The Philippine Housing Industry Plan: 2012-2030 By the
In Cooperation with
I. Objectives and Roadmap Framework
Objectives • What is the current status of housing need of the country? • How do we address the unmet housing needs of Filipinos?
• How can institutions contribute in addressing these needs?
I. Objectives and Roadmap Framework
Framework of the Roadmap Preparation
I. Objectives and Roadmap Framework
Industry value chain
Others
Property Management
Sales & Marketing
Construction
Planning Services
Land
Infrastructure and utilities Regulatory Technology Human resource Financial Institutions
II. Internal Analysis: Value Chain
Summary of value chain issues Positive
Negative
Regulatory BOI-ITH; Proposed DHUD
Development permits delayed in LGUs; Conflicting local & national policies; Redundancy
Infra and IT Infra projects; IT facilities&
Utilities cost absorbed by developers & buyers; lack of drainage & sewerage; expensive software
software
Human resource Financial
Availability of highly-skilled labor
Fast turnover; brain drain
Tax incentives; availability of financing
BIR Rulings, Strict bank requirements; uncertainty of ITH; lack of funds for the poor; multiple taxation, pending DOF house bill
Land
Computerization of titling; land use available in some areas; land for JV
Rising land prices; presence of informal settlers; land conversion issues; lack of CLUP
II. Internal Analysis: Economic Significance
Economic impact for every Pmillion
2.30 jobs
Value creation multiplier
For every Peso
3.32 pesos
Household income multiplier
For every peso
0.47 pesos
Tax multiplier (Indirect)
For every peso paid in taxes
3.90 pesos
Job creation multiplier
II. Internal Analysis: Value Chain
Summary of value chain issues Positive
Planning services Availability of experts
Negative
IncompleteCLUP’s
Construction
New construction technologies; inexpensive materials
Increase in costs of other items; lack of qualified contractors; increase in labor costs
Sales & marketing
Strong brand campaigns, healthy competition
Restrictive guidelines on selling & marketing activities
Property management
Presence of professional property management
Absence of institutionalization of estate management
Others
HDMF, CSR of companies; industry associations and NGOs
Eviction process very tedious and slow; maceda law
III. External Analysis: Housing Need
Factors needed to address housing need Need
Production
Financing program
Affordability
Policy framework
III. External Analysis: Housing Need
Housing need can reach 12.5-million in 2030
Source: Projections using SRTC framework; HUDCC
Housing Segments
4.5%
Source: SHDA; HUDCC
III. External Analysis: Housing Need
Matching housing cost with capacity to pay
Source: FIES 2009
Source: SHDA; CRC
III. External Analysis: Housing Need
HOUSING DEMAND AND SUPPLY PROFILE 2001-2011 Housing demand (Households)
Housing supply
Surplus/ (Deficit)
Socialized Housing
1,143,048
479,765
(663,283)
Economic Housing
2,503,990
541,913
(1,962,077)
Low Cost Housing
704,406
242,246
(462,160)
Mid Cost Housing
72,592
322,995
250,403
High End Housing
18,235
242,246
224,011
Excludes 832,046 households that can’t afford
Backlog – 3,087,520
Market Segment
III. External Analysis: Housing Need
NEW HOUSING NEED 2012- 2030 Market Segment
Price Range
Units Needed
% Total Need
Can’t Afford/ Needs Subsidy
400k& below
1,449,854
23.28
Socialized Housing
400k & below
1,582,497
25.41
Economic Housing
400k-1.25m
2,588,897
41.58
Low Cost Housing
1.25m-3m
605,692
9.73
Mid Cost Housing
3m-6m
No Need
High End Housing
>6m
No Need
TOTAL NEED
6,226,940
100.00
This total new need is an average of 345,941 housing units per year.
III. External Analysis: Housing Need
TOTAL HOUSING BACKLOG as of 2011
Those who can’t afford
832,046
Housing Backlog 20012011
3,087,520
TOTAL
3,919,566
ESTIMATED BACKLOG BY 2030 IF NO SPECIAL HOUSING PROGRAM IS CREATED Particulars
Units Per Year
Number of Years
Current Housing Backlog
Total Units
3,919,566
New Housing Need 2012-2030
345,941
18
6,226,540
Housing Production Capacity
200,000
18
(3,600,000)
Backlog by 2030
6,546,106
III. External Analysis: Policy Support
Regulatory Framework: Structure SSS, HDMF, GSIS
Direct Gov’t housing production
Guarantee for Gov’t housing mortgages
NHA
HUDCC (EO 90 of 1987)
HGC
Financing arm
NHMFC (SHFC & BHFI)
HLURB
Gov’t general Housing programs
Regulatory & quasi-judicial functions
III. External Analysis: Policy Support
Current policy regime inadequate to address growing housing deficits • Government subsidy programs failed to reach intended beneficiaries, particularly those who cannot afford • Private capital left out of the housing program. Government takes burden and risk of shouldering cost of housing program. • Meeting shelter needs based exclusively on ownership excluding other forms of shelter • Lack of estate management program • Relocation programs may have adversely affected livelihoods of the beneficiaries • Lack of structure and capability of government to monitor, collect and manage funds
III. External Analysis: Policy Support
Lessons from housing programs of selected countries Malaysia • Quality & affordable housing for sale or rent • Housing for lowincome & informal settlers • One-shot capital subsidy • Rehabilitation of old houses & communities
Brazil • Rationalize institutions & legal & regulatory framework for housing – one central housing agency • Develop of formal housing finance market • Comprehensive housing subsidy • Reduce barriers to formality of housing & services for the poor
Indonesia
Thailand
• Upgrading of slum areas and houses of lowincome households • Planning new sites for housing • Strengthen institutions responsible for program delivery
• Provide all necessary infra support for housing projects • Slum upgrading and improvement • Assistance to centralize housing agency
III. External Analysis: Policy Support
Current mechanisms of housing subsidy Direct subsidy program
Agencies
Below market interest rates & fixed long-term loans
SHFC, HDMF, CMP
Direct government housing production & resettlement programs, land acquisition or land grants
NHA, LGU, Office of the President
III. External Analysis: Policy Support
Current mechanisms of housing subsidy Indirect subsidy program
Agencies
ITH for mass housing projects
BOI, UDHA
Loan guarantees & low premium payments
HGC
Loan loss provisions
SHFC, HDMF, CMP, AKPF, NHMFC
Recapitalization of insolvent housing agencies
NHMFC, HGC
IV. Closing the Gap: Vision, Goals & Strategies
VISION STATEMENT Every Filipino familyhas the right to live withdignity in the comfort of one’s own home regardless of economic status. With full government support, we, the housing industry, envision to eliminate the housing backlog by the year 2030
IV. Closing the Gap: Vision, Goals & Strategies
Roadmap milestones to eliminate housing backlog …2M Homes by 2022 … 1M Homes by 2016 Socialized housing Socialized urban/public housing Socialized urban Socialized non-urban Economic Low cost Total Capital investments (P-million) Jobs created Proportion of projected emplyt Avg Value-added created (P-billion) % of projected current GDP Household incomes (P-billion) % of projected current GDP
2012-2016 443,378 110,845 110,845 221,689 382,064 157,343 982,785 882,713 856,231 2% 586 5% 415 0.64%
… 7M Homes By 2030 Socialized housing Socialized urban/public housing Socialized urban Socialized non-urban Economic Low cost Total Capital investments (P-million) Jobs created Proportion of projected emplyt Avg Value-added created (P-billion) % of projected current GDP Household incomes (P-billion) % of projected current GDP
2017-2022 Socialized housing 1,008,166 Socialized urban/public housing 252,041 Socialized urban 252,041 Socialized non-urban 504,083 Economic 948,383 Low cost 282,015 Total 2,238,563 Capital investments (P-million) Jobs created Proportion of projected emplyt Avg Value-added created (Pbillion) % of projected current GDP Household incomes (P-billion) % of projected current GDP
1,919,333 1,551,461 4% 1,062 5% 902 0.69%
2023-2030 3,076,134 769,034 769,034 1,538,067 3,220,526 628,491 6,925,151 5,653,750 3,427,586 7% 2,346 6% 2,657 0.79%
IV. Closing the Gap: Vision, Goals & Strategies
Objective 1 – Increase housing production To forge alliances among housing developers Notes superimpose Pop Growth data and industry partners to attain:
1 million homes for 2012-2016 2 million homes for 2017-2022 7 million homes for 2023-2030
Sustain 12% production volume every year
IV. Closing the Gap: Vision, Goals & Strategies
Objective 2 – Implement a comprehensive government housing subsidy program for target segments to enhance affordability Government subsidy program budget 2012-2016 Direct provision of housing for those who can’t afford and socialized housing (cash) Direct production subsidy (P-million) Public housing (NHA) Socialized housing MRB (SHFC) Total Annual average Maintain current ITH subsidy for socialized, economic & low cost housing (non-cash) Socialized non urban (UDHA-ITH) Socialized urban (BOI-ITH) Economic (BOI-ITH) Low cost (BOI-ITH) Total Annual average
2017-2022
2023-2030
Notes superimpose Pop Growth data 79,808 44,338 124,146 24,829
181,470 100,817 282,286 47,048
553,704 307,613 861,318 107,665
2,660 4,225 13,754 14,161 34,801 6,960
6,049 9,607 34,142 25,381 75,179 12,530
18,457 29,314 115,939 56,564 220,274 27,534
IV. Closing the Gap: Vision, Goals & Strategies
Objective 3 – Generate and mobilize funds for end-user financing End-user financing program budget Mobilize pubic andprivate capital into housing (P-million) 2012-2016 2017-2022 2023-2030 Socialized (urban) by HDMF
44,599
101,410
309,423
Socialized (non-urban) by HDMF
79,808
181,470
553,704
Economic by HDMF & Private banks
275,086
682,836
2,318,778
Low cost by HDMF & Private banks
251,749
451,224
1,005,585
651,242
1,416,939
4,187,491
130,248
236,157
523,436
Total Annual average
IV. Closing the Gap: Vision, Goals & Strategies
Objective 4 – Improve the housing regulatory environment Every housing related permit, certification, clearance and license shall be acted upon within a maximum period of ten working days Resolving conflicts between local and national housing policies and guidelines
Enhanced representation of the housing industry in vital policy fora
IV. Closing the Gap: Vision, Goals & Strategies
Objective 1: Increase housing production
Strategies
Partners
Action Plan
Timetable
1. Government production of socialized (urban) housing program for long term lease
NHA, HUDCC
1. Developers to partner with NHA, LGUs with IS programs
Q3 2013
2. Initiate global standards to guarantee safety and quality
SHDA, ASEP
1. SHDA to coordinate with ASEP and other agencies to come up with unified standards.
Q1 2013
3. Standardization of building components
AITECH, SHDA, BPS, DTI, HUDCC
1.
Q1 2013
2.
SHDA to push for consistency in the interpretation of standards, modularization and measurement system. Training of LGUs/Building Officials involved in permits necessary
IV. Closing the Gap: Vision, Goals & Strategies
Objective 1: Increase housing production Strategies 4. Adopt innovative building technologies for increased building efficiency
Partners SHDA, AITECH
Action Plan 1.
2.
AITECH to publish accredited building technologies available for industry players to consider in their developments. Coordinate continuously with AITECH for quarterly updating of list on web
Timetable Q1 2013
5. Initiate discussion on adopting green- and environment-friendly technologies
SHDA, UAP, PGB
1. Push for incentivizing green practices in the project development.
Q1 2013
6. Develop programs to upgrade and expand local pool of suppliers
SHDA, FPI
1. Coordinate with FPI and provide list of materials needed by the industry
Q1 2013
IV. Closing the Gap: Vision, Goals & Strategies
Objective 1: Increase housing production Strategies
Partners
Action Plan Provide reliable source of data of housing production to concerned government agencies
Timetable
7. Establish partnership with SHDA, HUDCC, NSO, government agencies in HLURB, NHA data generation & monitoring
1.
8. Establish a training institution for housing industry
SHDA, TESDA, CMDF
1. Tap local and foreign institutions that will offer training and share this among members
Q2 2013
9. Comprehensive government financing program
HDMF, BOI, DOF, BSP, NHMFC, HGC, SHFC
1. Coordinate with government financing institutions to support a formal housing finance market and effective subsidy schemes (Direct and indirect.
2012 – Q2 2013
Q1 2013
IV. Closing the Gap: Vision, Goals & Strategies
Objective 1: Increase housing production Strategies
Partners
10. Alignment/Streamlining of regulatory framework
LGUs, key shelter agencies, DAR, DENR, HLURB
Action Plan 1.
2.
Continue working with HLURB/LGUs on CLUP Align different agencies affecting the industry (G2G)
Timetable 2013
IV. Closing the Gap: Vision, Goals & Strategies
Objective 2: Implement comprehensive subsidy program for target segments to enhance affordability Strategies 1.Institutionalize ITH for socialized (non-urban; UDHA) and socialized (urban), economic and low cost housing (BOI)
Partners BOI, HUDCC, DOF
Action Plan
Timetable
1. Amendment of RA 7279 to institutionalize subsidy 2. Charter Amendment (legislation) Lowering interest rates further for CMP; exemption from Income Tax 3. Ensure the benefit of ITH to adjacent industries are extended to Housing 4. SHDA position paper to align BOI SH compliance guidelines with that of HLURB’s
Q3 20132016 Q3 20132016 2012-Q3 2013 Q1 2013
2. One time housing production subsidy for socialized (urban) and urban development housing at P400K per household
SHFC, HUDCC
1. Working group for the appropriate delivery mechanism for subsidy & justify need to drop required BIR ruling
2012-Q1 2013
3. Strict monitoring of target of beneficiaries
HUDCC,DSWD DILG,NHA,SHF C
1. Establish database of eligible beneficiaries to eliminate double/multiple availment
Q1 2013
IV. Closing the Gap: Vision, Goals & Strategies
Objective 2: Implement comprehensive subsidy program for target segments to enhance affordability Strategies
Partners
Action Plan
Timetable
4. Lease vs. Ownership model
NHA, SHFC, LGU, HUDCC
1. Study Disiplina Village Model (public rental housing)
Q1 2013
5.Ensure listing of mass housing in the 2013 IPP
BOI, HUDCC, DOF
1. Submit SHDA Position Paper to BOI and HUDCC on Mass Housing Listing for 2013 2. Secure HUDCC endorsement for the retention of P 3M price ceiling for low cost and mass housing 3. Study improvements on reasonable validity of ITH
Q1 2013
Q1 2013 Q1 2013
6. Simplify documentary requirements on ITH application
BOI, HUDCC
Submit position paper to BOI
QI 2013
7. Pursue the abolition of requirement for BIR Rulings as a condition for exemption from Creditable Withholding Tax for project registered under BOI (with BIR Com.)
Congress (Office of Cong. Valencia) and Office of Dep. Com Aspe
1. Follow-up Congress’ Committee Report on the hearing conducted on 12 Dec. 2012 2. Undertake dialogue with BIR
Q1 2013
Q1 2013
IV. Closing the Gap: Vision, Goals & Strategies
Objective 2: Implement comprehensive subsidy program for target segments to enhance affordability Strategies 8. Revert to previous BIR practice of Decentralized issuance of Rulings
Partners Congress (Office of Cong. Valencia)
Action Plan 1. Follow-up Congress’ Committee Report on the hearing conducted on 12 Dec. 2012
Timetable Q1 2013
IV. Closing the Gap: Vision, Goals & Strategies
Objective 3: Generate and mobilize funds for end-user financing Strategies
Partners
1. Expand and mobilize the untapped resources of the private sector
BSP, CTB, UKB Insurance companies HGC
Action Plan 1 . Forge partnerships with private banks and other bodies.
Timetable Q1 2013
Q1 to Q2 2013 2. Co-Organize a Real Estate Financing Summit with BSP, HGC, and bank associations
Q1 2013
3. Initiate the creation of a TWG for the purpose of upgrading the rating of HGC
BSP
4. Streamline and standardize 2013 requirements and forms for all loans and CTS . Establish guidelines for CTS best practices.
IV. Closing the Gap: Vision, Goals & Strategies
1.
Objective 3: Generate and mobilize funds for Strategies Partners Action Plan Timetable end-user financing Expand and 5. BSP to differentiate residential Q1 2013 mobilize the untapped resources of the private sector(contd)
2. Augment shelter lending capability of Gov’t. housing finance agencies
real estate loans from other real estate loans (tourism, commercial, etc.
Pag-IBIG
1. Review status of SHDA – HDMF TWG on the latter’s circular issuances 2. Submit and discuss SHDA Recommendatiuons (including rental housing funding) through the TWG
Q1 2013
Q1 2013
IV. Closing the Gap: Vision, Goals & Strategies
Objective 3: Generate and mobilize funds for end-user financing Strategies 2.
Partners
Augment Pag-IBIG shelterlending capability of Gov’t. housing finance agencies (contd)
Pag-IBIG, NHMFC, SHFC, HGC
Action Plan
Timetable
3. Roll out Pag-IBIG “housing hubs. Establish wholesale lending guidelines, create express lanes for good performing developers (Category A/B). 4. Pag-IBIG to revive CTS financing window (with buy-back/post audit)
Q1 2013
5.Outsourcing of major components of home lending such as but not limited to appraisal, collection and servicing, property management
Q1-Q2 2013
Q1 2013
IV. Closing the Gap: Vision, Goals & Strategies
Objective 3: Generate and mobilize funds for end-user financing Strategies 2. Augment shelter lending capability of Gov’t. housing finance agencies (contd)
Partners Pag-IBIG, LRA, BSP, DOF
Action Plan
Timetable
Streamline systems on credit and collection, foreclosure and repossession: HDMF assistance in advance CI, pre-qualification of borrowers Facilitate release of land titles – for faster loan approvals. Title insurance and centralized depositary location of titles for scripless trading of securitized home mortgages.
HDMF to help in BIR, LRA document processing thru G2G arrangements (Pag-IBIG Fund to “take all the credit folders”.
2013 Q2 2013
2013
2013
IV. Closing the Gap: Vision, Goals & Strategies
Objective 3: Generate and mobilize funds for end-user financing Strategies 3. Expand nontraditional financing programs
Partners
Action Plan
Timetable
NHMFC, HGC, Banks
1. Institutionalize mechanisms on securitization, REITs
2013
Pag-IBIG
2. Establish Pag-IBIG and bank funding Usufruct/ lease hold
2013
IV. Closing the Gap: Vision, Goals & Strategies
Objective 4: Improve the housing regulatory environment Faster processing of Housing Permits: 1. HLURB to adopt standard requirements and monitor implementation thereof 2. As a joint project of SHDA, DILG and HUDCC, SHDA will set-up a website to monitor the timelines of the filing of Development Permits with LGU, this will include the Ombudsman and CSC 3. SHDA to enter into a MOA with the LCP and LMP on the standard faster processing of housing permits similar to what they did to business permits Strategies
Partners
Creation of the DHUD
Congress, HUDCC, SHDA
Strictly implement ARTA Law
DOJ, SHDA, LGU
Institutionalize the HUDCC, DTI, ITH-ruling for UDHA DOF-BIR and BOI-IPP
Action Plan
Timetable
2013 1. If conflicts arise regarding policies, approvals and others related to housing, this shall be resolved by the Secretary of the Dept. of Housing 2. To bring back under the adjudication power of the new HLURB resolution of conflicts between developer and buyers on transactions based on License to sell. DILG through Civil Service Commission to 2013 implement ARTA law. If legally feasible, DILG to come out with an MC that the approval of DP shall be vested with the Office of the Mayor.
Addressed in Workshop 2: Affordability
2013
IV. Closing the Gap: Vision, Goals & Strategies
Objective 4: Improve the housing regulatory environment Strategies
Partners
Action Plan 1. SHDA to seek legal opinion from DOJ through DILG 2. DILG to file administrative case against erring local officials
Timetable
Harmonize local and national laws and IRR affecting housing
DPWH, SHDA, HUDCC
Q1-Q2 2013
Issue EO to prepare and update CLUPs
HUDCC, HLURB, HLURB to implement the CLUP 2013 “Zero� backlog for cities and OP, LGUs
LGU law amendment
Congress, SHDA, HUDCC
municipalities as mandated by HUDCC Chair Proposal that the Department of Housing shall set standards and guidelines on the requirements of Housing Permits and train the LGU to ensure strict implementation.
2013-2016
IV. Closing the Gap: Vision, Goals & Strategies
Objective 4: Improve the housing regulatory environment
Other Comments/Suggestions Concern/Issue
Agreements/Next Steps
1. Parallel processing of PALC and DP for condominium projects 2. Deed of Donation
SHDA to work with DILG and HLURB for mandatory acceptance
3. Performance Bond for LTS
SHDA to bring this to the attention of DILG
4. Capability of local officials to run the Local Housing Board
Training and empowerment and seal of good housekeeping by DHUD
IV. Closing the Gap: Vision, Goals & Strategies
Summary and conclusions What is the current status of housing need of the country? – 3.9 million housing unit backlog including 832,000 families who cannot afford (2011) – Housing need will increase to 10.1 million units and given the current capacity and without a comprehensive program, the backlog can hit 6.5 million by 2030 – Current Industry capacity and housing programs are inadequate to eliminate the housing backlog
IV. Closing the Gap: Vision, Goals & Strategies
Summary and conclusions How do we address the unmet housing needs of Filipinos? We Envision to eliminate the backlog by 2030 I. Increase housing production II. Enhance housing affordability by developing comprehensive housing subsidy programs for targeted beneficiaries III. Mobilize and generate housing finance for enduser financing IV. Improve the regulatory environment for housing
IV. Closing the Gap: Vision, Goals & Strategies
Summary and conclusions How can institutions contribute in addressing these needs? ďƒźFormulate, refine and pursue the strategy program for housing ďƒźChampion