1.

The mass housing mess: Why Filipinos

continue to struggle with owning a home
MASS housing should be for all, but many Filipinos, particularly those belonging to lower-
middle income families, still feel left out of the equation.

The family of Bituin Mendoza (not her real name) is an example. Her family has been a renter
for over a decade. Her mother, a domestic helper in Hong Kong, has been saving up for a home
since she started working abroad 13 years ago.

They are currently “renting” a home from her father’s friend who is currently an overseas
Filipino worker (OFW) in Dubai. The friend has been behind in their mortgage payments and, as
the caretakers of the home, Mendoza’s mother pays for the back payments and serves as their
rent.

Her mother’s remittance helped pay around P150,000 worth of back payments (about
$2,857.88 at current exchange rates). Around P100,000 more is needed before all the payments
are covered. Amid all their bills and obligations in ensuring that they do not fall behind on their
rent and utilities payments is the dream that someday they will come home to a house they
own.

“Kaya hindi masyadong ginagalaw ni Mama ’yung kita nya para ’pag umuwi na
siya permanently, ’yun na ’yung next project nila. Kailangan lang matapos yung utang sa bahay
para makaalis din kami [This is the reason Mama is saving her money. When she comes home
permanently, buying a house will be their (parents) next project. We just need to finish paying
for the house so that we can finally leave],” Mendoza said.

As for Brix Villaroel, owning a home is on the horizon for him and his family. His family,
composed of his mother and a younger sibling who is still in school, is currently renting a home
in Vito Cruz, Manila. Initially, their rent started at P15,000 (around $285.79) a month and
steadily increased to P18,000 monthly.

A couple of years back, Villaroel and his mother scouted for a place they could finally call their
own. They found a P2-million condo in the area and entertained the thought of buying it by
securing loans from the private sector and the government. But they found that it was quite
small for the amount of investment they needed to make.

Another hurdle is Villaroel’s tenure: he’s been working less than three years for the company.
This makes him ineligible for a loan from Home Development Mutual Fund (HDMF), more
commonly known as Pag-Ibig Fund. This sets back his and his mother’s plan to within two or
three years.
While owning a home is a good thing, for single mother Estrella Dimaculangan (not her real
name), it is not the most practical.

She said renting a house is the most affordable option for her right now. Raising a child on her
own after her partner passed away is not easy and the mounting bills associated with schooling
and health care can take their toll on a meager salary.

Dimaculangan said she is currently living with her family in a house they have been renting for
over 30 years in Singalong, Manila. Since her sister married the son of their landlady, they only
pay a small rent, around P2,500 a month. Their simple home is just a studio-type house and she
shares it with four other family members, including her child.

She said even if there was an option to secure a loan from Pag-Ibig, she did not entertain it
because she thinks she would not be able to meet the payments given her salary and the cost
of raising a child on her own.

Dimaculangan also recalled the experiences of a friend who defaulted on her Pag-Ibig payments
for a house in Molino, Cavite. The friend even offered her the house but as she was averse to
securing loans and the house was quite far from her work and family, she did not consider
buying it.

“Sila Nanay may pwesto sa palengke pero hindi pang-malakasan kasi gulay lang ’yun, eh. Ako
naman, single parent so ’yung perang hawak mo, kailangan mo talaga i-budget [Mother sells
vegetables in the wet market but the profits are not that much. As for me, I’m a single parent
so I had to budget every peso I have in my pocket],” Dimaculangan said.

Housing and income

MENDOZA, Villaroel and Dimaculangan are among the millions of middle-income household
members who are renting nationwide. Based on a rental study conducted by the Philippine
Statistical Research and Training Institute (PSRTI), middle-income families accounted for the
bulk or 889,033 families of the 1.5 million who are renting homes nationwide in 2012.

Based on the PSRTI study, Mendoza would classify under the rental class of P10,000 to P14,999,
while Villaroel would classify under the P15,000 and over, and Dimaculangan would belong to
the P2,000 to P3,999 level.

The PSRTI said there were around 33,200 households in Mendoza’s level of rent while in the
case of Villaroel, there were about 10,969 households. Dimaculangan belongs to the second-
largest group with 467,693 households renting at the P2,000 to P3,999 level.

The study stated that the rental level of P1,000 to P1,999 a month included the most number of
households at 497,807 families. Also noteworthy is that Dimaculangan belongs to the 122,034
families paying around P2,000 to P3,999 for rent and is a female-headed household.
Ateneo Center for Economic Research and Development (Acerd) Director Alvin P. Ang said
middle-income households are especially sensitive to price. Such households are looking for
investments that would allow them to maximize their hard-earned pesos.

He said this means they are looking for homes that are affordable and near their place of work.
They also preferred worthwhile investments that can accommodate their families comfortably.
The problem with these requirements is that these usually come at a price, a price that few
middle-income households can afford.

“I think the lower middle-income class is finding it difficult to buy their own home and not the
entire middle-income class. Clearly, the options presented by real-estate firms and Pag-Ibig
aren’t attractive because current levels of disposable income won’t allow the lower middle-
income class to allocate some amount for housing. If they allocate money for housing, they’ll
surely sacrifice spending for necessities and consequently lower their current standard of
living,” University of Asia and the Pacific School of Economics Dean Cid Terosa said.

Part of this difficulty, not only for the lower middle-income households in the Philippines, but
also Filipinos of higher or lower incomes, is the fact that the growth of real wages has been flat.

Philippine Institute for Development Studies (PIDS) Vice President Marife M. Ballesteros said
this makes the cost of homes the primary concern when buying housing units.

Ballesteros referred to the presentation made by the Housing and Urban Development
Coordinating Council (HUDCC) on its flagship program, Balai Filipino Housing Program (Building
Adequate Livable Affordable and Inclusive Filipino Communities). Balai, a Malay word for house,
showed that the ceiling for socialized housing programs remains steep for millions of Filipino
households.

In Memorandum Circular 2, series of 2018, issued last September 2018, then HUDCC Secretary
General Falconi V. Millar said the ceiling for socialized housing is P700,000 for a 22-square-
meter (sqm) property, while P750,000 is the ceiling for a 24-sqm property in Metro Manila or
the National Capital Region and other areas.

These other areas included nearby areas where millions of workers in NCR currently reside,
such as San Jose del Monte City in Bulacan; Cainta and Antipolo City in Rizal; San Pedro City in
Laguna; and Carmona, Imus and Bacoor in Cavite.

The Balai Housing Program is the Duterte administration’s 10-year national housing program
strategy to close the country’s shelter gap. The program aims to improve government efforts in
addressing Filipinos’ housing needs, with the private sector playing a significant and pivotal
role.
However, based on the 2015 Family Income and Expenditure Survey (FIES), the average income
in the Philippines is P267,000 per household per year. The Philippine Statistics Authority (PSA)
estimated that there were a total of 22.73 million households in 2015.

“In reality, it’s going to still be affordability that matters,” Ballesteros said. “Based on the
HUDCC program, Balai, in their presentation, [showed] socialized housing was still expensive,
around P750,000, without them thinking that people won’t be able to afford that because real
wages are flat. So even if you try to explain to them, they seem not to understand.”

She added that, with real wages being flat, the chances of Filipinos getting a loan from a private
bank would be slim. This is the same consideration when Filipinos resort to in-house financing
in real-estate companies. This usually helps them secure their units but they still need to pay a
certain amount of equity and would have to pay longer to own their units.

She said that even government institutions like Pag-Ibig will also not be as open to lending
higher amounts to individuals who do not have the capacity to pay for certain housing units.

Due to these constraints, middle-income households will resort to renting units. The only
problem is that you can rent for many years and pay amounts equivalent to paying for your
own home without owning the house you are staying in.

“Even regular employees, I agree, have no choice but to rent,” Ballesteros said. “Our drivers
here, even after several years, are still renting. And then they rent from informal rental facilities
because that is within their budget.”

Housing for the poor

BUILDING a house for every Filipino family is the Philippines’s “One Dream.” Many politicians
have attempted to reach this dream call and several of them could be considered successful.

These include the housing program in Quezon City dubbed “Bistekville,” which has been
undertaken by the local government unit (LGU) with Phinma Property Holdings Corp. since
2011. This was the city’s response to the housing needs of more than 200,000 families living in
areas considered danger zones, 80 percent of which were informal settlers, according to
nongovernment organization Habitat for Humanity.

Bistekville housing units can be availed of by Quezon City residents who are considered
informal settler families, or ISFs. These families are those living along rivers, creeks and esteros,
those under transmission lines, those affected by infrastructure projects and those evicted
through court order. They must also be able to pay monthly amortizations and should be
members of Pag-Ibig Fund.

As payment, the LGU allows flexibility to future home owners. For example, a P400,000 unit can
be paid from one year to 30 years. Those choosing to pay for their units for three decades
would need to pay P2,645.30 per month, while those who intend to pay for the unit for one
year would need to pay P34,673.67 a month.

Other LGUs, such as Pasig City, also have a housing program that involves the construction of
medium-rise buildings in various in-city relocation sites, such as Amang Rodriguez Avenue,
Manggahan, and Barangay Santa Lucia, among others.

“The receiving LGUs would often complain ‘you’re putting all your squatters here in our areas,’
but Pasig is different,” Ballesteros said. “They welcome Pasig ISFs because they receive full
support, meaning complete resettlement sites.”

The primary issue here is the capability of LGUs to provide the needs of ISFs for in-city
relocation or resettlement in other areas. This required LGUs like Pasig and Quezon City to
adjust their finances to be able to raise funds for socialized housing and to resettle ISFs.

In the case of Pasig, Ballestros said, it included in its revenue code that socialized housing funds
will come from 1 percent of the assessed value of houses worth P1.5 million. This is coupled by
efforts to charge idle land taxes. In the case of Quezon City, the recent increase in real-estate
taxes went to socialized housing efforts.

Today and tomorrow

EFFORTS that have been recently put in place by the government to meet the country’s long-
standing housing needs include the introduction of the Balanced Housing in 2016 that took
effect in 2017 to 2018. There was also the Manila Bay Mandamus, which was passed in 2011
and is now being implemented.

There’s also Republic Act 10884, or the Balanced Housing Development Program Act, which
sought to amend the Urban Development and Housing Act of 1992. The law sought to make
housing more affordable for Filipinos and encourage more participation of the private sector in
socialized housing.

The law created one-stop shops nationwide for the processing, approval and issuance of
clearances, permits and licenses to reduce the number of days in processing housing
development down to 90 days.

The law requires owners and/or developers of proposed subdivision and condominium projects
to develop an area for socialized housing equivalent to at least 15 percent of the total
subdivision area or total subdivision project cost and at least 5 percent of the condominium
area or project cost, “at the option of the developer, in accordance with the standards as
provided by law.”

Apart from this, recent efforts stated in the Manila Bay Mandamus have also started
implementation. The mandamus ordered the Metropolitan Manila Development Authority
(MMDA) to remove informal settlers near rivers that snake along the Pasig-Marikina-San Juan
route and the Parañaque-Zapote-Las Piñas areas. Removal of ISFs along the Navotas-Malabon-
Tullahan-Tenejeros River is also expected. The mandamus sought to demolish all these
structures to help clean up the rivers and eventually Manila Bay.

Ballesteros said the mandamus is forcing LGUs to take a look at their waterways and comply
with the government’s policy to relocate informal settlers. This is also paving the way for LGUs
to create housing and resettlement programs, she said.

DHUD deeds

ASIDE from these, the creation of the Department of Housing and Urban Development (DHUD)
is a piece of legislation that is well-supported by the current administration. Economic
managers have endorsed the creation of the DHUD to “finally put an end to Filipinos’ housing
woes.”

The bill has already been transmitted to the President by the Senate and is awaiting the
President’s signature, according to the Chairman of the Senate Committee on Housing and
Urban Planning, JV Ejercito.

However, much needs to be done to make the dream homes of Filipinos a reality.

Ballesteros pointed out that the mindset of the National Housing Authority (NHA), particularly
on the delivery of housing units, has to change. She said the NHA considers “turnover” as the
completion of a housing unit and not the actual turnover of a unit to an ISF or any other
household.

She said this could be the reason why many government housing projects were left unoccupied.
Such was the state of the housing units in Bulacan that were claimed by Kadamay members in
2017.

During a visit, Vice President and former HUDCC Chairperson Maria Leonor G. Robredo found
the units in a sorry state: cracks on concrete walls and floors, rusted doorknobs, and warped
front doors.

“[For the NHA,] delivered means [there are] physical targets; they were able to build. Whether
or not these houses will be occupied, they are considered delivered,” Ballesteros said. “But
now, the DBM [Department of Budget and Management] is actively requesting that there will
be residents for the NHA projects. This was included in their measures of quality.”

“It [should] respond to a need. Otherwise, if nobody will occupy the unit, you are not
responding to a need. When you say ‘need’ in housing, there are a lot of aspects. You’re not
just dealing with one type of commodity; one characteristic of a commodity,” she added.
 2. Resolving the unsettling housing problem

The government’s relocation plan for illegal settler families (ISFs) living along identified danger zones was approved in 2011.

Among the housing programs of the Aquino administration were two flagship projects: one for
informal settlers residing in dangerous areas in Metro Manila, and another for the uniformed
men and women of the military and police.

The government relocation plan for illegal settler families (ISFs) living along identified danger
zones was approved in 2011. Their relocation to safe, decent, and affordable resettlement sites
was also done in preparation for the onset of the rainy season as it would clear waterways,
esteros and other structures where ISFs abound.

A P50 billion budget was allotted for the project and the goal was to relocate and provide
homes to around 104,000 ISFs, of which 60,000 were living in waterways or esteros. The
program aims to relocate 20,000 families yearly.

For low income personnel

Also approved in 2011 was a five-year program intended to provide permanent housing
facilities for low-income military and police personnel.

The program was pursued under Administrative Order No. 9 and it mandates the formulation,
implementation, and management of housing projects for the Armed Forces of the Philippines
(AFP), Philippine National Police (PNP), Bureau of Jail Management and Penology (BJMP), and
the Bureau of Fire Protection (BFP) personnel.
Under this program’s 30-year amortization schedule, the personnel will only have to shell out
some P200 monthly for the first four years, with the amount rising to P1,330 on the 30th year.
As of June 2015, a total of 57,328 housing units have been completed.

According to the National Housing Authority (NHA), the more than 5,200 housing units from
Pandi and San Jose del Monte Resettlement Sites in Bulacan that the Kalipunan ng Damayang
Mahihirap (Kadamay) illegally occupied in March were meant for low-salaried uniformed
personnel and Metro Manila ISFs living along danger zones.

Days after the illegal occupancy, President Duterte announced he would give for free the
housing units in Bulacan to Kadamay members whose only sin, he said, was being poor.

The President also promised to build better houses for members of the police and the military
by December. The NHA had initially declared that they would have to evict the illegal
occupants.

Last April 18, however, the Congress said it would come out with a joint resolution allowing the
NHA to “re-award” the more than 50,000 unoccupied housing units that were intended for
military and police personnel to four sectors, that included informal settlers and members of
the Kadamay.

The housing program for the military and police has reportedly not attracted the beneficiaries
because they found the homes too small—a floor area of 22 sqm on a 36-sqm lot worth
P175,000; and a floor area of 18-27 sqm on a 40-sqm lot, worth P208,000.

Providing affordable homes

It can be recalled that in August 2016, the NHA reiterated its commitment to provide adequate
and affordable housing to low-income and underprivileged families, as it emphasized the
eligibility requirements for the beneficiaries.

“The NHA under the Duterte Administration ensures the public that it will address the country’s
housing needs as it will lead the construction and development of new communities and
maximize government resources,” NHA Acting General Manager Marcelino P. Escalada, Jr. was
earlier quoted as saying.

This was on the back of the national government’s thrust to prioritize housing programs under
the six-year Philippine Development Plan (PDP).

The NHA also emphasized that its housing program caters to the lowest 30 percent, the poorest
of the urban population. It is mandated to provide housing and related assistance to ISFs living
along danger zones and areas affected by government infrastructure projects.

To avail of government housing, the beneficiaries shoud met a set criteria.

 3. SHDA Bullish on Resolving Housing
Backlog
It has remained at the forefront of the Philippine housing industry for close to five decades.

Since its inception in 1970, the Subdivision and Housing Developers Association Inc. (SHDA) has
remained true and committed to fulfilling its vision, not only for its members, but moreso for
deserving Filipino families dreaming to have a home they can call their own. Despite the
mounting challenges it continues to face, this leading organization of private developers has
proven that it never once wavered from what it had sought to do.

And it’s no mere lip service.

SHDA is a national housing organization with 138 members from Metro Manila, 179 from eight
regions, and 32 affiliate members—all contributing to providing adequate and decent housing
to Filipinos. And for 49 years, SHDA has passionately pursued and advocated for laws and
measures that have been instrumental in helping create a more conducive business
environment for its industry players while enabling more Filipinos to have their own home.

Significant contributions

Among its most significant contributions to the industry are the group’s efforts in amending
Sec. 20 of Republic Act No. 7279, deemed a game changer in addressing urban homelessness as
it introduced a new category, which is socialized condominiums. The amended Sec. 20
introduced incentives “to encourage greater private sector participation in socialized housing
and further reduce the cost of housing units for the benefit of the underprivileged and
homeless.”

According to SHDA, it pioneered this concept since 2009 and had patiently made the rounds,
presenting it to relevant state agencies including the Housing and Urban Development
Coordinating Council (HUDCC), Department of the Interior and Local Government (DILG) and
even to former Vice President Jejomar Binay, among others.

So far, both industry players and home buyers are already reaping the benefits of SHDA’s other
contributions to the Philippine housing industry, such as the inclusion of mass housing under
the Investment Promotions Plan, passage of pertinent laws, retention of tax incentives for mass
housing, and critical partnerships with state-run agencies and other business organizations.

While SHDA already has a long, impressive list of accomplishments, it acknowledges the fact
that much more remains to be done. Beyond being the “leading voice in articulating the
advocacy of the housing industry in the Philippines,” SHDA seeks to be more relevant than

ever, banking on its partnerships, expertise of its members, and more notably, the experience,
as the group has been witness to the country’s boom-and-bust economic cycles over the past
decades.

New era

SHDA chairman Jeffrey Ng, along with the rest of the board, is now helping steer the
organization toward a new era in the Philippine housing industry—one that is marked by a deep
sense of urgency to serve the needs of a growing population.

“Our commitment to the Filipino market remains the same—we will go out of our way to build
more affordable housing units so that every Filipino who doesn’t have a home yet will, in the
next few years, be able to have their own home,” Ng noted. “We want to decrease, if not
totally eliminate the housing backlog in the 10 years and so this really requires active
involvement not only of the private sector but also of the government and other business
organizations.”

He added: “We also want our members to be more dynamic and involved, to help coordinate
with the proper government agencies and other business organizations so that we can make
the housing industry grow faster and bigger.”

SHDA was also reorganized to prepare it for the new challenges that the industry is facing
today, and what it will likely face in its next life. It likewise beefed up its information campaigns
as it sought to make its voice heard better by the government, the private sector and civil
society.
Partnerships

But Ng is under no illusion that addressing the growing housing backlog, now pegged at about
6.7 million units, will be a walk in the park.

Many administrations have long put housing high on its list of priorities, but the continued
growth of the population, low incomes, the prohibitive costs of owning a home, scarcity of
suitable land, and the general unattractiveness of engaging in the business of mass housing due
to changing regulations have greatly hampered the capabilities of both the private and public
sectors in addressing this backlog.

“We are working with business organizations together with the government agencies like the
Department of Agrarian Reform (DAR) to, for example, speed up the process for land
conversion from the previous norm of two to three years. Just last month, the DAR came out
with a new administrative order to speed up the land conversion process and make it simpler.
We would like this to be the start of a real and easier land conversion process in the country,”
Ng said.

“Also, the Agricultural Free Patent Reform Law, which was signed into law by the President,
should allow for faster transfer of free patents to third parties and buyers. This will enable them
to mortgage with banks, so this would free up more land for housing especially for the
socialized, economic and low-cost housing projects for the average Filipino,” he added.

Indeed, SHDA has its hands full, well with all the advocacies it has been pursuing over the years.
And it is more than aware that there’s still a long road before it hits its lofty goal of eliminating
this persistent challenge that is the housing backlog.

But just like its members, SHDA as an organization has aptly shown grit, tenacity and
determination. It may not be

SHDA: A true enabler of builders and homebuyers

Much may have changed over the last five decades, but the Subdivision and Housing
Developers Association Inc. (SHDA) has undoubtedly remained true to its mission, performing
impressively as a real estate and housing industry organization.

Its goal of being the leading voice of the housing industry, with the hope of providing a home
for every Filipino, continues to resonate clearly across generations of leaders throughout
SHDA’s 49 years of existence—enabling it, in critical times, to succeed in influencing
government policymaking.

“From the time the group started out as Subdivision Owners Association of the Philippines Inc.
(SOAP), SHDA was already helping solve problem after problem then. I think our history as
SHDA was marked by cycles of crisis, although to this day, much had been already achieved to
improve the housing industry and enable more Filipinos to have their own home,” explained
former SHDA president Arch. Jose S. de Guzman.

According to De Guzman, SOAP was registered before the Securities and Exchange Commission
in May 1970, with the goal of uniting subdivision owners and developers under one
organization and help influence government policies, laws and regulations that could enhance
the viability of the real estate sector consistent with public welfare.

While SOAP supported a program of housing for the homeless, this was undertaken indirectly
since most members were focused on developing subdivisions without housing components.
The typical practice then was to sell lots and the buyers are left to build their own homes.

Starting 1981, real estate developers gradually shifted from offering lots to house-and-lot
packages as availing of housing loans from the Pag-Ibig Fund became available to a large
number of prospective buyers. The lending program, however, started to falter three years
after due to lack of funds and brought about by an ongoing political and economic crisis in the
country.

When former President Corazon Aquino came into power, the administration reorganized the
National Shelter Program as one of her priorities and signed a law to create the Housing and
Urban Development Coordinating Council (HUDCC).

The National Shelter Program became a major inspiration for private developers to undertake
large-scale mass housing developments for low- and middle-income members, such that the
SOAP needed to reorganize and redirect its mission focusing much more on mass housing and
less on subdivision lots only. By march 1987, SOAP officially became SHDA.

From 1987 to 1992, the Philippines had its first housing boom, with 400,000 housing units
delivered and mortgage loans taken out. In April 1992, SHDA awarded then President Aquino
with a plaque of recognition for the historically outstanding performance of her National
Shelter Program, during the group’s first National Developers Convention.

In 1995, however, property developers had their second nightmare: having completed
hundreds of housing units with prequalified buyers while the National Home Mortgage Finance
Corp. (NHMFC), which ran out of funds due to inefficient collection, closing down its lending
operations.

After persistent calls from SHDA for the resolution of the home lending crisis, former
President Fidel Ramos responded by ordering the Pag-Ibig Fund to take over the NHMFC’s
Unified Home Lending Program (UHLP) and to release the P7 billion in loan takeouts long
overdue to developers. By early 1996, the crisis normalized and developers resumed their
business until early 1998 when the Pag-Ibig Fund also ran out of funds due to severe collection
problems.
By the end of 1999, the takeout overdue to developers ballooned P8 billion.

SHDA, in early 2000, thus proposed a credit risk sharing scheme between Pag-Ibig Fund and the
developers which later on became known as the “Developer CTS 2000 Program.” This allowed
the release of P8-billion receivables of the developers, and consequently, helped turn things
back to normal for those in the housing industry. By 2001, problems concerning the housing
program were more on bureaucratic delays in obtaining permits for housing projects.

SHDA then helped draft an executive order meant to streamline and speed up the permitting
process for housing projects. This was Executive Order No. 45 signed by President Gloria
Macapagal-Arroyo in October 2001. It significantly reduced the housing permitting process
from an average of 24 months to only six months.

SHDA pushed for Department of Agrarian Reform (DAR) Administrative Order No. 001 of 2019,
which called for the streamlining of the requirements for land conversion. While this was still
not exactly according to what SHDA advocated for, the said order was deemed a major step as
the DAR no longer required a certification from the Department of Agriculture as part of its
requirements for land conversion.

Cultivating stronger relations

Beyond board meetings, SHDA also engages in a number of activities for the benefit of both
active members and its partners in the industry. These include regular business forums,
participation in conferences and conventions, and even holding Christmas parties as well as golf
tournaments wherein SHDA can share a light moment with friends in the industry—all of which
are meant to further cultivate strong relationships.
Creating blueprint for progress

In 2012, SHDA launched the 2030 Housing Industry Roadmap, a blueprint that identified the
challenges, outlined key initiatives, and proposed different policies and regulations that were
needed to eliminate the housing deficit by 2030. This was in line with the Board of Investments’
roadmapping activity, meant to boost the competitiveness of Philippine industries. At present,
SHDA is implementing the different strategies identified in the roadmap.

Making a difference

SHDA made significant inroads in pushing for policies critical to the sustained growth of the
housing industry including the Developer CTS 2000 Program, retention of income tax holiday
under the Investment Priorities Plan, raising VAT ceiling exemptions, and the passage into law
of Republic Act No. 11201, which established the Department of Human Settlements and Urban
Development, among others.
 4. New human settlement dep't to address
housing backlog: solon
MANILA -- Re-electionist senator Joseph Victor Ejercito on Tuesday said the new Department of
Human Settlements and Urban Development (DHSUD) could help better address the housing
problems of the country, specifically the ballooning housing backlog and the increasing number
of informal settlers at risk.

In a statement, Ejercito said with the creation of the DHSUD, there will now be one housing
department at the helm of the housing program of the government that will create the
roadmap for housing and urban development, lead in its implementation, set the general
direction, and monitor each and every project with clear policies.

Ejercito, principal sponsor and author of the measure, thanked President Rodrigo Duterte for
signing into law the creation of the human settlements department.

"Ang DHSUD ang katuparan ng pangarap ng bawat pamilyang Pilipino na walang tirahan na
magkaroon ng disente at maayos na tahanan dahil ang ahensiyang ito ang magtitiyak ng
mabilis at maayos na implementasyon ng programang pabahay ng pamahalaan," Ejercito said.

Ejercito said the DHSUD will consolidate the administrative function of the Housing and Urban
Development Coordinating Council and the planning and regulatory functions of the Housing
and Land Use Regulatory Board.

He said the department will act as the sole and main planning and policy-making, regulatory,
program coordination, and performance monitoring entity for all housing and urban
development concerns, primarily focusing on the access to and affordability of decent and
secure shelter.

Under Republic Act No. 11201 signed by Duterte on Feb. 14, the new department will be
responsible for establishing Housing One-Stop Processing Centers (HOPCs) in the regions to
centralize the processing of housing-related documents.

"The State shall, by law and for the common good, undertake, in cooperation with the private
sector, a continuing program of housing and urban development which shall make available at
affordable cost, decent housing and basic services to underprivileged and homeless citizens in
urban centers and resettlement areas," the law reads.

"The State shall ensure that poor dwellers in urban and rural areas shall not be evicted nor their
dwelling demolished, except in accordance with law," it added. (PNA)
 5. Avert housing crisis – Angara
Reelectionist Senator Juan Edgardo “Sonny” Angara has urged the government to start taking
concrete actions to address the housing backlog in the country and avert a possible housing
crisis.

Senator Juan Edgardo ‘’Sonny’’ M. Angara

(FACEBOOK / MANILA BULLETIN)

Angara pointed out that despite a booming real estate industry in the Philippines, the
government is performing poorly in terms of providing homeless citizens with permanent
shelter.

The senator warned that the country’s housing backlog could balloon up to 12 million by 2030
and the homeless population could reach crisis proportions unless the government steps up
efforts to provide them with permanent shelter.

The senator made the call during an event organized by the Chamber of Real Estate & Builders’
Associations Inc. (CREBA) in Makati City.
“Out of a population of roughly 106 to 108 million Filipinos, some 4.5 million don’t have any
shelter and up to two-thirds of that number—3 million—are here in Metro Manila,” Angara
pointed out.

Citing a 2016 study by the University of Asia and the Pacific, the lawmaker assessed that the
housing backlog could reach 12 million in the next decade—including the over six million units
backlog from 2001 to 2015—unless action is taken.

Ironically, Angara noted that these figures came out in the midst of a thriving real estate
industry, which from 2014 and 2018 contributed up to 12 percent of the country’s gross
domestic product (GDP) and taken up more than 18 percent of total bank loans.

While the market had a surplus of up to 561,000 units in mid- and high-cost housing in 2015,
the gap for socialized, economic, low and even free housing was more than 11 times than that
number, which are around 6.67 million units.

“In short, our real estate industry may be booming, but we’re doing poorly when it comes to
sheltering our people and providing them with homes,” lamented the lawmaker, who is running
under the platform “Alagang Angara.”

Angara said housing plays a central, crucial role in the lives of poor Filipinos, saying that poverty
eradication is unlikely to be met without addressing basic housing needs.

“Such housing crisis is just one piece of the greater puzzle that plagues our country—that of
chronic poverty,” Angara said.

“And although it is but one aspect of the problem, it is nevertheless critical. Because without a
home, one cannot plant their roots; one cannot lay down the stable foundation on which
everything else in their lives should be built,” he stressed.

According to Angara, a paradigm shift in housing policy and practice amid the growing urgency
is a must in order to provide adequate, safe and affordable housing to millions of Filipino
households.

Likewise, the senator urged the government to spend more for housing to ensure that all
Filipinos have access to decent homes.

He said data from the Asian Development Bank (ADB) showed that between 2000 and 2014, the
Philippines spent only 0.12 percent of GDP for housing, in stark contrast to the average 0.75 of
GDP spent by Indonesia, Malaysia, Singapore, Thailand, Bangladesh, Mongolia, Nepal and Sri
Lanka for the sector.
Angara, for his part, earlier fought for the retention of the value added tax (VAT) exemption for
socialized and low-cost housing while Congress was deliberating on the government’s tax
reform program.

Under the tax reform program, socialized housing units that cost P450,000 and below and low-
cost housing units priced at P1.7-million and P3-million remain VAT-free.

He said various studies showed that lifting the exemption would only drag down all efforts at
solving the housing backlog.

Angara was the author and co-sponsor of the newly enacted law creating the Department of
Human Settlements and Urban Development (DHSUD).

The DHSUD, a single agency focused on housing and human settlement issues, was finally
realized after languishing in the legislative mill for 27 years, spanning nine Congresses.

Angara said he believes that with the creation of DHSUD, the real work towards addressing the
housing problem has just commenced.

“Given the gravity of the problems we face, I don’t think we should wait another three decades
before we enact even more major reforms to our housing policies and programs,” Angara said.