CONVERGENCE OF HUDCC AND LOCAL GOVERNMENT HOUSING INITIATIVES: OPPORTUNITIES AND CHALLENGES Presented by: DIR. MYLENE A. RIVERA Housing and Urban Development Coordinating Council

Regulatory and adjudicatory body for the housing industry HLUR B Funder housing projects of its members HDMF Housing Production Arm NHA HUDCC Funder/lender for organized ISFs and community associations SHFC Fund Mobilizer thru issuance of Guarantees HGC Fund Mobilizer Secondary Mortgage Market Operation NHMFC 2

“From allowing environmental blight to spoil our cities, where both the rich and the poor bear with congestion and urban decay, to planning alternative, inclusive urban developments where people of varying income levels are integrated in productive, healthy and safe communities.” – President Aquino, Social Contract “Gaganda ang buhay kung may bahay at hanapbuhay.” (Life will improve with housing and livelihood.) – VP and HUDCC Chairman Jejomar Binay

CHALLENGES

Population growth and rural-urban migration High poverty incidence Need for affordable, decent housing and availability of basic services for the urban poor Proliferation of informal settlers Continuing concerns with urban environment and services (transport, air quality, water supply, solid waste, etc.) Need to strengthen linkage between the national government and the local government in as far as housing and urban development sector, including delivery of housing services, is concerned

Need for national key urban management reforms and capacity strengthening that mainstream doable climate change response actions for national scale sustainability and wider impact. Need to climate-proof existing guides to development plans especially comprehensive land use and local shelter plans 6

CURRENT INITIATIVES/ OPPORTUNITIES

Pabahay Caravan, conducted nationwide, raised awareness on the programs and services of the housing agencies and help LGUs perform their functions in the delivery of housing services, and increase the production base for housing.  Housing and Land Use Regulatory Board’s (HLURB) Housing Regulation and Land Use Planning  NHA’s Resettlement Assistance Program for LGUs  Social Housing Finance Corporation’s (SHFC) Localized CMP (LCMP)  HDMF’s Group Housing Loan Program  HUDCC’s Local Shelter Planning Creation of Pabahay Regional Inter-Agency Composite Teams (PRIACT) to conduct follow-up activities and provide assistance to LGUs 8 ENHANCING LGU PARTNERSHIPS

 HUDCC & its KSAs target to assist about 1.5 million households for the period (a) expansion of scope of the National Housing Authority (NHA) programs to Visayas and Mindanao after several years of focus on rail resettlement; (b) increase in target of Community Mortgage Program (CMP) to include beneficiaries outside Metro Manila; and (c) promotion of local government unit-led housing initiatives. 9

Resettlement Assistance Program NHA gives full subsidy on land development and housing up to P12M per project to all municipalities, 5 th and 6 th class cities and 5 th and 6 th class provinces while 50% subsidy to other cities and provinces. Housing for ISFs in danger areas On-going implementation of the P10 Billion Fund for some 104,000 ISFs in danger areas in Metro Manila; T wo in-city medium-rise building projects which will benefit about 1,450 families have been awarded AFP/PNP Housing The NHA also implements the housing program for the Armed Forces of the Philippines/Philippine National Police (AFP/PNP) personnel 21,800 housing units are ongoing implementation, valued at P4.6 billion; The second phase targets 31,200 units nationwide Housing for Indigenous People 100 units at P100,000 each unit provided as grant to LGUs 11/21/2016Your footer here 10

Localized CMP (LCMP) a derivative of the CMP where SHFC assists partner LGUs in addressing the social housing concerns of their constituents 6 LGUs have been accredited as LGU partners and an initial P19,220, Million was provided for 14 LCMP Projects benefiting 1,120 ISFs. Other accredited LGUs are in the process of packaging their projects for SHFC funding. 11/21/2016Your footer here 11

Group Housing Program  Pag-IBIG and PRIACT aggressive promotion of the program to LGUs nationwide.  2 ongoing projects; 110 potential projects Affordable Housing Program  lower its interest rates for minimum wage earners  4.5% for up to P400,000 loan 12

Alternative approaches available to LGUs/project proponents to fast- track loan takeouts Enter into a joint venture with the landowner and a developer Project proponent can enter into a joint venture with a developer For the LGU. It can apply for a developmental loan from the Land Bank of the Philippines and have the housing loan applications of the target beneficiaries processed and taken out with the Fund A home-matching program can be established to assist the project proponents target beneficiaries. 13

Housing Loan Receivables Purchase Program (HLRPP) aims to liquefy asset portfolio of private developers as well as generate capital for the housing sector Bahay Bonds Bahay Bonds 2 worth P600 million, the first retail asset backed securities 11/21/2016Your footer here 14 NHMFC

11/21/2016Your footer here 15 HLURB Zero Backlog Program for the formulation or updating of Comprehensive Land Use Plans of LGUs by 2013  Integrates climate change adaptation actions as well as disaster risk reduction and management (DRR) measures.  Targets 100% LGUs (1,635 LGUs) with updated CLUPs by 2013, ( LGUs; LGUs) Revised the IRR governing Section 18 of the UDHA or RA 7279  Under the area compliance, the construction of socialized housing project equivalent to 20% of the total main subdivision is no longer limited within the same city or municipality but can be allowed elsewhere in the Philippines, subject to HLURB approval.  The previous practice of availing of the units of participation of P5,000 per housing unit of the NHA has been eliminated from the menu options

Continued inclusion of mass housing in the Investment Priorities Plan (IPP) Encouraged real estate associations to liquefy their housing loan receivables through the NHMFC Housing Loan Receivables Purchase Program. Engages private developers in policy and decision-making processes through their representation in the HUDCC Council and Housing Policy Working Committee (HPWC). Included the basic sectors in the 2012 budget preparation, consistent with DBM National Budget Memorandum No. 109 (which advocates partnership with NGOs in the preparation of budget proposals for 2012), the housing agencies that deal with informal settlers, such as the NHA and SHFC, Included the construction of socialized housing projects by accredited NGOs as a mode of compliance for balanced housing requirement, and by exempting them from the requirements of License to Sell. 11/21/2016Your footer here 16

HUDCC has initiated the formulation of a National Informal Settlements Upgrading Strategy (NISUS) towards a Comprehensive Shelter Plan for Informal Settler Families. This will be complemented by an enhanced Resettlement Policy Framework that identifies common resettlement procedures and guidelines among all infrastructure agencies, housing agencies and local government units. 17

The call for a Department of Housing and Urban Development that will have the teeth to enable a comprehensive, integrated, inclusive and sustainable management of the housing and urban development sector has been there for more than decades now. This significant Bill is envisioned to be among the banner accomplishments of this Administration. 18

DHUD Framework : Integration in Strengthening Housing and Urban Development by the Government Adjudication Commission Adjudication of CLUPs; Real Estate Development Standards; Homeowners Association Disputes Adjudication Commission Adjudication of CLUPs; Real Estate Development Standards; Homeowners Association Disputes KSA-GOCCs Incentives through financial and production support KSA-GOCCs Incentives through financial and production support DHUD Formulation of standards / Regulation / Capacity Building DHUD Formulation of standards / Regulation / Capacity Building “Productive, healthy and safe communities”

The DHUD and its attached key shelter agencies with a strengthened adjudication commission will provide long-term solutions in designing and managing disaster resilient, competitive, inclusive, and sustainable communities.

Accountability for the following critical areas for physical planning and sustainable communities development: 1. Plans, policies, programs, and monitoring, that will link the plans and programs of international, national, and local agencies; 2. Alignment of environmental, land use, and urban and development plans and implementation; 3. Housing and real estate development regulation; and 4. Homeowners/community empowerment and participation.

NEXT STEPS

1. Completion and adoption of the NISUS and National Resettlement Framework. 2. Implementation of the program under the Php 50 billion fund for some 104,000 ISFs in danger areas in Metro Manila. To date, the bidding for the design and construction of two in-city medium-rise building (MRB) projects is ongoing which will benefit about 1,450 families. 3. Implementation of reforms in housing finance. A strategic plan for housing finance reform is being developed to better serve those who are already being served, and to reach those who are either underserved or not being served at all. 4. Provision of guaranties to housing loan accounts of rural banks and microfinance institutions which have shown capacity to service housing loans responsibly. Private banks shall be encouraged to assume a larger role through government guaranties that make housing loans practically risk-free. 5. Updating and upscaling of climate-proofed spatial plans and national and local shelter plans. 23

6. Advocacy for the passage of the DHUD bill, which shall provide a holistic approach to housing and sustainable urban development 7. Pro-active application of Public-Private Participation (PPP) in the housing sector programs and projects (e.g. creation of a Special Purpose Vehicle model for Big Ticket Projects such as the development of the North and East Triangles in Quezon City under the Urban Triangle Development Commission or Tridev). Private sector shall be encouraged to participate in housing projects through tax incentives and the streamlining of processes for loans and issuances. 8. Partnership with LGUs in housing projects, especially in relocating ISFs from geohazard and other danger areas, shall be intensified. In coordination with DENR, the issuance of Proclamations for certain public lands as relocation sites will be pursued. 24

END OF PRESENTATION