2. Authorship+ Disclaimer
This workisthe property of
Pedro Santos Jr. andDianne Ancheta.
Forquestions, contact the authors at
arch.pedrosantosjr@gmail.com and
arch.dianneancheta@gmail.com.
6. HUDCC
âȘ The HUDCC is a government
agency that serves as the
umbrella organization that
coordinates the activities of
the various housing agencies
to ensure the accomplishment
of the National Shelter
Program.
7. HUDCC
âȘ The HUDCC is a government agency under the Office of the
President created by virtue of Executive Order No. 90.
âȘ It serves as the oversight, the overall coordinator, initiator and
facilitator of all government policies, plans and programs for the
housing sector.
âȘ It determines strategies, formulates appropriate policies, monitors
and evaluates the programs, projects and performance of the
implementing shelter agencies.
âȘ It addresses various issues in the areas of housing finance,
housing regulation, housing production and institutional
development.
8. HUDCC
âȘ The HUDCC has four major key result areas which include the
following:
âȘ Formulation of plans and policies on housing and urban development
âȘ Development and supervision of innovative programs and projects for
tenure security, urban renewal and other support services
âȘ Provision of overall administration and supervision to Key Shelter Agencies
âȘ Provision of technical assistance to the Local Government Units (LGUs) on
the delivery of housing services to their constituents and support to the
general public on appropriate information on housing and referral of specific
concerns for action of appropriate agencies
9. MISSION STATEMENT
âAs the highest policy making and coordinating body on housing and
urban development, the HUDCC shall facilitate access to a variety of
housing options that are decent, affordable and responsive to the
diverse and changing needs of homeless and underprivileged Filipino
families.â
10. VISION STATEMENT
âDecent and affordable housing opportunities and sustainable
human settlements for families belonging to the lowest income
strata of our society with HUDCC providing overall direction for its
promotion.â
11. POWERS + FUNCTIONS
âȘ To formulate national objectives for housing and urban
development and to design broad strategies for the
accomplishment of these objectives;
âȘ To determine the participation and coordinate the activities of the
key government housing agencies in the national housing program;
âȘ To monitor, review and evaluate the effective exercise by these
agencies of their assigned functions;
âȘ To assist in the maximum participation of the private sector in all
aspects of housing and urban development;
12. POWERS + FUNCTIONS
âȘ To recommend new legislation and amendments to existing laws
as may be necessary for the attainment of governmentâs
objectives in housing;
âȘ To formulate the basic policies, guidelines and implementing
mechanisms for the disposal or development of acquired or
existing assets of the key housing agencies which are not required
for the accomplishment of their basic mandates;
âȘ To exercise or perform such other powers and functions as may
be deemed necessary, proper or incidental to the attainment of its
purpose and objectives.
13. COUNCIL COMPOSITION
âȘ The Council is chaired by the HUDCC Chairman (currently Vice
President Jejomar Binay).
âȘ The council is composed of the key housing agencies, key finance
agencies, support agencies, and representatives from the
government and private sectors.
14. THE KEY HOUSING AGENCIES
âȘ National Housing Authority (NHA)
âȘ National Home Mortgage Finance Corporation (NHMFC)
âȘ Home Guaranty Corporation (HGC)
âȘ Housing and Land Use Regulatory Board (HLURB)
15. THE KEY FINANCE AGENCIES
âȘ Home Development Mutual Fund (HDMF or Pag-IBIG Fund)
âȘ Social Security System (SSS)
âȘ Government Service Insurance System (GSIS)
16. THE SUPPORT AGENCIES
âȘ National Economic and Development Authority (NEDA)
âȘ Department of Finance (DOF)
âȘ Department of Budget and Management (DBM)
âȘ Department of Public Works and Highways (DPWH)
âȘ Development Bank of the Philippines (DBP)
âȘ Metro Manila Development Authority (MMDA)
âȘ Presidential Management Staff
17. ADDITIONAL COUNCIL MEMBERS
âȘ The council shall also have two representatives from the private
sector representing any of the following groups:
âȘ developers
âȘ bankers
âȘ contractors
âȘ professionals
âȘ low-income beneficiaries
18. THE HUDCC CHAIRMAN
âȘ Although the past two chairmen of the HUDCC have both been
Vice Presidents (i.e. the current chairman is Vice President
Jejomar Binay, and the chairman preceding him was Vice
President Noli De Castro), the position is not exclusively tied to
the position of the Vice President of the Philippines.
âȘ The Office of the President appoints the HUDCC chairman, and it just so
happened that President Aquino chose to appoint Vice President Binay as
HUDCC chair.
âȘ Other past chairmen include Mike Defensor and Leonora De Jesus, neither
of whom are/were Vice Presidents.
20. NATIONAL HOUSING AUTHORITY
âȘ The National Housing
Authority (NHA) is the only
government agency that
engages in actual shelter
production for low income
Filipino families.
21. NATIONAL HOUSING AUTHORITY
âȘ The NHA was created by virtue of Presidential Decree No. 757.
âȘ The NHA is a government-owned and government-controlled
corporation under the administrative supervision of the Housing
and Urban Development Coordinating Council (HUDCC).
22. NATIONAL HOUSING AUTHORITY
âȘ The NHA focuses its efforts in providing housing, assistance to the
lowest 30% of urban income-earners through:
âȘ slum upgrading
âȘ squatter relocation
âȘ development of sites and services
âȘ construction of core-housing units
âȘ In addition, the NHA undertakes programs for the improvement of
blighted urban areas and provides technical assistance for private
developers undertaking low-cost housing projects.
23. MISSION STATEMENT
âȘ To provide decent, adequate, and affordable housing to low-
income families, ensure the provision of community facilities,
utilities, and access to social services and economic opportunities.
24. VISION STATEMENT
âȘ By 2019, NHA would have provided 50% of the housing needs for
homeless low-income families (based on the 2011 census)
primarily those living in waterways, danger areas, and government
infrastructure project sites in Metro Manila and all regions
nationwide.
25. MANDATES
âȘ Develop and implement a comprehensive and integrated housing
program which shall embrace the following:
âȘ housing development and resettlement
âȘ sources and schemes of financing
âȘ explanation of government and private sector participation
âȘ Be the sole national government agency to engage in shelter
production focusing on the housing needs of the lowest 30% of
the urban population
26. MANDATES
âȘ Provide technical and other forms of assistance to local
government units (LGUs) in the implementation of their housing
programs
âȘ Implement the following components of the National Shelter
Program
âȘ Resettlement Program
âȘ Medium Rise Public and Private Housing
âȘ Cost Recoverable Programs
âȘ Local Housing Program
28. HLURB
âȘ The Housing and Land Use
Regulatory Board is the sole
regulatory body for housing
and land use development. It
encourages greater private
sector participation in low-cost
housing by relaxing
development standards,
simplifying regulations, and
making approvals for permits
and licenses more efficient.
29. HLURB
âȘ HLURB is the national government agency tasked as the planning,
regulatory and quasi-judicial body for land use development and
real estate and housing regulation.
âȘ HLURB formulates National Urban Development and Housing
Framework. This is the countryâs comprehensive plan for urban
and urbanizable areas. When creating the framework, the HLURB
reviews existing land use plans, housing programs and all other
projects that may substantially affect urban land use patterns,
transportation and public utilities, infrastructure, the environment,
and population movements.
30. HLURB
âȘ The HLURB began as the Task Force on Human Settlements in
1973. Several decrees and executive orders relating to the
functions of the agency were issued afterwards, most notably
Executive Order 90 which renamed it as the Housing and Land
Use Regulatory Board (HLURB) and mandated it to be the
regulatory body for housing and land development.
31. VISION
âȘ An institution geared towards the attainment of well-planned and
sustainable communities through the regulation of land use,
housing development and homeowners associations, and the just
resolution of disputes.
32. MISSION
âȘ To promulgate and enforce policies on land use, housing and
homeowners associations which promote inclusive growth and
economic advancement, social justice and environmental
protection for the equitable distribution and enjoyment of
development benefits.
33. PLANNING MANDATES
âȘ Formulate guidelines for Comprehensive Land Use Planning (CLUP)
âȘ Assist cities and municipalities in preparing their CLUPs
âȘ Assist Provincial Land Use Committees (PLUC) and Regional Land Use
Committees (RLUC) in reviewing CLUPs
âȘ Review and approve CLUPS for highly urbanized cities, Metro Manila
cities and Provincial Physical Framework Plans (PPFPs)
âȘ Monitor actual land use and the implementation of CLUPs by local
government units
âȘ Update and revise the National Urban Development and Housing
Framework
âȘ Train LGUs in subdivision plan approval and zoning enforcement
34. REGULATION MANDATES
âȘ Register and license subdivision and condominium projects
âȘ Update and revise rules, guidelines and standards on housing and
real estate
âȘ Issue locational clearances for projects considered to be of vital
and national/regional economic or environmental significance
âȘ Register and supervise Homeownersâ Associations (HOAs)
âȘ Register real estate brokers, dealers and salesmen engaged in
selling projects under HLURB jurisdiction.
35. ADJUDICATION MANDATES
âȘ Disputes between buyers and developers
âȘ Disputes within Homeownersâ Associations
âȘ Disputes among Homeownersâ Associations
âȘ Appeals from decisions of local zoning bodies
37. NHMFC
âȘ The National Home Mortgage
Finance Corporation is the
major government home
mortgage institution. Its main
function is to operate a viable
home mortgage market,
utilizing long term funds
principally provided by the
SSS, the GSIS, and the HDMF
to purchase mortgages.
38. NHMFC
âȘ The National Home Mortgage Finance Corporation was created in
1977 by virtue of Presidential Decree 1267.
âȘ Its original mandate was to increase the availability of affordable
housing loans through the development and operation of a
secondary market for home mortgages.
39. MANDATES
âȘ Operate a viable home mortgage market, utilizing long-term funds
principally provided by the Social Security System (SSS), the
Government Services Insurance System (GSIS), and the Home
Development Mutual Fund (HDMF)
âȘ Purchase mortgages originated by both private and public
institutions that are within government-approved guidelines
âȘ Develop a system that will attract private institutional funds into
long-term housing mortgages
40. GOALS
âȘ Provide liquidity to the housing sector through securitization of
mortgages/assets.
âȘ Promote stability to the housing finance housing finance system
through participation in the capital market.
âȘ Establish an efficient and effective organization with a professional
workforce utilizing best practices.
âȘ Maintain efficiency in operation and efficacy in financial
management to ensure sustainability of its programs.
41. WHAT ARE MORTGAGES?
âȘ In plain English, a mortgage is a loan. For many people, it's the
biggest loan they will ever borrow.
âȘ With a regular loan, there's no explicit collateral. The lender looks at
your credit history, your income and your savings, and decides if he
will lend you money. With a mortgage, however, the collateral for
the loan is the house itself. If you don't pay back the loan, then the
lender can take your house.
42. WHAT ARE MORTGAGES?
âȘ Banks are the traditional mortgage lender. But they aren't the only
source of mortgages; credit unions and various government
agencies also offer mortgages. Like other loans, mortgages carry
an interest rate and a length or "term" of the loan, anywhere from
five to 30 years.
44. HDMF
The HDMF or PAG-IBIG Fund is a
national savings program for Filipino
workers. Every month, members set
aside a portion of their salary to
make a contribution to their savings
fund.
45. HDMF
Their total accumulated savings earn
interest and may be withdrawn by
the members upon the maturity of
the account. In addition, members
enjoy additional benefits, such as
access to PAG-IBIG housing loans.
46. HDMF
âȘ The Home Development Mutual Fund (HDMF) was established to
provide a national savings program and affordable shelter
financing for the Filipino worker.
âȘ The Fund is basically a savings program, but it also offers short-
term loans and access to housing programs to its members.
47. HDMF
âȘ The HDMF is more popularly known by its other name, âPAG-IBIG
Fund.â PAG-IBIG is an acronym that stands for Pagtutulungan sa
Kinabukasan: Ikaw, Bangko, Industriya at Gobyerno.
âȘ The PAG-IBIG Fund was established in 1978 by virtue of
Presidential Decree 1530.
âȘ Originally, there were two separate funds: one for private
employees, and another one for government employees. The SSS
collected the savings of private employees, while the GSIS
collected the savings of the government employees. However, in
1979, the two funds were merged into what is now known as the
PAG-IBIG fund.
48. CHARTER
âȘ The PAG-IBIG Fund was established in 1978 by virtue of
Presidential Decree 1530.
âȘ Since then, many laws have been passed affecting the operations
of the PAG-IBIG Fund, the most notable of which is the HDMF Law
of 2009, signed into law by President Gloria Macapagal Arroyo.
âȘ The HDMF Law of 2009 made the HDMF exempt from taxes and
gave it the power to set the contribution rates.
49. MANDATORY MEMBERSHIP
âȘ All employees who are or should be covered by the Social Security
System (SSS). It shall include, but are not limited to:
âȘ A private employee, whether permanent, temporary, or provisional who is not
over sixty (60) years old;
âȘ A household helper earning at least P1,000 a month
âȘ A Filipino seafarer upon the signing of the standard contract of employment
between the seafarer and the manning agency, which together with the foreign
ship owner, acts as the employer;
âȘ A self-employed person regardless of trade, business or occupation, with an
income of at least P1,000 a month and not over sixty (60) years old;
âȘ An expatriate (a citizen of another country who is living and working in the
Philippines) who is not more than sixty (60) years old and is compulsorily
covered by the Social Security System (SSS)
50. MANDATORY MEMBERSHIP
âȘ All employees who are subject to mandatory coverage by the
Government Service Insurance System (GSIS)
âȘ Uniformed members of the Armed Forces of the Philippines, the
Bureau of Fire Protection, the Bureau of Jail Management and
Penology, and the Philippine National Police
âȘ Filipinos employed by foreign-based employers, whether they are
deployed here or abroad
51. HOW MUCH ARE THE CONTRIBUTIONS?
âȘ Contributions are made monthly. The monthly savings rate for all
members, except non-working spouses, are as follows:
Monthly salary
Monthly contributions
Employee Employer
PHP1,500 and below 1% of monthly salary 2% of monthly salary
Over PHP1,500 2% of monthly salary 2% of monthly salary
52. FEATURES OF THE SAVINGS PROGRAM
âȘ All savings are government-guaranteed
âȘ Annual dividend earnings (AKA interest) are tax-free
âȘ With the employerâs counterpart contributions, membersâ monthly
savings are immediately doubled
âȘ Portability of savings: members who transfer employers, from
government to the private sector and vice-versa, carry their
membership and may continue it at any time.
53. MEMBERSâ BENEFITS
âȘ Annual dividend earnings for their savings, tax-free
âȘ Access to short-term loan programs
âȘ Access to the housing loan program
54. WITHDRAWING THE SAVINGS
âȘ Total accumulated savings (TAV) = Memberâs contributions +
Employerâs counterpart contributions + Interest
âȘ PAG-IBIG Fund guarantees the refund of member's total
accumulated savings. The savings will be refunded upon the
occurrence of any grounds for withdrawal.
55. GROUNDS FOR WITHDRAWAL
âȘ Membership maturity. A membership becomes âmatureâ after 20
years of continuous membership. This means that the member
must have remitted at least 240 monthly contributions.
âȘ Retirement. The member shall be compulsorily retired upon
reaching age 65. He may however, opt to retire upon the
occurrence of any of the following:
âȘ Actual retirement from the SSS, the GSIS or a separate employer
provident/retirement plan, provided the member has at least reached age 45.
âȘ Upon reaching age 60.
56. GROUNDS FOR WITHDRAWAL
âȘ Permanent and total disability or insanity. The following
disabilities shall be deemed total and permanent:
âȘ Temporary total disability lasting continuously for more than 120 days;
âȘ Complete loss of sight of both eyes;
âȘ Loss of two limbs at or over the ankle or wrist;
âȘ Permanent complete paralysis of two limbs;
âȘ Brain injury resulting in incurable imbecility or insanity; and
âȘ Such other cases which are adjudged to be total and permanent disability by
a duly licensed physician and approved by the Board of Trustees.
57. GROUNDS FOR WITHDRAWAL
âȘ Separation from the service due to health reasons.
âȘ Permanent departure from the country.
âȘ Death. In case of death, the fund benefits shall be divided among
the member's legal heirs.
58. GETTING HOUSING LOANS
âȘ There are two ways of applying for a PAG-IBIG housing loan:
âȘ Developer-assisted: the developer assists the member in his/her housing
loan application
âȘ Retail: the member applies directly to the Fund
59. HOUSING LOAN ELIGIBILITY
âȘ Must be a member for at least twenty-four (24) months. This must
be evidenced by the remittance of at least 24 monthly
contributions at the time of loan application.
âȘ A member with less than the required number of contributions
shall be allowed to make lump sum payment to meet the said
requirement at point of loan application provided he has been a
contributing member of the Fund for at least twelve (12) months.
âȘ Not more than sixty-five (65) years old at the date of loan
application and must be insurable; provided further that he is not
more than seventy (70) years old at loan maturity;
âȘ Has the legal capacity to acquire and encumber real property;
60. HOUSING LOAN ELIGIBILITY
âȘ Has passed satisfactory background/credit and
employment/business checks of the PAG-IBIG Fund;
âȘ Has no outstanding PAG-IBIG housing loan, either as a principal
borrower or co-borrower;
âȘ However, should a co-borrower signify an intention to avail of a PAG-IBIG
housing loan for himself, he shall be allowed to do so provided that his part
of the loan has been fully paid. Hence, the co-borrower shall be released
from the obligation and shall be allowed to avail of his own PAG-IBIG
housing loan.
61. HOUSING LOAN ELIGIBILITY
âȘ Had no PAG-IBIG housing loan that was foreclosed, cancelled,
bought back due to default, or subjected to dacion en pago, which
shall include cases where the borrower is no longer interested to
pursue the loan and surrenders the property;
âȘ Dacion en pago is a Spanish term that means âhanding back the keys.â
Simply put, it means returning the mortgaged property to the lender in
exchange for the discharge of a mortgage debt.
âȘ Has no outstanding PAG-IBIG multi-purpose loan in arrears (this
means that the borrower is behind on his payments) at the time of
loan application. A member whose multi-purpose loan is in arrears
shall be required to pay all necessary payments to make his
account up-to-date.
63. HOME GUARANTY CORPORATION
âȘ The HGC is a government
agency whose main goal is to
encourage banks and financial
institutions to lend money to
Filipino homebuyers by
providing loan guarantees to
these banks and/or financial
institutions.
64. WHAT IS A LOAN GUARANTEE?
âȘ A loan guarantee is a promise by a third party (in this case, the
HGC) to assume the debt obligation of a borrower if that borrower
is unable to make his payments to the lender.
âȘ A loan guarantee encourages lenders (e.g. banks) to lend money to
borrowers because it lessens the risk for lenders. Should the
borrower fail to pay his debts, the HGC will make the payments.
65. VISION
âȘ Improved private sector participation in addressing the Nation's
housing needs through a viable system of credit guarantees.
66. MISSION
âȘ To mobilize resources for housing through a system of credit
guarantees and incentives.
67. MANDATES
âȘ To guarantee the payment of mortgages and loans arising from
financial contracts exclusively for residential purposes and the
necessary support facilities
âȘ To assist private developers to undertake socialized, low and
medium cost mass housing projects by encouraging private funds
to finance such housing projects through a viable system of long-
term mortgages, guaranties and other incentives
âȘ To promote homebuilding and landownership, giving primary
preference to the homeless and underprivileged sectors of the
society
68. WHO ARE THE CLIENTS OF HGC?
âȘ The primary clients of the HGC are lenders (NOT borrowers).
These include banks, government and private financial institutions,
housing developers, and Building and Loan Associations (BLAs).
These lending institutions must apply for a Guaranty Line from
HGC in order for them to be covered.
69. WHO ARE THE CLIENTS OF HGC?
âȘ Loan guarantees lessen the risk for lenders. This is the primary
reason why lenders apply for guarantees from HGC. On top of this,
HGC clients enjoy the following benefits:
âȘ Risk coverage. If a guarantee call is approved, HGC pays 100% of the
outstanding balance and a guaranteed interest of up to 11%.
âȘ Tax incentive. Interest income on housing loans up to the extent of 11% is
exempt from all forms of taxation.
âȘ Sovereign guarantee. The Government of the Republic of the Philippines
guarantees the payment of HGC's obligations. This means that unless the
Philippine government becomes bankrupt, the HGC will be able to make the
payments it has to make.
70. ACQUIRED ASSETS + PROPERTIES
âȘ The HGC owns and sells acquired assets and properties.
âȘ In the event that a borrower is unable to pay, the lender (e.g. bank) calls on
the guarantee of the HGC.
âȘ The HGC will then need to make the payments to the lender (because the
HGC guaranteed that loan).
âȘ Upon payment of the obligations, the lender will turn over the property to the
HGC. This means that the property is now owned by the HGC, not by the
original borrower who was not able to make his payments.
âȘ If the original borrower cannot buy the property back from HGC, the HGC will
sell the property to interested buyers (typically at lower than market rates).
This is why the HGC has acquired assets and properties.
