500 Years Ago, Where Did We Live? CHANGING THE MINDSET Innovation, Education, Customer Service Using Mass Housing as an Agent of Change JJ Atencio CEO, 8990 HOLDINGS
50 years of Housing REFORM? 1965 – 2015 50 years of Housing REFORM? 1965-1986 1986-1992 1992-1998 1998-2001 2001-2010 2010-2016 Human Settlements BLISS Housing Board Of Investments NHMFC, HDMF, AITECH National Shelter Program UHLP, SHDLP CISFA Law, UDHA-CMP RA 7279 HDMF Developer-Originated Finance Mass Housing in IPP Relocation at PNR Increase socialized housing limit HUDCC NHA, NHMFC, HIGC, HLURB, HDMF Local Government Code BOI-Investment Priorities Plan MWHLP EO 90 HDMF-originated credit scoring Increased ceilings for socialized And low cost housing. Extension of rent control
PPP Housing Beneficiaries Database Monitoring System Increasing costs, high subsidy, Limited funding Low beneficiary interest, Limited coverage UNSUSTAINABLE Professional squatting PPP …BARELY improved since 2000 Rationalize TAX incentives Housing Beneficiaries Database Monitoring System NATIONAL RESETTLEMENT POLICY …LGU opposition and Bureaucratic Intertia CLUP Updating Systems
85 years Combined Expertise “Mass housing is not about houses. Its about people. Our business is really about using Mass Housing as a vehicle to add value to society and, as a result, transform people’s lives.”
My Take on Sustainable Mass Housing Programs “A truly effective sustainable mass housing program must be grounded on and understand the reality and psychology of how a typical Filipino family lives, earns and spends their money today.”
Beyond Knowing … LOVING YOUR CUSTOMER Deeply Aspirational Practical Value for Money Optimistic of the Future THE LOWER MIDDLE CLASS ( C2 DEMOGRAPHIC) Young, College-educated Stable jobs with other income P35,000 Gross Family Income Renters, not asset owners Little or no savings
Fast Pre-Cast Construction 8990’s Business Model Fast Pre-Cast Construction Accessible Housing Finance Comprehensive Collection Platform Edit to to two minutes, add name of the buyer and what they are, include ace and rheena and sir richard. Synchronized Complementary Synergistic Communicative
Pre-Cast Panel Wall Construction GOOD Collection Platform FAST, CHEAP, GOOD 8990 Business Model Resource Allocation FAST Pre-Cast Panel Wall Construction 8 days, 25,000 units capacity. Economies of scale, Lower materials cost, High quality of panels, Increased site efficiency. CHEAP In-House Financing Reality-Risk Management 4% Equity, 9.5% interest, 25-year term, 30% GFI P35K Gross Family Income GOOD Collection Platform Behavioral Economics Comprehensive, integrated Emphasis on Behavior Modification, Education, 96% Collection Efficiency
FINANCIAL LITERACY SEMINARS WHAT DO YOU PAY? The legal, financial and operational obligations of homeownership. WHY SHOULD YOU PAY? Homeownership as shelter today, And financial freedom tomorrow. HOW DO YOU PAY? Family Budgeting Workshop
Exponential Growth through Innovation, Education, Customer Empathy 2004 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 Earnings growth of P189.0m in 2004 to ₱9.7bn in 2015. We have grown by 42 times in ten years and 253% in the last FOUR years. We are building 12,000 homes in 2016, and 20% growth to 2020.
This is what MASS HOUSING should become. “I will build a car … large enough for the family, small enough to care for… the best materials, the best men, the simplest designs modern engineering can devise. But so low in price that no man making a good salary will be not able to own one.” And that is precisely what 8990’s business is all about. This is what MASS HOUSING should become. Henry Ford
FIFTY YEARS FROM NOW, WHERE WILL YOU LIVE?