TOWARDS AN AFFORDABLE HOUSING PROGRAM Mr. Ramon M. Falcon National Economic and Development Authority 26 September 2013
Outline of Presentation Where do we want to go? Who are the targeted beneficiaries? How do we get there? Imperatives for Action/Recommendation
Where do we want to go?  BP 220 and PD 957 set the minimum requirements within the generally accepted levels of safety, health, and ecological considerations  IRRs of BP 220 and PD 957 already incorporated the provisions on Fire Code and the National Building Code ... they did not, however, integrate the latest development on green technology
Who are the targeted beneficiaries? Poverty Incidence for the Basic Sectors
Source: NSCB
Who are the targeted beneficiaries? Number of Informal Settlers, 2011
Source: NHA
Who are the targeted beneficiaries? “Socialized Housing� refers to housing programs and projects covering houses and lots or homelots only undertaken by the government or the private sector for the underprivileged and homeless citizens which shall include sites and services development, long-term financing, liberalized terms on interest payments, and such other benefits in accordance with this Act. -- Urban Development and Housing Act (UDHA), RA 7279
Who are the targeted beneficiaries? “Economic and Socialized Housing� refers to housing units which are within the affordability level of the average and low-income earners which is thirty percent (30%) of the gross family income as determined by the National Economic and 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. – BP 220
Who are the targeted beneficiaries? Family Income Average Annual Income By Income Decile
Source: NSO Note: Average Family Size is Five (5).
Who are the targeted beneficiaries? Housing Expenditure Total Family Housing Expenditure, 2009
Source: NSO
How do we get there? Existing Loan Packages
Who are the targeted beneficiaries? Housing Expenditure Total Family Housing Expenditure, 2009
Source: NSO
Strategies to Enhance Housing Affordability and Delivery, PDP 2011-2016
1. Create alternative funds and mobilize resources, to spur housing production through the revival of the SSS, GSIS and GFIs contribution in the housing sector pool; reinstate the entitlements of the housing sector under the CISFA (RA 7835); involve rural banks, coops, and MFIs in implementing a housing microfinance program, catering tot he marginalized sector and rural homebuyers; and develop an effective and viable secondary mortgage market and rationalization of the guarantee system.
Strategies to Enhance Housing Affordability and Delivery, PDP 2011-2016
2. Build strong partnerships with LGUs to accelerate housing production through land use and local shelter planning, land inventory and creation of LHBs; rechannel development funds to LGUs for housing projects for their constituents; and set aside lands socialized housing in accordance with UDHA 3. Engage private sector and CSOs in building and scaling up socialized housing projects 4. Promote the use of “green” technology and materials in housing construction and in building “disaster-resilient” homes
Strategies to Enhance Housing Affordability and Delivery, PDP 2011-2016
5.
Develop a strong cohesive and responsive shelter team (KSAs and stakeholders) to bring significant changes and institutional reforms, including simplifying loan application processing for development and homebuyers loans, and reducing red-tape in the issuance of land titles and housing and development permits, at the national and local levels; and ensure transparency and good governance in the housing sector
Strategies to Enhance Housing Affordability and Delivery, NUDHF 2009-2016
1. Increase funding and other resources fro proven and key housing programs and institutions 2. Streamline housing development transaction processes; reduce transaction costs and protect housing consumers 3. Provide incentives to unlock land for affordable housing 4. Provide and encourage access to land for affordable housing 5. Link local land use/physical and community development plans with industry / local employment generating investment programs 6. Explore promising and viable financing sources and schemes
Proposed Actions  HUDCC to provide policy coherence and operational guidelines on all existing and proposed housing loan packages/ceilings of key shelter agencies, government financial institutions, and private developers.  Government to think of creative strategies to increase the capacity of the poor to own a housing unit (e.g., incentivizing savings for housing; rental housing; making employment and economic opportunities available; housing subsidies).
 HUDCC and KSAs to review the proposed MRB loan ceiling with the MRB incity resettlement costing of NHA under the approved 5-year (2012-2016) housing program for 104,219 informal settler families (ISFs) in danger areas in Metro Manila.
How do we get there? Promote Partnerships Business Sector - Associations of subdivision and real estate developers - Microfinance Civil Society Government - Production - Finance - Policy
Thank You!