HOUSING

DELIVERY SYSTEM
IN THE PHILIPPINES
HOUSING IN THE PHILIPPINES
Less than 1/3 can afford proper shelter
3.1 informal settlers (Metro Manila alone)
23% stay in government land
22% in private properties
15% in danger zones
40% on infrastructure sites
There still exists a huge problem on housing in the Philippines.
HOUSING PROBLEMS/ SOCIAL ISSUES
The Philippines is beset with a huge backlog in
providing for land security and housing for the poor.
Two basic problems being faced by the government in
realizing a successful housing program are:
Money
Availability of land
Other issues hampering pro-poor land and housing programs:
High transaction costs due to the confusing and
unclear land use policies
Non-cooperation of land owners to engage in the
Community Mortgage Program (CMP)
Misinterpretation and/ or non-implementation of local
government units (LGUs)
Other problems pertaining to housing is the provision
of land and housing to internally displaced persons
(IDPs) due to natural hazards and armed conflicts.
INFORMAL HOUSING
The magnitude of the housing need (defined as
backlog plus new households) is staggering and has
been estimated to reach more than 3.7 million in
2010. In Metro Manila alone, the total backlog (to
include new households) has been projected to reach
close to 500,000 units.
HOMELESS
In cities of industrial countries, the numbers of
homeless people have increased and their existence
has become a social problem since the 1980s
In cities of developing countries, the numbers of
street homeless who cannot live even in squatter
areas have increased since the end of the 1990s.
The street homeless have been regarded as a part of
the squatter homeless.
HOUSING AFFORDABILITY AND DELIVERY
A significant part of the problem plaguing the housing
sector in the country is the lack of affordability. The
fundamental solution to this problem is again rooted
in economic growth, which provides employment and
income to households, which can then increase
affordability levels. In the short to medium term,
increasing the availability of housing credit and
financial resources and lowering the cost of land and
housing production can make a significant difference.
GOVERNMENT HOUSING STRATEGIES
The National Shelter Program (NSP)
represents the Philippine action agenda for housing
a comprehensive strategy of the government to assist
homeless low- and middle-income families in
meeting their housing needs through affordable
housing opportunities.
. Under the NSP are five major schemes categorized under
two main groups:
Direct Housing which includes:
(i) housing production;
(ii) community programs;
(iii)developmental loans

Indirect Housing, which is composed of:

(iv) home mortgages and
(v) guarantees.
HOUSING AND THE
GOVERNMENT AND ITS
DELIVERY SYSTEM
the government adopted a highly centralized system of
managing the program through the creation of a Ministry of
Human Settlements (MHS) in 1978, which was served as the
umbrella organization of all shelter agencies that had evolved
since the 1950s.
These agencies include the following:

National Housing Authority (NHA), in charge of social housing

production specifically upgrading of sites and services
Human Settlements Development Corporation (HSDC), also
into shelter production and New Town and Estate
developments
National Housing Commission (NHC), supports the
HSDC and NHA in shelter production
Human Settlements Regulatory Commission (HSRC),
regulates subdivision development and socialized
housing construction
National Pollution Control Commission (NPCC)
National Environmental Planning Council (NEPC)
Housing Finance Corporation (HFC), provides mortgage
insurance or guarantees to encourage private banks and
financial institutions to grant housing loans on easy
terms of payment
Housing Finance Corporation (HFC), provides mortgage
insurance or guarantees to encourage private banks and
financial institutions to grant housing loans on easy
terms of payment
National Home Mortgage Finance Corporation
(NHMFC), acted as a secondary market for housing
mortgages
Home Development Mutual Fund (HDMF), a provident
savings fund maturing after 20 years
Toward the end of the 1980s, a rationalization of the
shelter agencies was undertaken. The Ministry of
Human Settlements was dissolved, and in its place, the
Housing and Urban Development Coordinating Council
(HUDCC) was organized.
Housing and Urban Development Coordinating Council
(HUDCC)
It is the umbrella agency of various housing and
development offices of the Government of the Republic
of the Philippines. It was established by President
Corazon Aquino through Executive Order No. 90, Series of
1986.
Under Section 3 of EO No. 90, HUDCC is charged with the
main function of coordinating the activities of the
government housing agencies to ensure the
accomplishment of the National Shelter Program.
Specifically, HUDCC is tasked to:
Formulate national objectives for housing and urban
development and to design strategies for the
accomplishment of these objectives;
Determine the participation and coordinate the
activities of the key government housing agencies in the
national housing program;
Monitor, review and evaluate the effective exercise by
these agencies of their assigned functions;
Assist in the maximum participation of the private
sector in all aspects of housing and urban development;
Recommend new legislation and amendments to
existing laws as may be necessary for the attainment of
governments objective in housing;
Formulate the basic policies, guidelines and
implementing mechanisms for the disposal or
development of acquired or existing assets of the key
housing agencies;
Exercise or perform other powers and functions as may
be deemed necessary, proper or incidental to the
attainment of its purpose and objectives.
Key Shelter Agencies:
National Housing Authority (NHA)
Under PD 757 dated 31 July 1975. NHA
was tasked to develop and implement a
comprehensive and integrated housing
program which shall embrace, among
others, housing development and
resettlement, sources and schemes of
financing, and delineation of government
and private sector participation.
NHA Charter : Presidential Decree 757 (31 July 1975)

Develop and implement a comprehensive and integrated

housing development and resettlement program
Formulate and enforce general and specific policies for
housing development and resettlement
Prescribe guidelines and standards for the reservation,
conservation and utilization of public lands identified for
housing and resettlement
Exercise the right of eminent domain or acquire by
purchase privately-owned lands for purposes of housing
development, resettlement and related services and
facilities
Develop and undertake housing development and/or
settlement projects through joint ventures or other
arrangements with public and private entities
Promote housing development by providing technical
assistance (Section 6)
Executive Order 90 (17 December 1986)
Sole government agency engaged in direct shelter production. It
shall focus its efforts in 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
Undertake programs for the improvement of blighted urban
areas and provide technical assistance to private developers
undertaking low-cost housing projects
May continue development of housing projects for income-
earners above the lowest 30% provided that funds generated
thereon are utilized for the attainment of its primary mandate
(Section 1a)
Housing and Land Use Regulatory Board
(HLURB)

It is a national government agency tasked as the

planning, regulatory and quasi-judicial body for
land use development and real estate and housing
regulation. These roles are done via a triad of
strategies namely, policy development, planning
and regulation.
 MANDATES (HLURB
PLANNING: (EO 648; EO 72; RA 7279)
in retrospect)
Formulate guidelines for Comprehensive Land Use Plans (CLUPs)
Render technical assistance to LGUs in CLUP preparation and to members of Provincial Land Use Committee (PLUC)
and Regional Land Use Committee (RLUC) in CLUP Review.
Review and ratify CLUPs of highly urbanized cities (HUCs) and independent component cities (ICCs) and review CLUPs
of Metro Manila
Update and revise the National Urban Development and Housing Framework under the direction of HUDCC
Train LGUs in subdivision plan approval and zoning enforcement
REGULATION:

Register and license subdivision and condominium projects, farm lots,

memorial parks and columbaria.
Monitor development and construction of registered/licensed
projects.
Update and revise rules, guidelines and standards on housing and real
estate.
Approve Master Deed and Declaration of Restrictions of condominium
project, and any amendment or revocation thereof decided upon by a
simple majority of all registered owners (concurrently with City or
Municipal Engineer).
Issue Locational Clearances for projects considered to be of
vital and National or Regional Economic or Environmental
significance.
Register and supervise HOAs.
Register real estate brokers, dealers and salesmen engaged in
selling projects under HLURB jurisdiction.
ADJUDICATION:

Disputes between subdivision lot or condominium unit buyer

and developer.
Intra- and Inter-Homeowners associations disputes.
Appeals from decisions of local zoning bodies.
 Home Development Mutual Fund (HDMF, also
known as PAG-IBIG Fund)

The Home Fund Development Mutual Fund

or the Pag-IBIG Fund created under R.A. 9679 is a
government financial institution involved in
mobilizing provident funds primarily for shelter f
inance. It is a nationwide tax-exempt mutual provident
savings system for private and government employees and
other earning groups, supported by matching mandatory
contributions of their respective employers in the spirit of
social justice and the pursuit of national development with
housing as the primary investment.
 Home Guaranty Corporation (HGC)

RULE III, ARTICLE 8. Corporate Powers and

Functions. The Corporation, in addition to the
regular powers and functions provided under section
36 of the Corporation Code, shall have the following
powers and functions, subject to the
limitations hereinafter provided:

To promote Home building and land ownership, giving primarily

preference to the homeless and under privileged sectors of the
society;
To guaranty the payment in favor of any natural or juridical
person, of any and all forms of mortgages, loans and other forms
of credit facilities and receivables arising from financial contracts
exclusively for residential purposes and the necessary support
facilities thereto;

To assist private developers to undertake socialized, low and

medium-cost mass housing projects by encouraging private
funds to finance such housing projects through a viable system
of long-term mortgages, guaranties and other incentives;
To pursue the development and sustainability of a secondary
mortgage market for housing as the primary strategy to encourage
private sector participation in housing finance. The Corporation
shall undertake such programs and measures using the guaranty
cover as enhancement to encourage trading by the public in a
secondary market for housing mortgages, bonds, debentures,
notes and securities;

To underwrite purchase, own, sell, mortgage or otherwise dispose

of stocks, bonds, debentures, securities and other evidence of
indebtedness issued in connection with the powers enumerated in
the Act: Provided, it shall not engage in direct mortgage lending
activities;
To borrow money and/or to issue bonds, debentures, securities,
collaterals, notes and other obligations, in both local and foreign
currencies, subject to the limitations provided in Art. 19 hereof;

To promote housing by the aided self-help method whereby families

with some outside aid build their own houses with their own houses
with their own labor; to provide technical guidance to such families; to
guaranty loans to such families on first liens on the house and land
with such other security and conditions as the Corporation shall
determine, providing at least for ultimate recovery of principals; and
to do all other activities as are relevant and significant in such a
program of aided self-help for housing;
To adopt, alter and use a corporate seal; to enter into contracts; and
to sue and be sued in its Corporate name in any court of competent
jurisdiction;
To acquire , purchase, own, hold, manage, administer, operate,
develop, lease, pledge, mortgage, exchange, sell, transfer or
otherwise dispose of real and personal property with every kind and
description, monies and funds, or any interests therein as may now
be necessary to effectively carry out the purposes, objectives and
functions of the Corporation;
To do any and all acts and things and to exercise all powers, which
maybe necessary or convenient to the accomplishment or
furtherance of its purposes and objectives, or which a natural
person can do and exercise and which may now be or hereafter
authorized by law.
 National Home Mortgage Finance
Corporation (NHMFC)

Charted in 1979 as a secondary mortgage

market institution and recapitalized by EO 90
to operate a viable home mortgage market
utilizing long-term funds principally provided
by the support agencies. In 2004, the Social Housing Finance
Corporation (SHFC), a wholly-owned subsidiary of NHMFC, was
established to develop and administer social housing finance
programs for low-income formal and informal households;
 Social Housing Finance Corporation (SHFC)

E.O. 272, SECTION 2

MANDATE The SHFC shall be the lead
government agency to undertake social housing
programs that will cater to formal and informal
sectors in the low-income bracket and shall take
charge of developing and administering social housing program
schemes, particularly the CMP and the AKPF Program
(amortization support program and developmental financing
program)
 the government has intervened in the housing market through
a variety of instruments:
A. REGULATION, INCLUDING RENT CONTROL

REPUBLIC ACT NO. 7279

AN ACT TO PROVIDE FOR A COMPREHENSIVE AND
CONTINUING URBAN DEVELOPMENT AND HOUSING
PROGRAM, ESTABLISH THE MECHANISM FOR ITS
IMPLEMENTATION, AND FOR OTHER PURPOSES. Otherwise
known as "Urban Development and Housing Act of 1992."
BATAS PAMBANSA BLG. 220
AN ACT AUTHORIZING THE MINISTRY OF HUMAN
SETTLEMENTS TO ESTABLISH AND PROMULGATE
DIFFERENT LEVELS OF STANDARDS AND TECHNICAL
REQUIREMENTS FOR ECONOMIC AND SOCIALIZED
HOUSING PROJECTS IN URBAN AND RURAL AREAS FROM
THOSE PROVIDED UNDER PRESIDENTIAL DECREES
NUMBERED NINE HUNDRED FIFTY-SEVEN, TWELVE
HUNDRED SIXTEEN, TEN HUNDRED NINETY-SIX AND
ELEVEN HUNDRED EIGHTY-FIVE
PRESIDENTIAL DECREE NO. 957
Subdivision and Condominium Buyers Protective Decree
As Amended by PD 1216 - Regulating the sale of
subdivision lots and condominiums, providing penalties for
violations thereof.

REPUBLIC ACT NO. 4726

An act to define condominium, establish requirements for
its creation, and govern its incidents. Otherwise known as
The Condominium Act
REPUBLIC ACT NO. 6552
AN ACT TO PROVIDE PROTECTION TO BUYER OF REAL
ESTATE ON INSTALLMENT PAYMENTS Otherwise known as
Realty Installment Buyer Protection Act

REPUBLIC ACT NO. 9653

AN ACT ESTABLISHING REFORMS IN THE REGULATION OF
RENT OF CERTAIN RESIDENTIAL UNITS, PROVIDING THE
MECHANISMS THEREFOR AND FOR OTHER PURPOSES.
Otherwise known as the Rent Control Act of 2009
PRESIDENTIAL DECREE NO. 1517
PROCLAIMING URBAN LAND REFORM IN THE
PHILIPPINES AND PROVIDING FOR THE IMPLEMENTING
MACHINERY THEREOF Otherwise known as the Urban
Land Reform Act
Tenurial Assistance
Community resources are mobilized for resolution of
land tenure issues and/or site development through
the Land Tenure Assistance Program (LTAP),
Community Mortgage Program (CMP) and
Community Land Acquisition Support Program
(CLASP).
B. PRODUCTION OF HOUSING UNITS
Resettlement Programs

NHA Administered Resettlement Program

Resettlement Assistance Program for Local
Government Units
Core Housing Programs

The Program provides service lots with core housing

designed to match the affordability of target market
consisting mostly of low-salaried government and
private sector employees.
Medium Rise Housing Program

The Medium Rise Public Housing Program is

implemented directly by NHA, utilizing the allocation
for the Program under RA 7835 and units are made
available under lease arrangement.
C. FINANCE
The government provides development loans,
mortgage take outs, guarantee and tax breaks to
private developers and builders who participate in the
National Shelter Program. Development loans for
socialized and economic housing are given at
subsidized rates of interest.
Under the mortgage take out scheme are the following:
DMFs Expanded Housing Loan Program
NHMFCS Unified Home Lending Program (UHLP)
SSS and GSIS housing programs
Home Insurance and Guaranty Corporations Retail
Guaranty Program
The government provides private developers financing for large-
scale housing production under the following:

HIGCs Development Guaranty

Social Housing Development Loan
SSS corporate housing program
HDMFs Group Land Acquisition Development
D. PROVISION OF INFRASTRUCTURE
Slum Upgrading Programs
Entails acquisition and on-site improvement of
occupied lands through introduction of roads or alleys
and basic services such as water and power. Land
tenure issue is resolved through sale of homelots to
bonafide occupants.
Sites and Services Programs
Entails acquisition and development of raw land into
service home lots to serve as alternative to informal
settlements as well as catchment areas for immigration
and population growth. This approach is adopted in
urban centers where population growth and overspill is
anticipated and where beneficiaries intend to acquire
housing on incremental basis.