HOUSING LECTURE NOTES Module 2: State of Housing Housing in the Philippines ………………………………………….
I PHILIPPINE E!PERIENCE IN HOUSING PRE" #$R PERIO% After After Burnham Burnham prepared prepared the plan for Manila Manila in 1904, 1904, large large area area of nipa neighborhoods nipa neighborhoods were o transformed into sanitary barrios in which streets, alleys, surface drainage and other sanitary facilities were proided! o "ater, models of sanitary single family and apartment dwellings were introduced to replace the nipa houses! o #n the 19$0%s, the concept of &barrio obreros', the wor(ing class districts, was introduced and established as a response to the needs of the low)income labor families. o #n 19**, a housing committee was created to underta(e slum clearance and housing pro+ects. o ociali-ed housing traces its roots to the social +ustice policy enunciated by then hilippine /ommonweal /ommonwealth th resident resident Manuel "uis ue-on. ue-on. #n uly 19*2, at brea(fast brea(fast in the house of 3on Ale+andro oces, r. in 5ito /ru-, Manila, res. ue-on as(ed his host, what in his mind would be an ideal pro+ect to gie the social +ustice program a tangible reality. reality. 3on Ale+andro Ale+andro suggested to buy a big tract of land not far from Manila which would be subdiided subdiided into small lots to sell to the poor people people at a price so low it would be within their reach. reach. #mpressed, #mpressed, res. res. ue-on turned to amon oces, son of 3on Ale+andro to loo( for an estate about four hundred thousand hectares the got. could purchase for the purpose. amon obliged. 19*26 the first goernment housing agency was established on 14 7ct. 19*2, called the eople%s o 8omesite /orporation 8/: this was a subsidiary of the ;ational 3eelopment /ompany ;3/: with offices at A-carraga now /.M. ecto Ae.: cor. cor. <angelista, in downtown downtown Manila.
POST #$R PERIO% ;ational 8ousing /ommission was created on 1= eptember 194>. o 194?, the ;ational @rban lanning /ommission /ommission ;@/: was created by res. 7smea. lanning o in Manila Manila during during the post war years started started.. he ;@/ ;@/ was a centra centralili-ed ed body planning planning to reconstruct, rehabilitate and deelop deelop the country. country. 7ne of its functions functions was specifically to rebuild cities destroyed during the war, particularly Manila o 7n 7ct. 4, 194=, the 8/ and the ;8/ were eentually eentually merged into the eople%s eople%s 8omesite 8omesite and 8ousing /orporation 88/: o #n 1942, A *** which created the /apital /ity lanning /ommission ///: to ta(e up the city planning responsibilities. he A also also declared ue-on /ity as the capital city of the hilippines, hilippines, and planning planning efforts efforts were thus redirected to the newly declared declared capital. capital. he ;@/ had the following powers and duties6 o Cormulation of a general plan for the physical deelopment of the /apital /ity, with graphicDisual guides and descriptie eEplanations, stating the specifications for different types of land use and deelopment o o establ establish ish the necess necessary ary distri districts cts and -ones -ones for indust industry ry,, trade, trade, transp transport ortati ation, on, residence, public or semi)public, ciic actiities and recreation, regulating the physical specifications thereof, "ecture ;otes for 87@#;F ;o. 0$ repared by Arch. /hona
8aing rules and regulations on acGuisitions of priate lands and their subdiision into small lots for residential, industrial and commercial purposes, with guidelines as to physical land use and deelopment o o appoint the necessary technical eEpertise for the program o o hae such powers necessary to enact the law towards reali-ing a coordinated, ad+usted, harmonious construction and future deelopment of the /apital /ity H promoting the general welfare, economy and efficiency, functional public conenience including conenient distribution of the population:, the promotion of good ciic design and arrangement, etc. 3uring the term of then res. Magsaysay, .A. 1400, the Agricultural enancy Act was created, also (nown as the "and eform Act of 19>>. #t was designed to established democratic agricultural economy by limiting the si-e of large estates in certain cases by buying estates to resell in the form of small holdings to tenants. hus, giing greater security against illegal eiction of landowners. his act was passed but in mutilated form as the landowners succeeded in introducing so many amendments that it could neer hae the result originally intended of helping the tenants and easing the problem of agrarian unrest. Ihile the aim of .A. 1400 was to abolish tenancy, it was later applied to tenants to large holdings in urban areas. hus, "and enure Administration was also inoled in urban sGuatter problem by way of acGuiring lands in the city fringes, most of which were already slums and sold these to occupants on an as is where is basis. #n 19>0, <.7. *? abolished the ;@/ and created a central body, the ;ational lanning /ommission tas(ed with6 o lanning of urban and regional areas Master plan for the city of Manila in 19>4 o o Merges the ;@/, /// and eal roperty Board anctioned by the /ongress in 19>?, the act een proided the goernment with the authority to subdiide reclaimed portion of the ondo Coreshore land in Manila and sell the plots to seeral thousands of sGuatter families who were already there. Agencies especially created to perform housing and resettlement functions was the 8ome Cinancing /ommission 8C/:, a corporate body which was created in 19>? for the promotion of home building and land ownership for families, particularly the low income and middle income groups. #ts function is its mortgage insurance which induces and encourages ban(s and financial institutions to grant housing loans in easy terms of payment. ocial ecurity ystem : was established in 19>4 as counterpart of F#, its actual operations in proiding social security benefits to priate employees only in 19>=. Aside from the benefits of helping families oercome the insecurity arising from conseGuences of the arious ris(s in life and industry, also grants loans to Gualified members, limited to ?0J of the appraised alue of the property. Between 19>4)19>?, some =,000 8u( families were moed from "u-on and resettled on permanent plots in Mindanao and alawan despite local ob+ections from the Muslim minority. 19>26 $)man Abrams and Koenigsberger of @.;. made recommendations with regards to general housing policy and drew up estimates of housing reGuirement and targets including the proisions of infrastructure. hey suggested o the use of multi)storey construction for low)income housing, the better use of local building materials, o o the improement of housing administration, o the reision of taE policies and o the control of sGuatters area. Again, little was implemented and the situation got worse o
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19>9, another @.;. team sureyed the post war situation and recommend the adoption of a sound financing policy and a saing mechanism to help low income families to own homes at cost they could afford, the reduction of house construction costs, rehousing of sGuatters, the proision of welfare houses for the indigent and ery low income group, the formulation of a national housing policy that would chec( land cost inflation. he goernment howeer, failed to act #n 19>9, the local Autonomy Act under .A. $$?4 granted the cities and municipalities the power to enact -oning and subdiision regulations and rendered the ;ational lanning /ommission an adisory body on these and planning matters. rogram failed its implementation due to the following reasons6 o "ac( of forward wor(ing tradition of city planning o Iidespread adherence to local officials and some national goernment people to the doctrine of local autonomy% o Cailure of the national goernment to proide the energy and leadership in facing up to city and metropolitan problems o Ihile agencies for the administration and operation of urban housing deelopment program eEist, they wor( independently instead of together and funds and technical personnel to do the +ob were unaailable, in most cities no planning was done at all. ? 8ousing related agencies were formed to respond to separate and distinct shelter reGuirements, namely6 19?4, residential Assistant on 8ousing and esettlement Agency A8A: to sere as o the oer)all coordinator of all agencies related to housing! as liaison office between goernment and priate sector. Cunctions are6 3raft minimum housing standards for mass housing /oordination of all goernment relocation programs repareDimplement housing program nationwide ondo Coreshore 3eelopment Authority C3A: o o /entral #nstitute for the raining and elocation of @rban Guatters /#@: o residential /ommittee for 8ousing and @rban esettlement
M$RCOS ER$ ;ew ocitey: 19?>)192? According to res. Marcos6 &8ousing is not merely the proision of shelter but also the o enhancement of the enironment. #t inoles the improement of enironmental conditions in marginal settlements and the deelopment of iable communities with the necessary facilities, serices and amenities so that food, nutrition, education, recreation and culture are integrated into the lies of the residents.' o lanning programs under his term6 ;ational 8uman ettlements lanning rogram Metro Manila Area 3eelopment rogram egional Monitoring and lanning Assistance rogram H dispersal of the population to a sufficient number of growth centers! an attempt to utili-e land resources to the maEimum
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hanty own 3eelopment H the sub)diision of shanty lands and the sale to sGuatters of serice lots on which to build their houses. he ;8A and Iorld Ban( carried this out @rban Bliss 3eelopment H ertical and hori-ontal physical maEimi-ation of urban land, aimed to proide more conentional and low cost flat accommodations! A pro+ect of the Ministry of 8uman ettlements. he result was still insufficient and too eEpensie for the target class "ogic of these policies6 hey proided the urban poor with access to residential lots affordable on eEisting wage leels, thus aoiding the need for social redistribution of wealth #t proides for the eEtension of additional state controls oer the urban poor #t seres to open up sGuatter settlements to the urban real estate mar(ets and to undermine eEisting communal relations, in allowing for the further deelopment of priate residential property. ro+ects6 KA#BA8ALA; 19=?: H an eEample of the sites and serices approach to urban redeelopment applied in particular to Manila%s biggest slum community in 3agat)3agatan in ondo, a foreshore area AMBA;A;F BAF7;F ;AL7; 19==: H a scheme +oining the efforts of local goernment and the ;ational 8ousing Authority for housing deelopment and community building aimed at establishing model barangays in identified growth centers. A as( Corce headed by #melda Marcos was created to loo( into the country%s housing problems under the 3eelopment Academy of the hilippines, called as( Corce on 8uman ettlements 19=> H res. Marcos promulgated .3. =>= /
= to 8/. ome functions of ;8A were also transferred to 8/ as well. •
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POST M$RCOS PERIO% o After the <3A eolution of 192?, <7 90 of 192? abolished the Ministry of 8uman ettlements and created the 8ousing and @rban 3eelopment /oordination /ouncil 8@3//: as the umbrella agency for shelter charged with the main function of coordinating the actiities of fie goernment agencies including the ;8A, ;ational 8ome Mortgage Cinance /orporation ;8MC/:, 8ome "ecture ;otes for 87@#;F ;o. 0$ repared by Arch. /hona
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#nsurance Fuarantee /orporation 8#F/: the 8ome 3eelopment Mutual Cund or ag)#B#F Cund83MC:, and the 8"B as (ey agencies under the 8ousing and @rban 3eelopment /oordinating /ouncil 8@3//: for accomplishment of the ;. 8"B is the regulatory arm of the 8@3// 8/ was abolished and in its place, the 8"B was created. 8"B assumed the functions of the 8/ as per <7 ?42. <7 90 mandated these shelter agencies to implement the ;ational helter rogram in defined areas of responsibility
II GO&ERNMENT $GENCIES IN&OL&E% IN HOUSING o
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Housing and U'(an %e)elop*ent Coo'dinating Coun+il ,HU%CC- Cunctions are6 o Cormulate policies on housing and urban deelopment o ecommend legislations on housing and urban deelopment /oordinate the functions of (ey agencies in housing o <aluate and monitor the effectie eEercise of the functions of the (ey agencies o o MaEimi-e priate sector participation in the national shelter program National Housing $utho'it. ,NH$- Han agency under the administratie superision of the 8@3// 8ousing and @rban 3eelopment /oordinating /ouncil: and classified under the #nfrastructure @tilities Froup. #t is the sole national agency mandated to engage in direct shelter production with emphasis on housing assistance to the lowest *0J of urban income)earners through slum upgrading, sGuatter relocation, deelopment of sites and serices, and construction of core housing units. Housing and Land Use Regulato'. /oa'd ,HLUR/- Hec. * of B $$0 and also under ec. *? of 3 9>= mandates the 8"@B to establish and promulgate different leels of standards and technical reGuirements for the deelopment of all types of housing pro+ects, with minimum design standards and reGuirements for sociali-ed, economic, medium cost and open mar(et housing pro+ects established. #t is charged as the sole regulatory body for housing and land deelopment, and encouraging priate sector participation through liberali-ation of deelopment standards, simplification of rules and decentrali-ation of approals for permits and licenses National Ho*e Mo'tgage 0inan+e Co'po'ation ,NHM0C- ) tas(ed with operating a iable home mortgage mar(et, utili-ing long)term funds fo , F# and ag)ibig to purchase mortgages originated by priate and public financing institutions Ho*e Insu'an+e and Gua'ant. Co'po'ation ,HIGC:H encourages commercial lenders to finance housing deelopment and long)term mortgages through a iable system of guarantees, loan insurance and other incenties. Pag"i(ig 0und @nder the ag)ibig ,000.00 o 8ome improement "ecture ;otes for 87@#;F ;o. 0$ repared by Arch. /hona of 9
efinancing of an eEisting loan AcGuisition of a foreclosed residential property o @nder the ag)ibig Multi)purpose "oan rogram M":, the member may borrow for Medical
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III L$#S POLICIES $00ECTING HOUSING IN THE PHILIPPINES /atas Pa*(ansa /lg 221 ,/P221igned in March $>, 192$ o o An act establishing and promulgating leels of standards and technical reGuirements for economic and sociali-ed housing o @nder this act, it would be the official policy of the goernment to promote and encourage the deelopment of economic and sociali-ed housing pro+ects, with direct participation by the priate sector, in order to ma(e aailable adeGuate economic and sociali-ed housing units for aerage and low income earners in urban and rural areas o #t defines economic and sociali-ed housing as housing units which are within the affordability leel of the aerage and low income earners that is *0J of the gross family income as determined by the ;ational
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Repu(li+ $+t 424 ,U'(an %e)elop*ent and Housing $+t of 62- U%H$ o 3ated March $4, 199$, this is an act to proide for a comprehensie and continuing urban deelopment and housing program o ;8A was tas(ed to proide technical and other forms of assistance to local goernment units in the implementation of their housing programs to underta(e identification, acGuisition and disposition of lands for sociali-ed housing! and to underta(e relocation and resettlement of families with local goernment units o 7b+ecties6 @plift the liing conditions of underpriileged and homeless citi-ens roide for the rational use of land
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Adopt wor(able policies to regulate and direct urban growth and eEpansion towards a dispersed urban net and more balanced urban)rural interdependence roide for an eGuitable land tenure system
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Repu(li+ $+t 4783 ,R$ 4783- dated 3ec. 2, 1994! ;8A was tas(ed with the implementation of the following components of the ;ational helter rogram6 the esettlement rogram, Medium ise ublic and riate 8ousing, /ost ecoerable rograms and the "ocal 8ousing rogram.
E9e+uti)e O'de' 63 dated 3ec. *1, 1999, ;8A was mandated to focus on sociali-ed housing through the deelopment and implementation of a comprehensie and integrated housing deelopment and resettlement! fast trac(ing and determination and deelopment of goernment land suitable for housing! and ensuring the sustainability of sociali-ed housing funds by improing the collection efficiency, among others. E9e+uti)e O'de' 1 H 3ecember 1=, 192?, National Shelte' P'og'a*! o ;8A was tas(ed to proide technical and other forms of assistance to local goernment units in the implementation of their housing programs! to underta(e identification, acGuisition and disposition of lands for sociali-ed housing! and to underta(e relocation and resettlement of families with local goernment units o ole goernment agency engaged in direct shelter production o #t shall focus its efforts in proiding housing assistance to the lowest *0J of urban income) earners through slum upgrading, sGuatter relocation, deelopment of sites and serices and construction of core housing units o @nderta(e programs for the improement of blighted urban areas and proide technical assistance to priate deelopers underta(ing low)cost housing pro+ects May continue deelopment of housing pro+ects for income)earners aboe the lowest *0J o proided that funds generated thereon are utili-ed for the attainment of its primary mandate
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P'esidential %e+'ee No 434 ,P% 434- H presidential decree creating the ;ational 8ousing Authority dated uly *1, 19=> ;8A /harter: o 3eelop and implement a comprehensie and integrated housing deelopment and resettlement program o Cormulate and enforce general and specific policies for housing deelopment and resettlement o rescribe guidelines and standards for the reseration, conseration and utili-ation of public lands identified for housing and resettlement
I& HOME 0IN$NCING &a'ious Suppo't $gen+ies: 1. ocial ecurity ystem $. Foernment erice #nsurance ystem *. AF)#B#F Cund 0inan+ing S+he*es6 a Unified Ho*e Lending P'og'a* urpose of "oan i. esidential lot purchase ii. "ot purchase and house construction iii. 8ouse construction on lot owned by applicant i. urchase of house newly constructed or oer one year old on first occupancy basis . urchase of residential units foreclosed by goernment financing institutions i. /onstructionDpurchase of house in military reserations years, but in no case to eEceed the difference between present age and =0th year of principal borrower. 8oweer, no loan shall be granted to a borrower who is more than >> years at the time of deliery of the mortgage to ;8MC/. •
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ac(ing proision H not more than three *: indiidual entitlements may be tac(ed into a single loan, proided that, the borrowers are related to each other up to the second ciil degree of consanguinity or affinity, i.e., applicant and either his father, mother, brother, sister, parents)in) law, or brotherDsister)in)law. ac(ed)in borrowers may be members of the different funding institutions
( Pag"i(ig Housing Loan urposes of "oan i. urchase of lot not eEceeding hp$=>,000: ii. /onstructionDcompletion of house on lot owned by applicant iii. "ot purchase and house construction i. urchase of residential unit . Ma+or improement of residential unit i. efinancing of eEisting loan ii. edemption of foreclosed property •
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years old at the date of loan maturity i. 8as not aailed of ag)ibig housing loan either as principal borrower or co)borrower eEcept in the case of lot purchase "oanable Amount i. Affordability factor ii. MaEimum loanable amount iii. "oan to alue ratio, i.e. home improement O 90J of appraised alue #nterest ates H 9J, 1$J, 1?J, 1=J "oan eriod H not more than $> years but in no case to eEceed the difference between present are rec(oned from borrower%s nearest birthday and his ?> th year.
Co**unit. Mo'tgage P'og'a* H a financing scheme under the unified home lending program to enable residents in depressed areas to initially own their lot and ultimately their house and lot by organi-ing themseles into a cooperatie. eGuirements for site eligibility are6 he land coered by a orrens title he area is certified as depressed by the hilippine /ommission on @rban oor or ;ational 8ousing Authority he respectie areas occupied by the residents are identifiable he landowner is agreeable to sell and the residents are agreeable to buy he residents organi-e themseles into a cooperatie • •
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