Introduction

 

   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. 

 

Development Challenges

 

   Housing for 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:

1. 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).

2. 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.

3. 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.

4. 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.

5. Short-term loan program made more available. Minor house repairs could be made through financing under short-term loans.

   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. 

 

Strategies

 

  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.

   Targets

1. 12,689 units of housing assistance through the major programs of key shelter agencies under the Housing for All Program.

2. 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.

3. Complete the regularization of tenure of families covered by all the presidential proclamations. This will benefit 3,114 families.

4. 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.

5. Generate 98,289 jobs.

   Major Programs and Projects

1. 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.

2. 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.

3. 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.

4. 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.

5. 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

6. 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.

7. 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.

8. 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.

9. 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.

10. 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.

11. 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.