Theory & Principles of Planning Part III

HOUSING and HUMAN SETTLEMENTS PLANNING

6th Architectural Licensure Review College of Architecture University of Mindanao

Housing is an essential factor in determining the quality of lives, the stability of communities, and the health of national economies. Its importance to society is underscored by the fact that--in the United States, for example--housing accounts for roughly one-fourth of personal consumption expenditures and about the same proportion of gross private domestic investment. The status of the housing sector is a leading indicator of economic activity where the health of the housing industry is extremely sensitive to monetary and fiscal conditions and policies. Issues involving housing span numerous areas, including 1. 2. 3. 4. 5. 6. architecture, economics, health, law, finance, and city planning.

In all of these fields, the fundamental housing issue remains--as it has been over the past 50 years--the provision of adequate shelter at affordable prices in suitable locations for all sectors of the population. Despite considerable progress in this direction over the last century, housing problems continue to plague large numbers of the populations of most countries. In developing countries, longstanding problems of low quality and high relative cost have been exacerbated by high rates of population growth and country-to-city migration, and by urban infrastructures that are ill equipped to accommodate residential growth.

Housing History
1987 - Teodoro Katigbak succeeded Herminio Aquino as Chairman. 1989 - On May 24, 1989 Executive Order No. 357 was issued giving the HUDCC overall administrative supervision over the key shelter agencies and making it responsible for meeting targets and objectives for the shelter sector. 1990 - On January 24, 1990 RA 6846 or an Act creating the Abot Kaya Pabahay Fund, was enacted charging the HUDCC with the function of determining the income ceilings and loanable amounts for borrowers eligible for development financing. 1992 - On March 24, 1992, RA 7279 or the Urban Development Housing Act was enacted. It mandated HUDCC to provide necessary technical support and related services to local government units. ZORAYDA AMELIA C. ALONZO, then Chief Operating Officer of the Pag-IBIG Fund, is designated as the acting chairman from July to November 1992. DIONISIO DELA SERNA succeeded Zorayda Amelia Alonzo in December as the Chairman of HUDCC. 1993 - EO # 72 provided for the preparation and implementation of the Comprehensive Land Use Plans for Local Government Units pursuant to the Local Government Code of 1991 and other pertinent laws. 1994 - RA 7835 (Comprehensive and Integrated Shelter Financing Act) is enacted to provide sustained funding to socialized housing and make housing more affordale to low-income groups. 1997 - On October 27, 1997 the Congress approved RA 8368, known as "Anti-squatting Law Repeal Act of 1997", provided for the repeal of PD 772 (Penalizing Squatting and Other Similar Acts).

Housing History
1998 - KARINA CONSTANTINO-DAVID was sworn in as HUDCC Chairperson in July 1998 under President Joseph Ejercito Estrada's administration. 1999 - On October 12, 1999, Executive Order No. 159 was issued, declaring mass housing as the centerpiece program of the Estrada Administration and created the Presidential Commission on Mass Housing. LEONORA VASQUEZ-DE JESUS, then Head of the PMS, is designated as acting Chairperson of HUDCC after the resignation of Karina ConstantinoDavid on October 15,1999. 2000 - On February 22, 2000, Executive Order No. 216 was issued to further strengthen the functions of HUDCC. On March 1, 2000, LEONORA VASQUEZ-DE JESUS was sworn in as full time HUDCC Chairperson.

2001 - January 15 P E O P L E P O W E R II
On February 9, 2001, President Gloria Macapagal-Arroyo appointed Representative Michael T. Defensor (LP, Third District, Quezon City) as Presidential Adviser on Housing and Chairman of the Housing and Urban Development Coordinating Council (HUDCC)

Philippine Housing Data - Total Housing Need

Backlog + New Household Region Annual Backlog 246,631 7,828 10,422 30,236 30,236 67,296 10,023 19,678 20,905 9,594 13,981 15,383 2001 286,336 17,882 28,534 86,159 86,159 162,959 25,618 39,591 56,622 21,726 28,020 28,200 2002 269,661 12,812 28,689 84,251 84,251 160,543 25,263 38,890 53,409 20,574 27,274 27,535 2003 269,905 12,903 29,082 85,979 85,979 164,012 25,519 39,190 54,316 20,740 27,563 27,801 2004 270,152 12,995 29,483 87,763 87,763 167,609 25,779 39,494 55,248 20,908 27,859 28,073 2005 1,096,054 56,592 115,788 344,152 344,152 655,123 102,178 157,165 219,597 83,949 110,717

NCR CAR I II III IV V VI VII VIII IX X

HOUSING DEVELOPMENT AND POLICY

PROGRAMS AND DIRECTIONS. The government's housing efforts for the next three years will focus on the bottom 40 percent of households because of their inability to get formal housing assistance. This means providing these household with affordable socialized housing either through efficient production of housing units for ownership or rental or through sustainable housing finance. EXPANDING ACCESS TO SHELTER. Demand for decent housing remains unmet despite past efforts to address this problem. The supply of houses has not been increasing and costs of available housing are unaffordable, especially to low- income families who have no access to credit markets for housing. This matter is exacerbated by a land market that limits reallocation of rights to most valuable use of land. As a result, informal settlements continue to persist.

HOUSING DEVELOPMENT AND POLICY

POLICY FRAMEWORK

To address the housing problem, the government has to contend with several interrelated issues: land prices, housing finance and guarantees and high transaction and production costs in the housing market. This approach recognizes the governments principal role to provide the enabling policy and regulatory framework for the development of efficient housing markets and to use an efficiently-targeted subsidy system to help the bottom 40 percent of households to have access to decent shelter. In this context, the National Urban Development and Housing Framework has adopted the following objectives: (i) ensure that land is available to housing; (ii) ensure that residential infrastructure is provided to recognized housing development areas; (iii) support housing finance systems; and (iv) provide mortgage guarantees.

The Housing Agencies

HOUSING AND URBAN COORDINATING COUNCIL (HUDCC) NATIONAL HOUSING AUTHORITY (NHA) Production HOME DEVELOPMENT MUTUAL FUND (HDMFPag-IBIG) Financing

HOME GUARANTY CORPORATION (HGC) Guaranty

NATIONAL HOME MORTGAGE FINANCE CORPORATION (NHMFC) Financing

HOUSING AND LAND USE REGULATORY BOARD (HLURB) Regulatory

HOUSING AND URBAN DEVELOPMENT COORDINATING COUNCIL

MANDATES PER E.O. 20 (series of 2001) E.O. 20 (s. 2001): Reaffirming mass housing as a centerpiece program in the poverty alleviation efforts of the government and further strengthening the Housing and Urban Development Coordinating Council Serves as the lead agency to in formulating the national objectives, policies and strategies for housing and urban development; Coordinate and monitor the activities of all government agencies undertaking housing projects, including those of Local Government Units (LGUs), to ensure the accomplishment of the goals of the governments housing program; Encourage the maximum participation of the private sector in all aspects of housing and urban development; Formulate the basic policies, guidelines and implementing mechanisms for the disposal or development of acquired or existing assets of the key housing agencies which are not required for the accomplishment of their basic mandates; Identify, plan and secure local and foreign funding for housing programs and projects; Provide directions to the Housing and Land Use Regulatory Board (HLURB) to ensure rational land use for the equitable distribution and enjoyment of development benefits. Recommend new legislation and amendments to existing laws as maybe necessary for the attainment of governments objectives in housing;Undertake other functions as provided by existing laws that are not contrary to the abovementioned.

National Housing Authority

The NHA is the sole government agency engaged in direct shelter production focused on providing housing assistance to the lowest 30% of urban income-earners through slum upgrading, squatter relocation, development of sites and services and construction of core-housing units. In addition, it undertakes programs for the improvement of blighted urban areas and provides technical assistance for private developers undertaking low-cost housing projects.
Mandate and Functions: NHA Charter : Presidential Decree 757 (31 July 1975) - Creating the NHA Develop and implement a comprehensive and integrated housing development and resettlement program Formulate and enforce general and specific policies for housing development and resettlement Prescribe guidelines and standards for the reservation, conservation and utilization of public lands identified for housing and resettlement Exercise the right of eminent domain or acquire by purchase privately-owned lands for purposes of housing development, resettlement and related services and facilities Develop and undertake housing development and/or settlement projects through joint ventures or other arrangements with public and private entities Promote housing development by providing technical assistance

Home Guaranty Corporation

CHARTER

Republic Act No. 8763 or the Home Guaranty Corporation Act of 2000 (repealed RA 580 or the Home Financing Act, 1950)
MANDATES To guaranty the payment of any and all forms of mortgages,loans and other forms of credit facilities and receivables arising from financial contracts exclusively for residential purposes and the necessary support facilities; To assist private developers to undertake socialized, low and medium cost mass housing projects by encouraging private funds to finance such housing projects through a viable system of long-term mortgages, guaranties and other incentives. To promote homebuilding and landownership, giving primary preference to the homeless and underprivileged sectors of the society. To promote housing by the aided self-help method; To pursue the development and sustainability of a secondary mortgage market for housing.

Housing & Land Use Regulatory Board

Formerly the Human Settlements Regulatory Commission, the HLURB is the sole regulatory body for housing and land development. It ensures rational land use for the equitable distribution and enjoyment of development benefits. It is charged with encouraging greater private sector participation in low-cost housing through liberalization of development standards, simplification of regulations and decentralization of approvals for permits and licenses. It extends comprehensive and productive planning assistance to provinces, cities and municipalities towards the formulation of Comprehensive Land Use Plans (CLUPs).

MISSION

We regulate housing and land use towards shelter security and a balanced urban development.

VISION
To have ensured shelter security for at least 1.0 M Filipino families by year 2004 through setting and enforcement of housing regulations and protection of buyers rights To have assisted all Local Government Units in planning sustainable communities by year 2004

The Housing and Land Use Regulatory Board (HLURB) is a national government agency tasked as the planning, regulatory and quasi-judicial body for land use development and real estate and housing regulation. These roles are done via a triad of strategies namely, policy development, planning and regulation.

National Home Mortgage Finance Corporation

The NHMFC is the major government home mortgage institution. Its initial main function is to operate a viable home mortgage market, utilizing long-term funds principally provided by the Social Security System, the Government Service Insurance System, and the Home Development Mutual Fund to purchase mortgages originated by both public and private institutions that are within government-approved guidelines. It is also charged with the development of a system that will attract private institutional funds into longterm housing mortgages

Implementation Strategies
Making the housing market more efficient. The government shall
pursue policy, legal and regulatory reforms to reduce transaction costs and improve the efficiency of the housing market. Creating a sustainable housing finance system.To encourage private sector participation in the housing market, the government shall improve the policy, legal and regulatory environment for both the primary mortgage market and the secondary mortgage market. Housing finance shall rest on market-based principles and the efficient use of subsidies and incentives to address specific market failures.

Accelerating assistance and provision of security of tenure for informal sector. The government will provide priority assistance to
those who are in danger areas (river banks, esteros and other flood prone areas), those in the right-of-way (ROW) of government infrastructure projects, and those in threat of demolition. Government will also pursue the regularization of tenure of informal settler families occupying public lands. Greater resources of the national government will be allocated to address the needs of the informal sector. Community-led self-help approaches to housing as well as nontraditional building and management technology in housing production will be encouraged.

Implementation Strategies
Making housing loans available and affordable to low-salaried members of the formal sector. The government will make housing
loans accessible at affordable rates for the formal sector or those who are employed and are members of the pension funds. Developmental financing will be made available for developers who require financial assistance.

Strengthening the Shelter Delivery System and accelerating the localization of housing and development efforts. Institutional
strengthening for housing and urban development will be pursued through the creation of the Department of Housing and Urban Development (DHUD). This aims to strengthen the coordination and supervision of policy on shelter delivery, finance and regulate housing and urban development services. Considering the tight fiscal constraints and the government-wide streamlining of the bureaucracy, the creation of the DHUD will be subject to the "scrap-and-build policy" of the government. This means that existing units or agencies in the housing sector may have to be merged or even eliminated to give way to the creation of DHUD.

MFC ARCHITECTS and PLANNERS

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