Philippine Perspective on Housing + Laws and Policies (Module 3.1 & 3.2)

3.9 million households; 6.5 million households

By 2023, what is the housing backlog as of 2011, and what is the estimated housing backlog by 2030?

1. Economic Housing

2. Socialized Housing

3. Low-cost housing

What is the highest housing demand in the Philippines? (in order)

T

T/F: From 2011-2012, housing production in high-end, mid-end, and low-cost icreased, while production of houses in socialized and economic housing was relatively flat.

P450,000 & below

Socialized housing selling price

P450,000-P1.7 million

Economic Housing selling price

P1.7 million - P3.0 million

Low Cost Housing selling price

P3.0 million - P4.0 million

Medium Cost Housing selling price

P4.0 million & above

Open Market Housing selling price

The subdivision and Housing Developer's Association (SHDA)

What is the largest organization developers in the Philippines, counting 160 members from its chapters in Luzon, Visayas, and Mindanao?

1. Selling price: P450,000-P3million

2. Livable units: Minimum of 20

3. New or expanding

4. For vertical housing: at least 51% of the TFA must be to housing unit (excluding common facilities and parking areas)

Qualifications for registration for Economic and Low-Cost Housing:

F

Projects with booked sales shall not qualify for registration

T/F: Projects that have already been completed and have incurred sales (booked sales) of housing packages shall qualify for registration.

1. Pag-IBIG Affordable Housing Programs

2. Industry Development Program

3. Community Mortgage Program (CMP)

4. Abot-Kaya Pabahay Fund Development Loan Program

Housing Programs in the Philippines

Pag-IBIG Affordable Housing Programs

[Housing Program]

The Home Mutual Development Fund (HMDF, or Pag-IBIG) offers the Affordable Housing Program (AHP), which is designed for minimum wage earners or whose gross monthly income does not exceed P17,500.

- Up to P750,000 may be borrowed under this program, with interest rates of 4.5% or 6.5% in the first ten years of the loan, depending on the gross monthly income of the borrower.

Industry Development Program

[Housing Program]

The Housing Industry Technical Working Group (TWG) conducts meetings to discuss and address industry concerns and issues.

Reverse Trade Arrangement (RTA)

[Industry Development Program]

The intention is to have preferential supply arrangements between the housing developers and construction materials manufacturers/associations (e.g. paints, iron & steel, PVC pipes).

The Community Mortgage Program (CMP)

[Housing Program]

A mortgage financing program that aims to improve the living conditions of homeless and underprivileged Filipinos by providing them with affordable financing with which they can secure tenure on the land they occupy.

Abot-Kaya Pabahay Fund Developmental Loan Program (AKPF - DLP)

[Housing Program]

It aims to provide low-income families with affordable housing packages in key Philippines urban areas and other localities with pronounced housing demand. The purpose of the DLP loan assistance is to serve as seed money for the development of property and construction of housing units thereon.

Bagong Lipunan Improvement of Sites and Services

What is BLISS Housing? (EO No. 517)

1. Landed

2. Can be Passed on (Pamana)

3. Owned

Housing Preferences

Residential Real Estate Price Index (RREPI)

- It is an indicator of change in the prices of residential properties in the Philippines over some time. The growth rate of the index measures the house price inflation.

- It measures. real estate price changes across different areas and types of housing units. The RREPI is computed for new housing units only Housing.

- It computed for NCR and areas outside the National Capital Region (AONCR).

1) RA 11201: Department of Human Settlements and Urban Development (DHSUD)

2) BP 220: Economic and Socialized Housing

3) PD 957: Subdivision & Condominium Buyers' Protective Decree

4) PD 1216: Defining Open Space in Residential Subdivision

5) RA 4726: The Condominium Act

6) PD 1096: National Building Code of the Philippines

7) PD 1185: Fire Code of the Philippines

8) RA7279: Urban Development and Housing Act

Housing Laws

RA 11201 - Department of Human Settlements and Urban Development (DHSUD)

- This department act as the primary national government entity responsible for managing housing, human settlement, and urban development.

- This department merged Housing and Urban Development Coordinating Council (HUDCC) and the Housing

Housing and Urban Development Coordinating Council (HUDCC)

[RA 11201 - DHSUD]

This became defunct

Housing and Land Use Regulatory Board (HLURB)

[RA 11201 - DHSUD]

This became recognized as Human Settlements Adjudication Commission (HSAC)

1. Home Development Mutual Fund (HDMF)

2. Home Guarantee Corporation

3. National Housing Authority (NHA)

4. National Home Mortgage Finance Corporation (NHMFC)

5. Socialized Housing Finance Corporation (SHFC)

What are the Attached Agencies of DHSUD

BP 220 Economic and Socialized Housing

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 Nos 957 1216, 1096 and 1185.

BP 220 Section 2

What section is this in BP 220?

"...economic and socialized housing refers to housing units which are within the affordability level of the average and low-income earners which is thirty percent (30%) of the gross family income as determined by the National Economic and Development Authority (NEDA) from time to time."

BP 220 Section 3

What section is this in BP 220?

Ministry of Human Settlements shall carry out the foregoing policy for the development of economic and socialized housing projects and economic and socialized housing units in urban and rural areas from those provided in:

BP 220 Section 4

What section is this in BP 220?

The standards and technical requirements to be established under Section 3 hereof shall provide for environmental ecology, hygiene and cleanliness, physical, cultural and spiritual development and public safety and may vary in each region, province or city depending on the availability of indigenous materials for building construction and other relevant factors.

PD 957 - Subdivision and Condominium Buyers' Protective Decree

- The primary purpose of this law is to protect buyers' welfare from all types of real estate misrepresentations.

- The state has passed to resolve the numerous fraudulent reports about real estate problems in the country.

PD 1216 - Defining Open Space in Residential Subdivision

- The owner as a developer of a subdivision shall provide adequate roads, alleys, and sidewalks.

- For subdivision projects 1 hectare or more, the owner or developer shall reserve 30% of the gross area for open space.

RA 4726: The Condominium Act

This Act defines a condominium, establish requirements for its creation and govern its cases.

Condominium

[RA 4726]

- "an interest in real property consisting of a separate interest in a unit in a residential, industrial or commercial building and an undivided interest in common, directly or indirectly, in the land on which it is located and in other common areas of the building.

- It may include a separate interest in other portions of such real property.

40%

[RA 4726]

As for ownership, Filipinos and corporations are allowed to Own condominiums. However, foreigners are restricted to owning not more than ________ of the total and outstanding capital stock of a corporation. The remaining shares should at least be owned and controlled by Filipinos. Also, foreigners and foreign-owned corporations are, by law, prohibited own land.

PD 1096: National Building Code of the Philippines

a) safeguard life, health, property, and public welfare, consistent with the principles of sound environmental management and control, and

b) provide for all buildings and structures, a framework of minimum standards and requirements to regulate and control their location, site, design quality of materials, construction, use, occupancy, and maintenance

PD 1185: Fire Code of the Philippines

a) The government, with the cooperation of the private sector, shall develop and promulgate sets of standards and regulations taking into consideration the latest development in fire technology suitable to Philippine conditions;

b) Fire prevention and fire safety shall be given equal, if not greater emphasis as the suppression or extinguishment of fires. Fire prevention education shall be undertaken continuously involving all sectors of the community,

RA7279: Urban Development and Housing Act

- An Act To Provide For A Comprehensive And Continuing Urban Development And Housing Program, Establish The Mechanism For Its Implementation, And For Other Purposes.

- (Art. 1, Sec. 2) It shall be the policy of the state to undertake, in cooperation with the private sector, a comprehensive and continuing Urban Development and Housing Program.