Philippine Housing Agencies

2010

Lecture Outcomes: At the end of the lecture students should be able to identify national housing agencies and define their functions and understand their relationship with each other Outline:

References:
Office of the President. Executive Order No. 90. Malacanang, Manila.

Legal framework
Executive order No. 90 Identifying the government agencies essential for the national shelter program and defining their mandates, creating the housing and urban development coordinating council, rationalizing funding sources and lending mechanisms for home mortgages and for other purposes

National Shelter Program A six year program which aims at providing increase levels of assistance on a nation-wide basis

Housing and Urban Development Coordinating Council Under the immediate control and supervision of the President of the Philippines

Housing and Urban Development Coordinating Council Charged with the main function of coordinating the activities of the government housing agencies to ensure the accomplishment of the National Shelter Program

HUDCC the highest policy making body for housing and coordinate the activities of the government housing agencies to ensure the accomplishment of the National Shelter Program . It is coordinating the efforts of 4 shelter agencies, 3 funding agencies, 7 government support agencies and 2 private sector representatives from NGOs and private developers.

Powers and functions of the Council To formulate national objectives for housing and urban development and to design broad strategies for the accomplishment of these objectives

Powers and functions of the Council To determine the participation and coordinate the activities of the key government housing agencies in the national housing program

Powers and functions of the Council To monitor, review and evaluate the effective exercise by these agencies of their assigned functions

Powers and functions of the Council To assist in the maximum participation of the private sector in all aspects of housing and urban development

Powers and functions of the Council To recommend new legislation and amendments to existing laws as may be necessary for the attainment of government s objectives in housing

Powers and functions of the Council To formulate the basic policies, guidelines and implementing mechanisms for the disposal or development of acquired or existing assets of the key housing agencies which are not required for the accomplishment of their basic mandates

Powers and functions of the Council To exercise or perform such other powers and functions as may be deemed necessary, proper or incidental to the attainment of its purpose and objective

Key Agencies The primary government housing agencies mandated to Implement the National Shelter Program

1 National Housing Authority Shall be the sole government agency engaged in direct shelter production. It shall focus its efforts in poviding housing assistance to the lowest 30% of urban income earners through slum upgrading, squatter relocation, development of sites and services and construction of corehousing units

1 National Housing Authority In addition, it shall undertake programs for the improvement of blighted urban areas and provide technical assistance for private developers undertaking low-cost housing projects. Development of its existing properties for housing projects for income-earners above the lowest 30% may be continued provided that funds generated thereon are utilized for the attainment of its primary mandate.

2 National Home Mortgage Finance Corporation Shall be the major government home mortgage institution Its initial main function is to operate 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 private and public institutions that are within government- approved guidelines.

3 Housing and Land Use Regulatory Board The sole regulatory body for housing and land development

3 Housing and Land Use Regulatory Board It is charged with encouraging greater private sector participation in lowcost housing through liberalization of development standards, simplification of regulations and decentralization of approvals for permits and liscenses.

4 Home Insurance and Guaranty Corporation Shall assist private developers to undertake low and middle income mass housing production and encourage private institutional funds and commercial lenders to finance such housing development and long-term mortgage through a viable system of guarantees, loan insurance and other incentives

Support Agencies To ensure that the funds required for longterm housing loans are available on a continuous and self-sustaining basis.

1 Home Development Mutual Fund To administer provident fund contributions collected from member employees and employers, utilizing funds not required for provident benefits for housing loans for members, and in addition, will be charged with the development of saving schemes for home acquisition by private and government employees

2 Social Security System Shall be the primary provider of funds for longterm housing mortgages for low and middleincome private sector employees

3 Government Service Insurance System The primary provider of funds for long-term housing mortgages for low and middle-income government employees

HGC Home Guaranty Corporation -Provides risk coverage for home financing HLURB Housing and Land Use Regulation Board -Deals with issues of land use, zoning and subdivision of plots NHMFC National Home Mortgage Finance Corporation -The major government mortgage institution NHA National Housing Authority
Production of housing units

Pag-IBIG The Home Development Mutual Fund -Another funding agency SHFC Social Housing Finance Corporation -Subsidiary home mortgage agency

3.4 Low-cost Housing Types The housing solutions for low income groups can be divided into four types.

Socialized Housing is when the house and lot has a value below PhP 225 000 (34.000 SEK). The lot sizes are small and the houses are usually of a row house type with limited room for expansion. By urban planners this type of housing should be considered transition housing, only to be used until the family has enough resources to move to a higher housing category.

Low-cost housing refers to house and lot with a value between PhP 225 000 and PhP 500 000 (34.000-76.000 SEK). Most houses are single detached or duplex types but it can also include units for sale in medium-rise buildings.

Medium-rise buildings or MRB s are residential buildings of not less than three and no more than five storeys; the upper limit is the number of floors allowed without the installation of an elevator. MRB s are found in high density urban areas.

Economic housing is house and lot with a value of no more than PhP 2 million (300.000 SEK). (Philippine-Canada Local Government Support Program, 2003)