Introduction To Housing

Introduction to Housing

What is Housing?  Buildings or structures that individuals and their family may live in that meet certain federal regulations. Different housing situations vary for individuals and may depend on age, family and geography.

Housing in the Philippines “Characterized by the emergence of a continuing demand for affordable housing units in response to increasing population and household size, both in urban an rural areas.”

Housing Problems 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

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.Addressing this backlog will roughly require about 3,000 hectares of land if designed to accommodate detached housing units, a prospect that suggests the need for a

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. These people face serious problems in surviving on the streets. They are an urban minority deprived of human rights and excluded from society. However, the problem of the street homeless has not yet been constructed as a social problem in developing countries because it is overwhelmed by the

Housing and the Government and Its Delivery Process Government Agencies Concerned with Housing Home Development Mutual Fund (HMDF)  Popularly known as Pag-IBIG Fund (Pagtutulungan sa Kinabukasan: Ikaw, Bangko, Industriya at Gobyerno), was created by virtue of Presidential Decree No. 1530 on June 11, 1978. Housing and Urban Development Coordinating Council It is an umbrella organization which consists of heads of four housing agencies such as: National Housing Authority (NHA), Home Guaranty Corporation(HGC), National Home Mortgage Finance Corporation (NHMFC), and Housing and Land Use Regulatory Board (HLURB).

Housing Guaranty Corporation  Involves the determination of the eligibility of a financial institution for the guaranty and incentives provided under the law. The Guaranty line extended to the financial institution by the HGC, is a facility whereby the housing-related loans and financial transactions may be enrolled for guaranty coverage. Government Service Insurance System The Government Service Insurance System (Filipino: Paseguruhan ng mga Naglilingkod sa Pamahalaan, GSIS) of the Republic of the Philippines, created by Commonwealth Act No. 186 passed on November 14, 1936, is mandated to provide and administer the following social security benefits for government employees: compulsory life insurance, optional life nsurance, retirement benefits, disability benefits for workrelated contingencies and death benefits.

National Housing Authority  The National Housing Authority (NHA), established by virtue of Presidential Decree No. 757 dated July 31, 1975, is a governmentowned and controlled corporation operating under the policy and administrative supervision of the Housing and Urban Development Coordinating Council (HUDCC). The NHA is mandated by Executive Order No. 90 as the sole government agency to engage in shelter production, focusing its efforts to provide to homeless, low-income Filipino families.

 Over the years, the government has intervened in the housing market through a variety of instruments:

 A. Regulation, including rent control  Government intervenes through regulation of land use and land tenure. Private developers intending to develop raw lands for housing must secure the necessary permits and clearances from the Housing and Land Use Regulatory Board and the local governments concerned. A bidding process determines the private developer that would be allowed to develop government owned raw lands for housing. Many local government units still have to issue their respective local land use policies and regulation that will guide the utilization of lands within their territorial responsibility. The absence of a National Land Use Code has been a major reason for the inconsistent land utilization policies at the local level.

Laws and Regulations pertaining to Housing  Republic Act No. 7279- 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.  Presidential Decree No. 957- Regulating the sale of subdivision lots and condominiums, providing penalties for violations thereof.  Republic Act No. 6552- An act to provide protection to buyer of real estate on installment payments  Republic Act No. 4726- The condominium act.

 Republic Act no. 9653- Rent Control Act of 2009  Presidential Decree No. 1517- Urban Land Reform Act  B. Production of Housing Units  The National Housing Authority and the Home Insurance and Guarantee Corporation operate joint venture programs with the private sector. In general, private builders construct housing units after posting performance bonds with insurance companies. They are responsible for everything from procurement of materials and supplies to construction of the housing units. Payment is made on turn-key basis.

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. Under this program, projects are implemented under joint venture arrangement with private sector or LGUs. Medium Rise Housing Program An in-city housing alternative that entails the construction of three- to five-storey buildings. 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. The Community Mortgage Program charges a subsidized rate of 6% per year while developers of low cost housing pay interest rates ranging from 9.5% to 16% under the Abot Kaya Pabahay and the Social Housing Developmental Loan Program.

D. Provision of Infrastracture  The government builds the primary infrastructure. Secondary infrastructure such as on-site water supply, sewerage and power lines are for the responsibility of the private developers. The developers may build the housing units or contract private construction companies to produce the units.

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.

Site 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.