A more concrete expression of the government's concern for housing was the passage of the Philippine Act in 1935, allocating £250,000 for its implementation. With the adoption of the National Shelter Program, the housing concept in the Philippines had undergone a remarkable change. An HFC Guarantee carries with it the unconditional guarantee of the Government of the Philippines.
The increased attention of the government to the development of the housing sector has resulted in a significant increase in the total housing production in the country (including that of the private sector). The extraordinary growth in the housing industry can be largely attributed to the National Shelter Program.
HOUSING CONSTRUCTION (Government-Assisted or
SLUM UPGRADING (No. of Plots)
Among the various sub-sectors of the social development sector, the bulk of expenditure went to training and workforce development, which averaged 57.8 percent of total expenditure. In recent years, however, the share of the housing sector has increased from 6.6 percent in 1975 to 18.2 percent in 1983, which is higher than the expenditure that went to social welfare (Table 6). In relation to total public expenditure, the share of the housing sector rose from an average of 0.31 per cent in the period 1975-79 to 0.45 per cent in the period 1980-84.
The biggest contributor to the increase was the change in the contribution rate of the Fund from 2 percent to 3 percent of the employee's basic monthly salary. This was despite the tight credit conditions facing the entire financial community.
In Million Pesos)
With initial sales of P152.8 million to BMPCs in 1980, sales increased rapidly in subsequent years, so that by the end of the first quarter of 1983, NHMFC had completely sold its authorized issue volume of P1 billion. Of the completed direct and negotiated (with investors) sales of BMPCs, the private financial sector accounted for P337.1 million (33.7 percent), while government financial institutions bought P662.9 million (66.3 percent). To compete with the high yields on government bonds, BCs sold in 1984 worth P279.9 million had to be offered at an average interest rate of 30 percent.
This is followed by savings and mortgage banks with 18.7 percent and private development banks with 11.5 percent. Of this amount, about 79.8 percent or (P4,131.3 million) consisted of Pag-IBIG loans with an interest rate of 9 percent and 16.6 percent of P861.1 million were open housing loans with an interest rate of 16 percent.
As of September 18, 1983) (In Thousand Pesos)
The above review highlights some of the issues that have a certain impact on the effective operation of housing agencies. It is obvious that the current limited government resources cannot continue to support the current level of housing activity. The discussions that follow are based on certain priorities and constraints: a) Provision of adequate housing, especially for lower income groups. remains the highest priority in the major urbanized areas of the country.
The NHMFC, by relying on BMPCs and HDMF funds, confines itself to the government sector of the market. In addition, the government's guarantee function of the cash flow to the housing sector is equally important, but loses its significance in the light of the current depressed state of the capital market.
PROPOSED NATIONAL HOUSING SYSTEM
The current arrangement between the two companies is not very efficient in terms of financing (coordination of financing costs and returns) and in terms of focusing benefits on HDMF members. Hence, it is recommended that NHMFC access the HDMF at competitive rates. At the same time, the NHMFC should be able to provide housing to private developers and NHA for socialized housing that is not necessarily unprofitable.
Another issue that needs to be addressed is the guarantee functions of the HFCs which actually ensure the cash flow of the NHMFCs. Ensuring the cash flow of another state-owned company appears to be an inappropriate function for a state-owned company. It makes more sense for the government to ensure that the private sector operates to ensure a continuous supply of housing.
Nevertheless, since the guarantee function is a vital function of the government, it could be retained, but it is not necessary for a separate institution to perform it. Thus, HFC and NHMFC could be merged, and the guarantee function could be handled by a unit within the surviving institution.
PHILIPPINE SUBDIVISION DEVELOPMENT LAWS AND STANDARDS: AN ASSESSMENT
Under the first category is the number of parcels per hectare after deducting the allowed density. This means that only 70% of the hectares are salable lots and the rest is reserved for roads and parks, playgrounds and other amenities. Under the third category is the number of parcels per hectare after deducting the allowed density.
It is under the complex subdivision category that most of the projects are submitted. This law deals with the issued standards for construction and is otherwise known as the "Building Code of the Philippines". Most of the design standards are taken from American-influenced planning and building standards.
This is a charter of the Regulatory Commission for Settlements, which is the regulatory branch of the Ministry of Settlements. Housing provision is seen as a joint venture between government and the private sector. The design standards must be in accordance with the level of development of the place where it is located.
Electrical Supply Optional, but if power is available at the project site location, its connection is imperative. The location of the project determines the type and degree of development required, regardless of political boundaries. Until the License To Sell is issued, a notice will be posted on a billboard on the project site.
In addition, a 3 x 6 billboard notice of the project must be posted at the project site until the issuance of the License To Sell. The following figures represent the housing demand and affordability scenario for the various market types as well as the type of projects pursued by the private sector.
X Pl2OTto P250T
Cost of House and Lot in Peripheral Areas of Metro Manila
6 Roger Tym, Finance and Affordability in Geoffrey Payne (Ed.) Low-Income Housing in the Developing World: The Role of Sites and Services and Upgrading (Chichester: John Wiley; 1984) p. In doing so, it must address not only to the provision of the physical structure, but to a solution of land issues, poverty issues (affordability) and standard issues. By adopting the design standards for the private developers and the market forces, it would also reduce and simplify the regulatory agency's enforcement activities.
7John Kirke, The provision of infrastructure and utility services in Geoffrey Payne (Ed.) Low-income housing in the developing world.' The role of websites and services and upgrading of settlements. Keyes in his paper on the de la Costa low-income housing project, "The de la Costa project was able to reduce costs due to the benefits of BP 220, a special legislation that allows relaxed standards for socialized housing projects. There should be provisions for short-term construction of the low-income sector, use of indigenous materials for housing, taking into account differences in climate zones, urban and rural housing, and permanent and short-lived materials.
Perhaps it might be wise to adopt a scheme where - for every middle or high-income housing subdivision approved, a certain percentage of the lots could be reserved for low-income. Keyes, William J., The de la Costa Housing Project, An Experience in Private Sector Sites and Services Strategy (Bangkok: CHHS, . NHS; 1985) 20 pp. Kirke, John, The Provision of Infrastructure and Utility Service in Geoffrey Payne (Ed.) Low Income Housing in the Developing World: The Role of Sites and Services and Settlement Upgrading (Chichester: John Wily & Sons pp.
Tym, Roger, Finance and Affordability in Geoffrey Payne (Ed.) Low Income Housing in the Developing World: The Role of Sites and Services and Settlement Upgrading (Chichester: John Wiley and Sons pp. UN ESCAP, Study and Review of the Human Settlement Situation in Asia and the Path Recommendations of the 5th NHA/IHS/AIT International Seminar on Housing in Urban Development: New Strategies for Low and Middle Income Housing in Asian Cities, Bangkok, January Bangkok, CHHS, NHA; 1985) 19 pp .
SHELTER AND SERVICES FOR THE POOR: A Case Study of San Martin de Porres
The residents not affected by the fire who remained in the area were evicted by a private demolition team from the Bank of P.1. The residents' main occupation (35%) was as salespeople, craftsmen/production and process workers. Besides NHA, there were other organizations involved in the implementation of the project.
At the top of the administrative hierarchy was the NHA, which was mandated to act as the lead agency in the implementation of the project. The Metropolitan Manila Commission oversaw the project based on reports submitted by the NHA's district teams and program office. It also participated in the formation of the Inter-Agency Coordinating Council and the Awards and Arbitration Committee (AAC).
Community participation in the project site was encouraged by the NHA from the very beginning of the venture, keeping residents informed of all developments of the project. Many of the critical decisions affecting the project site were made by NHA elected leaders. There are also people among the residents who do not believe in the project or who question the ownership of the property by the NHA.
Social services in the area consist of the establishment of facilities to strengthen social interaction and promote other socio-cultural goals. A chapel with a capacity of 50-80 people at any one time takes care of the spiritual needs of the residents. The residents have therefore concentrated their efforts on calling for benefits and facilities other than those already found near the project site.
Delay in the implementation of the project was also due to the fact that the infrastructure development could not be fully synchronized with the schedule of the project. It also helped to identify the social services that were lacking in the project area and helped to provide these.