Is Housing Affordable in the Philippines?

Summary

Highlights

• The PIDS webinar series delves into the affordability of housing in the Philippines. 📚
• Urbanization and economic factors are key drivers of the housing shortage. 🔍
• Local government units play a crucial role in creating effective housing plans. 🏘️
• The Department of Human Settlements and Urban Development is pushing for innovative solutions like the 'Filipino 4Ps' program. 🌍
• Discussions highlight the role of rental markets and the need for policy reforms to make housing more affordable for all. 🏢

Key Takeaways

• Housing affordability in the Philippines remains a pressing issue amid rising demand and urbanization. 🏠
• Government and private sector partnerships are crucial in addressing the housing backlog. 🤝
• Localized solutions and community involvement can enhance housing initiatives. 👥
• Innovative approaches like housing vouchers and public housing funds are being explored to assist low-income families. 💡
• Comprehensive planning and collaboration with local government units are vital for effective housing strategies. 🗺️

Overview

Chapters

• 00:00 - 01:30: Introduction This chapter sets the stage for the book, providing an overview of the key themes and topics that will be covered. It introduces the main objectives and outlines the structure of the book, giving readers a clear understanding of what to expect.
• 01:30 - 27:30: Presentation of the study The chapter titled 'Presentation of the study' does not include a detailed transcript or information within the provided text. The only content available is a placeholder '[Music]'. To summarize, further detail on the chapter's content is needed.
• 27:30 - 85:00: Panel discussion In the chapter titled 'Panel discussion,' the focus is on the importance of having specific roles during discussions or projects. This concept helps in organizing the tasks and responsibilities, thereby promoting efficiency and clarity in teamwork. The main takeaway is the strategic assignment of roles to enhance collaboration and outcomes.
• 85:00 - 177:00: Open forum This chapter likely discusses an open forum where research was conducted to develop a policy. The details of the policy or the nature of the research are not explicitly mentioned in the excerpt.
• 177:00 - 184:00: Closing and reminders The chapter titled 'Closing and reminders' emphasizes the importance of fairness in actions and decisions, ensuring equitable treatment for all individuals involved. This is a broad reminder for consistent and fair behavior across all interactions.

Is Housing Affordable in the Philippines? Transcription

• 00:00 - 00:30
• 00:30 - 01:00 [Music]
• 01:00 - 01:30 we should have specific roles
• 01:30 - 02:00 um do research and make a policy that is
• 02:00 - 02:30 fair for everyone
• 02:30 - 03:00 um two things Clarity and execution both you need the communication and monitoring monitoring monitoring as
• 03:00 - 03:30 simple as that when that one and Philippine Institute for development studies or pids [Music] foreign
• 03:30 - 04:00 [Music] foreign [Music] in need of references for your research do you want a digital library that you can access for free anytime and anywhere you don't have to look far turkey is
• 04:00 - 04:30 here for you service and online database of social economic materials produced by the Philippine Institute for development studies government agencies research and academic institutions and international organizations based in the Philippines it is the country's first online repository of socioeconomic information created for policy makers and development practitioners researchers Educators and students to access therapy just visit the pids
• 04:30 - 05:00 website and click the search view widget under the databases tab or type surfcash P dot the ideas.gov.gh serpi has a wide variety of materials such as Journal articles books research papers working papers policy notes audio visual materials and more as of 2022 serpi has more than 60 partner institutions contributing knowledge
• 05:00 - 05:30 resources to the database serpi provides a comprehensive coverage of references encompassing 22 research themes labor and education gender and development poverty technology and Innovation trade and Industry and many more on the enhanced website of Cirque you can filter your research by keyword or author publication type research theme or year published all at the same time
• 05:30 - 06:00 therapy has more than 7 000 Publications and other visual materials that you can access and download for free what are you waiting for visit Cirque now social economic research portal for the Philippines innovating knowledge exchange and policy research foreign for over 40 years the Philippine Institute for development studies or pids has been the country's foremost
• 06:00 - 06:30 social economic Think Tank [Music] it conducts rigorous and objective policy research and analyzes that help the government in crafting relevant policies plans and programs in support of the country's long-term vision and development goals pids pursues its mandate through three basic programs research dissemination and Outreach through its research program pids
• 06:30 - 07:00 identifies and prioritizes studies develops proposals and conducts research on priority areas the results of these studies are then disseminated through different platforms Publications online resources [Music] corner seminars
• 07:00 - 07:30 and the development policy research month or dprm held every September to shed light on key policy issues the advice and expertise of the institute's research fellows are also sought by policy makers government agencies private sector and Civil Society since 1977 pids has completed numerous policy studies on a wide range of development topics
• 07:30 - 08:00 this brand of service has then translated to policies and programs that have improved the lives of every Filipino Philippine Institute for development studies service through policy research [Music]
• 08:00 - 08:30 [Music]
• 08:30 - 09:00 we should have specific roles um do research and make a policy that is fair for everyone is two things Clarity and execution both you need the communication and monitoring monitoring monitoring as simple as that when that one of the Philippine is good for development
• 09:00 - 09:30 studies for pids recommendations foreign
• 09:30 - 10:00 [Music] do you want a digital library that you can access for free anytime and anywhere you don't have to look far Cirque is here for you serve you is an online database of social economic materials
• 10:00 - 10:30 produced by the Philippine Institute for development studies government agencies research and academic institutions and international organizations based it is the country's first online repository of socioeconomic information created for policy makers and development practitioners researchers Educators and students to access therapy just visit the pids website and click the search view widget under the databases tab or type serve
• 10:30 - 11:00 Dash p dot the ideas.gov.da serpi has a wide variety of materials such as Journal articles books research papers working papers policy notes audio visual materials and more as of 2022 serpi has more than 60 partner institutions contributing knowledge resources to the database serpi provides a comprehensive coverage of references
• 11:00 - 11:30 and compassing 22 research themes labor and education gender and development poverty technology and Innovation trade and Industry and many more on the enhanced website of serpi you can filter your research by keyword or author publication type research theme or year published all at the same time therapy has more than 7 000 Publications and other visual materials that you can
• 11:30 - 12:00 access and download for free what are you waiting for visit Cirque now social economic research portal for the Philippines innovating knowledge exchange and policy research foreign for over 40 years the Philippine Institute for development studies or bids has been the country's foremost socio-economic Think Tank
• 12:00 - 12:30 [Music] it conducts rigorous and objective policy research and analyzes that help the government in crafting relevant policies plans and programs in support of the country's long-term vision and development goals pids pursues its mandate through three basic programs research dissemination and Outreach through its research program pids identifies and prioritizes studies develops proposals and conducts research
• 12:30 - 13:00 on priority areas the results of these studies are then disseminated through different platforms Publications [Music] online resources [Music] yes corner seminars and the development policy research month or dbrm held every September to
• 13:00 - 13:30 shed light on key policy issues the advice and expertise of the institute's research fellows are also sought by policy makers government agencies private sector and Civil Society since 1977 pids has completed numerous policy studies on a wide range of development topics this brand of service has then translated to policies and programs that
• 13:30 - 14:00 have improved the lives of every Filipino Philippine Institute for development studies service through policy research [Music]
• 14:00 - 14:30 good afternoon everyone and welcome to
• 14:30 - 15:00 the pids webinar Series where we feature
• 15:00 - 15:30 our policy studies and the insights of
• 15:30 - 16:00 government policy makers and program
• 16:00 - 16:30 implementers industry experts and practitioners Scholars and Civil Society actors with this webinar series which we started in 2020 pids hopes to provide an accessible venue for evidence-based discussion of current and emerging
• 16:30 - 17:00 development issues I'm Sheila CR your moderator two weeks ago we had an engaging discussion about the state of food Security in the Philippines this afternoon we'll talk about another basic need which is shelter or housing we'll look into the affordability of housing in the Philippines see what the different entities in the public and private sectors are doing to address the housing Gap and discuss ways to make safe decent and affordable housing accessible to all Filipinos
• 17:00 - 17:30 start our conversation and give us more information about today's topic may I call on our president at pids Dr anisette or better Jr sir thank you Sheila uh before we begin I would like to acknowledge the presence of the following officials from the government we have a senate of the Philippines economic planning policy studies service director services nitafan
• 17:30 - 18:00 House of Representatives Congressional policy and budget research Department socioeconomic research executive director Manuel Aquino a department of human settlements and Urban Development director Jovi Francis tupas pasig Philippine councilors league president Kim Cruz Architects Urban and environmental planners Engineers from various agencies
• 18:00 - 18:30 uh the private sector from the private sector we have uh peer counseling foundations of the Philippines president Maria Rebecca progression Maximilian advisors Chief Operating Officer Maria Teresa from the csos and ngos we have homeless people's uh Federation Philippines Incorporated president Teresa Tana and development action for women Network
• 18:30 - 19:00 president Milagros Makiling technical assistance movement for people and environment Incorporated executive director Louis Robert posadas we also like to greet our friends from the media and let me also greet our uh guest colleagues from the government academe Civil Society media private sector and those watching through the pids and serpi Facebook pages good afternoon and Welcome to our webinar today we will
• 19:00 - 19:30 talk about housing in the Philippines and how affordable it is for Filipinos this topic is specially relevant given the rising demand for housing which is a human right the department of human settlements and Urban Development or this is UD are estimated and accumulated housing need of 6.5 million from 2017 to 2022. the housing certain age in the country continues to grow uh due to factors such as rising prices and population growth
• 19:30 - 20:00 urbanization also plays a big role in the short days a world Bank policy paper noted that the Philippines is one of the fastest organizing countries in Southeast Asia since 1950s Millions have migrated from rural to urban areas in search for better opportunities the unprecedented rate of in migration resulted in not just assurance and demand for jobs but also in demand for housing particularly in urban areas climate change and conflict likewise
• 20:00 - 20:30 contribute to the demand for housing families fleets from Coastal communities to densely populated cities with such hazards straightened their health livelihood and lives what must we do when the sector is in need of the housing consists of low-income families and housing prices remain too expensive how can the Philippine government and private sector keep up with the housing backlog and provide housing that is not
• 20:30 - 21:00 only affordable but also satisfies the basic shelter attributes Set uh by the um un habitat it's afternoon we will feature it as a study titled measuring uh housing affordability in the Philippines authored by pids vice president barefoyesteros and supervised English especially stay tuned Ramos Ramos and and research specialist Janika and Jetta Dr Barrister Miss Ramos were present their analysis
• 21:00 - 21:30 of housing affordability in the Philippines including the challenges and Trends in housing prices and household incomes it will also provide recommendations to make housing more affordable for the Philippines the interesting conversation we invited uh resource persons from agencies involved in the different aspects of the country's housing provision OIC director Rowena generos of the PHD will discuss the Department's current initiatives and
• 21:30 - 22:00 plans to address the housing background in addition executive director Santiago dukai of the subdivision and housing developers Association Incorporated we'll talk about the role of the private sector in housing provision financing services and projections for post uh for the Post uh pandemic housing market finally we have Dr Winston Conrad padohino the president of the University of Asia and the Pacific he will share his insights and the business models for
• 22:00 - 22:30 housing construction projects to solve the housing backplan and the ways to make housing more affordable especially for low-income households it is an honor for pids to have all of you at this event and hear your insights on the topic to our attendees I encourage you to participate actively in the open Forum thank you for your continued patterns of our webinar series and I'll give back the floor to the medical moderator here thank you very much Dr urbetta in
• 22:30 - 23:00 addition to the officials mentioned by our president you also we also would like to acknowledge uh the presence of uh shda chairman Mr George okay so before I introduce our presenters allow me to remind you of our guidelines to join the discussion so you may post your questions and comments using the q and a model so please indicate your name and organization if you want to be identified when I read out the questions
• 23:00 - 23:30 you may use Tagalog if you are more comfortable expressing yourself in Tagalog and to all the presenters and discussions you may respond by typing your answers which will be visible to all attendees alternatively you can choose to answer the questions live during the open forum and for our livestream live stream viewers on Facebook we highly encourage you to participate as well please use the comment section on Facebook for your
• 23:30 - 24:00 questions and we will accommodate as many questions as possible that are relevant to the discussion during the open forum so now that we have set the house rules let us begin our conversation by listening to the presentation which is based on a pids discussion paper titled um a connection by Dr orbeta measuring housing affordability in the Philippines which was authored by pids vice president Marita Bali esteros
• 24:00 - 24:30 supervising research specialist Tatum Ramos and research specialist Janika and Cheta the presentation will be made by Dr Bobby steros and Miss Ramos Dr bavius Terrace's research area is development economics with specialization and housing policy land land policy and Urban Development she has been involved in several evaluation studies of government regulatory policies and property programs and she has been a consultant on several projects of the
• 24:30 - 25:00 World Bank Asian development bank usaid and RC she has a PHD in social sciences um from the Catholic University in the Netherlands and an M.A degree in economics from the school of economics University of the Philippines on the other hand MS ramus's research area is Urban Development and she earned her master's degree in public policy
• 25:00 - 25:30 with specialization in management and Leadership from the Lee Kuan Yew School of Public Policy National University of Singapore and her bachelor's degree in economics from the up school of Economics she has offered Publications Jessica offered Publications and housing so Dr abalisteros and Miss Ramos you now have the virtual floor thank you Sheila for that kind introduction and good afternoon to our participants
• 25:30 - 26:00 and attendees of this webinar as a flash on the screen that is the title of the study that we are we'll be presenting measuring housing affordability in the Philippines and an assessment of housing affordability um it's actually important as a starting point to understand the housing market as well as to craft in crafting policies to make housing affordable inclusive and
• 26:00 - 26:30 resilient in the country and there are several measures as shown on the screen of housing affordability on the the left side of the screen are the scarcely used approaches and emerging novel approaches this is rarely used because you it requires a more detail the information and special surveys which most countries do not have detailed on the housing unit as well as not only on as well as details about the
• 26:30 - 27:00 house the household on the right hand side of the screen is the Mark is the conventional approaches which are actually used uh in most inter countries and this is composed of three components the residual income method the price income ratio and the composite method which is just a combination of the residual and the peer if you look at this measures this uh the
• 27:00 - 27:30 conventional measures are mainly um uh primarily relate income to the housing price although this can be a limitation we also know that a key factor an important factor um that determines access to housing is actually affordability so there's a very high correlation between income and access to housing and our research will be focusing mainly on several uh on
• 27:30 - 28:00 affordability measures using the conventional approaches next slide please so the objectives of the study is first we are to determine uh whether the 30 percent of income standard captures housing affordability in the Philippines and we all know that uh for what we are using now in the Philippines is actually the the rule of thumb or a standard called the 30 of incomes standard which is actually used in several countries
• 28:00 - 28:30 but is it actually uh suitable in the case of the Philippines or more importantly does It capture housing affordability in the Philippines the second is after we ever wait housing affordability the country using other methods and suggests possible improvements in the measuring in the measurement and lastly we we will be recommending knowing uh the the structure of our housing demand we will recommend housing policy reforms that could make uh
• 28:30 - 29:00 housing affordable including and resilience specially in urban countries so uh we argue next slide please that the 30 income standard that is currently being used as a measure of housing affordability is not a suitable measure for in in the Philippines because this is mainly based actually on developed countries experience actually the 30 as I mentioned is a rule of thumb and even
• 29:00 - 29:30 during the post-war the assumption is that if you can spend or pay housing rather rent or amortization that is equivalent to one week's wages then uh we we say that housing is Affordable and later on this was increased to 30 percent based on the experience of developed countries there's a Time series that looks into the the income price ratio of 387 67 metropolitan cities in nine
• 29:30 - 30:00 developed countries and apparently this is what what are the standards that is arising from that uh from that data so above 30 that would be slightly unaffordable and then you have moderately unaffordable housing if it's above 50 percent the other reason is that why we reset this argument is that um
• 30:00 - 30:30 in developed countries there is the low incidence of poverty and a significant proportion of middle income uh families which is not the case in the Philippines where you have uh about 47 low-income families and you have uh about 20 that's uh vulnerable um uh no also low vulnerable families although they they reconsider them as middle income families and the third
• 30:30 - 31:00 reason is that if you look at the the real wages over time in the Philippines this is actually not that rising and whatever increases in wages that we experience is just enough to covert for inflationary uh effects so um next slide please so I think this is just showing you the the proportion that I mentioned a while ago in terms of uh the segmentation of uh of households based on income and the
• 31:00 - 31:30 classification of poor low-income Low Middle income Etc is based on the study done by uh Dr Alberts also of pids which he was able to classify um the households into into this categories instead of the the decile but it's actually related to to the decile so poor are those of course below the poverty threshold the low income but not
• 31:30 - 32:00 poor is twice have incomes twice the the poverty threshold uh lower middle income four times the the poverty threshold and and so on so so there is a a factor that increases the income of household based on the poverty threshold so given that I would like to turn over the the mic to my co-author Tatum Ramos to represent the results of the study potato
• 32:00 - 32:30 okay so um given the profiles that were presented by Dr balesteros um we were interested in knowing the percentages of income that's allotted to housing expenditure if you look at the third column of this table you will notice that the the percentages are around 10 percent and that would give an impression that housing in the Philippines was affordable back in 2018. however we we
• 32:30 - 33:00 knew that we had to make additional verifications on this so first we we we tried getting the 30 standard housing expenditure and from that and also income we were able to generate the annual residual income based on the 30 standard so this is also the the income that is left to be allotted or can be allotted still to non-housing basic expenditure we then compared the values with those
• 33:00 - 33:30 of the threshold or the minimum non-housing basic expenditure which includes food and non-food items all right so um in the last column of this table you will notice that the poor and the low income but not poor seem to be vulnerable to housing stress this is because their annual residual incomes fall below or a little just above the the threshold or the minimum
• 33:30 - 34:00 non-housing basic expenditure we also adopted this method called housing affordability index or the Hai which is usually defined as the ratio of median family income to the qualifying income that's required to make payment for a medium-sized house and a value of 100 for the Hai or the housing affordability index means that
• 34:00 - 34:30 the median income family has sufficient income to purchase a median price house and we we tried getting the estimates for um selected areas based on available data so you will notice that on the table the values of the har Hai are below 100 and this um would reflect that a typical family in the in in the particular areas were
• 34:30 - 35:00 not able to afford housing that's being supplied in the market back in 2018. now if we look at the trend of Hai in the Philippines based on government price ceilings you will notice that a typical family in the Philippines would not be would rather they would be able to afford socialized housing but would not be able to afford economic housing
• 35:00 - 35:30 and this is important particularly because we would expect typical families to be able to afford these economic housing that's priced at the at the ceilings because these housings are particularly or should be particularly particularly catering to this family we were also able to compile information from the NHA shafts DND soon and um we
• 35:30 - 36:00 we came up with this map that um shows the distances of low-cost housing projects to the nearest Urban centers in Metro Manila and we find that um many of the projects were actually quite far from the from the city centers or the nearest Urban centers in Metro Manila and this would have of course implications on Transportation costs and because especially if if families or
• 36:00 - 36:30 family members are working within um the the urban centers or or within the city centers I also on Transportation costs um would need to be considered when we're talking about housing affordability now if we look at on this particular data that um based from that that was taken from the global property guide and the data
• 36:30 - 37:00 was also featured by behind Asia in 2022 and this shows us the house price to income ratio in the Philippines versus neighboring countries some of the neighboring countries in Asia and if you look at the figure you will notice that the Philippines is actually one of the top countries that are that have were in housing was an affordable or is an affordable and given all those um initial insights
• 37:00 - 37:30 our team wanted specifically to determine the affordable housing packages in the Philippines and we used um the residual income method um to be able to generate this uh we use this method because this measure this measures housing affordability based on factors including non-housing expenditure and sufficiency of income after housing expenditure under this method housing is considered
• 37:30 - 38:00 affordable if household income minus housing expenditure is greater than or equal a minimum non-housing expenditure the method also provides insights on extent of housing stress or shelter poverty housing stress is experienced if household income minus housing expenditure minus minimum non-housing expenditure is less than zero in other words the stresses experienced if the
• 38:00 - 38:30 income of the household is not sufficient to cover for basic expenditures so what are the components of that minimum non-housing basic expenditure we've listed down these items on on the table on the left hand side of the screen and these items were based on psa's total basic expenditure items so just to run through this we have good
• 38:30 - 39:00 expenditure based on food threshold and family size expenditures on clothing footwear and otherwear water supply and miscellaneous Services relating to the dwelling electricity gas and other fuels Medical Care education Transportation communication non-gerable furnishings and personal care and effects
• 39:00 - 39:30 we were also we were able to generate the thresholds for non-housing basic expenditures and again these food thresholds were the food thresholds used were based on PSA PSA estimates and we also consider it family sizes and for the non-food threshold that's based on the average expenditures and the per in the first to fifth income decals which are assumed to be the poor and the low income but not poor all right um if if you look at the table
• 39:30 - 40:00 on the right you will notice that the thresholds vary according to the areas so for example um Metro Manila or the urban areas of Pampanga have the highest values and also for um uh in terms of family types these thresholds also vary so those with um family size of two have lower thresholds than those of family size of five with three children
• 40:00 - 40:30 when we adopt or or take into consideration those thresholds we are able to um estimate or gauge the extent of shelter poverty based on socialized housing price healing so this table um on on the Philippines and urban areas in the Philippines they tell us that the poor have negative residual incomes after housing expenditure and thresholds
• 40:30 - 41:00 for non-housing basic expenditure are subtracted from the income so in other words this just tells us that the poor were experiencing housing stress when it comes to socialized housing that were priced at the ceilings and at the ceiling in 2018. and also the vulnerability um covers even the low income but not poor when it
• 41:00 - 41:30 comes to economic housing price at the ceiling in 2018. now um when we compare um the residual income method and the 30 standard we noticed that for the 30 standard underestimates the percentage of families under socialized housing stress in 2018. so just to illustrate further um in in urban areas in the Philippines the 30 standard tells us that eight
• 41:30 - 42:00 percent of of the families back then were experiencing socialized housing stress while um for the residual income method it tells us that 21 of the families were under housing stress or economic housing the 30 standard overestimates the percentage of families under housing stress but it is still important to note that
• 42:00 - 42:30 um the values or the percentages are quite large um for example in the Philippines 56 under their scheduled income method 56 of the families were under economic housing stress in 2018. now we also considered um the the lifestyles of of the families within the income groups and in this table you will see the affordability ratios based on
• 42:30 - 43:00 the mean not mean annual non-housing expenditures in 2018. you will notice that the poor do not have any income that can do not have sufficient income that can be allotted to housing but when you look at the low income but not poor they are able they were able to meet the 30 standard however as you go across the other income groups you will notice also that
• 43:00 - 43:30 the Val the values of the affordability ratio vary so um this just implies that the 30 standard is not applicable in the Philippines but what if what is more important to look at actually is are the affordable housing packages and it's also important to compare those with the price feelings during that period
• 43:30 - 44:00 so in this table we are showing you the affordable housing packages based on the mean annual non-housing basic expenditure in 2018. uh again the poor cannot afford any housing package while the low income but not poor and the lower middle income were not would not be able to afford housing that gross that were priced at the ceilings um economic housing price at the
• 44:00 - 44:30 ceilings which I think around uh in 2018 was around um 1.7 million now what can we derive from these findings first is that the extent of housing stress um tells us that housing is has not been affordable in the Philippines um and also the the 30 standard um is not a suitable method to to
• 44:30 - 45:00 generate or to determine housing affordability in the country because it overestimates um uh housing affordability among the poor while it underestimates the affordability among higher income groups also the the receivable income method um is able to give us a more accurate or can provide us a more accurate picture of housing affordability given affordable housing packages
• 45:00 - 45:30 um and also given comparisons with the price ceilings so to further conclude on this presentation and to provide recommendations of the study we I give the floor to the purpose Terrace yeah thank you please go to the next slide yeah so given what we know about uh uh affordability levels in the Philippines as well as the apparent mismatch between uh housing afford
• 45:30 - 46:00 affordability households affordability and what is available what is supplied in the formal Market we we recommend a certain uh what you call enabling policies and rules that will uh hope to improve uh the functioning of the housing market and uh these reforms are actually providing and enabling governance as
• 46:00 - 46:30 well as a legal framework that would uh set the tone for housing programs and housing interventions in in the country the first is a government we we think we we suggest that in the case of the poor and and for socialized housing or affordable housing development the government plays a very important role
• 46:30 - 47:00 in fact if you look at the the history of other countries when the country is still at the state early stages of development and I think in the case of the Philippines although we are emerging if we look at the developments of household we are still at the uh at uh at the low level or the early stages uh there is you move towards non-market Solutions in addressing uh of um the housing needs
• 47:00 - 47:30 of the poor and the the low-income households so uh yeah given that the government should provide a needs to create a public housing fund it's really earmarked for housing and this is not only at the national level but also at the local level and these can be used to support um
• 47:30 - 48:00 uh provision of uh of housing uh this is this either to Islam upgrading or provision of Public House Rental housing um it can also be used to to find uh subsidies direct subsidies and as we have been repeatedly saying uh subsidies should be well targeted and it's not open uh that in which the access to housing will not really be the middle
• 48:00 - 48:30 income but really those who are in need the other uh I think important consideration for governments role in the housing market is to really create a lime Community Trust this is actually separating land um a self-containment of certain um land um government lands that can be used uh for um for the development of affordability
• 48:30 - 49:00 affordable housing and can actually be passed on to uh to new sets or new household that would need it because we know that um households there will be Improvement in income over time of households and probably uh if you are a low income at this at this time you will in the future you can afford housing in the market and therefore you you'll be able to instead of you keeping the asset that has been
• 49:00 - 49:30 provided by through government subsidy then we can this can be sold this can be uh allocated to a more deserving or underserved household so the way to do it is actually to a Land Community Trust you separate actually Land from the building itself in some countries they can even buy uh own the building but you can only sell it to the uh
• 49:30 - 50:00 to the land whoever is involved uh uh to to government or whoever is managing the Land Trust or it can be in the form of of rental so uh I think that's very important in the case of uh to have affordable housing and to retain that in even in urban areas uh the other one is which is also related to government uh a role is the development of your rental
• 50:00 - 50:30 rental housing and I think this has been uh already emphasized in several studies and discussion and it's a good thing that that the house committee at the Senate and legislative um Senate and Congress have already come up with this rental Housing Voucher which is one policy that can be uh that actually supports rental housing in the
• 50:30 - 51:00 country but I think uh it should be it should go beyond that uh there should be it should be well thought of and there should be a complementary policies to be able to support that and uh again review of the of the rent control is uh is uh needed at this time uh although we are saying that the rent control now is is less restrictive as in the in the past the the recent literature is showing
• 51:00 - 51:30 that even with this uh less restrictive rent control uh the control and prices is not helping helping uh the development of the sector especially now if you're going to have a a rental voucher actually the object one of the object intended objective of that is to increase investment of the private sector in rental housing which can be actually hindered by the presence of your rent control
• 51:30 - 52:00 then there there could be other ways of incentivizing uh rental Housing Development by by the private sector especially if we uh public rental housing seems to we have tried that in the past but uh because of problems in terms of management uh this is not uh this is really actually deteriorated um into new housing stock actually has deteriorated
• 52:00 - 52:30 uh next please okay the other uh priority reforms has to do with the supply side of housing and this is pursuing land related reforms and the objective really of this is that you will avoid or hinder over commercialization of your housing sector so to government should ensure provide controls that would lead to speculative housing uh speculative
• 52:30 - 53:00 increases of prices in housing as well as what you say as we call it over commercialization of the housing sector and this can be done one I think of the legislative agenda that we have on uh in in Congress is the implementation of a standard valuation for real estate properties yeah the effective implementation of either land tax which is already actually a law but implementation has to
• 53:00 - 53:30 be addressed and uh improvements in terms of ease of doing business as well in titling as well as building permits and Licensing important reform would be uh the provision of innovative Housing Finance for households that but and but government should ensure that this will not distort private Market incentives uh
• 53:30 - 54:00 we should come up with tools that will mitigate the risk of Market defaults that is related often related to interest rate volatility and the last one which is actually in still being studied is to pursue construction reforms and we have to look into more details into the construction industry the supply side value chain from infrastructure development the the the provision of basic infrastructure to Construction
• 54:00 - 54:30 uh to building operations and to maintenance so is there a way that we can have a more efficient system so that we can um um more or less control or uh we have a more efficient system to enable more affordable housing whether this is for the the low income group or for the middle or uh income Market
• 54:30 - 55:00 so I think that ends our presentation thank you for your attention and thank you very much Dr uh Ballesteros and Miss Ramos for your clear and comprehensive presentation so uh we have address for the clear reality that housing prices in the Philippines are prohibited for poor households and even for low income but not poor households and um these groups are
• 55:00 - 55:30 experiencing housing stress our speakers also put forward several important recommendations to address the issue and we can unpack those recommendations um discuss uh those recommendations for their uh during the open uh forum so at this point uh let us listen to what our esteem panel of discussions have to say about the findings and recommendations of uh the study as well
• 55:30 - 56:00 as some critical aspects of housing provision our first discussion is from the department of human settlements and Urban Development we are very honored to have with us or IC director Rowena dineros of the Department's public housing and human settlement service Dr dineros also acts as a deputy head of the national Secretariat of the task force bangon marawi an intra agency body
• 56:00 - 56:30 for the recovery reconstruction and Rehabilitation of marawi city and um under the Housing and Urban Development coordinating Council uh which I believe is a predecessor of the uh the sud he served as the director for the regional operations group and the Community Development Group uh director Webb also worked at the National Economic and Development Authority as senior Economic Development specialist under the project monitoring
• 56:30 - 57:00 staff she met she is ambassador of Science degree in economics of urbanization for from the University College London would appreciate hearing from director Wang that only her reactions to the study with all but also her offices responses to a number of questions which she will cover in her talk you now have the floor uh director win thank you Sheila good afternoon to all who are present in
• 57:00 - 57:30 today's webinar on housing affordability in the Philippines by the Philippine Institute of development studies I would like to thank the pids for inviting us in this webinar the pids study that will be presented this afternoon or I was presented already is of utmost importance to us in the housing sector since it focuses on one important component in addressing the housing backlog that is
• 57:30 - 58:00 affordability and of course I would like to commend our steam colleague the VP of pids Dr Peng ballisteros the research efforts made by her team in this study and I must say that the study will count a lot through policy reforms in addressing the housing backlog in the next six years now let me respond to the questions posed to the suit relative to the
• 58:00 - 58:30 addressing the housing backlog next slide please let me introduce to you first our agency um the department of human settlements and Urban Development um it's a newly created a department under Republic act 11201 uh next slide please a lawyer a law is
• 58:30 - 59:00 passed in February 14 of 2019 thus the suit is three years now since its creation uh our mandates are of course uh we serve as the primary national government entity responsible for the management of housing human settlement and Urban Development and as a soul and Main planning and policy making regulatory program coordination and performance monitoring entity for all
• 59:00 - 59:30 housing human settlement and Urban Development concerns primarily focus on the access to and affordability of basic human needs um first um of course um it is through the ksas housing uh that KS that housing backlab is addressed in the in the country next slide please next slide
• 59:30 - 60:00 every year to the government Appropriations the key shelter agencies like the National Housing Authority here the social Housing Finance Corporation a national Home Mortgage were given a allocation for the respective Housing Programs except of course for the home development mutual fund which is a pension fund uh which is available by a member who wants um to Avail of their housing need their major accomplishments
• 60:00 - 60:30 from 2021 to June 2022 were as follows for the National Housing Authority there are a total of 80 85 174 families uh provided assistance and resettlement Nationwide next slide please for the social Housing Finance Corporation There are 16 060 informal
• 60:30 - 61:00 settler families assisted through its Community Driven and multi-stakeholders shelter financing program this is a total of 60 projects um that were financed for the period 2021 to June 2022 with a total loan release of 3.2 billion for nhmfc next slide please the national Home Mortgage Finance
• 61:00 - 61:30 Corporation serves as a secondary mortgage institution of the sector uh they contributed 1838 housing units under its housing loan receivable program as an as an smio secondary mortgage institution nhmfc is committed to increase the liquidity in the housing sector uh their purchase of presidential loans mortgages receivables originated by both public
• 61:30 - 62:00 and private institutions that are within the approved government standards for pag-ibig for the same period next slide please for the same period of 2021 to June 2022 pag-ibig fun Finance 141 717 housing units of the 2021 housing loan take out by
• 62:00 - 62:30 loan package of 97.2 billion it reveals that socialized housing program got 10 or 9.75 billion with 22 000 housing units medium cost is 4.3 billion with 1472 units open market is three percent or 3.2 billion and 787 translated to
• 62:30 - 63:00 787 housing units economics is 82 or 79 percent with 70 246 housing units or a total of 94 533 for 2021 housing units financed by the big fan the housing um
• 63:00 - 63:30 the human settlements and adjudicatory commission uh cases related to housing projects development they registered for 2019 cases disposed of uh 620 20 2019 Regional cases disposed uh we have 658 appealed cases disposed and 95 percent of decisions of the commission is affirmed by the commission or by the court of appeals
• 63:30 - 64:00 what is the housing sector budget for the past 12 years and it's only four percent of the proposed 2023 of the sector this only shows that housing um receives a very minimal budget
• 64:00 - 64:30 compared to the other sectors of the of the government foreign with a total of 294 1442 housing units despite the challenge um or 85 percent of the 346 700 housing units targeted uh for 2021 uh the sector has accomplished 85 percent of this
• 64:30 - 65:00 targeted housing units as planned for time for 2021 to June to 2022. on the question on how can local governments proactively do their part next slide please the hard seat there now that this would is implementing the local shelter planning program for local government
• 65:00 - 65:30 units are capacitated in the preparation of their local shelter plans a local shelter plan is a road map to address the housing requirement for both the formal and informal sector of a city or municipality it contains the local housing situation or we do situational analysis household affordability or affordability analysis and resource analysis or local resources needed and
• 65:30 - 66:00 it also identifies main shelter strategies and the corresponding implementation plan to address the housing requirement of Any Given local government unit LG use or the local government units with the approved local shelter Plans by their sanganian can provide funds or do land banking or partner with private sector for their housing projects or top programs of housing agencies appropriate
• 66:00 - 66:30 for their constituents with consideration of on the affordability of each household let me give you a run through of our status of local shelter plan as of November 2022 uh of the 1634 local government units Nationwide we were able to provide assistance in
• 66:30 - 67:00 local shelter planning to 1571 lgus or 96 percent and right shop is like uh 1007 lgus or 64 percent of the total 1 571 lgus which we have already provided technical assistance only 311 of that LG used have an approved local shelter plan
• 67:00 - 67:30 this only means that um local government units um give a small preferential to the housing need of the constituents because um with the local shelter plans already prepared and there's a need for them to have this adapted for them to be able to have a funding for the construction of housing units for their constituents only 311 have lgu7 approved local
• 67:30 - 68:00 shelter plan based on the Consolidated housing data of our local shelter plan of the 1571 lgus we were able to generate like um as of September as of November 2022 uh the total housing need count is like 6.6 million already and of which
• 68:00 - 68:30 um 3.7 million are the informal settler families um of this uh based on the local shelter plan prepared by them there's a land need a total of 60 70 782 hectares uh land needed for housing and identified so far uh based on the figure or the data information provided
• 68:30 - 69:00 provided by the lgus during the conduct of the training there are a total of 102 769 hectares uh identified for housing next question please next slide how can the private sector help and how is the government engaging it the decision one of um one partnership we had right now is
• 69:00 - 69:30 the partnership with the Habitat for Humanity Philippines the deceit is a member of a leadership Coalition that was established for the implementation of Negros Occidental impact 2025 which aims to build 10 000 housing units in sustainable communities that are clean green safe disaster resilient and with security of tenure it is anchored on the public private people Partnerships focus
• 69:30 - 70:00 on community cohesion and development site design and development Housing Finance and financial inclusion and construction technology other members of the leadership Coalition are the Hilti Foundation province of Negros Occidental Philippines ASA to name a few another partnership we had right now with the private sector is
• 70:00 - 70:30 next slide please is the partnership with the subdivision and housing developers Association partners with the suit for the implementation of the local shelter plan uh seeing that the LSP already contains projects for implementation or translating this into concrete housing projects the shadow members
• 70:30 - 71:00 um deem is necessary or it's like uh their partnership with local government units would be able to assist the the country in addressing the housing backlog so through the local shelter plan where projects are identified but the local government units for their constituents especially for the for the low-income households or poor households sheddah have this MOA with the
• 71:00 - 71:30 department of human settlements and Urban Development as long as the local shelter plan has been approved by the sanganyam and that would be the time that they would be able to partner with local government units and Translate these plans to actual housing projects what are the government plans to address the housing backlab for pandemic recently the de sued with the new
• 71:30 - 72:00 dispensation our secretary the secretary akusar presented to one of the cabinet meetings the introduced Filipino or we call it housing four piece the same um uh was presented because during the cabinet meeting by the secretary so what are what is this
• 72:00 - 72:30 Filipino the problem is basically trying to address the six million units housing backlog um mainly Jude because uh it's becoming like you know it's um the magnitude is like increasing uh because it's an affordable um housing and no access to Housing Finance the solution is basically to have um to produce one million housing
• 72:30 - 73:00 units uh yearly within the six year period and of course there's this um uh preferential interest rate of one person to buyers next slide please and of course there are three options uh option one is like socialized housing which has a cup of five hundred thousand five hundred eighty thousand option two They Call It upgraded housing and option
• 73:00 - 73:30 three is like the mid-rise and high rise which is like 1.1 million pesos the Funding Solution is like um we'll be providing like 38 000 per year per household as an internet support that's why um we're uh forwarding our uh requesting actually we're spousing for uh 36 billion uh
• 73:30 - 74:00 interest subsidy uh to address this um 1 million housing uh production we intend to do to uh to address the housing backlog and of course the benefit of this four piece in housing is like uh it would generate employment and of course um uh taxes and other uh like bug and other transfer talks and of course uh provision of employment or
• 74:00 - 74:30 generate generation of employment like 1.7 million workers per year what are the the key features of this program um we have to identify of course blighted areas where informal settler families are located shall be identified for a mixed use development and of course developmental loans shall be provided by pag-ibig Pam developers shall do the development of this housing
• 74:30 - 75:00 project and of course local government unit shall identify beneficiaries and will provide amortization subsidy support the gfis and other private Banks shall do the take out and the suit shall provide interest subsidy support from the national government or the general Appropriations Act on a final note we in the suit would like to underscore that the housing sector Bears the social
• 75:00 - 75:30 function of the government and with the public health issue of the corona pandemic coronavirus pandemic for the past two years the impact to the sector is significant in terms of addressing the housing backlog of 6.4 million housing units and going unquantifiable effect of provision of security of tenure especially to the lower segments of the society is a function
• 75:30 - 76:00 of better health conditions and of course lower budget budgetary requirements for the health sector further better housing facilities can be correlated during improved peace and Order situation and a more productive labor force and citizenry in addition based on our co-discussion here Mr paduhi no study the housing sector industry is seen as an economic
• 76:00 - 76:30 pump primer in one of his studies conducted in behalf of sheddah housing activities generate substantial direct employment with an average of 8.3 laborers for three weeks or 124 Mondays and contributes a 3.4 multiplier effect on the accounting economy due to 80 80 plus Allied in the industries attached to housing sector as to the
• 76:30 - 77:00 study the following are the comments of this one uh the authors note that the 30 of income standard uh over estimates housing affordability among the poor and underestimates among those in the upper income levels relative to the residual income method in other words the poor and low-income households are not able to afford price at 30 percent of their income well the middle income to which
• 77:00 - 77:30 are able to afford housing price at more than 30 percent of their income in the deserts local shelter planning manual we recommend it recommends that the potential percentage where actually we're doing this it's part of our manual for the LSP um it recommends the potential percentage of household monthly income that can be used to pay for housing should not exceed 20 percent
• 77:30 - 78:00 it can be lower than 20 percent 20 percent especially for the lower income a group on the other hand pag-ibig fan allows maximum of 40 percent of take home or take home pay of a member borrower as a payment for housing loan amortization this is based on income of an individual member not on household income
• 78:00 - 78:30 the study also mentioned components of threshold for non-housing basic expenditure under table 14 components like food expenditure clothing footwear water supply medicine Medical Care to name appeal under the same local shelter local shelter uh plan manual uh we use a similar strategy in determining the potential coverage of income for housing
• 78:30 - 79:00 such as food fuel light and water transport and communication clothes education and medical care to name a few on priority reforms government-led socialized Housing Development the national national government agency including the suit can only provide technical policy and financial support because provision of Housing and its related law basic Services have been
• 79:00 - 79:30 devolved to local government units under RH 7160 and ra7 279 on the creation of a public housing fund for from several sources as mentioned earlier by the Dr ping um these are like balance housing regulation either land taxes a flotation of bonds Etc these are already provided for in the ra 7279 or the Urban
• 79:30 - 80:00 Development and Housing Act on the creation of a multi-layered affordability housing program for the unemployed low-income middle income it is proposed that a three-tiered social allowance housing price ceiling be developed for the socialized income group increase on the role of local governments is social housing development rental and owner occupation we support this in light of valenzuela's lgu's
• 80:00 - 80:30 discipline a village together with the National Housing Authority as best practice or model program on rental housing on the national government local government units can partner with ngos including International ngos private sector this is being done as I presented earlier with Habitat for Humanity and shared that and other ngos and csos to our having
• 80:30 - 81:00 partners right now on the priority reforms the government is embarking right now through the key shelter agencies and in collaboration with the private sector in addressing the housing of the underserved sector the socialized housing sector both rental and interest subsidies or directs our subsidies are being advocated by the deceit in the legislative branch as mentioned earlier by the Dr Pam we're
• 81:00 - 81:30 pushing for a rental subsidy uh Bill and of course on the land valuation act we support the passage of the real property evaluation Assessment Act or the house bill 8453 since this is since this will introduce vital reforms to promote the development of a jazz Equitable and efficient real property evaluation system further this will have
• 81:30 - 82:00 greater impact in the housing sector that would re down to the benefits of the home buyers especially of the socialized and locals housing program as per one of the provisions of the bill where it stipulates under section 12 valuation of real property for Real Property intended for low cost or socialized housing and other programs of the government imbued with social policy of objectives the provisions of existing
• 82:00 - 82:30 pertinent laws shall be applied that's all and good afternoon to all thank you very much uh director uh Wang dinerosa Beach soon for um your presentation where we appreciate your updates on um the plans and initiatives of the issue how is it working with the um with the private sector as well as um indispensable role in this possible role
• 82:30 - 83:00 of the local government units to address the housing backward okay so from the government let us go to the private sector which plays an important um role in housing provision and we have with us Mr Santiago ducat executive executive director of the subdivision in housing developers association association or shadow um he is a licensed real estate broker in the licensed environmental planner
• 83:00 - 83:30 elisani has worked with government and private housing developers he has a bachelor's degree in Commerce nature and economics and postgraduate degrees and diplomas from various institutions including Urban and Regional planning from the UK School of urban emotional planning deployment economics from the UT School of Economics development planning from the center for development studies in India and Moscow State University uh and others Okay so we've asked uh
• 83:30 - 84:00 elisani to share his insights and on a number of topics in addition to his reactions to the issues and recommendations of the study Sunny you may proceed thank you very much Miss Sheila for that introduction good afternoon everyone watching and participating in this important Forum on housing affordability I would like to thank and congratulate pids for continuously doing relevant
• 84:00 - 84:30 timely studies all to guide us to attain our development objectives also I would like to thank the president of pits Dr orbita the vice president Dr vallesteros for giving Shadow the opportunity to participate in this important forum let me start with my discussion all how the private sector can help in housing provision and how we can provide decent and affordable housing for all
• 84:30 - 85:00 especially the lower income groups I'd like to start and uh note that foremost the government has packed the price ceiling for housing packages in our country socialized housing or those addressed for the lower income groups of the population is priced at 480 000 while that of economic housing for middle class is priced at 1.7 million per dwelling unit recently this has been
• 85:00 - 85:30 adjusted 2.5 I would like to know that it is important for the government to periodically adjust this price ceiling also since called inputs to production of housing has also increased so it is important that this uh taking to consideration this increases so that we will be assured of uh supply for housing especially for the lower income groups second I'd like to note that the private
• 85:30 - 86:00 sector has continually continuously worked and assisted in the government's provision of housing historically we have been producing on the average of some 200 000 housing units and when some of which 60 to 75 percent are socialized housing third we at sheddah the private sector work in Synergy with the government in the provision of housing under the National Shelter program we provide feedback we
• 86:00 - 86:30 participate in the many activities and discussions we monitor the project implementation we provide information from the ground level to the policy and program proponents on housing and we believe that this is important to have a meaningful program and efficient and effective program for housing fourth we also pursue Innovative programs that will involve the national and local government units the private sector and
• 86:30 - 87:00 communities themselves and uh we do this and thank you director weng for mentioning about the local shelter activities of Shadow with the local government units it is just for us to make sure that all these 1600 over citizen municipalities do have approved local shelter plans so that we can effectively Implement our participation with this activity
• 87:00 - 87:30 fifth I'd like to make mention of rental housing and similar initiatives which can be explored and done and we are doing this perhaps there can be a paradigm shift from owning a house of their own for every family or a roof individual groups for everyone to rental housing so that immediately we can address the security of tenure and at the same time respond to the
• 87:30 - 88:00 affordability of buyers six vertical housing and affordable housing walk-ups utilizing new technologies and construction methodologies sustainable green and resilient approaches which take into consideration very important mobility and access to work areas of residents are being done and being explored by the private sector seven it is very important that subsidies from the government in
• 88:00 - 88:30 particular perhaps land our presenter Dr Ballesteros has mentioned about land uh Community trusts and uh we believe that this is important we're in uh houses uh for the low-income groups can be built it is important for us also to simplify the permitting process because this is also a corresponding cost the determination of the right type of subsidies is very crucial because uh
• 88:30 - 89:00 over subsidy or if it is very easy for the beneficiaries to acquire housing it will be also easy for them to let go of this facility so it is important that we uh determine uh the right subsidy to enhance affordability and accessibility of the lower income groups perhaps The Sweat Equity from beneficiaries is also an important consideration the community preparations the
• 89:00 - 89:30 counseling the briefing and education on repayments will be very important so that projects will be and can be replicated for other beneficiaries and post-project management and Property Management are equally vital areas to consider and this is being done and proposed by the private sector on the areas of financing which can be strengthened and introduced again number one rental housing and rent
• 89:30 - 90:00 to own schemes can be explored as affordability and income increases families can move from one flat to other units which suit their affordability this will also allow flexibility for the government in planning and designing specific projects and most specially in the use of land in the adoption of new strategies and programs in the future this will be the current practice of just distribution of plots and
• 90:00 - 90:30 individual titles so the flexibility of utilization of land for the government will be there if uh we will Design specific projects and new strategies the third is with respect to membership to about giving fund or the Home Development mutual fund the national savings scheme for housing all prospective members especially the informal sectors or the informal settlers so that this will enhance their
• 90:30 - 91:00 formal access to home financing fourth there are many success stories of the country with respect for operative housing perhaps we can examine this we can explore and replicate the success stories financial literacy and Innovative collection schemes can be adapted to ensure higher repayments and replication of future projects if the pulling of resources and options
• 91:00 - 91:30 of the government from funding sources the IRA additional taxes for revenues that can which can be utilized for housing by the LG use the guarantee which can be provided by the Philippine guarantee Corporation the former home insurance guarantee Corporation to ensure participation of other private financial institutions in the private sector in housing initiatives are all important now what are our projections for the
• 91:30 - 92:00 Post pandemic housing markets the pandemic has made people realize the importance and the need for quality and better housing facilities we were all in our houses most of the times during pandemic and we have realized and sometimes we have to isolate ourselves and we have we have realized that uh it is better for us to have housing facilities thus there is a renewed and
• 92:00 - 92:30 greater interests from everyone for quality and housing that are responsive to the current challenges brought about by pandemic and the climate change despite these current challenges which have been mentioned even by the previous presenter director when Daenerys of the department of human settlements and Urban Development We Believe or I believe that the Philippine Housing Industry remains who have a bright Prospect
• 92:30 - 93:00 on account of the following reasons first the government policies and institutions are in place the creation of the department of human settlements and Urban Development as mentioned which is now celebrating its third year from its creation and we'd like to note that sheddah has advocated for the creation of the tissue and this has ensured that specific Department can now take cudgels for the housing sector so it can take credits as well as blame
• 93:00 - 93:30 and perhaps ensure a greater uh budgetary allocation in the financial pie although earlier there was a blight uh presentation also that still the housing sector is given a a very uh little priority also in the allocation of the budget bike but we will continue to work with the suit the private sector to lobby for uh the allocation of a better and just
• 93:30 - 94:00 budget for the housing sector second the government financial institutions the Home Development mutual fund or hdmf has announced the availability of some 100 billion pesos for 2022 for home and buyers and members of the fund this is a good news for the private sector and also I'd like to note that other private financial institutions particularly banks have
• 94:00 - 94:30 shown interest in the housing sector and we must also make advantage of this interest third or fourth the huge housing backlog it was mentioned that it's 6.5 and director Wang has updated that this is now 6.7 million dwelling units uh and it will continue to increase because of the number one population growth second obsolet sense and dilapidation and the third the houses that we lose due to
• 94:30 - 95:00 calamities you know we are visited by at least 20 typhoons every year and we have to watch out not just on flooding but also erosion and Landslide and fourth the doubled up household which has continued to increase also and lastly the unacceptable dwelling units or the blighted areas which approximately occupy some 30 of major urban areas then if the strong private sector participation is another bright uh
• 95:00 - 95:30 Prospect in the Housing Industry you know sheddah and other organizations from the private sector has been continuously participating and supporting the government's efforts to address the country's housing needs the presence of Shadow and its strong Regional we have a strong Regional membership as well uh I think would add and complement the efforts of the government I'd like to note also the OFW
• 95:30 - 96:00 sector uh or the strong market for property developers you know the OFW users continuously and annually remitted some 200 billion to our country so we we should take note of this and most of this OFW would really want they go outside the country to be able to have a house of Their Own and also I'd like to note that there exists new technologies and Innovations
• 96:00 - 96:30 in housing construction as well as the front and back and support to housing operations there are Technologies to make the operations more effective and efficient thus enhancing also the supply and production of housing on the initiatives of the government and the private sector to address housing backlog well as noted earlier the soon secretary apusar has recently announced the creation of one million houses every
• 96:30 - 97:00 year for the next six years to address the housing Buffalo and the private sector also is having and growing its plans and roadmap so so us we can support this target of the government we will continue to have dialogue and meetings with them to ensure that at least we should be able to attain uh the majority of this target has just been invited to consultation
• 97:00 - 97:30 meeting in preparation of the housing and Social Development sector plans for 2022-2028 by Neda and this just shows how uh we are really participating in all efforts in all fronts of the government with respect to Housing and Urban Development the local government units are much involved in carrying out their respective housing initiatives also in coordination with the desood
• 97:30 - 98:00 the national government and sheda is there also we continuously to do uh projects and programs we hold memorandum we we sign memorandum of agreements with LG use in the implementation of their respective local shelter plans then government from both the executive and legislative sector also are drawing out initiatives to fund the requirements of the housing sector and we are there also to Lobby to ensure that there is
• 98:00 - 98:30 continuous and enough financing for housing on uh the business models next next on the business models uh which uh the private and the public partnership for housing construction uh can be uh pursued we we uh we proposed that the important factors to consider are subsidies foremost access to land this will be
• 98:30 - 99:00 ideal if the government will be utilizing the idle lands and the News lands which the government owned you know 30 percent of the cost of the housing activity goes to land and if this is done the access or the uh affordability will be greatly enhanced then the sources of financing and templates for implementation and the identification of specific roles and responsibilities of the national
• 99:00 - 99:30 government of the local government of the financial institutions of the private sector and even the communities themselves have to be drawn up of course it is also important in in uh designing housing projects to consider Mobility the access to Transportation Networks the basic facilities and services you know portable water and electricity the livelihood and economic opportunities
• 99:30 - 100:00 the skills and job trainings of the family heads financial literacy and post-project management and Property Management all these should be done in coordination by the private sector and the local government units and the national government and the communities themselves of course lastly as I have noted the involvement of the community beneficiaries from the conceptualization of the program up to the implementation and management is very vital for after
• 100:00 - 100:30 all we plan and we design projects for the communities and it is just proper that they be involved on key issues and recommendations of course uh the determination of real and most accurate housing affordability is very important in laying out the policies and programs to address the housing needs and housing demand and this is somehow shown in the
• 100:30 - 101:00 residual methodology as discussed in the paper of Dr valias Terrace the cost of land and other major input styles in production for instance the cost construction materials and labor the permitting process are important considerations for the government and the private sector to watch to enhance affordability and intervention a more active role of the government in the implementation of public housing
• 101:00 - 101:30 programs to address the requirements of the informal sectors the private or public housing well our colleague director dineros is the head of the public housing office of the desood and we are happy that the suit is giving attention to public housing that would address the needs of those in the lower income groups and even those who do not have access to the formal financing
• 101:30 - 102:00 so again very important the determination of the right subsidy and specific sources of funding for sustainability of the programs are all vital and we are happy that uh the study also had made mention of uh the Land Community Trust wherein there is a separation of uh uh the ownership of land from the building itself I think this will also facilitate and enhance greater afford affordability
• 102:00 - 102:30 and this should be supported uh even if uh it needs some legislations as well the private sector will support these initiatives you you see there's already a question there in the chat box asking if how this will be implemented well the good recommendations of the study will be picked up by the private sector and this will also be echoed in our many meetings and recommendations also to the government both the executive and the
• 102:30 - 103:00 legislative on uh while I agree that there is a need for some Financial regulations and intervention interventions from the government in the areas of implementation of idle tax there was a discussion there is a discussion on this in the study Financial regulations to address speculative activities we would like to draw caution that the caution is in order as this might also result to further price Distortion and
• 103:00 - 103:30 eventually increase the cost of housing and adversely affect affordability on property valuation process and methodologies it is really uh prevalent and it is true that we have so many methodologies on the valuation of properties and this has to be Revisited and reviewed so that proper valuing of land which affects also affordability can be done there is also a need to re-examine and revisit uh Republic of 70 to 79 or the udha or the balance is
• 103:30 - 104:00 specifically the balance uh housing requirements Provisions moreover the current alternative compliance you know to the requirements there are many alternative compliance and then we believe this has to be reviewed to ensure that the real objective of the law that is the supply of affordable housing specifically for the lower income groups is achieved then under provision of affordable and sustainable
• 104:00 - 104:30 housing should be approached in an integrative manner as the sector cuts across all other important sectors you know the women children security it has impact on health also unemployment you know 20 uh we we estimate uh for a housing unit you would need at least 15 Manpower requirements and even easily quantify the man hours and the band days that housing will impact on employment this can address as
• 104:30 - 105:00 much as five percent of the total employment requirements then housing is very much important in productivity as well as there are more than 80 industries that are attached to housing and uh it was also mentioned that the multiplier effect on the housing is already some three point maybe Dr padohino will also uh delve on that and these are all important uh for the growth and development objectives of our
• 105:00 - 105:30 country in summary uh it is really important to look into when when a policy and program planners for housing speak about affordability we view this uh from two perspectives first on the cost cost approach of course those who build houses we look at it is inevitable for them to examine and go back how much and compute the cost for production however it is also important
• 105:30 - 106:00 to examine the affordability of the targeted clientele and beneficiaries so it is up for us uh policy makers and planners from the government from the private sector from the academic to strike a balance between affordability and cost cost approach so with that uh I'd like to end my presentation and thank you very much
• 106:00 - 106:30 for your your um comprehensive remarks um we'll hear more from Evie Sunny during the open Forum we still have one more discussion and he is uh well um Sunny already uh mentioned him a while ago our last discussion is from the academy uh Dr Winston padahino who is the president of the University of Asia and the Pacific um Dr padukino is an expert on
• 106:30 - 107:00 property economics industrial economics and Strategic Management um he lectures in the senior executive and graduate programs of uant on industry Dynamics Strategic Management corporate finance leadership and strategy execution he also serves as a policy advisor to several industry associations including the sheddah the organization of social housing developers of the Philippines
• 107:00 - 107:30 the semiconductor and electronics industries of the Philippines and and many others um Dr padhino obtained his doctor of business administration degree from the De La Salle University's Graduate School of Business and he also completed the international faculty program of the iese business school in Barcelona Spain so aside from his reactions to the study we also asked Dr paduhido to give his viewpoints on the topics earlier covered
• 107:30 - 108:00 by the other discussions uh good afternoon uh to to everyone who would like to send my uh thank you to the president of the ABS uh babes are beta for inviting me and I want to say my regards to Dr marife balisteros the
• 108:00 - 108:30 vice president and of course my friends in the housing sector uh Sunny from sheddah also George C I think is here the president as well as executive director of the suit and everyone here listening to to this forum allow me to share with you the slides that uh I'll be using to give my
• 108:30 - 109:00 my uh comments so I think a number of very good ideas have already been pushed and I'm glad that I will be focusing on other aspects more General aspects that uh may be considered but I just like to uh Focus my short discussion on two areas first a reflection on the paper because I just have to share with
• 109:00 - 109:30 everyone despite my administrative assignments in a university I still continue to do as much as possible housing studies taking into hard a large portion of our Filipinos who don't have any shelter at the moment that is the one that is motivating me to continue this research and advocacy to as much as possible provide them the right to decent housing
• 109:30 - 110:00 and finally um I will try to answer because many of the great ideas have already been placed forward by Dr Ballesteros and the team also by sunny and also by director dineros they're very very uh very useful in pursuing and at least attaining the 1 million a year housing Target of the
• 110:00 - 110:30 secretary of the suit secretary akuzar but let me share with you some of my brief Reflections on the paper and it's a very good paper as always I'm an Avid Reader of the policy papers of uh pids as well specifically the papers published by Dr Ballesteros that continues to Enlighten a lot of my own personal research on housing so first and foremost
• 110:30 - 111:00 sometimes we tend to dwell on Purely on the economic side of affordability forgetting that it is just beyond economics that we are talking about because affordability talks about also enhancing the Dignity of the human person sometimes um we forget the fact that many studies do
• 111:00 - 111:30 show that housing provide a lot of non-economic benefits as well if we provide them with decent housing like it has been shown that it reduces criminality for example another benefit of housing is that it allows children to study and to finish their their studies up to the college level and also reduce exploitation among other things so one
• 111:30 - 112:00 thing very interesting about the research is also to go beyond the benefits of Economics but also to see how it enhances our dignity as human persons especially to those who cannot afford them so when we talk about affordability we talk about attainability decency and sustainability and I like to encourage everyone to visit the website of bids to read the paper
• 112:00 - 112:30 yes there are many various approaches to measuring housing affordability because that is the demand side of the market now just to share with you that the the uh despite the huge demand for housing mainly actually the studies have already shown using the conventional method the residual method
• 112:30 - 113:00 that a good number can actually afford but you just have to also take into account Market forces why despite that uh the private sector is not willing to pump in and uh fill in that demand as Sani said earlier it is very important to have a close dialogue between the government and the Regulators in particular of the price ceiling at the
• 113:00 - 113:30 same time considering also the economic condition of the economy because I know that our present situation right now is not very ideal where inflation is very high and we are still reeling and trying to recover from the lockdown so my studies in the past have been really been using the residual income approach but of course using the 30 percent uh criteria which the study may
• 113:30 - 114:00 have said may actually uh underestimate the capacity of those who can afford but under uh overestimate also for those who cannot afford but my discussion here is my focus on my discussion I really those who cannot afford uh and I think that's also very important in our discussion it seems that they are being left behind um and also I recalled how the data has
• 114:00 - 114:30 moved from 2015 to 2018 when poverty incidents went down from 22 percent to 17 percent there was a very large increase in affordability actually as the study has indicated only that with the lockdown if you start putting in also the adjustment in the recent prices we need to see also the especially for economic housing you could also see the implications on affordability that those who can afford
• 114:30 - 115:00 at the economic economic segment may actually go down to the socialized segment hoping that there will be enough Supply as well to cater to that particular demand and uh our current models at the moment if I can share with you my reflection is that we are working heavily on the current uh model of affordability where uh only those with regular incomes for example
• 115:00 - 115:30 and improving incomes can really participate in the formal housing sector missing the fact that there's a very large sector and growing sector especially the poor that cannot be considered in this kind of model that is why we have to rethink and to consider some of the Innovative and very novel ideas here especially a public fund for example a public housing fund no the Inland Community
• 115:30 - 116:00 Trust these are a very good ideas and to make sure that this will be ultimately redone to more affordable housing at the same time provide decent housing as well not just a roof not just a small unit the Studies have shown that their households with two and there's households with five we cannot Model A unit for example that
• 116:00 - 116:30 is catering to five family members per household with something that is designed purely as a Studio unit where only a couple can actually stay so it's very important also to think about along the lines of those who who we with unique demographic profile we must remember that if you look at the history in the Philippines what has rescued us from one crisis from another is our demographic
• 116:30 - 117:00 dividend our Manpower and we should support we will find a way to support families especially large families especially those poor and large families also to have access to decent housing making sure that we will not fall into the Trap of many countries that are now experiencing demographic winter so much of the work recently that I have
• 117:00 - 117:30 personally done is really working on present the prevailing policy so but what we have seen here in the discussion are uh uh our new ideas to create another uh operating environment for both uh the buyers at the same time the developers to work and that means that's where government should come in and create an enabling environment to allow for more Innovative housing
• 117:30 - 118:00 programs so most of our work by far has been really incentivizing private developers to serve the low-income households and tend to get a portion of that for balance housing and then rely on the non-government for other sectors especially for informal settlers but as what present presented earlier by director dineros there's really no
• 118:00 - 118:30 uh priority given to the suit right now with an allocation of even less than one percent of the total government resources and I think we we really forget that uh the course uh circumstances are quite unique they did not have for example the documentation that is needed to qualify and participate in formal Housing Programs but they have the uh the jobs
• 118:30 - 119:00 actually they have the uh entrepreneur girl activities that can to some extent support them now let me go straight now to some of the questions which I believe have been thoroughly answered by the others and I will be maybe replicating some of them so the three questions are addressed to me which are actually related when you answer it are the following
• 119:00 - 119:30 how can the government address the housing backlab how can lgus proactively do their part what is the business model like the Partnerships for housing construction projects to help address the backlog by the way the buck Club is a result of accumulation of deficits when I say deficit it means that demand continues to exceed Supply and an accumulation of that deficit creates a
• 119:30 - 120:00 backlog and this backlog has been presented earlier no surprise has been growing because Supply in the very first place has not been catching up with demand uh just to share with you some important facts now our private sector if you look at historical data and if you can use both house and lots and lots only ask their capacity to develop you're looking
• 120:00 - 120:30 at no more than 320 000 maximum capacity of our uh private sector developers to churn out units or even Lots however our household science is increasing by at least 420 000 every year assuming at 1.7 percent every year growth so that alone uh you could already see that we need also to
• 120:30 - 121:00 boost capacity uh for our private sector and finally uh how can housing be made more affordable so let me just as I have said earlier let me just focus on some areas where I believe it's very important now that the law the uh mandanas Garcia law has been implemented and you and I already know the heavy
• 121:00 - 121:30 debt uh burden of our national government we cannot really totally rely for example uh for the national government to fully Finance this and with a significant portion of the resources moving to the lgus it is just but logical you know to also let and allow lgus to to participate in addressing these major issues and for the private sector as well to be very much part of the whole program of
• 121:30 - 122:00 addressing the baklav so I think we really need a a paradigm shift we cannot continue with the same uh scenario or the same operating environment we had especially pre-pandemic because with that current models that we have been adapting I'm almost very convinced that we will not be able to cover that deficit but I think working on a clear number like 1 million housing units every year is something to start and from there work
• 122:00 - 122:30 around a model to support that so paradigm shift for housing for the answer that remains that's my my personal definition is those who cannot afford at all and the underserved remember there are those a large number of people who can actually afford but the the supply side is not willing to fill that because of other reasons that have already been raised earlier by signing so
• 122:30 - 123:00 public housing I'm focusing more on those who cannot really afford at all to make it really affordable no the market forces cannot really address this no we really need a very unique intervention I think it has already been specified that we have to change uh the the model from ownership to rights or long-term lease or rental housing and to also separate separate the land from
• 123:00 - 123:30 the housing construction activities which can be undertaken by the private sector so a community not trust for example will be a very good uh suggestion to to pursue suggestion by Dr baliaceros and then since we are putting ceilings and uh that's those ceilings determine the you know many economic decisions of the private developers we need to continue
• 123:30 - 124:00 that that incentives are still there and I think uh we need a public housing fund really you know where uh the much needed resources are there no uh I have to restart the a7279 that specifies that it allows already for public housing funds maybe it's worth
• 124:00 - 124:30 revisiting again but we do need uh resources here to make sure that we have the wherewithal to fund these public housing project specifically for those who cannot afford them and the voucher system should be targeted it should only be given as Dr Ballesteros already have said to those who cannot really afford whether this is for rights or even for rental and
• 124:30 - 125:00 uh finally uh you know the if we want to really accelerate production uh working with many developers in their projects have seen how produced the process of approving a Housing Development entailing because it takes at least a minimum of two years for land
• 125:00 - 125:30 to be useful for housing developments to be finally converted to housing units available to the market so that alone also contributes to to costs and at the same time you have to remember when I say costs it does not only pertain to the cost of the developer now but to the costs that will be coming in Into the Future as we speak as we speak now for example uh construction material costs are still increasing
• 125:30 - 126:00 so if there will be more delays there will be additional burden to the developers and of course a lot of pressure once again for both the buyer and the government to accommodate that and finally the role of the government unit I think given the resources including land available to the lgus I hope that they will really follow through with their shelter plans as initiated by the
• 126:00 - 126:30 suit that they will work together with their partnership there are many good models that are already there bespect real the one in Venezuela the one also adopted by the finma properties they're already models that can be replicated and hopefully it can be another task that allows some lgus to on their own address this because they are the ones who practically know that the
• 126:30 - 127:00 beneficiaries I was thinking that uh in the event that a partnership comes about and it's the private sector that builds the housing units the government owns the land perhaps specific roles can be played like real property taxes may be Exempted they identify the beneficiaries the lgus because they are the ones who are really in the position very close to the uh to the people we will be able to identify
• 127:00 - 127:30 who deserves it the social preparation activities because we have to deal with them as the community before during and also during the occupancy or of a housing unit a very good model to adapt is the one that is usually used in community what you get much gate programs once again I encourage all of you to read that particular program in the pids website and then I was thinking if the lgus will
• 127:30 - 128:00 be responsible for collecting the feasts the rent at the same time the private sector besides doing the construction manages the property remember um as has been elaborated earlier many of these uh families poor households don't intend to stay there for a long time they have their aspirations as well they won't be staying there they they will move out ultimately to better
• 128:00 - 128:30 housing now it is key that when they vacate those housing units because they have improved their flight they're going into better let's say more uh expensive units that someone should manage the property to make sure that it becomes again ready to accommodate another beneficiary that will be identified let's say for the lgu and for the underserved these are the ones who can afford but there are not
• 128:30 - 129:00 much Supply coming there are many reasons there as I have said perhaps you can accelerate the approval of housing permits the permitting process you have to continue to extend that once again the incentive to private developers and I'm really encouraging close collaboration which is already happening between in particular to really discuss these housing issues because the situation is
• 129:00 - 129:30 very dynamic they don't change they don't they're not permanent they always change and sometimes the law or even policies or executive orders cannot cope with these changes unless there is close collaboration between the parties involved in addressing the housing backlog and finally once again the need for reducing the the housing unit cost
• 129:30 - 130:00 perhaps by having the land again handled by the public sector and perhaps the private sector will be able to handle the construction activities as well so these are some of the ideas I would like to share with you and I hope it has enlightened also and added to the discussion in this afternoon thank you once again and listen good afternoon to all and thank you very much Dr uh Winston
• 130:00 - 130:30 um for your thought-provoking remarks uh we really uh learned a lot from your uh discussion so at this point friends um let's dive into some important points which I think are worth look are worth looking taking uh are worth taking a closer look no so at this point may I uh invite all our speakers and discussions to the uh
• 130:30 - 131:00 um q a Q and A Part so let's look at some important points from the discussion and first is the role of the lgus much has been said about the important role this indispensable role of our lgus but how receptive are they in in uh in partnering with the government in partnering with the private sector in terms of our public housing you know Dr paduhi nog and Dr director Daenerys have mentioned some
• 131:00 - 131:30 um good cases no uh Dr Pat I think mentioned about Mystic Bill and then director Dinero's the case of nobody shares there are also good uh cases that we can find in the city of Manila but in director daenerys's um uh discussion he's she said that only 19 of our lgus have local shelter plans no so how can we entice more lgus
• 131:30 - 132:00 you know to to participate in in housing provision to to uh participate in the provision of public housing um what incentives can we provide lgus um may I request uh our speakers uh perhaps we can we can uh start from our presenters uh Dr uh balisteros you may want to uh take the craft in answering
• 132:00 - 132:30 uh you know to initiate the discussion on this question mark oh yeah thanks uh Sheila for that yeah I think we have to put it in context no a housing the housing is actually a localized uh issue and a problem and it's really even without ra you know local government code it's really within the the jurisdiction of the local governments to address human housing
• 132:30 - 133:00 problems that's why we we encourage city-wide planning uh that's actually one of the the important tasks that they have and uh and will address the the illum housing housing issue so um if you know Viva if we study housing it's usually uh um Metro Manila or New York City by what local government has different ways of uh or programs of addressing new
• 133:00 - 133:30 housing problem within within the the sea so I um it's actually I don't know if you did more incentive but but you see it's like a national government you have it's it's your task and the incentive probably is better economic development of your locality because if you have a better City Planning you have more efficiency you have and this will you have more
• 133:30 - 134:00 business coming in and just translate into uh revenues increasing revenues and uh quality of life in that area so there for me that itself is already the the um very well said Dr balis Terrace I think our discussions have some something uh are very important to say I saw that um Edie um Sunny raised his hand sorry please go ahead then we can also ask
• 134:00 - 134:30 um Dr Stan and uh director uh Daenerys thank you thank you Miss Sheila for recognizing uh foremost I just want to to note that when director dineros mentioned about the few local government units uh have uh shelter plans uh the fact is there are a lot or or majority of the local government units have shelter plans
• 134:30 - 135:00 although some the prerequisite is really approval by the sangunian so it is where uh uh you know the the the uh problem lies the approval of the sanghunian but as it is there's really much awareness and Technical and managerial capabilities of the local government units and the interests to really Implement uh housing projects especially for the lower income groups they are the
• 135:00 - 135:30 ones mandated by ra 7279 to identify sites for housing and also beneficiaries and they are aware of these Perhaps it is just for us to to make sure that uh the local uh I mean the elected officials uh the sambolian in particular to approve their local shelter plans thank you thank you for that um Eddie uh Sunny uh Dr Stan would you have um
• 135:30 - 136:00 anything to say on this topic yes uh in addition to Dr Ballesteros and samisa suggestion and we can also be very very practical no we have to inform our LG use that uh one you know these poor people they make these poor households are the ones voting for you they will never forget you and he's or their descendants will not forget you
• 136:00 - 136:30 that you provided this housing for for this family you know that that's the first and that's the most uh I think powerful incentive for them to remember that they can leave a legacy behind and secondly uh the economic benefits of unleashing the value of land surrounding a a good property you can have retail space there commercial space passenger terminals coming up no and ultimately
• 136:30 - 137:00 we'll increase business activities and licenses license fees business permits no real property tax they have to be educated I think many of our lgus I think need to be educated about how important uh housing addressing the housing plan that they have so maybe we just have to do a little bit more Work Director dineros they'll tell us forget yeah voters if
• 137:00 - 137:30 you remember you if I may share Sheila sir go ahead ma'am some of the local Chief Executives um only realize the importance of having an approved local shelter plan aside from the preparation after a Calamity or disaster has happened one experience we had is like for example in one of the the local government units in the north we knew very well that they have
• 137:30 - 138:00 prepared a local shelter plan and then this typhoon struck you know what happened they already identified under their local shelter plan that most of these families located in line slide prone area has to be resettled you know it's like you know to have timelines in the local shelter plan the first three years next three years then the last three years so they they they uh planned that this family should be
• 138:00 - 138:30 relocated but what happened the local shelter plan end up in their bookshelves it was not approved in spite of knowing that these families you know would be affected by Landslide anytime because we're visited by you know typhoon 24 times they did not do anything they just prepared the local shelter plan so later on I'm I'm sure and we knew that realizing this they already started to
• 138:30 - 139:00 give significance on the local shelter plan aside from the preparation of course it's approval to have this translated into housing projects and of course partner with with the csos of course to the private sector so I think uh sometimes or most of the local government units because they see the the housing as a longest station project it entails a lot of costs on their part so they they rather do uh construct
• 139:00 - 139:30 basketball courts you know rather than housing so uh when they when they experience these calamities or disaster and it has affected their constituents that's the time they do something about housing director dineros uh maybe know uh which agency is monitoring the local uh local housing or local shelter plans
• 139:30 - 140:00 yeah it's uh since and now it's under the the desood law so and uh now it's um before it's with the public housing office and with the Department order uh it would be now with the elope Bureau of the department of human settlements and Urban Development doing that uh the capacity building but in the implementation of the housing projects it would be the true it would be through the public housing and human settlement
• 140:00 - 140:30 Service Group okay thank you very much uh director uh dineros okay let me segue to I question from one of our participants Mr executive director Manuel Aquino of the city BRD um and may I address this to our researchers uh perhaps atetum can uh answer this how do the off-cited LG back social housing projects such as Valenzuela and the CSO
• 140:30 - 141:00 gawat cutting of projects Fair relative to the affordability standards or measures set forth in your study uh they do uh yes Dr Sharp uh I have not looked specifically into those projects but um for some of the government projects like the community mortgage program um which caters to legally organized associations of low-income groups and I
• 141:00 - 141:30 assume those groups include the poor um which as again it based on the study do not have enough income to afford housing um I think there should be uh differentiated um support to to particular groups and even if we look at projections for example um we see that families in the second per capita income deciles
• 141:30 - 142:00 um uh would need a couple of years or more than a couple of years to reach sufficient annual family income for um uh 480k housing package for example so I guess um the point is to have differentiated support to particular income groups and also one recommendation that was traced earlier is to for the government to um purchase a lot for to
• 142:00 - 142:30 while the um families own the the construction or the buildings yes please go ahead look at the Valenzuela project yes and it is as mentioned also by uh director dineros it's a model uh project and I I agree with that they just charge 300 pesos at the time that I was looking at it I don't think they increase it because the maintenance is also supported by the
• 142:30 - 143:00 community themselves so I think that's part of the the uh support or assistance that are non-non monetary um provision that they they provide that they are put into the the housing so yes that's one model that can be that should be scaled up by in the different uh um LG use but assume as we see from the data they cannot even afford probably 50
• 143:00 - 143:30 pesos per month so I I think there is that segment of the the population that uh you see this on the streets that really has to be provided with free housing and they can probably pay for their rent in terms of Labor that's one um a program to to look into thank you very much ben okay we have one other question still on housing projects
• 143:30 - 144:00 from Russia day one one of our webinar participants what is the average occupancy rate of the housing projects provided to those affected by calamities like in-house in projects for typhoon Yolanda survivors uh perhaps we can address this to uh I can't uh give a specific rate but as far as I know uh during the I think last
• 144:00 - 144:30 year during the turnover of the administration from from duterte to the new dispensation I think um I believe there was a this issue on uh the projects the housing projects already done and it was you know uh turned over to local government units but it remains unoccupied because you know it's like uh
• 144:30 - 145:00 it takes time for LG use again you know I I don't know what happened but they already they were already turned over by the National Housing Authority to them and it wasn't turned over to the rightful occupant so uh I think there's this issue and I this was again I think uh being asked this will be us I think in the plenary in one of our budget for
• 145:00 - 145:30 for the for the housing so I I do believe there are there are participants here from from NHA I'm asking um my staff on the occupancy rate it's um according to the interagency task force report of Yolanda in 2021 is it is at 30 percent 30 yes okay thank you for that information uh
• 145:30 - 146:00 director dineros okay let's jump to another important topic you've covered um rental housing that's Dr balisteros Miss Ramos mentioned this and so was and the other discussions no and you will know that the affordability of rental houses really worth looking into uh for instance in the October 2022 inflation report by the PSA one of the
• 146:00 - 146:30 main sources of continued uptrend of the overall inflation was housing rental along with water electricity gas and other fuels so Dr Ballesteros mentioned about the rental housing which cards against unjustified increases in the housing rent um and he also mentioned about a proposed law to provide rental housing vouchers but how feasible is this you know is the subsidy for the informal rental housing market no uh we we know that there are
• 146:30 - 147:00 rental house catering to poor and low-income households that are unregistered and are just based on uh verbal agreements um or or is this a way for you know the informal housing market market to to be formalized not to to be Ross
• 147:00 - 147:30 let me first give us my response okay um actually if you look at the law a critical uh Housing Voucher the intent also of that is to only support rental housing units that are not in informal settlements so it is in a way a scheme so uh not to discourage because sometimes the proliferation so informal settlements are actually mostly
• 147:30 - 148:00 if you look at that so uh uh it that scheme is is one way for those who are renting in informal settlements to look for the rental housing in the formal Market when you say formal Market you better legal rights to over the owner of that but of course as we know although we don't have yet a data on rental housing units because these are not
• 148:00 - 148:30 registered user honey um I I am seeing that there based on also on my personal experience now actually there are very few of this it will be a long list of uh applicants probably for for rental vouchers Supply is really very limited from uh from my experience in the past so um I don't know how it will be
• 148:30 - 149:00 implemented that implementation wise it's very challenging um motivation of the law is and the intent of the law is very good probably see Dr Stan would have more information yeah Dr Stan yes please go ahead sir and then we can also ask a director dineros
• 149:00 - 149:30 you know we have to really distinguish between two rental markets no those rental markets that are really provided for by others period on really on investment grounds many of them Studies have shown that there are many though there are many your studies have already revealed that they can afford several times housing units so those housing units they rented out and I think it's the culprit behind
• 149:30 - 150:00 inflation rate because it's not necessarily covered by certain controls now you can agree with other parties now I think uh if if we can have that uh Land Community Trust in I think an ecosystem we have to be put in place first to make sure that uh will be able to really track uh the the the the the use of this voucher you know maybe the
• 150:00 - 150:30 voucher will come in two or three steps after we have put up an ecosystem that will allow us not to be abused no because it can be abused as well what is important for example is I'm just thinking out loud right now is to really have that initial ecosystem where you have the Land Community Trust in place no and then it's very clear who are the targeted beneficiaries or what is the
• 150:30 - 151:00 price point there that will allow uh government for example to more or less uh make the project pay for itself even the maintenance with that voucher uh I think we have to put first a lot of things in place before we even move because uh rental voucher is is a very good idea it just occurred to me based on this discussion but in the implementation phase we need to set first in place the right as they said
• 151:00 - 151:30 ecosystem so that it will not be put to waste it will be abused yeah thank you uh direct uh Dr Stan uh director dineros would you have anything to say regarding this topic spousing rental subsidy [Music] um in fact there are I think bills in both houses Senate and Congress on this one in our position in the on this one
• 151:30 - 152:00 in fact um we have uh together with this alongside with these bills we have formulated um rental subsidy um program or policy in this wood already but it's still um for uh approval um a rental sub city is like addressing the concerns of those um displaced families affected by the build build
• 152:00 - 152:30 projects and also those affected by calamities and disaster so it's like it's big on the rent control law it's like uh that the cup I think is uh five thousand and we're only we're recommending 3500 um rental subsidy rates so that the one five would be like you know the counterpart of the the the household so
• 152:30 - 153:00 uh I think the rental subsidy the voucher system um we subscribe to that because we all know that uh with the build build projects especially the recent one the north south it's like there are 100 000 families that would be displaced and this would be you know needing um resettlement with we which all which takes always you know two to three years and it's like you know they have to go
• 153:00 - 153:30 somewhere they have they have to go somewhere and you know it's like the government needing this for a major infra project development and of course for those affected by calamities and disaster they can even uh in fact we uh we expand you know the the rental it's like you know they can give this to the hosts they can go to their relative or host family the rental subsidy could go
• 153:30 - 154:00 to that one so uh we have that already in the offing and for refinement and approval by by the executive of the the department so we subscribe to that thank you very much director dineros we have um a couple of questions here about the CMP the community mortgage program uh but uh however um we have the ideas has conducted studies we have no
• 154:00 - 154:30 some Publications about uh the CMP in our uh on our website so maybe direct uh uh the one who um and ask this question to our website for uh uh studies about uh the CNP conducted by pids okay let's uh go to another question this time from Christopher Rolio what are the potentials for land value capture mechanism in tapping Finance for housing
• 154:30 - 155:00 this is in the context of the Philippines as rapidly organizing and more lands are expected to be opened to be opened up to developments to meet urbanization needs on anyone from our uh panel of speakers anyone is Sheila yes please uh go ahead sir if our colleague Mr Chris Rolio is
• 155:00 - 155:30 referring to the land and the values of this land uh which are occupied mostly by uh informal settlers or political communities and normally these lands are of high value already and located in Prime uh these are prime lots and prime location and uh really possibly the right valuation and the right program perhaps re-blocking or being able to attain a specific portion of the land
• 155:30 - 156:00 and be free for other uh uh for other purposes perhaps this can contribute further uh the value of that specific land free can contribute also to the other initiatives on housing can be done yes thank you for that [Music] um okay well a while ago we have been talking about legislation and uh this question is uh can we be answered
• 156:00 - 156:30 by any of our speakers uh do you see any Gap that must be addressed in terms of legislation that must be addressed to make resolving issues in the housing uh sector easier well we have uh you have mentioned some some uh proposed uh laws no but uh I mean up until now uh the national land use act has not been passed no and that is a very important piece of legislation
• 156:30 - 157:00 would you have any comment on this no uh I I saw doctor stand uh smiling sir well uh it is really indeed a challenge and you know you're talking about a national land use plan in fact the lgus have a club to fulfill the comprehensive land use plan and many of them have yet to comply with that alone we think that even at the national level can be very challenging
• 157:00 - 157:30 for us I think uh uh sometimes we cannot really wait for this legislation to pass but try to work already on the legislations that are already available you know if you read if you read the local government code and the power that an lgu has they they have a lot of flexibility actually in uh in uh starting their own
• 157:30 - 158:00 specifically the land use plan they have a large influence on that actually you know and even fundraising even joint ventures uh you may have read the joint venture between like Iloilo city government and schumart to transform the public market for example transform it into a into uh like a mall they have so much flexibility they can even go into PPP different types of PPP
• 158:00 - 158:30 models so I think uh while we are waiting for those legislation to pass let's make use of what is already there that's right and with a lot of largas with some lgus I think that they should put into good use those resources that they have that's over 250 billion uh I think money being poured into the lgu's uh this coming year yes uh given the the madanas yeah yeah and you're right sir
• 158:30 - 159:00 how we don't need uh we don't need up for the for the um national land use activity passed we can you know capitalize on existing mechanisms no uh we have the um comprehensive land use plan and that is something that has to be uh you know um strengthened that has to be followed by our LG use uh we had a study before uh done by one of our uh research
• 159:00 - 159:30 fellows which indicated that not all our lgus are have updated comprehensive land use plans no that itself is an indication that that is a gap that must be addressed okay thank you very much Dr padahinov so we still have some more questions so with your Indulgence uh let me let us cover them no uh we have a question from Brian pan
• 159:30 - 160:00 okay considering the recommendation to shift the subsidy from the private sector to the public sector how does the research find the role of ballast development housing regulation under the recommendation is the study implicitly suggesting the repeal of socialized housing compliance requirement of private developers considering that removing tax exemptions or other forms of subsidy support on the supply side effectively renders
• 160:00 - 160:30 socialized housing compliance confiscatory if not result in and do taxation um okay I think this is directed to our um study authors either a Dr balisteros or Miss Ramos can answer this or both of them can uh um you know can answer this question I think when we oh yeah peace I think
• 160:30 - 161:00 that you um we should not misinterpret the recommendation when we say uh government subsidy we are our government-led socialized housing we are just saying that uh this the projects or programs are usually non-market Solutions so the private sector can be a partner to it but what times what the subsidies are are really uh uh more
• 161:00 - 161:30 directed and uh the the government takes the lead on what would be a the appropriate program or project for specific uh um sectors and I think it's very important to note that what was mentioned by uh by also Dr padahino Dr Stan that it is not a one-size-fits-all so it's not as if you supply and then we
• 161:30 - 162:00 will fit the family sometimes it's actually in most cases especially for for uh for those with the low income sector it's it's the Mantra event so uh it's not um putting them just in the box that that we plan uh which is usually if it's a supply uh Led Led project and when we talk about the public sector fund we're looking at the balance housing as potential sources of new
• 162:00 - 162:30 funds so it's not funds from the government but uh new funds and unlike in the past that that uh um the developers can provide compliance in terms of uh um establishing or in terms of socialized housing projects what we suggest is that it should be held as a scroll scroll meaning there is government will will be uh will use these funds first for plant
• 162:30 - 163:00 projects already so he not necessarily um the developer who's going to make plans on how on on how to use that that fund so it's just putting in this Public Funding it can be used in different ways not just one one one what size or one approach that's actually the the essence of the recommendation on on
• 163:00 - 163:30 government-led socialized Housing Development thank you very much for that clarification uh Dr baliasteros okay now we are down to our final question and um let let us um talk about I I mean briefly not because we don't have uh uh much time left no let's talk about resilient housing you know climate resilient housing we know that the Philippines is exposed to a lot of natural hazards
• 163:30 - 164:00 so what programs are in place no um on the side of the gov of the public and the private sector too in in terms of ensuring or promoting climate resilient housing you know um may we hear first from uh the sheddah um thank you Miss Sheila well foremost uh
• 164:00 - 164:30 the housing standards is being prescribed by the government you know we have batas pambansa 220 for socialized housing we also have pd957 for economic housing so the standards are there however are we very timely and uh very relevant is the make mention of resilient housing and Market dictates already that uh people clamor and this
• 164:30 - 165:00 is important already and some developers are doing this I also would like to make mention that the board of Investments under the department of trading industry the department of human settlements and Urban Development and sheda using two discussions already of what are the characteristics and definition of smart housing and smart cities so we are identifying uh what are these different uh characteristics so do they make use of Innova and ready local materials in
• 165:00 - 165:30 the construction do they make use of technologies that are available are these designs sustainable enough to withstand the challenges of climate change the wind uh wind velocity of the different typhoons that come what is resilient housing designs are these green uh housing which implements to some extent uh water harvesting and also
• 165:30 - 166:00 the use of solar energy uh the the design or the orientation of the house that captures uh the direction of the wind so that everything would be uh also facilitated with respect to energy efficient all these things are being discussed or what what is green and smart uh housing and communities that takes into consideration again all the basic needs especially on uh the the
• 166:00 - 166:30 mobility and transportation and the the employment uh opportunities and of course it should consider the culture and tradition of uh the home uh home buyers and the residents thank you very much director dineros would you have anything to say um yeah actually last year the ndmc full we have this mdmc full Council resolution
• 166:30 - 167:00 actually uh it enjoined this department of human settlements development um to prepare resilient housing framework um and the transfer of the emergency shelter assistance program from from dswd to this suit so in light of this uh resolution that this would um with the assistance from the technical assistance
• 167:00 - 167:30 from the World Bank uh we were able to prepare a resilient housing framework basically the the framework is anchored on um building better before um you know it's like um we we present to them through the the framework prepared the different strategies on building houses temporary shelters uh before the occurrence of disaster to
• 167:30 - 168:00 minimize uh integration of social preparation and like um transparency in the entire housing assistance program empower the community leverage and build on the skills consider the expansive expandability of units and of course constructualize the prevailing hazards and vulnerabilities of the community this has been already turned over we have already the turned over this framework to the disord and route right now to operationalize this
• 168:00 - 168:30 framework we will be engaging the the public through IEC and of course the local government units and of course ensure the prioritization of the most vulnerable shelter beneficiaries through a systematized data information management so we will be rolling out this resilient housing framework which you mentioned so um of course taking uh all from this the local government units I'm sure they
• 168:30 - 169:00 would pick up something on this one for them to be able to address you know or at least mitigate uh before any Calamity disaster or build better before any Calamity or disaster the the housing um of their constituents so thank you thank you director Daenerys I think day tomb has an input to this question they don't go ahead thank you Dr
• 169:00 - 169:30 um so uh actually we were able to talk to some ngos and also foundations and they were able to give us some estimates on resilient housing and some of them even said that um this resilient housing is not necessarily expensive so for example the base bahay Foundation Incorporated has mentioned that for their cement bamboo frame house um it would cost around 225
• 169:30 - 170:00 000 for for the building itself or the building construction for a 25 square meter size so they said that the bamboo technology is actually environmental friendly and also there are other organizations like the build change which um uh estimated house Improvement resilient house Improvement and they said that for a 50 square meter house that would cost around 479 000 of course on this estimate would not
• 170:00 - 170:30 include um the cost of the land and site development but these are um things that we need to consider so that in the long term we would probably um end up spending Less on on on housing thank you uh stay tuned so at this point uh to cap our discussion may as our all our speakers from some brief parting works if they have any so may you be here first from our study authors and
• 170:30 - 171:00 presenters uh first let me let us hear from Dr Ballesteros followed by Miss Ramos and then our discussions uh Bank Dr banisteros please go ahead yeah thank you Sheila first I want to thank our my colleagues from the Housing Industry for your participation and for your insights on the study as well as on the housing sector and I think we have a lot of areas of convergence in terms of the recommendations and uh what I think
• 171:00 - 171:30 I want to to leave is that when we talk of how affordable housing and and um and the unserved sector there's a there's going to be a lot of subsidy the the subsidy is huge but uh and the fiscal burden is is real but I think it's important to note that this is not permanent as the country matures and and providing
• 171:30 - 172:00 the the the policy can shift towards a more liberalized and more Market uh oriented policy uh and it but it is important to address the housing needs already of this sector in terms of resiliency and uh to address the vulnerability because that is also that has also implications in um their ability to move out of poverty thank you thank you very much Dr Penn
• 172:00 - 172:30 Ballesteros and mili here from um her co-author uh stay tuned please uh thank you also to The Seekers and also those who attended um this webinar um I just want to emphasize that um given the extent and intensity of housing stress in the Philippines we will have to revisit ideas that have been accepted as common knowledge such as those involving um debates on home ownership versus rental the horizontal
• 172:30 - 173:00 versus vertical Housing Development among others um I think suitability of housing depends on the capacity of the families to afford the respective housing types and um it would be inappropriate for families to invest in particular housing types when they are not capable to sustain respective payments because this can push them further into unmanageable debt or even poverty thank thank you thank you very much mistake Ramos okay
• 173:00 - 173:30 now let us go to uh our fight the final remarks of our discussions first uh director uh Rowena or when dineros from the uh this suit but ma'am uh we have uh two uh last uh last two questions for you I was reminded by our webinar team one is from engineer madly Hilda abellera how can Fisher poke a veil of the um informal settler family slowing it
• 173:30 - 174:00 they live hand to mouth and aren't members of pag-ibig or SSS and second is it necessary to seek the suits approval of a local shelter Plan before it can be approved by the lgu council yeah person would like to respond to the uh Fisher folk uh you know uh requirement for financing actually that is one of the subjects
• 174:00 - 174:30 um being left behind on this uh concern uh in early in mid 2020s we have this study on an ADB on the development of urban community sector project and under that project we have this uh technology on housing microfinance uh which we espouse and under that we were able to develop the housing microfinance product manual what we're saying is uh for for proper financing I
• 174:30 - 175:00 think um microfinance technology is very important very crucial you know um microfinance technology is like you know day season their clients we have this both Banking and unbanking microfinance institutions basically tricycle drivers you know they they battle first for for like you know for livelihood
• 175:00 - 175:30 and the microfinance you know they season them and after seasoning them let's say after several takeouts they could they could borrow for Home Improvement or even you know uh for for for for housing so that's the housing microfinance uh product that we were able to develop um under the ADB project then and which um right now we have this um again uh
• 175:30 - 176:00 develop uh the roadmap for the housing microfinance what we're saying is like you know this Fisher folks the informal sector they can really Avail of a housing loan through the microfinance institution because under that product manual um this institution would accept collateral substitutes you know like you know if you have the seller the certificate of entitlement and lot award or even through the you know showing
• 176:00 - 176:30 this institution that you were able to repave the amount you you borrowed for your livelihood person so after a seasoned client you can be able to uh borrow funds for your housing Improvement or housing requirements we're trying to develop actually we have a road map on this one the the problem with the microfinance institutions you
• 176:30 - 177:00 know they're serving you know poor like in you know they have to have longer repayment period but the source of funds of the microfinance institution is is coming from a short you know a short uh repayment for them so it's like we're we're trying to find ways that that there could be financing for the microfinance institutions so that they would be able to address this um requirement of the the informal sector
• 177:00 - 177:30 for housing on the other one on the local shelter plan actually um we have this hands holding with them we as much as possible um before they submit it to the sangunian for approval assist them in finalizing the document we ensure that the local shelter plan you know when we when they present it to the to the sanguni and for approval well they would be able to respond to the
• 177:30 - 178:00 queries of the the community chair Etc that's why even we even invited during the presentation to the to the sanghunian of the local government unit so so that they would be able to you know address some concerns issues that would be raised by the committee so it's like even along approval or we see to it young content Etc and everything the figure the data is solid before they present it to the sangunia
• 178:00 - 178:30 okay that's good to know director dineros okay so thank you very much very much um well uh again thank you to pids for this very interesting discussions uh can we have a part two a round table discussion perhaps uh but uh foremost I'd like to say that the provision of housing impacts on all of us and housing is not
• 178:30 - 179:00 is is not just a right but uh should be coupled with the responsibility as well and uh it is not only the role of the government to address the housing but all of us the academe the national government local government units the basic sectors the ngos the private sectors have all and the communities themselves have all roles uh to play and we have to work together to continue having Synergy putting our minds
• 179:00 - 179:30 together our efforts our knowledge our strategies and perhaps very soon we will not just make a dent on the housing need but maybe in the near future we will be able to address the entire house housing unit thank you thank you very much Edie sunny and now let's hear from Dr Stan paduhi nog of UA and team sir okay thank you thank you so much to pids for organizing this forum and inviting me and and the other very good panelists
• 179:30 - 180:00 here I have to admit that uh I continue to ER to learn a lot from this forum to why then uh the knowledge on this very important issue and what is this issue we're talking about we're not just talking about here a house no we're really referring to a home it's very important that we are investing on our human capital
• 180:00 - 180:30 um we cannot ignore a large section of our society which will be a future contributor to our economy and to donation building in particular so sometimes we do tend to be bogged down by the finances that are involved but I think we have to think long term because we're not looking here at uh just ordinary labor force these are our human capital we need to invest on them and we've invest on them well they will we
• 180:30 - 181:00 will reap the rewards not like any other capital in which we invest on thank you so much for organizing this activity and I would really love to see more similar studies that has been undertaken here by Dr balesteros and Dean and thank you very much to Dr Stan padillino so friends please join me in thanking all our speakers for the numbers of wisdom that they have shared with us this afternoon and thank you to to those who join in the discussion by
• 181:00 - 181:30 sending your comments and questions so let's show our appreciation through a big virtual Club and uh here are the winners of our webinar raffle okay so um from Zoom we have Chad Carlos Cipriano and Mildred maglia and from Facebook Eddie correct Estrada to the winners of our webinar raffle for um uh this week we will um our webinar team will get in touch with you for the
• 181:30 - 182:00 delivery of your prize and finally we have some reminders so you can access all the presentations from today's webinar on the pids um website and the flash on the screen is also the link to the full study of Dr valiasperos this Tatum Ramos and and um and uh Miss Jennica and Cheta okay so also please answer the feedback survey that will pop on your screen after this webinar your comments are important to
• 182:00 - 182:30 us to improve our virtual events please regularly visit our website and follow us on Facebook and Twitter we also have a YouTube channel where you can access the recordings of all our events and we have another webinar uh this November so next week on the 16th we will have our webinar on uh the analysis of the 2023 president's budget uh former research fellow just India
• 182:30 - 183:00 present her assessment of the 2023 National expenditure program more commonly known or more popularly known as the president's budget and finally we would like to acknowledge the various organizations from the government academe Civil Society business and International Development Community uh who joined us today so this concludes our virtual policy forum for today's stay safe stay healthy
• 183:00 - 183:30 and stay informed too thank you and see you next week foreign