I.

INTRODUCTION TO HOUSING

DEFINITION  dwellings provided for a number of people .  something that covers or protects . 
Buildings or structures that individuals and their family may live in that meet certain federal regulations.
Different housing situations vary for individuals and may depend on age, family and geography.

 HOUSING generally refers to the social problem of ensuring that members of society have a home in
which to live, whether this is a house, or some other kind of dwelling, lodging, or shelter

The Crisis in Affordable Housing Is a Problem for Cities Everywhere

A third of all urban dwellers worldwide – 1.2 billion people – lack access to safe and secure housing. The
gap is worst in lower- and middle- income countries, where some cities are growing so quickly that
governments cannot build out services and infrastructure fast enough to accommodate new arrivals.
The result is millions living in inadequate conditions and fraying trust in governments.

PROBLEMS BEING CONFRONTED BY DEVELOPING AND LESS-DEVELOPED COUNTRIES • Half of the

world’s population or 3.3 billion people live in urban areas, according to the United Nations’ State of the
World Population Report in 2007. • By 2030, the present urban population is expected to rise to almost
5 billion. • This means that three out of every five people will be urban dwellers 20 years from now. •
Presently, most of this urban growth is taking place in the less-developed regions of Asia and Africa,
rather than in affluent countries. • Cities like Dhaka (Bangladesh), Jakarta (Indonesia), Calcutta (India),
Lagos (Nigeria) and Metro Manila have joined the ranks of cities with populations exceeding 10 million. •
They are projected to dominate the list of the so-called “megacities”, which presently includes Tokyo
and New York, very soon. • By the year 2030, an additional 3 billion people, about 40 percent of the
world’s population, will need access to housing. This translates into a demand for 96,150 new
affordable units every day and 4,000 every hour. • The land market does not satisfy the needs of the
poor for secure tenure. Prices of land in urban areas remain way beyond the means of families whose
incomes fall within the bottom 30% of the income strata. • The Annual Poverty Indicator Survey of the
government (2004) revealed that four out of every 10 Filipino families do not own their house and lot. •
Such a scenario is evidenced by the proliferation of informal settlers in urban and peri-urban areas
throughout the country, as well as by the increasing number of families sharing dwelling units. • This
scenario further aggravates the deteriorating quality of life of the poor as cramped spaces result in
higher incidence of sickness and violence that mostly affects women and children.

Apart from poverty, there are other bottlenecks and issues hampering pro-poor land and housing
programs. These include:

1. High transaction costs due to the confusing and unclear land use policies; 2. Non-cooperation of
landowners to engage in the Community Mortgage Program (CMP); 3. Misinterpretation and/or non-
implementation of local government units (LGUs) of the provisions set forth by the Urban Development
and Housing Act (UDHA) and its implementing rules and regulations. Moreover, most LGUs do not have
shelter plans and programs that would facilitate pro-active planning and results-based targeting of their
local shelter concerns, resulting in non-appropriation of budgets, thus increasing land and housing
backlogs. 4. Another major concern is the provision of land and housing to internally displaced persons
(IDPs) due to natural hazards and armed conflicts.

More than 50 years later, the Philippines remains enslaved to the harrowing effects of World War II.

 Having lost their houses to the war, refugees initially settled in Intramuros and Tondo Foreshore Land,
where the latter was earmarked as the expansion of a port district. Subsequently, more refugees
continued to arrive in the City of Manila which, by then, started opening factories and offices and
reviving the commercial industry.

 “The proliferation of informal settlements in the Philippines has become a phenomenon associated
with big cities and expanding centers,” the Housing and Urban Development Coordinating Council
(HUDCC) reported. “From the early 1970s to more recent years, estimates of the number of informal
settlers in the country have varied, ranging from as low as 470,000 families to as high as 2.5 million
families.”

The term informal housing can include any form of shelter or settlement (or lack thereof) which is:

1. illegal, 2. falls outside of government control or regulation, 3. or is not afforded protection by the
state. 4. lack security of tenure and, with this, ready or reliable access to civic amenities (potable water,
electricity and gas supply, sanitation and waste collection)

The term informal housing is useful in capturing informal populations other than those living in slum
settlements or shanty towns, which are defined more narrowly by the UN Habitat as:

• ‘contiguous settlement where the inhabitants are characterized as having inadequate housing and
basic services...often not recognized or addressed by the public authorities an integral or equal part of
the city.'

Common categories or terms for informal housing include :

1. Slums 2. slum settlements 3. shanty towns 4. Squats 5. homelessness and pavement dwellers
The proliferation of slums in Philippine cities is thus seen as a coping mechanism for urban dwellers with
incomes that are too fragile to afford land ownership.

Slum areas are often blighted, overcrowded, and lacking in standard conveniences such as:

1. Electricity 2. Water 3. Drainage and 4. Health services.

These settlements are usually located in high-risk areas such as :

1. Flood-prone embankments 2. Waterways 3. Railroad tracks 4. Under bridges and 5. Beside

dumpsites. • But shantytown dwellers endure these unsanitary and dangerous conditions to be close to
their sources of income.

1.i HOUSING DELIVERY SYSTEM IN THE PHILIPPINES

HOUSING IN THE PHILIPPINES

In the Philippines, less than 1/3 can afford proper shelter. In Metro Manila alone, there are 3.1 informal
settlers; 23% stay in government land, 22% in private properties, 15% in danger zones (which include the
streets, bridges, riversides, and along train tracks), and 40% on infrastructure sites. There still exists a
huge problem on housing in the Philippines. Various factors affect this such as financing, government
policies and interventions, institutional subsidies, and the values and culture the Filipino people
illustrate.

HOUSING PROBLEMS/ SOCIAL ISSUES

The Philippines is beset with a huge backlog in providing for land security and housing for the poor. Two
basic problems being faced by the government in realizing a successful housing program are:

• Money • Availability of land

Other issues hampering pro-poor land and housing programs:

• High transaction costs due to the confusing and unclear land use policies • Non-cooperation of land
owners to engage in the Community Mortgage Program (CMP) • Misinterpretation and/ or non-
implementation of local government units (LGUs) • Other problems pertaining to housing is the
provision of land and housing to internally displaced persons (IDPs) due to natural hazards and
armed conflicts.
INFORMAL HOUSING

The magnitude of the housing need (defined as backlog plus new households) is staggering and has
been estimated to reach more than 3.7 million in 2010. In Metro Manila alone, the total backlog (to
include new households) has been projected to reach close to 500,000 units.

Addressing this backlog will roughly require about 3,000 hectares of land if designed to accommodate
detached housing units, a prospect that suggests the need for a higher density housing strategy if the
housing deficit is to be effectively addressed. Beyond the provision of housing by the public sector, new
approaches are needed especially since rural- urban migration is expected to continue and will
exacerbate the housing problem.

HOMELESS

In cities of industrial countries, the numbers of homeless people have increased and their existence has
become a social problem since the 1980s. In cities of developing countries, the numbers of street
homeless who cannot live even in squatter areas have increased since the end of the 1990s. These
people face serious problems in surviving on the streets. They are an urban minority deprived of human
rights and excluded from society. However, the problem of the street homeless has not yet been
constructed as a social problem in developing countries because it is overwhelmed by the large- scale
squatter problem. The street homeless have been regarded as a part of the squatter homeless.

HOUSING AFFORDABILITY AND DELIVERY

A significant part of the problem plaguing the housing sector in the country is the lack of affordability.
The fundamental solution to this problem is again rooted in economic growth, which provides
employment and income to households, which can then increase affordability levels. In the short to
medium term, increasing the availability of housing credit and financial resources and lowering the cost
of land and housing production can make a significant difference.

GOVERNMENT HOUSING STRATEGIES

The National Shelter Program (NSP) represents the Philippine action agenda for housing. It is a
comprehensive strategy of the government to assist homeless low- and middle-income families in
meeting their housing needs through affordable housing opportunities. Under the NSP are five major
schemes categorized under two main groups: Direct Housing which includes: (i) housing production; (ii)
community programs; (iii) developmental loans; and Indirect Housing, which is composed of: (iv) home
mortgages and (v) guarantees. In this regard, Executive Order (EO) 90, series of 1986 outlines the
mandates of the government agencies involved in the delivery of the NSP and recognizes the need to
engage the private sector in housing delivery and finance.

HOUSING AND THE GOVERNMENT AND ITS DELIVERY SYTEM

The responsibility of the government to ensure the provision of decent and affordable housing to every
Filipino is contained in the Constitution, which mandates the State to undertake a continuing program of
urban land reform and housing, which will make available at affordable cost decent housing and basic
services to underprivileged and homeless citizens in urban centers and resettlement areas.

From 1978 to present, the NSP has remained the key housing agenda of government. The program’s
objective as well as mechanisms to achieve that objective remain in force today.

Initially, the government adopted a highly centralized system of managing the program. This was done
through the creation of a Ministry of Human Settlements (MHS) in 1978, which was served as the
umbrella organization of all shelter agencies that had evolved since the 1950’s. These agencies include
the following:

1. National Housing Authority (NHA), in charge of social housing production specifically upgrading of
sites and services 2. Human Settlements Development Corporation (HSDC), also into shelter production
and New Town and Estate developments 3. National Housing Commission (NHC), supports the HSDC
and NHA in shelter production 4. Human Settlements Regulatory Commission (HSRC), regulates
subdivision development and socialized housing construction 5. National Pollution Control Commission
(NPCC) 6. National Environmental Planning Council (NEPC) 7. Housing Finance Corporation (HFC),
provides mortgage insurance or guarantees to encourage private banks and financial institutions to
grant housing loans on easy terms of payment 8. National Home Mortgage Finance Corporation
(NHMFC), acted as a secondary market for housing mortgages 9. Home Development Mutual Fund
(HDMF), a provident savings fund maturing after 20 years

Toward the end of the 1980s, a rationalization of the shelter agencies was undertaken. The Ministry of
Human Settlements was dissolved, and in its place, the Housing and Urban Development Coordinating
Council (HUDCC) was organized. Comparatively, the HUDCC had limited powers over the shelter
agencies, since its main task was to coordinate the shelter agencies in the implementation of the NSP.
The reorganization also reduced the number of key shelter agencies from nine to five (originally) : NHA,
SHFC, HDMF, HGC, NHMFC, AND HLURB. (But later SHFC was included.)
KEY SHELTER AGENCIES

Housing and Urban Development Coordinating Council (HUDCC)

It is the umbrella agency of various housing and development offices of the Government of the Republic
of the Philippines. It was established by President Corazon Aquino through Executive Order No. 90,
Series of 1986.

Under Section 3 of EO No. 90, HUDCC is charged with the main function of coordinating the activities of
the government housing agencies to ensure the accomplishment of the National Shelter Program.
Specifically, HUDCC is tasked to: 1. Formulate national objectives for housing and urban development
and to design strategies for the accomplishment of these objectives; 2. Determine the participation and
coordinate the activities of the key government housing agencies in the national housing program;

3. Monitor, review and evaluate the effective exercise by these agencies of their assigned functions; 4.
Assist in the maximum participation of the private sector in all aspects of housing and urban
development; 5. Recommend new legislation and amendments to existing laws as may be necessary for
the attainment of government’s objective in housing; 6. Formulate the basic policies, guidelines and
implementing mechanisms for the disposal or development of acquired or existing assets of the key
housing agencies; 7. Exercise or perform other powers and functions as may be deemed necessary,
proper or incidental to the attainment of its purpose and objectives.

National Housing Authority (NHA)

Under PD 757 dated 31 July 1975. NHA was tasked to develop and implement a comprehensive and
integrated housing program which shall embrace, among others, housing development and
resettlement, sources and schemes of financing, and delineation of government and private sector
participation.

NHA Charter : Presidential Decree 757 (31 July 1975) 1. Develop and implement a comprehensive and
integrated housing development and resettlement program 2. Formulate and enforce general and
specific policies for housing development and resettlement 3. Prescribe guidelines and standards for the
reservation, conservation and utilization of public lands identified for housing and resettlement 4.
Exercise the right of eminent domain or acquire by purchase privately-owned lands for purposes of
housing development, resettlement and related services and facilities 5. Develop and undertake housing
development and/or settlement projects through joint ventures or other arrangements with public and
private entities 6. Promote housing development by providing technical assistance (Section 6)

Executive Order 90 (17 December 1986)

1. Sole government agency engaged in direct shelter production. It shall focus its efforts in 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 2. Undertake
programs for the improvement of blighted urban areas and provide technical assistance to private
developers undertaking low-cost housing projects

3. May continue development of housing projects for income-earners above the lowest 30% provided
that funds generated thereon are utilized for the attainment of its primary mandate (Section 1a)

Housing and Land Use Regulatory Board (HLURB)

It 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.

The sole regulatory body for housing and land development, 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”.

MANDATES (HLURB in retrospect)

 PLANNING: (EO 648; EO 72; RA 7279)

a. Formulate guidelines for Comprehensive Land Use Plans (CLUPs) b. Render technical assistance to
LGU’s in CLUP preparation and to members of Provincial Land Use Committee (PLUC) and Regional Land
Use Committee (RLUC) in CLUP Review. c. Review and ratify CLUPs of highly urbanized cities (HUCs) and
independent component cities (ICCs) and review CLUPs of Metro Manila d. Update and revise the
National Urban Development and Housing Framework under the direction of HUDCC e. Train LGUs in
subdivision plan approval and zoning enforcement

2.REGULATION: (EO 648; EO 90; EO 71; EO 72; PD 957, 1216, 1344; BP 220; RA 7899; RA 9904; RA8763
(Sec.26))

a. Register and license subdivision and condominium projects, farm lots, memorial parks and
columbaria. b. Monitor development and construction of registered/licensed projects. c. Update and
revise rules, guidelines and standards on housing and real estate. d. Approve Master Deed and
Declaration of Restrictions of condominium project, and any amendment or revocation thereof decided
upon by a simple majority of all registered owners (concurrently with City or Municipal Engineer). e.
Issue Locational Clearances for projects considered to be of vital and National or Regional Economic or
Environmental significance. f. Register and supervise HOAs. g. Register real estate brokers, dealers and
salesmen engaged in selling projects under HLURB jurisdiction.

3.ADJUDICATION: (EO 648; RA 9904, 8763 (Sec. 26)

a. Disputes between subdivision lot or condominium unit buyer and developer. b. Intra- and Inter-
Homeowners associations disputes. c. Appeals from decisions of local zoning bodies.

Home Development Mutual Fund (HDMF, also known as PAG-IBIG Fund)

It is a Philippine government-owned and controlled corporation under the HUDCC responsible for the
administration of national savings program and affordable shelter financing for Filipinos employed by
local and foreign based employers as well as voluntary and self-employed members. It offers its
members short-term loans and access to housing programs. To provide its members with adequate
housing through an effective saving scheme, Pag-IBIG Fund harnesses these four

sectors of Philippine society: financial institutions, the industrial sector, the government, and the
Filipino people. The Fund was created to address two of the nation’s basic concerns: (a) the generation
of savings and (b) providing shelter for Filipino workers.
 It is directed to utilize funds not required for provident benefits for housing loans to members; the
Social Security System (SSS), directed to be the primary provider of funds for long-term mortgages for
low and middle-income private sector employees; and the Government Service Insurance System (GSIS),
directed to be the primary provider of funds for long-term mortgages for low and middle-income
government employees. These three agencies were support agencies mandated to ensure that “funds
for long-term housing loans are available on a continuous and self-sustaining basis.” EO 90 prescribed
the amount of funds each would contribute along with other parameters for an “integrated home
mortgage financing system” anchored by NHMFC.

RULE IV, SECTION 1

The Home Fund Development Mutual Fund or the Pag-IBIG Fund created under R.A. 9679 is a
government financial institution involved in mobilizing provident funds primarily for shelter finance. It is
a nationwide tax-exempt mutual provident savings system for private and government employees and
other earning groups, supported by matching mandatory contributions of their respective employers in
the spirit of social justice and the pursuit of national development with housing as the primary
investment.

Home Guaranty Corporation (HGC)

Originally chartered as the Home Financing Corporation in 1950 to “mobilize investible

funds for housing purposes”; renamed (Home Insurance and Guaranty Corporation) in
1986 and recapitalized to provide a viable system of guarantees, loan insurance, and
other incentives to encourage private development and financing of low-income housing. In its new
2000 charter, mortgage insurance was dropped.
It is the government owned and controlled corporation (GOCC) mandated by law (Republic Act 8763) to
promote sustainable home ownership by providing risk coverage of Guarantees and tax/fiscal incentives
to banks and financial institutions/investors granting housing development loans/credits, and home
financing. As HGC focuses on promoting home ownership to middle and low-income families.

RULE III, ARTICLE 8. Corporate Powers and Functions. The Corporation, in addition to the regular powers
and functions provided under section 36 of the Corporation Code, shall have the following powers and
functions, subject to the limitations hereinafter provided:

1. To promote Home building and land ownership, giving primarily preference to the homeless and
under privileged sectors of the society;

2. To guaranty the payment in favor of any natural or juridical person, 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 thereto;

3. 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;

4. To pursue the development and sustainability of a secondary mortgage market for housing as the
primary strategy to encourage private sector participation in housing finance. The Corporation shall
undertake such programs and measures using the guaranty cover as enhancement to encourage trading
by the public in a secondary market for housing mortgages, bonds, debentures, notes and securities; 5.
To underwrite purchase, own, sell, mortgage or otherwise dispose of stocks, bonds, debentures,
securities and other evidence of indebtedness issued in connection with the powers enumerated in the
Act: Provided, it shall not engage in direct mortgage lending activities;

6. To borrow money and/or to issue bonds, debentures, securities, collaterals, notes and other
obligations, in both local and foreign currencies, subject to the limitations provided in Art. 19 hereof;

7. To promote housing by the aided self-help method whereby families with some outside aid build
their own houses with their own houses with their own labor; to provide technical guidance to such
families; to guaranty loans to such families on first liens on the house and land with such other security
and conditions as the Corporation shall determine, providing at least for ultimate recovery of principals;
and to do all other activities as are relevant and significant in such a program of aided self-help for
housing;
8. To adopt, alter and use a corporate seal; to enter into contracts; and to sue and be sued in its
Corporate name in any court of competent jurisdiction;

9. To acquire , purchase, own, hold, manage, administer, operate, develop, lease, pledge, mortgage,
exchange, sell, transfer or otherwise dispose of real and personal property with every kind and
description, monies and funds, or any interests therein as may now be necessary to effectively carry out
the purposes, objectives and functions of the Corporation;

10. To do any and all acts and things and to exercise all powers, which maybe necessary or convenient
to the accomplishment or furtherance of its purposes and objectives, or which a natural person can do
and exercise and which may now be or hereafter authorized by law.

National Home Mortgage Finance Corporation (NHMFC)

The NHMFC was created in 1977 by virtue of Presidential Decree 1267 that gave it the
mandate to develop and operate a secondary market for home mortgages. This
mandate was patterned after the United States (U.S.) Fannie Mae and Freddie Mac that
back then were considered the models for home finance securitization. The NHMFC was operating
relatively well before 1984 in performing its mandate of buying home mortgages
originated by private financial institutions and eventually selling them to the public as
Housing Participation Certificates.

Charted in 1979 as a secondary mortgage market institution and recapitalized by EO 90 to operate a

viable home mortgage market utilizing long-term funds principally provided by the support agencies. In
2004, the Social Housing Finance Corporation (SHFC), a whollyowned subsidiary of NHMFC, was
established to develop and administer social housing finance programs for low-income formal and
informal households;

Social Housing Finance Corporation (SHFC) E.O. 272, SECTION 2 MANDATE – The SHFC shall be the lead
government agency to undertake social housing programs that will cater to formal and informal sectors
in the low-income bracket and shall take charge of developing and administering social housing program
schemes, particularly the CMP and the AKPF Program (amortization support program and
developmental financing program)

*Over the years, the government has intervened in the housing market through a variety of instruments:

A. Regulation, including rent control

 Government intervenes through regulation of land use and land tenure. Private developers intending to
develop raw lands for housing must secure the necessary permits and clearances from the Housing and
Land Use Regulatory Board and the local governments concerned. A bidding process determines the
private developer that would be allowed to develop government owned raw lands for housing. Many
local government units still have to issue their respective local land use policies and regulation that will
guide the utilization of lands within their territorial responsibility. The absence of a National Land Use
Code has been a major reason for the inconsistent land utilization policies at the local level.

The issue on Housing Rights was addressed through the many housing-related laws executive issuances
(from 1986 to present) which respond to the provision of housing services to the country’s increasing
population and institute the necessary implementing structures and mechanisms. Under the term of
former President Corazon C. Aquino (1986 to June 1992), her administration issued several enabling
laws and executive issuances on housing and urban development, as follows:

1. Executive Order No. 90 (of 17 December 1986) created the Housing and Urban Development
Coordinating Council (HUDCC), the highest policy making and coordinating office on shelter and urban
development. HUDCC is mandated to formulate goals and strategies for housing, coordinate agencies
involved in government shelter delivery system, monitor targets, encourage private sector participation,
propose new legislations and formulate policies for asset disposition.

2. Republic Act 7279 (of 29 March 1992), otherwise known as the Urban Development and Housing Act
of 1992 (UDHA) was signed into law to address the housing shortage of the country. The Act lays down
the groundwork for a comprehensive and continuing urban development and housing program. It is the
key legislation which addresses the right to housing of the homeless and underprivileged Filipino people.
This law seeks to provide the provision of social housing to the marginalized sector by addressing their
access to land and housing, relocation, demolitions, and promoting private sector participation in
housing. The law also mandates local government units to provide shelter to qualified beneficiaries and
to undertake measures to curtail the activities of professional squatters and squatting syndicates. In
addition, the Act also mandates the formulation of a National Urban Development and Housing
Framework to guide policymakers in the determination of areas for urbanization and development of
concomitant programs to address the urbanization problems. The Department of Interior and Local
Government (DILG) and the Housing and Urban Development Coordinating Council (HUDCC) developed
the Implementing Rules and Regulations (IRR) of the UDHA to ensure the observance of proper and
humane relocation and resettlement procedures mandated by the UDHA of 1992. Another IRR is also
developed and being implemented by the two government agencies governing the registration of social
housing beneficiaries.

 Republic Act No. 7644 (of 6 December 1992), otherwise known as the New Rent Control Law, was
passed into law to extend the validity of Rental Law to 1997.
 Executive Order No. 71 (of 23 March 1993) was issued devolving the powers of the Housing and Land
use Regulatory Board to approve subdivision plans to cities and municipalities pursuant to Republic Act
7160, otherwise known as the Local Government Code of 1991.

 Executive Order No. 72 (of 25 March 1993) provides for the preparation and implementation of the
Comprehensive Land Use Plans of Local Government Units pursuant to the Local Government Code of
1991 and other pertinent laws.

 Executive Order No. 129 (of 15 October 1993) established an institutional mechanism to curtail the
activities of professional squatters and squatting syndicates and intensifying the drive against them.

 Executive Order No. 129 (of 15 October 1993) created the Task Force on Anti-Squatting, which aims to
curtail the proliferation of professional squatters and squatting syndicates. It was designed to protect
the rightful beneficiaries of the various housing programs.

OTHER EXAMPLES OF LAWS AND REGULATIONS PERTAINING TO HOUSING

BATAS PAMBANSA BLG. 220

“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 NUMBERED NINE HUNDRED FIFTY-SEVEN, TWELVE HUNDRED SIXTEEN, TEN HUNDRED NINETY-
SIX AND ELEVEN HUNDRED EIGHTY-FIVE”

PRESIDENTIAL DECREE NO. 957

“Subdivision and Condominium Buyer’s Protective Decree” As Amended by PD 1216 - Regulating the
sale of subdivision lots and condominiums, providing penalties for violations thereof.

REPUBLIC ACT NO. 4726 ”An act to define condominium, establish requirements for its creation, and
govern its incidents.” Otherwise known as “The Condominium Act” REPUBLIC ACT NO. 6552 “AN ACT
TO PROVIDE PROTECTION TO BUYER OF REAL ESTATE ON INSTALLMENT PAYMENTS” Otherwise known
as “Realty Installment Buyer Protection Act”

REPUBLIC ACT NO. 9653 “AN ACT ESTABLISHING REFORMS IN THE REGULATION OF RENT OF CERTAIN
RESIDENTIAL UNITS, PROVIDING THE MECHANISMS THEREFORE AND FOR OTHER PURPOSES.” Otherwise
known as the “Rent Control Act of 2009”
PRESIDENTIAL DECREE NO. 1517 “PROCLAIMING URBAN LAND REFORM IN THE PHILIPPINES AND
PROVIDING FOR THE IMPLEMENTING MACHINERY THEREOF” Otherwise known as the “Urban Land
Reform Act”

Tenurial Assistance

Community resources are mobilized for resolution of land tenure issues and/or site development
through the Land Tenure Assistance Program (LTAP), Community Mortgage Program (CMP) and
Community Land Acquisition Support Program (CLASP). Under LTAP, the NHA extends credit assistance
to Community Associations for the acquisition of land they occupy or intend to be resettled. Under other
community-based approaches, the NHA acts as conduit between community associations/ cooperatives
and financing institutions such as the National Home Mortgage Finance Corporation (NHMFC), Home
Development Mutual fund (HDMF OR Pag-IBIG Fund) and other government and nongovernment
institutions.

B. PRODUCTION OF HOUSING UNITS

The National Housing Authority and the Home Insurance and Guarantee Corporation operate joint
venture programs with the private sector. In general, private builders construct housing units after
posting performance bonds with insurance companies. They are responsible for everything from
procurement of materials and supplies to construction of the housing units. Payment is made on turn-
key basis.

RESETTLEMENT PROGRAMS

• NHA – Administered Resettlement Program

 This involves acquisition and development of large tracts of raw land to generate service lots or core
housing units for families displaced from sites earmarked for government infrastructure projects and
those occupying danger areas such as waterways, esteros and railroad tracks.

• Resettlement Assistance Program for Local Government Units

NHA assists in the development of resettlement sites by LGUs under its Resettlement Assistance
Program for LGUs. This is implemented as joint undertaking between the LGU and NHA. The LGU's
primary contribution is land while the NHA provides funds to cover cost of land development. LGUs
recover project cost from beneficiaries and utilize proceeds exclusively for project maintenance or to
acquire and/or develop new resettlement sites.

CORE HOUSING PROGRAMS

Entails acquisition and development of raw land as well as construction of housing units. The Program
provides service lots with core housing designed to match the affordability of target market consisting
mostly of low-salaried government and private sector employees. Under this program, projects are
implemented under joint venture arrangement with private sector or LGUs. Partners invest or
contribute equity in the project in terms of land or funds for land development and house construction.

Medium Rise Housing Program

An in-city housing alternative that 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. On the other hand, the
Medium Rise Private Housing Program is implemented directly by NHA ir in joint venture with other
government agencies and/ or the private sector.

C. FINANCE

The government provides development loans, mortgage take outs, guarantee and tax breaks to private
developers and builders who participate in the National Shelter Program. Development loans for
socialized and economic housing are given at subsidized rates of interest. The Community Mortgage
Program charges a subsidized rate of 6% per year while developers of low-cost housing pay interest
rates ranging from 9.5% to 16% under the Abot Kaya Pabahay and the Social Housing Developmental
Loan Program. The Home Insurance and Guarantee Corporation insures development loans. Under the
mortgage take out scheme are the following:  DMF’s Expanded Housing Loan Program  NHMFC’S
Unified Home Lending Program (UHLP)  SSS and GSIS housing programs  Home Insurance and
Guaranty Corporation’s Retail Guaranty Program

The government provides private developers financing for large-scale housing production under the
following:

 HIGC’s Development Guaranty  Social Housing Development Loan  SSS corporate housing program
 HDMF’s Group Land Acquisition Development

D. PROVISION OF INFRASTRUCTURE

The government builds the primary infrastructure. Secondary infrastructure such as on-site water
supply, sewerage and power lines are for the responsibility of the private developers.

The developers may build the housing units or contract private construction companies to produce the
units. On the other hand, homeowners or communities may be involved in the development of sites and
services in community development programs.

SLUM UPGRADING PROGRAMS

Entails acquisition and on-site improvement of occupied lands through introduction of roads or alleys
and basic services such as water and power. Land tenure issue is resolved through sale of homelots to
bonafide occupants.

SITES AND SERVICES PROGRAMS

Entails acquisition and development of raw land into service home lots to serve as alternative to
informal settlements as well as catchment areas for immigration and population growth. This approach
is adopted in urban centers where population growth and overspill is anticipated and where
beneficiaries intend to acquire housing on incremental basis
HOUSING DELIVERY PERFORMANCE REVIEW

(From The State of Philipine Cities by Dr. Anna Marie Karaos and Gerald Nicolas of the John J. Carroll
Institute on Church and Social Issues)

The rapid increase in the urban population produces an enormous demand for shelter and tenure
security.

Slum areas are often blighted, overcrowded, and lacking in standard conveniences such as electricity,
water, drainage and health services. While around 44 percent of the urban population in Metro Manila
live in slums, 25 percent are not necessarily income- poor.

The rapid increase in the urban population produces an enormous demand for shelter and tenure
security. Housing assistance programs extended by government institutions such as the Social Security
System (SSS) and Pag-IBIG also discriminate against the poor, The Housing and Urban Development
Coordinating Council (HUDCC) reports that the 102 presidential issuances as of 2006 covered 26,367
hectares, most of them in Metro Manila and occupied by more than 195,000 informal settler families.

Despite having done little to halt the migration of people into cities, both the local and national
governments adopt squatter relocation as a policy to curb the proliferation of illegal urban poor
settlements. The Urban Poor Associates (UPA), a non-government organization monitoring eviction
cases, reports that from 1996 to June 2008, a total of 287 demolition cases have rendered more than
85,000 families or more than 400,000 persons homeless.

UPA also estimates that only half of the evicted families receive relocation assistance. Relocation to
sites far from their sources of income has disrupted these families’ already meager cashflow, and the
absence of viable livelihood opportunities in the new sites is not easily remedied in the immediate term.

NON-GOVERNMENT ORGANIZATION (NGO’S)

GMA KAPUSO FOUNDATION

VISION

We are the most accomplished, most trusted and most credible non-government organization in the
Philippines; the leader in serving and uplifting the lives of the underprivileged members of our society
through Serbisyong Totoo and the responsible use of media.
MISSION

We uplift the lives of underprivileged Filipinos all over the Philippines by: providing quick-response
relief operations to fulfill the most immediate needs in times of crises; undertaking health, nutrition and
medical projects to promote greater equity in health; carrying out developmental programs designed to
promote education and foster learning.

A year after Yolanda hit the Philippines, the survivors’ stories of resilience continue as they rebuild from
the ruins of their storm-ravaged homes. Since the typhoon’s landfall in 2013, GMA Kapuso Foundation
(GMAKF) – with its long-standing commitment to Serbisyong Totoo – has been a steadfast advocate in
turning these stories of loss into stories of hope through its quick response in times of need and its
extensive disaster relief programs.

On the anniversary of Yolanda, GMAKF officially turned over 120 permanent concrete houses of Phase II
and III of its Kapuso Village in Tacloban City to select families displaced by the super typhoon. GMAKF is
the first NGO to turn over permanent concrete housing to Yolanda survivors in Tacloban City.

A total of 172 houses were turned over since July 2014. An additional 231 houses will be ready for
occupancy in the coming months, fulfilling in part the Foundations’ 403-unit concrete housing project in
the area. The 3.5-hectare permanent resettlement area donated by Tacloban City Government. In Palo,
200 houses in Sitio Caloogan were donated built on a 2.5 hectares of forestland.

Through the generosity of numerous citizens all over the world, the project was able to come to
fruition. Furthermore, GMA Network and its roster of stars showed the true meaning of the Kapuso
spirit by participating in GMAKF’s Yolanda rehabilitation efforts.

RED CROSS

Vision

The PRC will be the foremost humanitarian organization in the Philippines, in services provided and
number of people served.

Mission

PRC provides timely, efficient, and responsive humanitarian services to the most vulnerable in
accordance with the principles and values of the Red Cross and Red Crescent Movement.
More than 66,000 families now have safer, more disaster resilient homes in typhoon Yolanda (Haiyan)
affected areas, as the Philippine Red Cross (PRC) has already completed 86 percent of its target number
of homes to be built in its shelter project under its typhoon Haiyan recovery program.

As of date, a total of of 72,636 families were provided shelter out of the target 80, 203, which is
targeted to be completed until the end of 2016. This is the largest ever shelter assistance that the Red
Cross has provided in any post-disaster operations locally and globally, in terms of number of houses
built and amount of shelter assistance provided.

In building shelter, the PRC involves the community in all aspects of the building process. The
beneficiaries themselves were part of the consultations regarding designs and plans for the shelters that
the Red Cross and its partners were to build for them. Beneficiaries are even involved in the actual
building of the houses.

Houses built through the PRC housing project were built employing the “build back better” principle for
disaster resilience and have been proven to withstand some of the strongest typhoons that came after
Yolanda.

The shelter project covers the provinces of Aklan, Antique, Capiz, Cebu, Eastern Samar, Iloilo, Leyte,
Palawan, and Western Samar; as well as the cities of Bogo, Ormoc and Tacloban.

The housing project is supported by PRC’s partners in the International Red Cross Red Crescent (RCRC)
Movement, composed of the International Committee of the Red Cross (ICRC), International Federation
of Red Cross and Red Crescent Societies (IFRC) and several National Societies.

RCRC National Societies involved in the Haiyan housing project include Finnish Red Cross, Spanish Red
Cross, German Red Cross, Hong Kong Red Cross, Taiwan Red Cross, French Red Cross, Japanese Red
Cross, Norwegian Red Cross, British Red Cross, American Red Cross, Australian Red Cross, Netherlands
Red Cross, Palang Merah Indonesia (PMI) or Indonesian Red Cross, Qatar Red Crescent Society, Swiss
Red Cross, and Bahrain Red Crescent.

PRC’s private partners that have contributed to the housing project include Air Asia, HSBC, CUBE,
Citibank and AusAID. ADVT.

UNITED NATIONS DEVELOPMENT PROGRAMME

Vision
 In the Philippines, UNDP fosters human development for peace and prosperity. Working with central
and local Governments as well as civil society, and building on global best practices; UNDP strengthens
capacities of women, men and institutions to empower them to achieve the Millennium Development
Goals (MDGs) and the objectives of the Philippine Development Plan. Through advocacy and
development projects, with a special focus on vulnerable groups, UNDP works to ensure a better life for
the Filipino people.

Mission

UNDPs overall approach is to strengthen capacities of local governments and communities in

democratic governance, poverty, disparity and vulnerability reduction, sustainable management of
environment and natural resources, and climate change adaptation and disaster risk management, while
ensuring that human rights and gender are integrated into local policies, processes, programmes and
budgets. Complementary actions at the national and policy levels will be undertaken to contribute to a
more conducive enabling environment for local interventions. To reflect the complex and multi-sectoral
nature of the development challenges of the country, UNDP is pursuing convergence in its program and
developing cross-practice activities such as the Poverty-Environment Initiative, Security Sector Reform,
Environmental Justice and Improved Local Governance for HIV Response.

Permanent housing units distributed in four locations as follows: 55 units in Tacloban City; 55 units in
Ormoc City, Leyte;55 units in the municipality of Hernani in Eastern Samar; and 67 units in the
municipality of Basey, Western Samar.

MISSION

Ending poverty for 5 million families by 2024.

VISION

Gawad Kalinga is building a nation empowered by people with faith and patriotism; a nation made up of
caring and sharing communities, dedicated to eradicate poverty and restore human dignity.

A Philippine-based movement that aims to end poverty for 5 million families, by first restoring the
dignity of the poor.The 38 homes were given at the Aurora GK Village, Brgy. Crossing, San Isidro, Leyte,
Philippines

CATHOLIC ORGANIZATION FOR RELIEF AND DEVELOPMENT AID (CORDAID)

Mission

Cordaid is the Dutch Catholic Organization for Relief and Development Aid. We aim at a just and
sustainable world for everybody. Where we share our Global Common Goods, where we make space for
diversity and where we work together with everyone who shares our values, interests and a common
purpose.

We are an innovative, entrepreneurial and professional not-for-profit organization aiming at maximizing

the social impact of our work in fragile and conflict affected areas.

Our vision

We have inherited the earth from our ancestors. It is our job to leave it a better place for future
generations: a world where people are safe, can live with dignity, develop themselves and have the
freedom to speak out.

We believe in the driving force of solidarity, in the power and strength of people and the capacity of
local communities to make this world a reality. Flourishing communities offer opportunities to all their
members to realize their full potential and participate in social, economic, cultural and spiritual life.

Project Information: Resilient Recovery Program

POPE FRANCIS VILLAGE

POPE FRANCIS FOR RESILIENT AND CO-EMPOWERED, SUSTAINABLE COMMUNITIES (FRANCESCO)

The aim of this integrated and people-driven intervention is to help the affected communities regain
their lives and assets through resilient dwelling houses, rebuilding livelihoods, and continuous
strengthening of their organizations so that they can fully participate in community governance and
effectively engage the local governments. The project is known as “Pope Francis Village”.

Project Information

OPERATION BLESSING

VISION

To see Filipino families and communities achieve transformed lives.

MISSION

As mandated by God, our mission is to proclaim the Good News of Jesus Christ to the people of the
Philippines and help them achieve transformed lives, one family and one community at a time.

To achieve our mission,

We are committed to conduct community transformation programs on: Disaster Response, Healthcare,
Livelihood, Children’s Programs and Infrastructure.

Bamboo is used as a housing material introduced by the Operation Blessing Inc, a non-government
organization that will build more 324 permanent shelters to families in Tacloban whose houses were
totally destroyed by supertyphoon “Yolanda.”
 Operations Blessings (OB) Philippines will build 324 permanent shelters in Palanog village, tagged as the
city's safe zone.

The NGO broke the ground for the Community of Hope (COH)-Palanog community centers and market.
The new community consists of a health station, day care room, administration office, youth activity and
recreational area, and the livelihood training area.

Houses can withstand a magnitude 8 earthquake and resistant to typhoons with up to 250 kilometers
per hour, incorporating the bamboo cement technology of Hilti Foundation (Base Bahay).According to
Kim Pascual, the NGO's executive vice president and chief operating officer

DUTERTE SIGNS LAW CREATING NEW HOUSING DEPARTMENT Dharel Placido, ABS-CBN News Posted at
Feb 19 2019 07:53 PM

MANILA - President Rodrigo Duterte has signed a law creating the Department of Human Settlements
and Urban Development (DHSUD). Republic Act 11201, signed by the President on Feb. 14, and a copy of
which was released by the Palace on Tuesday, consolidates the Housing and Urban Development
Coordinating Council (HUDCC) and the Housing and Land Use Regulatory Board (HLURB).

The department shall act as the primary national government entity responsible for the management of
housing, human settlement, and urban development, and be the sole and main planning and policy-
making, regulatory, program coordination, and performance monitoring body for all housing, human
settlement, and urban development concerns.

Under the new law, the government will establish Housing One-Stop Processing Centers to centralize
the processing and issuance of all required housing-related permits, clearances, and licenses.

The department must include the formulation of a national housing and urban development policies,
strategies and standards that are consistent with the Philippine Development Plan, crafting of housing
finance and production policies, and conduct of comprehensive studies and research necessary for
housing and urban development.

The department shall also be in charge of environmental, land use and urban planning and
development, as well as housing and real estate development regulation. Under the law, the HLURB is
reconstituted as the Human Settlements Adjudication Commission. Also created under the law is the
National Human Settlements Board.

The department shall exercise administrative supervision over the National Housing Authority, National
Home Mortgage Finance Corp., Home Development Mutual Fund, and Social Housing Finance Corp.
These corporations shall continue to function according to existing laws and their respective charters.
 The law also calls for the identification, within 180 days from its effectivity, of government lands
suitable for housing and rural development. “That all government lands which have been idle for more
than 10 years, except lands owned by government-owned and -controlled corporations and government
financial institutions… are hereby prioritized for housing and urban development purposes,” the law
reads.

Below is the link of the law RA 11201:

https://www.officialgazette.gov.ph/downloads/2019/02feb/20190214-RA-11201-RRD.pdf

DUTERTE NAMES HEADS OF NEW HOUSING DEPARTMENT, SPACE AGENCY By Ruth Abbey Gita-Carlos
January 7, 2020, 5:53 pm

President Rodrigo R. Duterte

MANILA -- President Rodrigo Duterte has named the respective heads of the Department of Human
Settlement and Urban Development (DHSUD) and the Philippine Space Agency (PhilSA), according to the
list of presidential appointees released by the Palace on Tuesday.

Eduardo del Rosario was tapped as ad interim secretary of DHSUD, a state department created on
February 14, 2019 by virtue of Republic Act 11201 and through the consolidation of the Housing and
Urban Development Coordinating Council (HUDCC) and the Housing and Land Use Regulatory Board.

Duterte signed del Rosario’s appointment paper on January 2.

Prior to his new appointment, del Rosario served as the chairperson of the HUDCC.

The new housing department is designated as the primary national government entity that is
responsible for the management of housing, human settlement, and urban development.

The DHSUD is also mandated as the "sole and main planning and policy-making regulatory, program
coordination, performance monitoring entity for all housing, human settlement, and urban development
concerns, primarily focusing on the access to and the affordability of basic human needs."

Meantime, Duterte appointed Joel Joseph Marciano Jr. as director-general of the PhilSA on Dec. 5,
2019

Marciano was the acting director of Science department's Advance Science and Technology Institute
before being delegated as PhilSA head.
Duterte on Aug. 8, 2019 created the PhilSA through RA 11363.

The PhilSA, chaired by a director-general, is an attached agency of the Office of the President tasked to
be the central government agency that will plan, develop, and promote the national space program in
line with the Philippine Space Policy, which is the country's primary strategic roadmap for space
development.

Meantime, Duterte also reappointed Dante Ang on Jan. 2 as his special envoy for international public
relations.

Ang was first named as the special envoy of the President for international public relations on May 3,
2017.

Ang, chairman emeritus of local broadsheet The Manila Times, was a publicist to former president
Gloria Macapagal Arroyo from 1993 to 2001. He later joined Arroyo’s Cabinet as chairman of the
Commission on Filipino Overseas from 2014 to 2010.

Before joining the government, he occupied various positions at the Manila Times as publisher,
columnist, president, and chairman of the board. (PNA)

SALIENT POINTS OF RA 11201 Philippine Daily Inquirer / 05:14 AM February 23, 2019

President Duterte signed on Feb. 14 Republic Act No. 11201, which creates the Department of Human
Settlements and Urban Development (DHSUD) by merging the Housing and Urban Development
Coordinating Council (HUDCC) and the Housing and Land Use Regulatory Board (HLURB). It repealed
Executive Orders No. 90 s. 1986 and No. 648 s. 1981.
The new department is now “the primary national government entity responsible for the management
of housing, human settlement and urban development.”

The law defines human settlements to “comprise of a) physical components of shelter and
infrastructure; and b) services to which the physical elements provide support, such as community
services which include education, health, culture, welfare, recreation and nutrition.”

Urban development meanwhile “refers to the process of occupation and use of land or space for
activities such as residential, industrial, commercial and the like or their combinations, necessary to
carry out the functions of urban living.”

Section 4 further states: “It shall be the sole and main planning and policy-making, regulatory, program
coordination and performance monitoring entity for all housing, human settlement and urban
development concerns, primarily focusing on the access to and affordability of basic needs.”

Section 4 further states: “It shall be the sole and main planning and policy-making, regulatory, program
coordination and performance monitoring entity for all housing, human settlement and urban
development concerns, primarily focusing on the access to and affordability of basic needs.”

DHSUD shall have powers and functions on four key areas: policy development, coordination,
monitoring and evaluation; environmental land use and urban planning and development; housing and
real estate regulation; and homeowners association and community development.

Specified in its policy development function is the formulation of a national housing and urban
development policies, strategies and standards; housing finance and production policies; housing
policies and programs; and a framework for resilient housing and human settlements.

The HLURB is to be reconstituted into an adjudicatory body called Human Settlements Adjudication
Commission (HSAC) and shall be attached to the Department for policy, planning and program
coordination only.

The law also creates a National Human Settlements Board which shall exercise the powers and functions
related to policy and program development of the department’s attached agencies.

The Department shall have four attached corporations namely the National Housing Authority (NHA),
National Home Mortgage Finance Corp. (NHMFC), Home Development Mutual Fund (HDMF) and Social
Housing Finance Corp. (SHFC).
The Department is also tasked to establish Housing One-Stop Processing Centers to centralize the
processing of housing-related permits, clearances and licenses.

The Department is to identify government lands suitable for housing and rural development within 180
days from the effectivity of the law. This is to be done jointly with the Department of Environment and
Natural Resources (DENR), Department of Agrarian Reform (DAR), Department of Agriculture (DA),
Department of Interior and Local Government (DILG) and Land Registration Authority (LRA).

The Act shall take effect 15 days after its publication in the Official Gazette or in any newspaper of
general circulation.

Full text can be read at the Official Gazette Website at

www.officialgazette.gov.ph/2019/02/14/republic-act-no-11211/

OTHER LAWS AND EXECUTIVE ISSUANCES

REPUBLIC ACTS  Republic Act No 11201: Department of Human Settlements and Urban Development
Act  Republic Act No. 9653: Rent Control Act (2009)  Republic Act No. 9507: Socialized and Low-Cost
Housing Loan Restructuring and Condonation Act (2008)  Republic Act No. 9397: Disposition of Lands
for Socialized Housing (2006)  Republic Act No. 9341: The Rent Control Act (2005)  Republic Act No.
8501: Penalty Condonation (1998)  Republic Act No. 8368: Repeal of Presidential Decree No. 772
(1997)  Republic Act No. 8437: Rent Control Law (1997)  Republic Act No. 7835: CISFA (1994) 
Republic Act No. 7279: Urban Development and Housing Act (1992)

ACQUISITION, VALUATION AND DISPOSITION OF LANDS To enable the equitable utilization of

residential lands in urbanizable areas with particular attention to the needs of the underprivileged and
homeless and not merely on the basis of market forces, several provisions in RA 7279 address
Acquisition Priorities in Land Acquisition (Section 9), Modes of Land Acquisition (Section 10), Disposition
(Section 12), and Valuation (Section 13) of lands for Socialized Housing.

Specific to the valuation of lands for socialized housing (Section 13) the Department of Finance issued
the following Local Finance Circulars:  DOF Local Finance Circular 3 92  DOF Local Finance Circular 1 97
 Balanced Housing Development (20 Percent Requirement)

Balanced Housing Development Requirement To further increase the low-cost housing stock
available to underprivileged families and homebuyers, Section 18 of Republic Act No. 7279 (Balanced
Housing Development) was amended to include the residential condominium projects in complying with
the balanced housing requirement.
 Section 18 of RA 7279, as amended by Republic Act No. 10884, requires that owners and/or developers
of proposed subdivision and condominium projects develop an area for socialized housing, at the option
of the developer, equivalent to:  At least fifteen percent (15%) of the total
subdivision area or subdivision project cost  At least five percent (5%) of condominium area or project
cost.

The balanced housing requirement should be accomplished within the same city or municipality,
whenever feasible, and in accordance with the standards set by the Housing and Land Use Regulatory
Board (HLURB) and other existing laws. Read more: Briefer on RA 10884

 Beneficiary Registration Section 17 (Registration of Socialized Housing Beneficiaries) mandates

the local government units to identify and register all beneficiaries within their respective localities.

 Inventory of Lands Section 7 (Inventory of Lands) directs all city and municipal governments to
conduct an inventory of all lands and improvements in their respective localities to identify residential
lands, government lands, unregistered or abandoned and idle lands, and other lands. This inventory
shall be updated every three years. (DOF Local Finance Circular 197)

INCENTIVES FOR THE PRIVATE SECTOR

Section 20 (Incentives for the Private Sector) seeks to encourage greater private sector
participation through the reduction and simplification of requirements, and provision of exemptions in
the payment of specific taxes.  DOF Local Finance Circular 1 97  Proper and Humane Relocation
Procedures

In Section 28 eviction and demolition, as a practice, shall be discouraged but will be allowed
under specific situations: when persons or entities occupy danger areas and other public places; when
government infrastructure projects are about to be implemented; or when there is a court order for
eviction and demolition. The conduct of eviction or demolition orders shall be covered by specific
procedures.

Socialized Housing Tax Section 43 authorizes local government units to impose an additional one-
half (0.5%) tax on the assessed value of all lands in urban areas in excess of Fifty thousand pesos.

Summary Eviction Summary Eviction is authorized for those who have constructed their
structures after the effectivity of RA 7279 (Section 44) and for any person or group identified as
professional squatter and squatting syndicated (Section 27) . Moreover Section 30 paragraph (2)
provides, "After the effectivity of this Act, the barangay, municipal or city government units shall prevent
the construction of any kind of illegal dwelling units or structures within their respective localities."
(Implementing Rules And Regulations Governing Summary Eviction)

EXECUTIVE ORDERS  Executive Order No. 272: Authorizing the Creation of the Social Housing Finance
Corporation and Directing the transfer of the Community Mortgage Program, Abot-Kaya Pabahay Fund
Program, and other social Housing Powers and Functions of the National Home Mortgage Finance
Corporation to the Social Housing Finance Corporation (2004)

 Executive Order No. 105: Approving and Directing the Implementation of the Program for "Provision
of Group Home/Foster home for Neglected, Abandoned, Abused, Detached and Poor Older Persons and
Persons with Disabilities" (2002)

 Executive Order No. 20: 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 (2001)

 Executive Order No. 258: Prescribing Time Standards in the Issuance of Permits for Housing Projects
(2000)  Executive Order No. 45: Prescribing Time Periods for Issuance of Housing Related
Certifications, Clearances and Permits, and Imposing Sanctions for Failure to Observe the Same (2001) 
IRR EO 45

 Executive Order No. 159: Declaring Mass Housing as Centerpiece Program of the Estrada
Administration and Constituting the Presidential Commission for Mass Housing (1999)

 Executive Order No. 170: Establishing the Revolving Funds for Housing Projects of Local Government
Units (1999)

 Executive Order No. 71: Devolving the Powers of the Housing and Land use Regulatory Board to
approve Subdivision plans to Cities and Municipalities pursuant to R.A. no. 7160, otherwise known as
the Local Government Code of 1991 (1993)

 Executive Order No. 72: Providing for the Preparation and Implementation of Comprehensive Land
Use Plans of Local Government Units Pursuant to the Local Government Code of 1991 and other
Pertinent Laws (1993)
 Executive Order No. 129: Establishing an Institutional mechanism to Curtailment of the Activities of
the Professional Squatting Syndicates and Professional Squatters and Intensifying the drive against them
(1993)

 Executive Order No. 357: Strengthening the Existing Coordinating Mechanism of the National Shelter
Program of the Government Under Executive Order No. 90, Dated December 17, 1986 (1989)

 Executive Order No. 90: Identifying the Government Agencies Essential for the National shelter
program and defining their mandates, creating the Housing and Urban Development Coordinating
Council, Rationalizing funding sources and lending mechanisms for home mortgages and for other
purposes (1986)

MEMORANDUM CIRCULAR

 Memorandum Circular No. 87, Series of 2015 - Directing all National Government Agencies and
Instrumentalities, including Government-Owned or Controlled Corporations, to Submit an Inventory of
their respective Idle Lands, and Creating an Inter-Agency Task Force to identity Lands, and sites for
Socialized Housing

 Memorandum Circular No. 112, Series of 2006 - Housing Fair for employees in the public sector

PROCLAMATION

 Proclamation No. 662: Declaring the Month of October as the National Shelter Month (1995)

PRESIDENTIAL DECREE

 Presidential Decree No. 957: Regulating the Sale of Subdivision Lots and Condominiums, Providing
Penalties for Violation Thereof (1976)  IRR PD 957

I.ii PHYSICAL CONFIGURATIONS AS OUTCOMES OF SOCIO-ECONOMIC SYSTEMS

AN OVERVIEW OF THE SPATIAL POLICY ON ASIAN AND EUROPEAN COUNTRIES

The Republic of the Philippines is made up of more than 7,000 islands stretching 1,851 km from north to
south. The 11 largest islands, which include Luzon, Mindanao, Mindoro, Samar, Leyte, and Cebu, make
up 96% of the country's surface area.

The Philippines is one of the most urbanized developing countries in Asia: by 1990 about half of the
population was living in urban areas.

There is a large disparity between the rich and the poor among the general population, and many
relocate to cities seeking work. The eradication of poverty is one of the most pressing tasks the country
faces. Three quarters of the poor live in rural areas.

Situated in this predominantly Christian country (accounting for 93% of the population), the
Autonomous Region in Muslim Mindanao (ARMM) in particular suffers marked underdevelopment.

LOCAL GOVERNMENTS AND SPATIAL PLANNING SYSTEM

The local government administrative system in the Philippines is three-tiered, consisting of: 1)
provinces and highly urbanized cities, 2) cities ("component cities") and municipalities, and 3) barangays
(the smallest administrative unit).

The planning system as it relates to land policies from the national to regional levels entails spatial
planning and socioeconomic development planning. There are plans under both of these frameworks
that are implemented at the regional level, a region in this case being a division created out in order to
bunch multiple provinces together for nominal administrative purposes.
Figure:Planning system MAJOR AUTHORITIES RELATING TO SPATIAL POLICY
Figure:Political / administrative system

SPATIAL PLANNING AND TERRITORIAL DEVELOPMENT POLICY

Socioeconomic Planning System at the National and Regional Levels A Medium-Term Philippine
Development Plan (MTPDP) remains in force for six years, corresponding to the term of office of the
country's president (however, the recent plan is a five-year plan, "Philippine Development Plan 2011-
2016", starting from the second year of the presidency). It is a national program that outlines the
policies the president wishes to institute during his or her term. MTPDPs corresponding to presidential
terms came into being in 1986. These replaced the four-year and five-year plans that had continued
since the 1970s.
MTPDPs lay out major policy initiatives, socioeconomic strategies, and major national programs.
Regional development plans, meanwhile, stipulate strategies, programs and projects that facilitate the
goals of the national plans.

The National Economic and Development Authority (NEDA), which charged with drafting the MTPDPs,
coordinates with related agencies in formulating the plan. The final product is subject to the approval by
a NEDA committee made up of government cabinet members (the "Cabinet Committee") and chaired by
the president.

The NEDA's drafts for the national development plan and its policies serve as the basis for drafting,
reviewing, and deliberating the regional development plans. Regional Development Council (RDC)
organized in each region (except for NCR, ARMM and CAR which have different organizations) is the
counterparts of NEDA regional office established in each region (except for NCR and ARMM) that
decides how plans should be implemented at the regional and municipal levels. Each RDC is made up of
regional/municipal representatives, representatives from government arms in the region, and members
of the private sector.

Program name or administrative field

Organizations

Medium-Term Philippine Development Plan

National Economic and Development Authority

National Framework for Physical Planning

National Economic and Development Authority

Physical Framework Plan for Metropolitan Manila

Metropolitan Manila Development Authority

Spatial Planning Systems at the National and Regional Levels

 Rooted in the notion that spatial planning should be done from a long-term perspective, the 30-year
"National Physical Framework Plan, 1993-2022" (NPFP) was formulated. The second and current plan
was renamed the "National Framework for Physical Planning, 2001-2030" (NFPP). Just as NFPP took over
NPFF after eight years from its beginning, NFPP too is planned to be reviewed in about a decade from its
beginning year and currently, in 2012, the next NFPP is under study.

The NFPP lays out policies and initiatives related to the distribution, utilization, management, and
development of land and material resources. The ultimate purpose of the plan is to raise land
productivity, protect and ensure the sustainability of resources, facilitate the coherent development of
housing, and build an infrastructure that helps promote or assist in development. Similar to NFPF, NFPP
was established through the office of NEDA by NLUC (National Land Use Committees), which consists of
related ministries and is in close connection with NEDA. Today NLUC is positioned as one of the
subordinate committee of NEDA committee (its position was changed by Executive Order No.770 in
2008.)

There was a reason behind the name change from NPFP to NFPP. The previous plan restricted the
actions of the lower-tiered administrative authorities. The new framework, in contrast, is designed to
relieve such restrictions and give local authorities more say in policy decisions.

In a development that paralleled the creation of the NFPP, at the regional level, Regional Physical
Framework Plans (RPFPs) came to be drafted. Just as with the NFPP, the RPFPs presented local
authorities with choices and directions for policy. The national and regional NEDA offices direct the
creation of RPFPs (except for NCR and ARMM), but each RPFP must be approved by the local Regional
Development Council (see above) (this also excludes NCR and ARMM, and also CAR). Except for two
regions (NCR and CAR), target year of current RPFPs of all the regions including ARMM is 2030.

Metropolitan Planning System

Metropolitan Manila (NCR or Metro Manila) is the only urban area in the country of which its
geographical area and administrative power is legally defined (by 1995 Act for creating Metro Manila
Development Authority). (There are cases out of NCR where a big city and its surrounding local
government units naming themselves Metro Sebu, Metro Davao, etc., and carrying out wide-area
administration for partial duties, according to their voluntary agreement, which have legal basis in the
1986 Constitution and the Local Government Code of 1991).

After Metropolitan Manila Development Authority (MMDA), the government agency, came into being
in 1995, the first spatial planning document it issued was the "Physical Development Framework Plan for
Metropolitan Manila, 1996-2016" (PDFPFMM). The plan was amended in 1999 (its name and planning
period remains as it was in 1996) and is maintained until now, but at the moment in February 2012, to
replace it, formulation of a plan called "Metro Manila Green Print 2030" is under preparation.

As a plan corresponding to Regional Development Plans of other regions, Regional Development Plan
for the National Capital Region 20102016 (RDP-NCR) was established. For this plan MMDA plays the role
of NEDA regional offices in the cases of other regions and the plan is established through the approval of
Metro Manila Council (MMC) which corresponds Regional Development Councils (RDCs) of other
regions. MMC is the policymaking organization of MMDA that consists of all the cities' and
municipalities' mayors in NCR and was given the status as a RDC by an executive order in 2002.

OTHER POLICIES WITH SIGNIFICANT TERRITORIAL EFFECTS

Industrial Cluster Strategy

The Philippine Development Plan 2011-2016 (PDP) sets out "Industrial Cluster Strategy" to promote
creation of industrial clusters (geographical accumulation of specific industry) reflecting industrial
activity and infrastructural character of respective domestic area which will contribute to the creation of
regional wealth through export. In this strategy, through developing industrial clusters, the government
intends to promote fostering of inter-business cooperation between small and medium tiny companies
to strengthen network toward collaboration, and this is based on the understanding that the past
development policy had lead the country to "fall into the path of a trickle-down jobless growth" (words
from the Preface of PDP. Trickle-down is an economic thought that expresses vitalization of economic
activities of large enterprises and wealthy class will make a stream of wealth pouring down onto low-
income class that will finally bring benefit to the whole nation).

AN OVERVIEW OF THE SPATIAL POLICY ON ASIAN AND EUROPEAN COUNTRIES

Country Profile The Republic of the Philippines is made up of more than 7,000 islands stretching 1,851
km from north to south. The 11 largest islands, which include Luzon, Mindanao, Mindoro, Samar, Leyte,
and Cebu, make up 96% of the country's surface area. The Philippines is one of the most urbanized
developing countries in Asia: by 1990 about half of the population was living in urban areas. There is a
large disparity between the rich and the poor among the general population, and many relocate to cities
seeking work. The eradication of poverty is one of the most pressing tasks the country faces. Three
quarters of the poor live in rural areas. Situated in this predominantly Christian country (accounting for
93% of the population), the Autonomous Region in Muslim Mindanao (ARMM) in particular suffers
marked underdevelopment.
Country name Republic of the Philippines

Surface area 299,404 km² (about 8 times that of Japan) (made up of 7,109 islands)

Population About 92.34 million (2010; National census)

Population density 333.7/km² (2014)

Percentage of urban population 44.5% (2014)

GDP USD 270.2 billion (2013; IMF)

GDP per capita USD 2,790 (2013; IMF)

Percentage of employment by industry

Primary industry: 31.0% Secondary industry: 15.6% Tertiary industry: 53.4% (2013)

Economic growth rate 7.20% (2013; Statistics of the Government of the Philippines)

Major Authorities Relating to Spatial Policy

Program name or administrative field

Organizations Webpage

Medium-Term Philippine Development Plan

National Economic and Development Authority

http://www.neda.gov.ph/

National Framework for Physical Planning

National Economic and Development Authority

http://www.neda.gov.ph/
Physical Framework Plan for Metropolitan Manila

Metropolitan Manila Development Authority

http://www.mmda.gov.ph/

II. PHILIPPINE PERSPECTIVE ON HOUSING

General review of housing

Philippines have beautiful architecture, there are a lot of beautiful, over-decorated houses, but this
architecture style mask the fact that the they have one of the smallest houses in the world.

Filipinos are also one of the shortest people in the world, but I still see their homes ridiculously small.
Bedroom around 6-7 sqm, making 3 bedroom houses to be about 50 sqm, size comparable with Hong
Kong apartments despite of much larger country. Worse than this, most apartments are studios or 1
bedroom, compared with Hong Kong which is dominated by 2-3 bedrooms. In subdivisions built by
major real estate developers, houses are usually 2-3 bedrooms.

If this was not worse enough, there are many people living in informal settlers (aka slums, squatters), of
the rest who have legal land titles, many built houses that still looks like slums. In downtown Manila
every unused piece of land get occupied by informal settlers, river beds are also heavily built, people
living above highly polluted water and in danger of flooding. Even the 8-meter wide land between
railways and nearby streets is the home for numerous poor families (cannot imagine how you can sleep
as the trains horn continuously).

There are too many informal settlers for the government to take care about them. Government is trying
to clear the slums from Philippines National Railway land and from danger areas such as river beds, and
move them into socialized housing built at city outskirts, but people do not want to live there and move
back to slums, which are conveniently located near workplace and amenities.

This is Forbes Park subdivision in Makati (average home price 5 million USD)…

…and the typical Philippines houses from Metro Manila near Makati!
 “Happyland“, weird name for the biggest slum in Manila

New housing estates (called subdivisions) are being built by private developers at city outskirts, less-
dense developments, large open spaces, gated communities with guards, clubhouse and swimming
pool.

The fastest developing cities are Dasmariñas, Bacoor and Inus (30 km south from downtown Manila,
within Cavite province), here are the most subdivisions and most beautiful architecture, less slums and
more wealthy people.

Modern housing developments in Cavite, Angeles and Mactan

Housing

The Philippine housing industry believes that every Filipino family has the right to live with dignity in the
comfort of one’s own home regardless of economic status. It aims to eliminate the housing backlog by
the year 2030.

The Philippine housing sector has enormous potential for growth, as demand for living spaces continue
to increase. Through several industryled initiatives, the sector hopes to sustain its robust growth and
development – at affordable prices for the Filipino household.

Towards this vision, the industry's objectives are: 1. Increase housing production capacity to sustain
12% annual volume growth 2. Implement a comprehensive government housing subsidy for targeted
segments 3. Improve the regulatory environment for housing 4. Generate and mobilize funds for end-
user financing

II.i CURRENT HOUSING NEEDS, DEMAND AND SUPPLY

Living in one’s dream house may remain impossible for millions of Filipinos as estimated backlog and
new housing need may reach 12.3 million by 2030.

The backlog was 6.7 million in 2015 and the new housing need for the period 2016 to 2030 is 5.6 million
according to a report “Impact of Housing Activities on the Philippine Economy” last September by
Winston Padojinog, president of the University of Asia and the Pacific.

Defining socialized housing For over 35 years now, socialized housing has been one of the solutions
thought of to address the chronic and festering housing problem in the country. It has undergone
changes in its definitions.

In March 1982, the term “economic and socialized housing” refers to housing units which are within the
“affordability level of the average and low-income earners which is 30 percent of the gross family
income as determined by the National Economic Development Authority from time to time.”

It shall also refer to the government-initiated sites and services development and construction of
economic and socialized housing projects in depressed areas (Section 2, Batas Pambansa Bilang 220).

To make socialized housing affordable to lower-income families, a BP 220 implementing rule says that
housing units will have lower interest rates and longer amortization periods.
The National Urban Development and Housing Framework (NUDHF) 2009-2016 finds the housing
problem to be serious and is a largely urban phenomenon. The magnitude of housing need, defined as
the housing backlog plus new households, is enormous. Innovative and highdensity housing strategies
are required if the housing deficit is to be effectively addressed.

Beyond the public sector providing housing and the auxiliary services, new approaches are needed in
the face of continuing rural-urban migration that is bound to exacerbate the housing problem. The
affordability of and access to government housing programs by the poor will also continue to pose a
major challenge in the near future.

The rapid formation of new households, especially in urban areas, has contributed to an acute demand
for housing that has not been adequately met by the supply side of the market. The demand-supply gap
is mostly noticeable at the lower end of the housing market as the poorer households failed to get
access to decent housing. In turn, the government has intervened in the housing market to make it more
responsive to demand, especially of the poor households.

The housing problem is evident in the proliferation of slums and informal settlements in the urban
areas. Recent estimates show that more than a third of urban populations are slum dwellers. In Metro
Manila there were about 581,059 informal settlers (data from HUDCC as of July 26, 2010).

These communities are characterized by: 1. Unsanitary conditions 2. Congestion, and limited access to
basic urban services (e.g., health centers, schools, waste disposal, safe water supply).

Resettlement and relocation programs have been implemented but have attained limited success in
providing: 1. Employment 2. Livelihood opportunities, and 3. Adequate services to many of the
relocatees.

With an enormous total housing need of 3.7 million as of 2010, a total of812,463 housing and shelter
security units (i.e., house and/or lot) were provided from 2004 to 2010.

The housing sector, confronts the following key challenges:

1. Meeting the enormous housing need and demand The National Urban Development and
Housing Framework (NUDHF) indicates that Regions 3, 4B and NCR account for about half of the total
housing need.

2. Rapid growth of informal households and settlements

Informal settlements have grown by leaps and bounds. In Metro Manila, households in informal
settlements increased by more than 81 percent between 2000 and 2006.
The enormous housing need may also be defined as housing backlog.

Currently the total housing needs projected by HUDCC are as follows: 1. Housing backlog as of
May 2012 - 1,373,981.00

2. For the period 2013-2015 - 1,749,408.00 3. For the period 2016-2020 - 3,012,050.00
4. For the period 2021-2025 - 3,120,032.00 5. For the period 2026-2030 - 3,199,162.00
TOTAL PROJECTED BACKLOG 12,453,633.00

The housing backlog is 3.9 million households. Assuming that production of housing units would average
200,000 units every year from 2012 to 2030, the backlog would still persist and hit 6.5 million
households by 2030. The highest demand would come from the economic housing segment, followed by
socialized housing, and lastly by low-cost housing.

The low-cost, socialized, and economic housing units account for a large share of housing production.
From 2010 to 2011, housing production in the high-end, mid-end, and low-cost categories increased,
while production of houses in economic and socialized housing was relatively flat. From 2000 to 2011,
economic, socialized, and low-cost housing cornered close to 70% of total housing production. During
this same period, the socialized segment accounted for 27%, the economic segment accounted for 29%,
and low cost segment 13%.

As of 2011, there are 3,164 players in the housing industry. Despite the huge number of firms engaged
in housing, only a few firms dominate the industry. Most of these firms are highly integrated developers
that are engaged in various real estate developments besides housing. Many other firms are into retail
real estate, hotels, commercial office buildings, and industrial estate development.

The Subdivision and Housing Developers’ Association (SHDA) is the largest organization of housing
developers in the Philippines, counting 160 members from its chapters in Luzon, Visayas, and Mindanao.
Other industry participants are members of the Chamber of Real Estate and Builders’ Associations
(CREBA), the Real Estate Brokers Association of the Philippines, Inc. (REBAP), the Philippine Association
of Real Estate Brokers (PAREB), the National Real Estate Association of the Philippines (NREA), and the
the Organization of Socialized Housing Developers of the Philippines (OSHDP).

Facts and Figures Housing demand and supply profile, 2001-2011 Market Segment Housing demand
Housing supply Surplus (Deficit)

Socialized Housing 1,143,048 479,765 (663,283)

Economic Housing 2,503,990 541,913 (1,962,077)

Low Cost Housing 704,406 242,246 (462,160)

Mid Cost Housing 72,592 322,995 250,403

High End Housing 18,235 242,246 224,011 Backlog: 3,087,520, excluding 832,046 households that can’t
afford

New Housing Need, 2012-2030 Market Segment Price Range Units Needed % of TOTAL Need

Can’t Afford/Needs Subsidy 400K & below 1,449,854 23%

Socialized Housing 400K & below 1,582,497 25%

Economic Housing 400K – 1.25M 2,588,897 42%

Low Cost Housing 1.25M – 3M 605,692 10%

Mid Cost Housing 3M – 6M No need

High End Housing > 6M No need

TOTAL Need 6,226,940

Total New Need Average: 345,941 housing units per year

*If no special housing program is created.

NEWS/ASIA PACIFIC Philippines housing crisis: Filipinos need affordable homes by Jamela Alindogan 31
Mar 2019

Southeast Asia's fastest-growing economy has a housing shortage, with more than 6 million homes
needed for impoverished families. The International Monetary Fund expects the Philippines to become
the fastest-growing economy in Southeast Asia.

But many Filipinos doubt whether they will benefit.

Millions of affordable homes are needed to cope with a growing population and to alleviate extreme
poverty.

Al Jazeera's Jamela Alindogan reports from Manila on those who have been left behind.

The recent creation of Department of Human Settlements and Urban Development is a testament to the
government’s seriousness to solve the housing backlog problem. This agency will now serve as the
primary national government entity responsible for managing housing, human settlement, and urban
development as it merges the present Housing and Urban Development Coordinating Council and the
Housing and Land Use Regulatory Board.

Based on news reports, the new department will have administrative supervision over the National
Housing Authority, National Home Mortgage Finance Corp., Home Development Mutual Fund, and the
Social Housing Finance Corp. It will reportedly be composed of the Office of the Secretary, various
bureaus, services and other regional offices.

Estimated Backlog by 2030*

Those who can’t afford 832,046

Backlog, as of 2011 3,087,520

Total Housing Backlog, as of 2011 3,919,566

New Housing Need, 2012-2030 (345,941 units/yr X 18 yrs.) 6,226,540

Housing Production Capacity (200,000 units/yr X 18 yrs.) 3,600,000

Backlog by 2030 6,546,106

The department’s creation is timely if not overdue. However, moving forward, crucial to its success will
be appropriate, suitable policies; effective implementation; and support from all stakeholders.
Otherwise, the department may just end up as another layer of bureaucracy that further slows housing
development.

The new housing agency faces a tough challenge. To address the backlog or shortage in the supply of
affordable housing from now until 2030, as estimated in a study by the University of Asia and the Pacific,
we need roughly 11 million homes put up and sold to buyers in the next 11 years, or an average of one
million homes every year.

By government definition, “socialized housing” are units costing not more than P450,000; and,
“economic housing” are homes costing P450,000 to P1.7 million. These two brackets cover mostly the
lower-income class, and around 85% of the housing backlog. “Low-cost housing” are homes costing P1.7
million to P3 million. Mid-cost is anything above P3 million, while High-End is anything above P6 million.

As far as mid-cost and high-end are concerned, there is no backlog in the Philippines. There are plenty
of developers and homes available in these segments. The biggest backlog is in the “economic”
segment, or homes in the P450,000 to P1.7 million range, followed by the “socialized” segment, and
then the “low-cost” segment.

Given the magnitude of the housing problem, one cannot help but wonder why from 2001 to 2014, as
one research noted, HLURB issued Licenses to Sell for only about two million housing units, covering all
housing segments, from socialized up to the open market group. This averaged about 130,000 housing
units per year. Even if we averaged 250,000 units yearly until 2030, we will still have a backlog.
With the new Department of Human Settlements, one can only hope that things will start looking up for
housing. However, the department needs to hear out all sectors, all stakeholders, and learn from best
practices in public and private housing development here and abroad.

It needs to take time to study and learn, and to update its assessment of supply and demand, and to
draft long-term plans as well as policies to put those plans into action. Proper planning, consistency and
continuity in policy and action, and support from all stakeholders will all be crucial to the new
department’s success.

Affordable Housing2018 | PHILIPPINES Executive summary

As the country’s population balloons and unstable economic conditions continue, the demand for
affordable housing is more pressing than ever. To help property sellers and developers take advantage
of this market opportunity, Lamudi made a study on affordable property seekers: the key areas they are
searching properties in, their search habits, and the types of affordable homes they seek.

Based on exclusive search data collected during the first half of 2018, Lamudi observed that property
seekers who filtered their searches to Php3 million or less were looking into properties priced at
Php1.7 to 3 million. Lamudi also found out that females were more active seekers of affordable homes.
Age-wise, property seekers aged 25 to 34 years old have shown the greatest interest in affordable
houses.

Areas within Rizal and Cavite saw the most interest in affordable housing. Rodriguez, Rizal took the
largest share of searches for socialized housing, along with nearby areas like San Mateo. On the other
hand, Quezon City and Las Piñas received the highest share of searches for low-cost housing. Antipolo,
Davao City, and Bacoor closely followed. Davao City was also among the top areas property seekers
considered for economic housing, followed by Cavite municipalities Imus and General Trias, as well as
Marilao in Bulacan. The Philippines’

affordable housing backlog, while a major concern for the country, also presents property sellers and
developers a specific yet-to-besatisfied market of buyers.

In the Philippines, price is arguably the biggest consideration property seekers make when buying a
home. As much as most would like to live a stone’s throw away from where they make a living or own a
home with a significant amount of living and lot space, these and other preferences tend to be
compromised when their finances come into play. Indeed, the lower the price is, the better for many,
and given the challenges being presented by new tax laws and the almost always present inflation,
affordable housing (homes priced Php3 million or less) understandably continue to see the greatest
demand from property seekers.
AFFORDABLE HOUSING BRACKET ACCORDING TO THE HOUSING AND URBAN DEVELOPMENT
COORDINATING COUNCIL

SOCIALIZED ECONOMIC LOW-COST

HOUSING HOUSING HOUSING

₱ 450,000 ₱ 450,000 TO ₱ 1,700,000

OR LESS ₱ 1,700,000 TO ₱ 3,000,000

Regrettably, the supply of affordable homes in the country has not kept up with the demand. According
to the industry report “Impact of Housing Activities on the Philippine Economy” jointly completed by the
Center for Research and Communication of the University of Asia and the Pacific (CRC-UAP) and
Subdivision and Housing Developers Association (SHDA), the backlog were already at 6.7 million in 2015,
plus with the new housing need for the period 2016 to 2030 approximated at 5.6 million, a total of 12.3
million.

There is now some commitment from real estate developers to address the increasing demand, with
the likes of Century Properties (partnered with Mitsubishi Corp.), Primary Homes, and Rockwell Land
among the latest to announce projects or allocate their capital expenditures for affordable housing.

Despite new developments on the horizon, a significant backlog remains for the foreseeable future. To
better understand and help address the continually increasing demand, Lamudi Philippines has looked
to its exclusive data to best identify the property seekers conducting the most searches for affordable
homes on the platform, the areas they search properties for, and the types of affordable homes they
most look into.

PROGRAMS OF THE NATIONAL HOUSING AUTHORITY

RESETTLEMENT PROGRAMS

For Informal Setter Families Affected by Infrastructure Project and those Living Along Danger Areas

The program addresses the requirements of families affected by government infrastructure projects
and those living along danger areas.

It entails the provision of housing units, community facilities, socio-economic and other community
support programs.

REGIONAL RESETTLEMENT PROGRAM

This involves the implementation of local/regional resettlement projects as joint National Government-
Local Government undertakings.

It addresses resettlement requirements of Local Government Units (LGUs) outside Metro Manila
involving families living along danger areas, those affected by government infrastructure projects,
indigenous peoples, and former rebels.

SETTLEMENTS UPGRADING PROGRAM

The program is intended to address security of tenure and infrastructure requirements of informal
settlements on government-owned lands proclaimed or designated as socialized housing sites.

It covers survey and titling of individual lots for disposition to qualified occupants, infrastructure
development, housing construction, and rehabilitation of existing project sites.

GOVERNMENT EMPLOYEES’ HOUSING PROGRAM

The program is intended to provided decent and affordable housing to low-salaries government
employees including members of the Armed Forces of the Philippines(AFP), Philippines National
Police(PNP), Bureau of Jail Management Penology(BJMP), Bureau of Fire Protection(BFP), and Bureau of
Corrections(BuCor).

HOUSING ASSISTANCE FOR CALAMITY VICTIMS

The program is intended to respond to the housing need of low and marginal-income and/or informal
settler families for permanent shelter affected by calamities such as typhoons, landslides, earthquake,
and fires for relocation to safe areas.
III. CULTURAL BELIEFS IN HOUSING
OTHER FILIPINO HOUSING BELIEFS

Typically, building design and construction are based on standard factors such as type of use, climate,
surrounding environment, client needs, and budget. But just like sixth sense, building superstitions come
into play when it observing house rules to satisfy supernatural interests, especially in the Filipino
culture. Even if you're not superstitious, you may be surprised of the many beliefs unconsciously
incorporated in creating your space.

Generally, superstition is defined as an unfounded, supernatural belief where an event can result to
another event without any natural process that took place in between. Though superstitions are
deemed to be irrational, it’s undeniable that such beliefs are still prevalent even in these modern days,
and they vary across the globe. Superstitious beliefs have always been a part of Filipino culture. Some of
our decisions, whether small or big, are sometimes greatly influenced by superstitions.

Believing So Easily

A research study conducted in Harvard Institute of Socio-Political Progression (HIS-PP) showed that
Filipinos are first among “the world’s most gullible races.” The said study also concluded that “The
causes of this gullibility include the inability to question information and an overreliance on
interpersonal sources,”. While it’s too complex to consider the results as accurate, there’s no denying
that many–not all–Filipinos (especially on social media) fall for groundless reports without trying to
question them.

From Pre-Spanish Period

Some Filipino superstitions rooted from pagan beliefs half a millennium ago. Before Christianity was
introduced to Filipinos, ancestors had their own set of beliefs. It is believed that through the creation of
superstitions, ancient people attempted to give an explanation of natural phenomena and human
behavior that they could not understand.

Here are some other common building superstitions that are practiced today—identify fact from myth
and know the reasons behind these beliefs.

1. Topping out or tree-topping

If there's padugo in groundbreaking, there's tree-topping in building completion. The "topping out"
tradition of a completed project involves "tree-placing" at the top of the building. This practice may be
traced back to the development of human shelter. Our ancestors constructed early dwellings with wood,
and because of their reverence and worship of nature, they would formally address the forest before
taking its wood. When the house was complete, they would set the topmost leafy branch of the tree on
the roof so that the tree spirit would not be rendered homeless. Contemporary structures are made of
cold steel and masonry, yet builders still top their skyscrapers with green and homeowners bring in
potted plants into their new house as finishing touches, not so much out of reverence to foliage life
forces.
2. Dwarf mounds

Filipinos are generally fatalistic. Our native folklore abounds with nuno sa punso—dwarves that live in
earthen mounds and giant monsters or kapre that dwell in huge old trees. Somehow, our local myths
have caught up with our urban living. Some homeowners hire spirit seekers to assess their homes for
any mystical presence and give design solutions in order to appease these unseen co-dwellers, which
result in retaining the hillocks and building a pond in the garden for those water-loving gnomes and
constructing around an old tree instead of uprooting for fear of infuriating its inhabitants.

3. Sprinkling of Salt

For Filipinos, sprinkling salt on every room of the new house helps to shun away the bad spirits residing
the place. Some believe that it’s also a good way of preventing unwanted guests from visiting the home
again.

4. Loaf and Broom The people who will enter the new house for the very first time should have a loaf of
bread and a new broom with them as a symbol of prosperity greeting the house. It’s also highly
discouraged to bring the old broom from the former home into the house to let go of the bad energy
from the previous home.

5. Black Ants Are Welcome

While most people in the world will cringe at the sight of black ants lining up on their walls, Filipinos
would be actually delighted when they see black ants lurking around on their new homes. They believe
that numerous black ants symbolize fortune and success coming to their household in the near future.

6. Exit through the Entrance

This superstition is inspired by the Irish tradition. It says that when it’s the very first time of people
entering the new house, they should exit through the same entrance door. Failing to practice this is
believed to promote bad luck in the household.

7. Bees in The House

Bees entering the new house is regarded as an omen that good luck and success will come to the
home’s occupants. Such belief may be accredited to the industrious nature of the bees.

8. The Lipat Bahay Date

Even the date when lipat bahay is done should be well-thought of according to this Filipino superstition.
When deciding when to do the actual move, people should steer clear of Fridays, Saturdays, and rainy
days. It is believed that the best time to move is when the moon is waxing. Just like many other
superstitions, the basis behind this remains unknown.

9. No to Knives

Filipinos believe that if someone wants to stay good friends with their first guests on their new home,
he or she must not let them give him or her knives or any sharp ended objects as a housewarming gift.
They think that those who present the homeowner such items will eventually turn to enemies.

10. Full with Rice

Like the bread-and-loaf superstition, Filipinos take a container full of rice with them as they first enter
the new home. With rice being the staple food of Filipinos, the activity represents that the occupants
will never run out of food throughout their stay in the house. It also symbolizes of bringing home
fortune and wealth for everyone living in the home.

FENG SHUI

Our mixed ancestry has produced a people of various beliefs. But when it comes to property, the
Chinese influence is strong mainly because Chinese merchants play a significant role in the local business
and property market. This ascendancy has brought feng shui into general practice. Feng shui is not about
form and function, it's mostly about flow: the ancient art of arranging your surroundings to attract
positive life energy, or chi, so that it flows smoothly. Home and business owners hire experts from the
onset of planning.

HOW HAS FENG SHUI INFLUENCED PINOY ARCHITECTURE?

Many Filipinos are now more interested in hiring geomancers for their homes and offices. Their
explanation of how feng shui can ward off negative vibrations and bring luck actually really makes a lot
of sense. For as long as we don’t let it rule our lives, I don’t think there’s anything wrong in practicing it.

Let’s find out from our top architects and interior designers how feng shui has influenced Philippine
architecture.

Joey Yupangco, architect: There is a growing adherence to feng shui globally, not only in Philippine
architecture. Surprisingly, I have not dealt with feng shui with clients except for an occasion or two, and
in both cases, the adherence did not oppose the context of design I believed in. In my opinion, feng shui
does not necessarily affect the form and structure in architecture, rather it offers another way to use
orientation as a means of stabilizing unseen "forces." In the end, Philippine architects that are using feng
shui and/or subjected to feng shui by clients still gain their own preference in style.

Tessa Prieto-Valdes, interior designer: Unlike Hong Kong where the buildings are feng shui-proofed,
Filipino architecture is influenced by feng shui mainly with the interiors. It dictates auspicious dates to
begin construction. It influences the positioning of the rooms, the color scheme and the placement of
furniture. It affects even the manner and the time of entering into a space for the first time after
construction is done.

Filipinos tend to exaggerate sometimes so the feng shui treatment is lost in the translation. Lucky
objects like Buddha figures, jade cabbage, frogs with coins in the mouth, and fortune plants are placed
all over to draw luck. Maybe if feng shui was considered also in Filipino architecture more often, we
would be a more progressive nation.

Ramon R. Antonio, architect: Today feng shui is a highly-accepted aspect in Philippine architecture. It
has in a large scale influenced our architecture since it serves as a guide in building structure that would
bestow to its occupants harmony, good health and prosperity. Definitely, a challenge to architects in the
formations of functional and aesthetic designs, solutions in accordance with the requirements given by
the geomancer.

Francisco "Bobby" Mañosa, Architect: Feng shui has definitely influenced architecture in the Philippines.
Although we do not take up geomancy in our schools and universities, practicing Filipino architects
today are aware and use it more so with Chinese clientele. Since my practice is expressed strongly in the
culture and traditions of the country, Filipino beliefs and values such as tumbok, oro plata mata,
buwenas

malas, plantings, climactic conditions, etc...become part of our design forms. In the past 30 years, feng
shui has been integrated as part of Filipino beliefs.

Sonia Santiago-Olivares, interior designer: Feng shui has influenced architecture greatly in this
millennium when most are aware of the need for harmony in the environment –

 removing clutter to clear space for an easy flow of energy which is "minimalism"  using colors that
are neutral to give a feeling of rest and repose; materials in their natural form and texture and sheen.

In ancient China, it is said, "If there is harmony in the home, there will be order in the nation, there will
be peace in the world."

Maja Olivares-Co, interior designer: When I moved back to Manila 12 years ago, feng shui to most
meant "superstition and sticking the little glass mirrors on walls to repel the bad energy (chi)." Today,
the awareness level is much broader. Architects and designers in collaboration with their clients have
integrated the application of feng shui in the very early conception of planning and design. This I feel
provides effective and well-designed spatial solutions for many living situations, minimizing ill fortune
and maximizing comfort and harmony.

Antonio Rodriguez Mendoza, architect: Feng shui has brought about a lot of limitation in terms of
designs as a product of trying to ensure luck in one’s life. This is all brought by the quest for a better life
and/or keep the good life insured. Whether true or not, one must realize that to follow the basics may
be good but to make it your primary consideration will totally limit the freedom of making full use of
your architect’s and/or designer’s talent as far as creating a beautiful design is concerned. So more often
than not feng shui opposes the structure’s full capacity as far as beauty is concerned. Although if one
believes in it we can work together in spite of its given parameters in attaining a beautiful design. I for
one follow it but not to the point of making it rule my design. Having said that I find it less important as I
strengthen my belief in God and life.

Ivy Almario, interior designer: Feng Shui has influenced design considerably, since the formidable aspect
of feng shui that’s hard to ignore is its effect on the client’s health, wealth and general well-being. It has
become second nature for us designers to follow feng shui. The upside is that feng shui’s origin is rooted
in pragmatism and common sense. So the results are rarely disastrous. Oftentimes, you hardly notice it
was feng shui, because the concerns were addressed on the planning stage.

Conrad Onglao, architect: It makes good sense most of the time. However, sometimes it can present an
architectural challenge especially when dealing with the principles of balance and symmetry, which are
the essence of my design.

Read more at https://www.philstar.com/lifestyle/sunday-life/2003/02/09/194743/how-has-feng-shui-

influenced-pinoy-architecture#rSiIWpCpQ6UAJiib.99
IV. COMMON HOUSING TYPES IN THE PHILIPPINES

SUBDIVISIONS -(aka Housing Complexes in other countries) became more common after year 2000.
Rowhouses on plots small as 3.5 meters wide and 10 meters deep, with 24 meters between street axes,
reaching densities of about 200 housing units per hectare, probably the densest housing development in
the world 1. HOUSE AND LOT This type of home is the preferred real estate property by Pinoys. Literally
speaking, you will own both the house and the land where it is built. Best for: Growing and large
families, retirees Pros: Buying a house and lot for sale gives homeowners more freedom and space to
move around or make home improvements. Owning a home also provides a sense of privacy not
achieved in a condo. Homeowner’s association fees are only applicable when your house and lot is in a
gated subdivision. Cons: A house and lot for sale in a gated subdivision is more expensive, particularly if
located within or near the city centers. It is more high-maintenance than any other types of home in the
Philippines because you will be responsible for maintenance, repairs and improvements. For
homeowners whose homes are built on vast patches of prime land, you’ll be paying more taxes as
compared to a townhouse or a condo. a. Single detached - house surrounded by courtyard on all 4
sides, houses built at minimum 3 meters apart (1.5m setback for both houses).

b. Single attached - a definition that do not exists in any other country, with 1 or 2 firewalls (walls built
at 0-lot boundary), built with same orientation so everyone is having windows facing to neighbor’s blank
wall at 1.5m apart, giving the advantage of detached houses without shared walls. Sometimes the
carport roof is attaching houses. They are VERY UGLY because on one side the roof is overhanging
700mm and on other side there is a blank wall that extend above roof.

c. Bungalow - single-storey house, similar with American meaning. Unlike the rest of Asia where
bungalow means a detached house regardless of number of floors. It is suited for families with members
who have impaired mobility such as your elderly relatives (i.e. lolo and lola) that will find it difficult to
take the stairs.

2. Duplex - semi-detached, 2 houses symmetrical.

3. Rowhouse - synonym with british Terraced house or american Townhouse. ] 4. Nipa hut - Philippines
traditional houses found in rural areas, made by bamboo and other wood, they are so light that if you
want to move somewhere else you can ask few villagers to carry your house on their shoulders, as seen
in the below video, a practice called bayanihan. I do not understand the reason of moving since this type
of move is limited by people’s walking distance.
OTHER TYPES OF HOUSING IN THE PHILIPPINES

1. CONDOMINIUM

A condominium consists of a unit space in a building or a real estate development. This can either be a
studio-type home, or a unit that has one, two, to three bedrooms. Each unit can be owned by different
owners and have individual condominium titles. As a condo owner, you share interest and access in the
building amenities and other common areas. These project developments are mostly found in urban
cities and central business districts.

Pros: This is popular for real estate investors who wish to earn rental income. Condos for rent or sale in
cities like Taguig and Makati are favorites to homebuyers simply because of the convenient living
experience it offers. Shared amenities allow you to enjoy facilities like swimming pools, gyms, and
playgrounds without thinking of maintenance.

Cons: Location and size plays a key influence on the price of a property, so expect to pay out a
substantial amount when buying one, especially on a home loan. Condominiums have a lifespan of 50
years, and could present problems for homebuyers who are looking to live in retirement in a condo.
Monthly association dues could also put a dent on your household expenses, especially if the price of
amenity upkeep increases.

These are the different kinds of popular condos in the country:

a. MID-
RISE b. HIGH-RISE

This type of condominium can be up to 10 floors high. High-rise condos are

prevalent near or within the city center, and Mid-rise condos allow urbanites and professionals working
are in proximity to shopping malls, schools, and everything that in the city to enjoy the convenience of
condo living and still modern urbanites need. Residents are usually young and active
feel like living in a laid-back community. professionals and families. It
features luxurious and exclusive
amenities that are not usually found in other types of homes.

2. TOWNHOUSE Also known

as a townhome or a row house, this is a style of housing where homes where similar are in a row and
share a common wall. Best for: Starter families, retirees Pros: A townhouse can provide the comfort of a
house and lot plus the convenience of condo living. It offers just the right size of living space per
household member. It is less expensive than a house and lot. Cons: Although most townhouses for sale
are well-insulated, residents will still need to be mindful of the noise to avoid disturbing the neighbors.
Unlike a house and lots, owning a townhouse will limit you to make home improvements that may
threaten the uniformity of the housing complex’s building structure, like solar panel roofs.

TYPES OF HOUSING IN OTHER COUNTRIES

There are so many different names used to describe buildings where people live. Housing types
according to their physical composition are basically categorized under two main divisions:

(A) Free-standing or detached dwellings Eg. Single detached (B) Attached or multi-user dwellings

Multi-family residential is a classification of housing where multiple separate housing units are
contained within one building. The most common form is an apartment building.

 Both classes may vary greatly in scale and amount of accommodation provided.  Although there
appear to be many different types, many are purely matters of style rather than spatial arrangement or
scale.

In this lesson we will study 3 main types of multi-dwelling accommodations:

1. Small detached buildings 2. Long attached row buildings 3.Large detached

building containing huge amounts of unites on many containing from 2-8 unites in 1 containing
several units in 1 floors. to 4 floor buildings.
to 4 floors.

ALTERNATIVE ARRANGEMENTS (TYPOLOGY) OF RESIDENTIAL ACCOMMODATIONS IN A MULTI-USE

BUILDING

1. TWIN HOUSE OR SEMI-DETACHED  A building comprising two units either side-by-side is typically
considered as semi-detached or twin homes on separate properties, sharing a wall.  One building
consisting of two separate "houses", typically side by side, each with separate entrances and without
common inside areas. Each of the two houses has separate owners.

2. TWO-UNITE OR DUPLEX HOUSE

 A building comprising two units either side-by-side is typically considered as semi-detached or twin
homes on separate properties, sharing a wall.  A building basically like a house, built on a house lot,
consisting of an apartment taking up the first floor, and another taking up the second floor.  Usually a
common basement, a common front entrance, foyer, and stairs to the second floor, and often a similar
back entrance, foyer, and stairs.  Because of the flexibility of the term, there is almost no line between
an apartment building and a duplex.  Apartment buildings tending to be bigger, while duplexes are
usually the size of a normal house

3. THREE-UNITE OR TRIPLEX
 A triplex house is a building similar to the duplex, except there are three apartments spread out over
three floors.
4. FOUR-UNITE OR FOUR-PLEX

 A building similar to the duplex, except there are four apartments. In some cases, the arrangement of
apartments may be different and the lot size may be larger than that of a regular house.  The term
"duplex" can also be extended to four-plex or quadruplex.

SAMPLE PICTURES OF ATTACHED OR MULTI-USER DWELLINGS

5. TERRACED HOUSE OR ROW HOUSE OR TOWNHOUSES  are houses attached to any number of other
houses.  Each house may have multiple floors, side by side, each with their own separate entrances. 
Originally associated with the working class.  In many cities terraced housing was favored over the
apartment building.

Row House in the States

 A style of medium-density housing that originated in

Europe in the late 17th century where a row of
identical or mirror-image houses share side walls. The Place des Vosges (1605 – 1612) was
one of the earliest examples of
the style.

Row House in UK Early example of

Row House in Paris
6. SHOP-HOUSE (MIXED USE BUILDING FORM)  It consists of shops on the ground floor which open up
to a public in a covered passage, and which has residential accommodation upstairs.  The shop houses
would adjoin each other to form rows with regular façade.  This mixed use building form characterizes
the historical centre of most towns and cities.
 It is vernacular style building type that is commonly seen in areas such as urban Southeast Asia. 
Shop houses were initially occupied by single families, with their private living areas in an upper space
and the public family business downstairs.  Residential spaces are meant to accommodate one or
more families, or serve as a dormitory for single workers.  The covered walkway along the road is for
public use, providing pedestrians shade from sun and rain.  Units can be arranged over the shops or to
the back, with separate back or side entrances.

7. APARTMENT BUILDING (MID-RISE)  A building with multiple floors containing multiple apartments
on each floor.  Apartment building can range in many sizes, some with only a few apartments, other
with hundreds of apartments on many floors, or any size in between.  There are often inside hallways
and inside entrances to each apartment.

8. APARTMENT BUILDING (HIGH RISE) a. A TOWER BLOCK, APARTMENT TOWER, or APARTMENT BLOCK
 Apartment blocks have technical and economic advantages in areas with high population density. 
They have become a well-known form of housing accommodation in almost all densely populated urban
areas around the world.  In contrast with low-rise and single-family houses, apartment blocks
accommodate more inhabitants per unit of area of land, and also decrease the cost of public
infrastructure.  In recent years, they have become popular with their excellent views, desirable
locations and architectural styles, and now command high prices.

In Roman Egypt seven-storey buildings existed as early as the 3rd century AD in local towns such as
Hermopolis. The medieval Egyptian city of Fustat housed many high -rise residential buildings,
some seven stories tall that could accommodate hundreds of people.

Page 91
This High-Rise apartment buildings and Tower Blocks were built in Yemen in the 16th century. They
remain the tallest mud brick buildings in the world.

b. SINGLE HOUSING TYPES  A penthouse apartment or penthouse apartment is an apartment

which is a single dwelling that is on the highest floor of an apartment building.  If more than one
apartment is on the floor then it is not a penthouse, it would just be called a top floor flat or apartment.
 These structures do not occupy the entire roof deck.  A Penthouse apartments are typically
differentiated from other apartments by luxury features.  penthouse apartment may have additional
exclusive features not found in the majority of apartments in the building, such as: a private entrance or
elevator, or higher/vaulted ceilings, having two or more levels, a swimming pool.

9. MIXED USE BUILDING  A building with space for both commercial, business, or office use, and space
for residential use.  Possible arrangements include the commercial/business use on the first or first
couple floors and one or more apartments or residential spaces on the upper floors.  Another
possibility is to have the commercial/business area up front and the residential area in the back.  An
active pedestrian environment.

V. THEORIES ON HOUSING
BASIC HUMAN NEEDS IN WHICH HOUSING IS A NECESSITY

 The basic needs is the fundamental measurement of absolute poverty. It defines the absolute
minimum resources necessary for long-term physical well-being, usually in terms of consumption goods.

 The poverty line is then defined as the amount of income required to satisfy those needs.  A
traditional list of "basic needs" is: a. food (including water), b. shelter, c. and clothing  Many modern
lists emphasize the minimum level of consumption of 'basic needs' of not just food, water, and shelter,
but also sanitation, education, and healthcare.

The UN Universal Declaration on Human Rights was issued in 1948 recognizing for the first time the
human right for housing in the 25th article:

Article 25

Everyone has the right to a standard of living adequate for the health and well-being of himself and of
his family, including food, clothing, housing and medical care and necessary social services, and the right
to security in the event of unemployment, sickness, disability, widowhood, old age or other lack of
livelihood in circumstances beyond his control. Motherhood and childhood are entitled to special care
and assistance. All children, whether born in or out of wedlock, shall enjoy the same social protection.

Eleanor Roosevelt with the Spanish version of the

Universal Declaration of Human Rights.

WHAT IS THE DIFFERENCE BETWEEN SHELTER & HOUSING?

 Shelter is the basic human requirement that needs to be met on priority basis.  Shelter is the
minimum space for human needs, it contains his minimum requirements.  Housing is an Investments
which improves and expands the available stock of housing units, but also improve both the working
and living environment. There are links between improvements in housing and increased productivity,
health, and other measures of well being.  The United Nations Centre for Human Settlements (UNCHS)
uses a broader term "Settlement conditions“ because it extends to all those components of the physical
environment with which an individual or a community comes into contact and which are used on a
regular basis for a whole range of human activities, such as: services, the dwelling's immediate
surroundings, community facilities, transportation and communications network and so on.

Facts:

 World population has approached the figure of 6 billion.  At least 1 billion through out the world still
lack appropriate housing.  On the other hand, billions live in informal housing settlements.  People in
developed areas are better housed now than they were at the turn of the century, although large
numbers still remain without adequate shelter.  In contrast people in developing countries are now
living in poorer conditions than at the turn of the century.  Experts estimate that from one-fifth to one-
half of the inhabitants of developing countries live in makeshift shelters, shantytowns, and various forms
of substandard housing.  Between one-third and two-thirds of Third World urban households cannot
afford the lowest-cost dwelling on the market.

Questions???  What led to the emergence of informal housing settlements?  What are the
consequences of rapid urbanization?  How current efforts for resolving the shelter problem in
developing countries is driven? and HOW to assess approaches for the future?

THE ROLE OF THEORY IN THE STUDY OF HOUSING INTRODUCTION It is widely recognized that theory
has an essential role in guiding research questions, designing methodology, and interpreting results.
More important is the utilization of theory in order to understand phenomena and to advance
knowledge. For the study of housing, there are many possible sources of theory. Some have been
developed within the field of housing, while others have been adopted or adapted from other
disciplines. To learn to use theory effectively, it is helpful to consider existing theories and examine how
they have been used in the study of housing. Housing may be seen as an object, a product, a process, a
resource, an environment , a symbol, or even a state of mind. But from any perspective, it is beneficial
to have theory to guide our study of housing. Theory helps us make sense of information. Theory brings
together may facts in a meaningful way to support our thinking processes as well as our methods of
research and inquiry. To learn to use theory effectively, it is helpful to consider existing theories and
examine how they have been used in the study of housing.

This topic is guided by the Conceptual framework of Scientific Method.

SCIENTIFIC METHOD - The Scientific Method is a system of inquiry. It is one way of gathering
information, of learning, and of knowing. It seeks to obtain the most reliable information possible and
organize it into a meaningful body of knowledge. The Scientific Method is built upon rationality and
observation and relates to the fundamental processes that make up scientific activity: 1. Theory 2.
Research Method 3. Data Analysis

OTHER WAYS TO ACCOMPLISH SCIENTIFIC METHOD 1. Common Sense 2. Tradition 3. Authority 4.

Experience

CHARACTERISTICS OF SCIENTIFIC METHOD 1. Objective 2. Systematic

 THE NATURE AND USE OF THEORY

 Theory is “the implicit foundation of all bodies of knowledge and each individual’s everyday
interpretation of social and physical phenomena. Theorizing is an ongoing process basic to formal,
scientific knowledge.

The word “Theory” comes from the Greek word theos which means to see , implying the ability to look
within oneself as well as witho Many definitions of theory have been offered and most of the definitions
focus on the idea that a theory is a set of related statements that present a systematic view of a
phenomenon or set of phenomena. In other words:  A Theory - seeks to describe, explain, or predict
observable facts and events.  The primary purpose of a theory is to explain, in as logical way as
possible, these relationships  Theory helps us plan our research methods and interpret the findings of
our research. It helps us understand everyday phenomena.

And, whether stated or implied, theory is always a part of inquiry.

A FULLY DEVELOPED THEORY CONTAINS FOUR BASIC ELEMENTS: 1. Questions 2. Assumptions 3.

Methods 4. Evidence

There is a general agreement however that a complete theory must define:

1. What (variables) 2. How (relationships) 3. Why (underlying dynamics that provide rationale ) 4. Who-
When-Where ( conditions that set the boundaries of the theory )

One way to classify theories is by the “level of the social reality with which they deal”. Some theories
are considered:
1. MACRO-THEORIES - in that they define broad perspectives or large institutions. 2. MICRO-THEORIES -
are more specific, they often relate to small period of time, space, or number of people

Whether broad or narrow , the most useful theories are generally those that are “compatible with
existing knowledge, including previously validated theories, and with empirical observations made
relative to them”. That is not to say, however , that only proven theories are useful. In fact, in the social
sciences, theories are never fully proven. findings in agreement with a theory only support, not prove ,
the theory. Theories simply offer the most accurate picture of the world as we currently understand it.

OTHER CONCEPTUAL TOOLS

In this topic, the word theory is use in its most broad and inclusive way to refer to the scientific process
of systematically viewing phenomena and specifying relations among factors. As discussed earlier, a fully
developed theory defines what, how,why, and who-whatwhere. Closely related concepts such as
paradigm, typology, and model often lead to the development of full theories or are incorporated
within theories. Following, we define these terms and give examples of their use in research.

PARADIGM  a paradigm is a basic orientation to theory and research and includes assumptions about
the nature of reality. It is “a fundamental image of a subject matter within a science and serves to
differentiate one scientific community from another”.  paradigms are used to “organize our view of the
world and tell us where to look for answers to explain the world “.  a paradigm is “a basic set of beliefs
that guides action.

TYPOLOGY  A typology is a classification  A typology differs from theory in that it does not seek to
explain. Although sometimes used synonymously with the term theory.  A typology represents a set of
characteristics assumed to refer to a particular phenomenon.

MODEL  a model is an aid to theoretical activities that directs our attention to concepts or variables
and their interrelationships.  Typically , a model is developed “to simplify phenomena, as an aid to
conceptualization and explanation”.

DIFFERENCE BETWEEN THEORY AND MODEL

MODELS - are analogies and therefore can tolerate some facts that are not in accord with the real
phenomena.

THEORY - is supposed to describe the facts and relationships that exist, and any facts that are not
compatible with the theory invalidate the theory.  Some scholars argue that models are judged by their
usefulness and theories by their truthfulness. Models are not theories but tools that are used as a basis
for formal and rigorous theory construction.

WHAT MAKES A THEORY?

We have stated that theory has an essential role in guiding research questions, designing methodology,
and interpreting results. More important is the utilization of theory for the advancement of knowledge.
In housing, there are many possible sources of theory. Some have been developed within the field, while
others have been adopted or adapted from related disciplines, such as psychology, sociology, social
psychology, demography, economics, and human development.

THEORY OF HOUSING ADJUSTMENT

The most frequently cited theory in the study of housing was the Theory of Housing Adjustment. It is an
example of a well-developed theory used in housing research.

The theory is useful in examining the complex processes by which American families make decisions
about their housing and the ways in which the structure of American society determines how families
are housed, the consequences of housing for families, and the decisions families make.

The theory takes a sociological perspective and is focused on the microsociology of the household and
its housing. In the sociological model of human behaviour, people seek respect from self and others.
major components of the theory define housing norms, constraints that affect the household’s ability to
act, and resulting housing decisions and behaviours.

When the household recognizes a housing deficit, possible corrective measures include two principal
processes: housing adjustment or household adaptation.

Housing Adjustment - is behaviour that alters some aspect of housing. In housing adjustment, the
household may either alter the current dwelling or move to another dwelling.

Household Adaptation - involves making changes to the household itself. Possible adaptation
behaviours include: 1. Normative Adaptation (i.e., alter household norms) 2. Compositional Adaptation
(i.e., bringing in new members or sending some members elsewhere) 3. organizational Adaptation (i.e.,
alterations in management style or reallocation of resources)

Because the Theory of Housing Adjustment is complex, housing studies often focus on only a specific
part, such as the housing adjustment model or on relationships among particular variables. The Theory
of Housing Adjustment has been used extensively in research, sometimes as a general guide to inquiry,
and sometimes to directly test and extend the theory.
BUILDING A THEORY

Theory is an important part of our everyday’s lives. Let’s take an example from daily life. Suppose one
Jose Jones’ apartment suddenly has no running water. Perhaps jose Jones theory is that water flows only
when the water bills are paid. Jose might then gather data concerning his water bill: when it was last
paid, what was the amount due, if the check had been received by the utility company, if the check had
cleared his bank. On the other hand , his wife , Rita theorized that water flows only when the equipment
is working properly. Rita might then gather a different sort of data. She might check the water heater,
the pipes, the connections, etc. Maybe Jan Jones, their son’s theory is that a period of dry weather has
depleted the town water supply. Jan might gather data about rainfall, river levels, water storage
supplies, etc. Each theory guides the questions and interpret the answers.

In this case, the purpose of the Jones’ research was to restore running water to their home. they each
gathered information to determine the cause of the water problem. Jan and Rita discovered that the
town had an ample water supply and that the equipment was working properly. These facts did not
disprove their theories but neither did they explain the problem.

In our lives, as in formal study, theory is important in interpreting reality and planning action to deal
with it. In science, theories must be testable. when Jose discovered that the water bill had not benn
paid, The Jones’ paid the bill and the water service was restored, and the theory was supported.

Even when not consciously recognized, we use theory every day. Theory is important to the
advancement of knowledge because it provides a map, which research tries to expand and refine. In our
example, the Jones’ used their theories to guide the collection of data. This type of theory employs
DEDUCTIVE LOGIC.  In deductive theorizing, we formulate a theory, then gather and test facts to
confirm or deny our theory.

Another way to develop theory employs INDUCTIVE LOGIC.  In inductive theorizing, we find as many
facts as possible and then try to arrange thefacts into patterns that will move toward an explanation: a
theory

SUMMARY

It is widely recognized that theory has an essential role in guiding research questions, designing
methodology, and interpreting results. More important is the use of theory to understand phenomena
and for the advancement of knowledge. There are many possible sources of theory. Some have been
developed within the field, while others have been adopted or adapted from other disciplines.