Housing contributes significantly to economic growth given its importance in generating employment and promoting entrepreneurial activities. It also promotes social and political stability by expanding the class of property owners who have a stake and interest in preserving our society.
The impact of a vigorous housing program on the national economy is highly significant with its multiplier effects on other industries, especially on manufacturing and construction. It stimulates employment by enlarging the various activities of other service-related groups.
all. The sector delivered 9,787 units of housing assistance amounting to
P1.240 billion for the period 2004-2006. This figure is lower than the housing output for 2001-2003 by 32 percent but is on track to achieve the housing target by the end of 2010. The housing output represents 51.4 percent of the housing target for the medium term.
The focus during the period under review was on implementing Housing for All by providing Bicolanos an opportunity to acquire affordable and decent homes. Access to housing and land particularly for the informal sector was enhanced with the issuance of several presidential proclamations to provide security of tenure. The sector also provided employment through the major programs of the shelter agencies.
Housing loans were made more available and affordable. Direct housing provision accounted for majority (76.6 percent) of the total housing output, followed by Community Mortgage Program (12.9 percent) and indirect housing provision (8.13 percent).
Direct housing provision includes housing loans programs implemented by Pag-ibig Fund and the community-based housing programs of the National Housing Authority (NHA). The total value of its output for the three-year period is P1.034 billion.
The Local Housing Program was the only housing program that achieved its medium-term target as early as 2004 and benefited 2,379 families. Institutional loans will most likely achieve its target (93.5 percent) in the mid-term. The rest of the housing programs will have to double efforts to attain the targets.
The Emergency Housing Assistance Program of the NHA did not register any accomplishments because of lack of funds. On the other hand, the Department of Social Welfare and Development (DSWD) constructed 94 units of Core Shelter Housing and provided emergency shelter assistance to 1,184families.
Housing loan was made more available and affordable for both the formal and informal sectors with the following measures:
Adjustment in the ceilings on loan packages, thus: (a) Socialized Housing (P300,000 and below); (b) Low Cost Housing Level I (P300,000–P500,000); (c) Low Cost Housing Level II (P500,000-P1.25 million); (d) Low Cost; Housing Level III (above P1.25 million to P3.0 million); and (e) Open Housing (above P3.0 million).
Reduction in interest rates of Pag-ibig housing loans, to wit: (a) up to P300,000 – 6 percent; (b) over P300,000 to P500,000 – 7 percent; (c) over P500,000 to P1.0 million – 10.5 percent; and (d) over P1.0 million to P2.0 million – 11.5 percent.
Intensification of collection efforts for Pag-ibig fund members. Higher membership level means more funds available for housing. The sustainability of housing loan programs depends largely on the recovery of loans earlier granted.
Moratorium on GSIS housing loan payments for five months and on Pag-ibig housing loans for six months to provide relief for fund borrowers affected by the strong typhoons in 2006.
Short-term loan program made more available. Minor house repairs could be made through financing under short-term loans.
From the private sector, Gawad Kalinga (GK) contributed significantly in providing durable homes to the poorest Bicolanos. GK established 78 communities: 11 in Albay; 17 in Camarines Norte; 46 in Camarines Sur; and two each in Masbate and Sorsogon. It also provided other physical structures such as pathwalks and drainage systems, water and toilet facilities, a school, a livelihood center, a multi-purpose hall and a clinic. A Gawad Kalinga
community is composed of about 60 – 100 families.
Security of land tenure. In support of the Millennium Development Goal target to significantly improve the lives of slum-dwellers by 2020, President Arroyo issued several proclamations to address the tenurial problem of the urban poor and informal settlers in the region.
Proclamation 40 involves 139 hectares of unutilized properties of the Philippine National Railways (PNR) in Albay and Legazpi City and is expected to benefit 4,800 families. At present, the City Government has purchased a portion of the property located in Looban, Barangay Peñaranda as a pilot area for socialized housing that will benefit 94 families. A Certificate of Entitlement for Lot Award or CELA was awarded to 81 families and 13 families are for validation by the local Awards and Arbitration Committee.
Executive Order 90 declared the property of the Department of Public Works and Highways (DPWH) in Bulan, Sorsogon as a socialized housing site that will benefit 716 families. The masterlisting of beneficiaries was completed and CELA were granted to the beneficiaries. The local government conducted subdivision survey of the area and is awaiting approval by the Land Management Bureau of the DENR.
Proclamation No. 593 covers two barangays in Pili, Camarines Sur—Caroyroyan and San Jose. The implementing rules and regulations is being finalized and actual survey is being conducted for the proposed delineation of areas and to determine the number and lot allocation for each agency beneficiaries. The property has a total area of 160 hectares and involves the following agencies/offices: Camarines Sur State Agricultural College (CSSAC), Pili National High School, Provincial Government, Philippine Coconut Authority (PCA) and the Philippine Army (PA).
Proclamation No. 653 covers a parcel of land in Barangay 2 - EM’s Barrio South, Legazpi City. The targeted number of beneficiaries is 157 families but this number may be trimmed down due to a Transco line that traversed the area which has a 69-KV right-of-way limit.
Provision of essential facilities.
The general low level of basic services or facilities available in many barangays and communities is a critical concern. There are still 207 barangays in the region that have no access to electricity in 2006, although this is an improvement over the 288 unserved barangays in 2005.
The percentage of households with access to safe drinking water decreased slightly from 82.7 percent in 2004 to 82 percent in 2006 due to contamination of some water sources especially Levels I and II. Two water supply projects with a total cost of
P151.445 million that were completed in Masbate in 2004 helped in improving the province’ access to safe water. These projects were completed through the Local Water Utilities Administration (LWUA) and generated a total of 3,378 service connections and benefited some 16,890 people being serviced by the Masbate-Mobo Water District and the Aroroy Water District.
The proportion of households with sanitary toilets in the region slightly declined from 67.85 percent in 2004 to 64 percent in 2006 due to the lack of support for the construction of toilets in the local government units.
A study of resettlement sites in Albay in 2004, however, showed that access road, potable water, sanitary toilets, drainage system, barangay health station and day care center were generally inadequate to serve the needs of the resettled families. Another concern that hampers the implementation of resettlement projects is the lack of livelihood activities to support the displaced families.
Employment generation. The sector generated 78,415 jobs through the implementation of housing programs by key shelter agencies. This represents 51.5 percent accomplishment and is on track to achieve the target for the medium term. Pag-ibig Housing Loan Program is the biggest employer among the housing programs accounting for 26 percent.
The objective for housing is to meet the rapidly growing demand for affordable and decent housing from the formal and informal sectors and create employment opportunities through construction activities and ancillary services.
Making loans more available and affordable especially to the low income groups. The sector shall continue to provide more opportunities for Bicolanos to own affordable and decent housing and generate employment through housing construction in 2008-2010. It shall continue to implement Housing for All by making loans more available and affordable for the formal and informal sectors. The pension fund’s housing programs shall continue to be strengthened to respond to the housing demand of its members. Pag-ibig, GSIS and other government financing institutions/banks shall implement lower interest rates for housing loans and liberal restructuring program to enhance collection and create more funds available for housing loans.
Establish a comprehensive LGU database for inventory of informal settersand beneficiaries of socialized housing and study possible issuance of identification cards for provision of LGU assistance.
Regularize tenure of informal settlers. Present gains shall be sustained and access to housing and land particularly for the informal settlers and vulnerable groups shall be accelerated. The government shall provide priority assistance to those who are in danger areas, in right-of-way of government infrastructure projects and in idle government lands. In support of the MDG target of improving significantly the lives of slum-dwellers, the government shall complete the regularization of tenure of informal settlers covered under the presidential proclamations, provided these are within secure zones.
Strictly implement LGU ordinances prohibiting informal settlers in high disaster risk areas and resettle those occupying these areas. To prevent loss of lives and damages to properties, local governments shall enact and strictly implement local laws that prohibit informal settlers in identified danger areas. Efforts shall be focused in the immediate term to help families affected by typhoons to rebuild their homes and communities. Existing resettlement areas shall be expanded and new ones shall be established. Identification of new or potential resettlement areas should be based on disaster risk assessment. Those in moderate risk areas can be regularized and provided with structural and non-structural mitigation measures. Those in low risk areas can also be regularized.
Advocate for the creation of local Housing Boards and preparation/updating of CLUPs. The sector shall continue to advocate to the local government units to assume full responsibility on housing and urban development. Priority areas of concern are the creation of local housing boards and comprehensive land use plans. The local housing boards shall, among others, formulate, develop, implement and monitor policies on the provision of housing, resettlement areas and shall uphold the right of the underprivileged and homeless to a just and human resettlement process.
Promote greater participation of the private
sector in housing delivery. The private sector shall be encouraged to take advantage of the growing demand for housing as the population continues to grow. The government shall make an effort to reduce and simplify further the number of days, processes and requirements for land titles, permits and licenses for housing and land development without compromising safety standards. To ensure quality and affordable housing units, appropriate standards for cost design and materials for housing shall be adopted.
Promote development of new housing technologies at lower cost. The promotion and development of new housing technologies that can provide quality houses at the least cost shall be supported and non-traditional building and management technology in housing production shall be encouraged.
Strengthen partnership and collaboration with housing stakeholders. The government shall strengthen partnership and collaboration among key shelter agencies, government financing institutions and the private sector. The business community, particularly the private developers, shall continue to be encouraged to invest in the housing market.
Regular consultation with stakeholders.
The Housing and Urban Development Coordinating Council (HUDCC) shall undertake regular consultations with all stakeholders to strengthen the coordination and supervision of policy on shelter delivery, finance and regulate housing and urban development services.
12,689 units of housing assistance through the major programs of key shelter agencies under the Housing for All Program.
Development of 10 new resettlement sites and expansion of five existing ones to benefit 33,748 families and housing materials assistance to 24,000 families who are victims of disasters.
Complete the regularization of tenure of families covered by all the presidential proclamations. This will benefit 3,114 families.
Gawad Kalinga shall undertake the establishment of 20 additional GK communities while Habitat for Humanity shall construct 564 housing units and repair/renovate 832 homes destroyed by the recent typhoons.
Generate 98,289 jobs.
Major Programs and Projects
NHA-Administered Resettlement Program (CARE Fund) involves the acquisition and development of raw lands into homelots or core housing units for families displaced from sites earmarked for government infrastructure projects and those occupying high disaster risk areas and for families permanently displaced by natural calamities.
Resettlement Assistance Program for LGUs. NHA assists LGUs in the development of their resettlement sites. LGUs' primary contribution is land while NHA provides funds to cover the cost of land development.
Housing Materials Assistance Program(CARE Fund) involves the provision of housing materials for house repair and construction for families affected by natural calamities in all provinces of Bicol Region.
Community Mortgage Program assists and enables informal settlers, slum dwellers or residents of blighted areas to purchase the privately-owned lands they occupy or they wish to be relocated to through their registered community associations. Under this program, the residents can purchase the land under the concept of communal ownership.
Pag-ibig Housing Loan Program involves financial assistance to member-borrowers for: house construction; purchase of a lot; purchase of a lot and construction of a house; purchase of a residential unit; home improvement;refinancing of an existing loan; or acquisition of Pag-ibig-acquired properties
Institutional Loans involves the provision of developmental loans to provide funding sources for the horizontal and vertical developmental projects. It can be availed of directly from Pag-ibig Fund.
Community Based Housing Program involves the mobilization of community resources in solving land tenure issues and site development through slum upgrading, community mortgage program, community land acquisition support program and land tenure assistance program.
Medium Rise Housing is an in-city housing which 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. The Medium Rise Private Housing Program, on the other hand, is implemented directly by NHA or in joint venture with other government agencies and/or the private sector.
Core Shelter Assistance Program involves the organization of disaster victims and formation of work teams which shall build core shelter units that can withstand 180 kph wind velocity, and earthquake of moderate intensity and
other similar natural hazards.
Gawad Kalinga Shelter and Site DevelopmentProgram builds colorful, durable and secure homes for the poorest of the poor. It also provides other physical structures such as pathwalks and drainage systems, water and toilet facilities, a school, a livelihood center, a multi-purpose hall and a clinic.
Habitat for Humanity House Rebuilding/Renovation Program builds and rehabilitates simple, decent houses with the help of homeowner’s families, volunteer labor, and donations of money and materials. Habitat houses are sold to homepartner families at no profit. Homepartners repay through affordable, zero-interest, inflation-adjusted mortgage loans.
Constructing a low-cost house involves an average of eight persons working for three weeks or a total of 124 man-days.
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