall cover all lands in urban and
urbanizable areas, including existing areas for priority development,
zonal improvement sites, slum improvement and resettlement sites, and
in other areas that may be identified by the local government units as
suitable for socialized housing.
Section 5. Exemptions.
a. Lands under CARP coverage - Those included in the coverage of
Republic Act No. 6657, otherwise known as the Comprehensive
Agrarian Reform Law;
b. Government Military Reservations - Those actually used for
national defense and security of the Stare;
Socio-Cultural and Economic Aspects of Housing
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c. Government Lands being used or reserved - Those used, reserved
or otherwise set aside for government offices, facilities and other
installations, whether owned by the National Government, its agencies
and instrumentalities, including government-owned or controlled
corporations, or by the local government units: Provided, however,
That the lands herein mentioned, or portions thereof, which have not
been used for the purpose for which they have been reserved or set
aside for the past ten (10) years from the effectivity of this Act, shall
be covered by this Act;
d. Environmentally critical areas - Those used or set aside for parks,
reserves for flora and fauna, forests and watersheds, and other areas
necessary to maintain ecological balance or environmental protection,
as determined and certified to by the proper government agency; and
e. Institutional lands - Those actually and primarily used for religious,
charitable, or educational purposes, cultural and historical sites,
hospitals and health centers, and cemeteries or memorial parks. The
exemptions herein provided shall not apply when the use or purpose of
the abovementioned lands has ceased to exist.
Inventory of Lands – tasked to the Local Government Unit.
Lands to be Included:
1. Residential lands;
2. Government-owned lands, whether owned by the National
Government or any of its subdivisions, instrumentalities, or agencies,
including government-owned or controlled corporations and their
subsidiaries;
3. Unregistered or abandoned and idle lands; and
Agencies Tasked in the Identification of Sites for Socialized Housing
a. Local Government Units
b. National Housing Authority
c. Housing and Land Use Regulatory Board
d. National mapping and Resource Information Authority
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 e. DENR – land management Bureau
Considerations:
a. Degree of availability of basic services and facilities
b. Accessibility
c. Proximity to Job Sites and other economic activities
d. Number of registered beneficiaries
Priorities in the Acquisition of Land. – Lands for socialized housing shall
be
acquired in the following order:
1. Those owned by the Government or any of its subdivisions,
instrumentalities, or agencies, including government-owned or
controlled corporations and their subsidiaries;
2. Alienable lands of the public domain;
3. Unregistered or abandoned and idle lands;
4. Those within the declared Areas for Priority Development, Zonal
Improvement Program sites, and Slum Improvement and
Resettlement Program sites which have not yet been acquired;
5. Bagong Lipunan Improvement of Sites and Services or BLISS sites
which have not yet been acquired; and
6. Privately-owned lands.
Where on-site development is found more practicable and advantageous to
the beneficiaries, the priorities mentioned in this section shall not apply. The
local government units shall give budgetary priority to on-site development of
government lands.
Modes of Land Acquisition.
a. Community mortgage,
b. Land swapping,
c. Land assembly or consolidation,
d. land banking,
e. donation to the Government,
Socio-Cultural and Economic Aspects of Housing
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f. joint-venture agreement,
g. negotiated purchase, and
h. expropriation:
i. expropriation shall be resorted to only when other modes of
acquisition have been exhausted. Provided, further,
ii. where expropriation is resorted to, parcels of land owned by
small property owners shall be exempted for purposes of this
Act:
iii. abandoned property, as herein defined, shall be reverted and
escheated to the State
Limitations on the Disposition of Lands for Socialized Housing.
1. No land for socialized housing, including improvements or rights
thereon, shall be sold, alienated, conveyed, encumbered or leased by
any beneficiary of this Program except to qualified Program
beneficiaries as determined by the government agency concerned.
2. Should the beneficiary unlawfully sell, transfer, or otherwise dispose
of his lot or any right thereon, the transaction shall be null and void.
He shall also lose his right to the land, forfeit the total amortization
paid thereon, and shall be barred from the benefits under this Act for a
period of ten (10) years from the date of violation.
3. In the event the beneficiary dies before full ownership of the land is
vested on him, transfer to his heirs shall take place only upon their
assumption of his outstanding obligations.
4. In case of failure by the heirs to assume such obligations, the land shall
revert to the Government for disposition in accordance with this Act.
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SOCIALIZED HOUSING required to develop an area for ii. Exempting owners and/or
socialized housing equivalent to at developers of proposed socialized
Socialized housing, shall be the primary strategy in providing shelter for the least twenty percent (20%) of subdivision and condominium
underprivileged and homeless. However, if the tenurial arrangement in a the total subdivision area or total projects from the said requirement
particular socialized housing program is in the nature of leasehold or usufruct, subdivision project cost, at the iii. Requiring that the area for
the same shall be transitory and the beneficiaries must be encouraged to option of the developer, within socialized housing should be
become independent from the Program within a given period of time, to be the same city or municipality, equivalent to: at least fifteen percent
determined by the implementing agency concerned. whenever feasible, and in (15%)of the total subdivision area or
accordance with the standards set by subdivision project cost at least five
Eligibility Criteria for Socialized Housing Program Beneficiaries. the percent (5%) of condominium area
a. Must be a Filipino citizen Housing and Land Use Regulatory or project cost ( see HLURB
b. Must be an underprivileged and homeless citizen, as defined in Board and other existing laws. Memorandum Circular No. 9,
Section 3 of this Act Series of 2018)
“Underprivileged and homeless citizens” refers to the beneficiaries of a) Development of new settlement; iv. Complying with the balanced
this Act and to individuals or families residing in urban and b) Slum upgrading or renewal of housing requirement in the following
urbanizable areas whose income or combined household income falls areas for priority development either manner:
within the poverty threshold as defined by the National Economic and through zonal a. Development of socialized
Development Authority and who do not own housing facilities. This improvement programs or slum housing in a new settlement
shall include those who live in makeshift dwelling units and do not improvement and resettlement b. Joint venture projects for
enjoy security of tenure; programs; socialized housing with the
c. Must not own any real property whether in the urban or rural areas; c) Joint-venture projects with either Development of education
and the local government units or any of facilities in an existing
d. Must not be a professional squatter or a member of squatting the housing socialized housing area
syndicates. agencies; or
d) Participation in the community
Balanced Housing Development. (amended by RA 10884) mortgage program.
RA 7279 RA 10884
The Program shall include a system i. Requiring owners and/or
to be specified in the Framework developers of proposed subdivision The National Housing Authority’s Incentives (Section 19, RA 7279)
plan whereby developers of and condominium projects to 1. Payment of all fees and charges of any kind, whether local or national,
proposed subdivision projects shall develop an area for socialized such as income and real taxes.
be housing 2. Payment of documentary stamp tax and registration fees, including fees
required for the issuance of transfer certificates of titles.

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Incentives for Private Sector Participating in Socialized Housing.(Section 20)
To encourage greater private sector participation in socialized housing and
further reduce the cost of housing units for the benefit of the underprivileged and
homeless, the following incentives shall be extended to the private sector:
a. Reduction and simplification of qualification and accreditation requirements
for participating private developers;
b. Creation of one-stop offices in the different regions of the country for the
processing, approval and issuance of clearances, permits and licenses:
Provided, That clearances, permits and licenses shall be issued within ninety
(90) days from the date of submission of all requirements by the participating
private developers;
c. Simplification of financing procedures; and
d. Exemption from the payment of the following:
1) Project-related income taxes;
2) Capital gains tax on raw lands use for the project;
3) Value-added tax for the project concerned;
4) Transfer tax for both raw and completed projects; and
5) Donor’s tax for both lands certified by the local government units to have
been donated for socialized housing purposes.
Provided:
• that upon application for exemption, a lien on that title of
the land shall be annotated by the Register of Deeds;
• that the socialized housing development plan has already
been approved by the appropriate government agencies
concerned;
• That all the savings acquired by virtue of this provision
shall accrue in favor of the beneficiaries subject to the
implementing guidelines to be issued by the Housing and
Urban Development Coordinating Council.
Basic Services (Section 21).
Socialized housing or resettlement areas shall be provided by the local government
unit or the National Housing Authority in cooperation with the private developers
and concerned agencies with the following basic services and facilities:
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Prepared by: Ar/EnP. Ryan M. Benaoe, MAEHP
a) Potable water;
b) Power and electricity and an adequate power distribution system;
c) Sewerage facilities and an efficient and adequate solid waste disposal
system;
d) Access to primary roads and transportation facilities.
Other optional basic services and facilities
• Health
• Education,
• Communication,
• Security,
• Recreation,
• Relief and welfare
The local government unit, in coordination with the concerned national
agencies, shall ensure that these basic services are provided at the most cost-
efficient rates, and shall set a mechanism to coordinate operationally the
thrusts, objectives and activities of other government agencies concerned
with providing basic services to housing projects.
Livelihood Component (Section 22)
To the extent feasible, socialized housing and resettlement projects
shall be located near areas where employment opportunities are accessible.
The government agencies dealing with the development of livelihood
programs and grant of livelihood loans shall give priority to the beneficiaries
of the Program.
When there are no accessible employment opportunities, the
government and/or any of its charged instrumentalities or NGO’s shall create
a livelihood program for the beneficiaries.
AREAS FOR PRIORITY DEVELOPMENT, ZONAL IMPROVEMENT
PROGRAM, SITES AND SLUM IMPROVEMENT AND RESETTLEMENT
PROGRAM SITES
Benefits. - In addition to the benefits provided under existing laws and other
related issuances to occupants of areas for priority development, zonal improvement
program sites and slum improvement and resettlement program site, such occupants
shall be entitled to priority in all government projects initiated.
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P a g e | 21
 They shall also be entitled to the following support services:
a) Land surveys and titling at minimal cost;
b) Liberalized terms on credit facilities and housing loans and one hundred
percent (100%) deduction from every homebuyer’s gross income tax of all
interest payments made on documented loans incurred for the construction or
purchase of the homebuyer’s house;
c) Exemption from the payment of documentary stamp tax, registration fees,
and other fees for the issuance of transfer certificate of titles;
d) Basic services as provided for in Section 21 of this Act;
URBAN RENEWAL AND RESETTLEMENT
Urban Renewal and Resettlement. — This shall include the rehabilitation and
development of blighted and slum areas and the resettlement of Program beneficiaries
in accordance with the provisions of this Act. On-site development shall be
implemented whenever possible in order to ensure minimum resettlement of the
beneficiaries of the Program from their existing places of occupancy.
Action Against Professional Squatters and Squatting Syndicates. —
The local government units, in cooperation with the Philippine National
Police, the Presidential Commission for the Urban Poor (PCUP), and the
PCUP-accredited urban poor organization in the area, shall adopt measures to
identify and effectively curtail the nefarious and illegal activities of
professional squatters and squatting syndicates. Any person or group identified
as such shall be summarily evicted and their dwellings or structures
demolished, and shall be disqualified to avail of the benefits of the Program.
Penalty: professional squatters or members of squatting syndicates shall be
imposed the penalty of six (6) years imprisonment of a fine of not less than
Sixty thousand pesos (P60,000.00) but not more than One hundred thousand
pesos (P100,000), or both, at the discretion of the court.
Eviction and Demolition. — Eviction or demolition as a practice shall be
discouraged. Eviction or demolition, however, may be allowed under the following
situations:
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(a) When persons or entities occupy danger areas such as esteros, railroad tracks,
garbage dumps, riverbanks, shorelines, waterways, and other public places such as
sidewalks, roads, parks, and playgrounds;
(b) When government infrastructure projects with available funding are about to be
implemented; or
(c) When there is a court order for eviction and demolition.
In the execution of eviction or demolition orders involving underprivileged and
homeless citizens, the following shall be mandatory:
(1) Notice of eviction or demolition
(2) Adequate consultations on the matter of settlement
(3) Presence of local government officials or their representatives during
eviction or demolition;
(4) Proper identification of all persons taking part in the
demolition; (5) Execution of eviction or demolition only during regular
office hours from Mondays to Fridays and during good weather
(6) No use of heavy equipment for demolition except for structures that are
permanent and of concrete materials;
(7) Proper uniforms for members of the Philippine National Police who shall
occupy the first line of law enforcement and observe proper disturbance
control procedures; and
(8) Adequate relocation, whether temporary or permanent.
Resettlement. — Within two (2) years from the effectivity of this Act, the local
government units, in coordination with the National Housing Authority, shall
implement the relocation and resettlement of persons living in danger areas such as
esteros, railroad tracks, garbage dumps, riverbanks, shorelines, waterways, and in
other public places as sidewalks, roads, parks, and playgrounds. The local
government unit, in coordination with the National Housing Authority, shall provide
relocation or resettlement sites with basic services and facilities and access to
employment and livelihood opportunities sufficient to meet the basic needs of the
affected families.
Prohibition Against New Illegal Structures. — It shall be unlawful for any person to
construct any structure in areas mentioned.
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COMMUNITY MORTGAGE PROGRAM
The Community Mortgage Program (CMP) is a mortgage financing program
of the National Home Mortgage Finance Corporation which assists legally organized
associations of underprivileged and homeless citizens to purchase and develop a tract
of land under the concept of community ownership.
Primary objective: to assist residents of blighted or depressed areas to own the lots
they occupy, or where they choose to relocate to, and eventually improve their
neighborhood and homes to the extent of their affordability.
Incentives. — To encourage its wider implementation, participants in the CMP shall
be granted with the following privileges or incentives:
(a) Government-owned or -controlled corporations and local government units, may
dispose of their idle lands suitable for socialized housing under the CMP through
negotiable sale at prices based on acquisition cost plus financial carrying costs;
(b) Properties sold under the CMP shall be exempted from the capital gains tax; and
(c) Beneficiaries under the CMP shall not be evicted nor dispossessed of their lands or
improvements unless they have incurred arrangements in payments of amortizations
for three (3) months.
RELATED STRATEGIES TO HOUSING
1. Promotion of Indigenous Housing Materials and Technologies. — The local
government units, in cooperation with the National Housing Authority,
Technology and Livelihood Resource Center, and other concerned agencies,
shall promote the production and use of indigenous, alternative, and low-cost
construction materials and technologies for socialized housing.
2. Transport System. — The local government units, in coordination with the
Departments of Transportation and Communications, Budget and
Management, Trade and Industry, Finance, and Public Works and Highways,
the Home Insurance Guaranty Corporation, and other concerned government
agencies, shall device a set of mechanisms including incentives to the private
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Prepared by: Ar/EnP. Ryan M. Benaoe, MAEHP
sector so that a viable transport system shall evolve and develop in the urban
areas. It shall also formulate standards designed to attain these objectives:
(a) Smooth flow of traffic;
(b) Safety and convenience of travel;
(c) Minimum use of land space;
(d) Minimum damage to the physical environment; and
(e) Adequate and efficient transport service to the people and goods
at minimum cost.
3. Ecological Balance. — The local government units shall coordinate with the
Department of Environment and Natural Resources in taking measures that
will plan and regulate urban activities for the conservation and protection of
vital, unique and sensitive ecosystems, scenic landscapes, cultural sites and
other similar resource areas.
4. Population Movements. — The local government units shall set up an
effective mechanism, together with the appropriate agencies like the
Population Commission, the National Economic and Development Authority
and the National Statistics Office, to monitor trends in the movements of
population from rural to urban, urban to urban, and urban to rural areas.
5. Urban-rural Interdependence. — To minimize rural to urban migration and
pursue urban decentralization, the local government units shall coordinate
with the National Economic and Development Authority and other
government agencies in the formulation of national development programs
that will stimulate economic growth and promote socioeconomic
development in the countryside.
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