PHILIPPINE HOUSING NETWORK MATRIX

TOPIC HIGHLIGHTS of the Topic

Philippine Housing Network Network is a membership organization that represents the supportive housing providers in the
Philippines. There are several key shelter agencies under the Subdivision and Housing
Developers Association, Inc or also known as SHDA that addresses various issues in the areas of
housing finance, housing regulation, housing production and institutional development and they
are as follows,

 First, Housing and Urban Development Coordinating Council or HUDCC plans and
programs for the housing sector.

 Second is the Home Development Mutual Fund or HDMF that we commonly known as
Pag-IBIG Fund (Pagtutulungan sa Kinabukasan: Ikaw, Bangko, Industria at Gobyerno) is a national
savings program and offer affordable shelter financing for the Filipino workers and there
were two agencies that administered this Fund.

 Third is the Home Guaranty Corporation. The HGC is a government-owned and controlled
corporation and it is under the HUDCC, they mobilize resources for housing through a
credit guarantees and incentives system by providing risk covers and fiscal incentives to
housing credits extended by developers, banks and other financing institutions.

 Fourth, Housing and Land Use Regulatory Board or HLURB who assist Local Government
Units in the Preparation of Comprehensive Land Use Plans and Zoning Ordinances

 Fifth, National Housing Authority or NHA and like the HGC it is a government-owned and
controlled corporation and under HUDCC, they are engaged in shelter production that
focuses on the housing needs of the lowest 30% of the urban population and also to
focus on socialized housing and ensuring its sustainability. Sixth is the National Home
Mortgage Finance Corporation or NHMFC, they provide liquidity to the housing sector
through securitization of mortgages/assets, promote stability to the housing finance
system thru participation in the capital market and some of their program are Socialized
Housing Loan Take-out of Receivables and Reverse Mortgage Program or “Maginhawang
Buhay sa Bahay” (MABUHAY) for borrowers who are 60 years old and above that don’t
require monthly payments. Lastly, the Social Housing Finance Corporation which they
direct the transfer of the Community Mortgage Program (CMP), Abot Kaya Pabahay Fund
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(AKPF) Program, and other social housing powers and functions of the National Home
Mortgage Finance Corporation to the SHFC.
Types of Housing in the Philippines  Bungalow
A bungalow is a single-storey home.
 Townhouse
While the bungalow and multi-storey house are both single buildings, a townhouse
sometimes referred to as an apartment is a part of a row of other townhouses.
 Multi-storey
A multi-storey house is a structure with two or more floors.
 Condominium
A condo unit is a home within a mid-rise or high-rise residential building.
Socialized Housing  Socialized housing a program that is provided by the government or private sector
that covers houses and lots or home lots for the underprivileged and homeless.

 This program covers other benefits like long term finances including other benefits
under this act.

 There are some qualifications for a person or a family to be qualified for the program,
these are:

1. must be a Filipino Citizen

2. must be underprivileged and homeless
3. must not own any real property whether in urban or rural areas
4. must not be a professional squatter or a member of squatting syndicates.
Affordable Housing TYPES OF AFFORDABLE HOUSING
 Socialized housing
The project construction cost of this housing is ranging up to P450,000.
 Economic housing
From P450,000 up to PHP 1.7 Million is the price bracket for Economic housing.
 Low-cost housing
The next housing is Low-cost with the price ranging from PHP 1.7 Million up to PHP 3
Million per unit.
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What makes a housing affordable?

There are factors to consider on how this housing be affordable to family with medium to low
monthly income.
Materials
Walls – there are list of materials that are commonly used to construct affordable housing.
 This includes pre-cast wall that minimizes the time and labor for installation. Pre-cast
concrete often used for exterior walls and dry walls for interior that also minimizes time,
cost and labor.
 Ceiling – Dry walls also used for ceiling with the same method of installation in the walls.
 Roof – The typical material for roof is Galvanized iron sheet.
Spaces / amenities
As I have observed in different plans of affordable housing, the common spaces offered are Living
area, dining area, kitchen, 1 bedroom (optional for each types of affordable housing), 1 toilet
and shower. These spaces are located adjacent to each other depending on its use and it also
offers the minimum standards of area each space.
Methods of construction
Advance construction technology is one of the best ways to consider in order to minimize time,
cost and labor of construction. This includes alternative building materials such as pre-cast wall
and dry-walls for interior and ceiling that offers easy installation and similar strength compared
to typical masonry.
The flow of the work is basically start with simple planning and preparation of building materials
that will be installed to all of the similar units.

What is Low Cost Building? Low Cost Building is a structure that using a natural and efficient materials. Low cost housing
can be achieved by use of efficient planning and project management, low cost materials,
economical construction technologies and use of alternate construction methods available.

The selection of building materials should meet the needs of structure and the site by building
innovative structures and/or by considering the need of the environment and the budget for
building the structure. There are many different methods or ways that be using for building a
low-cost building:
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Examples:
 Manufacturing of Low-Cost Building Materials
 Use of Natural Low-Cost Building Materials.
 Use of Local Building Materials
 Using Energy Efficient Materials
 Use of Non-Toxic Materials
 Longevity, Durability and Maintenance of Building Materials.
 Recyclability and Reusability of Building Materials
 Biodegradability.

In low-cost building there are some materials that to be use on building it:

Examples:
 Prefabricated Panels
 Concrete Sheets
 Stone cladding
 Used Shipping Containers
 Reclaimed Timber
 Corrugated Metal Sheets
 Bamboo
 Industrial Steel and Iron
 Traditional Brick
 Fresh Concrete
 Glass

HUDCC resolution no. 3, series of 2008 HUDCC Resolution no.3 series of 2008 is a policy about approving the adjustment of socialized
housing loan ceiling declared by the Philippine Government. Under this policy, various
stakeholders are encouraged to participate in providing the people with enough and decent
housing facilities through affordable financing package. Stated in Section 15 of Republic Act 8763
or the Home Guaranty Act of 2000, the respective ceiling or the maximum price or rate for
socialized and low-cost housing shall be both determined by HUDCC and NEDA. And in (not)
more than once every two years, the maximum price or rate will be reviewed or revised to adjust.
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Last June 10, 2005, HUDCC approved and endorsed the last price ceiling adjustment for
socialized housing from P225,000 to P300,000. Due to the increase of construction materials,
Real estate associations submitted a request for the adjustment of socialized housing loan ceiling
from P300,000 to P400,000. That is why the adjustment of socialized housing loan ceiling for low-
cost level 1 became P400,000.

Socialized and Low-cost Housing 1. Low cost housing is done when housing is required and financial resources are limited.
Also after natural disasters, particularly due to limited time and funds available for
construction. When recession is there and he lower middle class finds it difficult to
purchase the flats due to their financial constraints.

2. Socialized Housing refers to housing programs and projects covering houses and lots or
home lots 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 such as
benefits in agreement with URBAN DEVELOPING AND HOUSING ACT RA 7279.

a. Section 1
The Act must be called “Socialized and Low-Cost Housing Loan Restructuring Act
of 2004
b. Section 2 - Coverage of benefit
This law covers those with at least 6 months unpaid monthly amortization of a
loan on socialized housing that amount to P225,000 and below and low-cost
housing amounting to over P225,000 but not exceeding P500,000 regardless if
they have previously availed of benefits of previous restructuring or annual
family income exceeds P300,000.
The Availment of this program will only cost processing fee and no down
payment is required. Condonation of penalties and surcharges can be granted
provided that all accrued interest will form part of the principal amount to which
the borrower can use his total accumulated value of GSIS/SSS/HDMF to pay full
or partly the loan.
c. Section 3 - Exclusions
This act does not cover account with single payment since takeout, whose
housing unit has been abandoned or whose unit has been unoccupied for at
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least 2 years, units to which 3rd party was occupying and those accounts that
had been foreclosed.
d. Section 4 - Dividends
Declaration of dividends shall be limited to the members who have not availed
the restructuring act.
e. Section 5
Contribution of gov't shall be limited to net earnings derived from housing
program
f. Section 6
Discount shall be given to those who pays their account on time.
g. Section 7
This act shall also be applicable to borrowers who refused to pay due to
substandard housing
h. Section 8 and Section 9
covers the committee created to promulgate the regulations of this act.
i. Section 10 and 11
covers the repealing and effectivity of this act. Any law inconsistent with the act
shall be modified or repealed and this act was effective after 15days from
publication.

Closing the gap in affordable housing in the One of the fastest urbanizing countries in the Southeast Asian Region is the Philippines. There
Philippines are many factors that causes the growth of urban in the country such as people from rural
areas migrating to the cities to go to prominent universities or in search of better job
opportunities and some were taking refuge inside the city away from home that is destroyed
by the calamity and that struck their hometown. According to the said article, the country is
now 50 percent urban and it is expected to be 80 percent by 2025 and based on the statistic
report in 2000-2010 period, 2 million people were added in Metro Manila alone.

There are several key directions for Policy Reforms in Closing the Gap in Affordable Housing in
the Philippines such as Unlocking Land for Informal Settlers which involves identifying pathways
to land mobilization , establishing a program on integrated land and ISF information system for
Metro Manila, completing an inventory of idle government lands that could be made available
for ISF in-city resettlement, resolving issues in the implementation of a large number of
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problematic proclamations, which cannot proceed with disposition to bona fide ISFs,
establishing clear guidelines on administration and disposition of lands proclaimed for ISFs,
studying the feasibility of exempting foreclosed properties used for socialized housing from
capital gains tax payment, addressing issues relating to Batas Pambansa 220 and Providing
clarity and consensus on the definition of danger zones and coming up with corresponding
policies and guidelines. Addressing Housing Finance Challenges is also a key direction to make
quality housing into reality though it needs a lot of requirements such as financing, poverty
information, improved mortgage system and transaction costs and with these being absent it
will cause uncertainties and the attempt of affordable housing will be at risk and the last key in
closing the gap in affordable housing is institutionalizing Participatory Governance where they
respond to the challenges of inclusive urbanization and affordable housing effectively.

Housing industry plan 2012-2030 Philippine Housing Industry stated that every Filipinos has the right to live with dignity in
comfort of one’s own home regardless of economic status. They also aim to eliminate the
housing backlog which is 3.9 million households by the year 2030. The production of housing
uunits estimated average is 200,000 units every year from 2012-2030. the backlog would
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.
Based on PHI’s record

 Suggestions for the improvement of the unmet housing needs and situation

 Improve the housing affordability here in the Philippines, because not all Filipinos has
the resources or chance to buy one.
 The government must be securing the economic or exoanding a low-cost housing
projects than building an establishments or condominiums in rural areas.
 For the vertical housing projects, at least 51% of the total floor area, excluding common
facilities and parking areas must be devoted to housing units. Especially here in manila,
A congested and polluted city because of the different vehicles rounding around manila.
That also caused traffic and the other reason why there’s a traffic is the illegal parking
that caused even more traffic in an area.
 Improving the performance of the establishments and capabilities that will be rise in the
future.
 Provide the best quality with at least cost, scale and will improve the quality of life.
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New Housing needs from 2012-2030

From 2012-2030, based on the table: People who needs more a socialized housing projects is
the highest with a total of 25%, low-cost housing with a total of 10% ranging from 1.25 million
to 3 million.

Estimated Backlog by year 2030

The estimated backlog by 2030 is 6.5 million households, while the new housing need from 2012-
2030 is 6.2 million and the production that consist of 200,000 units per year is 3.6 million