On getting a foot on the socialized housing ladder

(First of two parts)

The Philippines as a prosperous middle-class society where no one is poor by 2040—this is the government’s vision under AmBisyon Natin 2040.

According to the National Economic and Development Authority (Neda), this can be partly achieved by having competitive enterprises offer quality goods and services at affordable prices. These enterprises include those in the housing and urban development sector, which the Neda identifies as being engaged in construction, construction-related manufacturing, and house development-related manufacturing activities, and utilities.

As with the entire world, however, the COVID-19 pandemic has severely affected the local sector, which now deals with mounting housing production costs. The pandemic also highlighted the gaps, particularly in the socialized housing sector.

Socialized housing has always been the country’s policy, even before these economic developments. To be sure, under the Urban Development and Housing Act, the Philippine State has declared as its policy, in coordination with the private sector, the undertaking of a comprehensive and continuing Urban Development and Housing Program, which aims to, among others, uplift the conditions of the underprivileged and homeless citizens in urban areas and in resettlement areas by making available to them decent housing at affordable cost, basic services, and employment opportunities.

This program’s activities include socialized housing, which refer to housing programs and projects covering houses and lots or home lots only undertaken by the government or the private sector for the underprivileged and homeless citizens. These activities shall include site and services development, long-term financing, liberalized terms on interest payments, and such other benefits in accordance with the Act.

In this regard, underprivileged and homeless citizens refer to (a) the beneficiaries under the Act; (b) individuals or families residing in urban and urbanizable areas whose income or combined household income falls within the poverty threshold, as set by the Neda, and who do not own housing facilities; and (c) those living in makeshift dwelling units and who do not enjoy security of tenure—that is, the degree of protection afforded to qualified program beneficiaries against infringement or unjust, unreasonable and arbitrary eviction or disposition, by virtue of the right of ownership, lease agreement, usufruct and other contractual arrangements.

Under the program, the local government units may identify as suitable for socialized housing those lands in urban and urbanizable areas, including existing areas for priority development, zonal improvement sites, slum improvement, and resettlement sites, as defined by the Act, and all such other areas.

Nevertheless, certain properties are exempted from the program, such as those: (a) covered by the Comprehensive Agrarian Reform Law; (b) actually used for national defense and security of the Philippine State; (c) used, reserved, or otherwise set aside for government offices, facilities, and other installations, unless they have not been used for their stated purpose for the past 10 years from the effectivity of the Act; (d) used or set aside for parks, reserves for flora and fauna, forests, watersheds, and other areas necessary to maintain an ecological balance or environmental protection; or (e) actually and primarily used for religious, charitable, or educational purposes, cultural and historical sites, hospitals and health centers, and cemeteries or memorial parks.

(To be continued)