Category: Microenterprise

Is Housing the Next Frontier in Microfinance? SEDPI’s Vision for Accessible and Sustainable Housing Solutions

In a recent address at the 2nd Socialized Housing Summit, Vince Rapisura, a pivotal figure in microfinance and social entrepreneurship, presented a compelling case for integrating affordable housing solutions into microfinance. His presentation, rooted in a deep understanding of the challenges faced by low-income Filipinos, offered a fresh perspective on addressing poverty through sustainable housing.

Rapisura, known for his innovative approaches in the field of microfinance, emphasized the necessity of moving beyond traditional loan models to meet the multifaceted needs of impoverished communities. Drawing from his extensive experience, he highlighted the pitfalls of a debt-centric culture, where loans are often seen as the primary solution to financial growth and stability. Instead, Rapisura advocates for a model that encourages savings and responsible financial management as keys to achieving long-term prosperity.

One of the critical insights shared by Rapisura was the debt trap many low-income individuals find themselves in, exacerbated by the lack of access to architectural and engineering services and quality building materials. He shared poignant stories of individuals like Jade, a puto vendor overwhelmed by debt, and Cherry, whose family’s health suffered due to their inadequate living conditions. These stories underscore the urgent need for more holistic and accessible housing solutions that consider the realities of those they aim to serve.

Rapisura’s proposal involves a shift in perspective from viewing low-income individuals as debtors to seeing them as business partners in joint venture projects. This approach not only fosters a more equitable relationship between financial institutions and their clients but also emphasizes the importance of saving over borrowing. By encouraging clients to save for future needs, including housing, SEDPI aims to break the cycle of debt and promote financial stability and growth.

A significant part of Rapisura’s presentation focused on the SEDPI Lay-away Program, a novel approach to helping low-income individuals achieve their goals without resorting to high-interest loans. By saving for items like smartphones, clients can avoid the debt trap associated with installment plans, which often lead to paying significantly more than an item’s retail price. This model is extended to housing, where saving for a down payment becomes a viable path to homeownership, contrasting sharply with the high costs and risks associated with traditional housing loans.

SEDPI’s research into the housing needs of its community revealed a stark reality: the demand for affordable housing far outstrips supply, with a significant portion of the population living in hazard-prone areas without proper documentation or access to quality building materials. This situation calls for innovative solutions that go beyond financial assistance, requiring partnerships between microfinance institutions, government agencies, and the private sector to address the complex challenges of providing safe, affordable housing.

Rapisura’s vision for SEDPI KaBalai, a pilot housing project in Bislig City, embodies this comprehensive approach. By combining ethical financing principles with a focus on community building and disaster resilience, SEDPI aims to provide not just houses but homes that offer security, stability, and a foundation for future prosperity. This initiative highlights the potential for microfinance to play a crucial role in addressing one of the most pressing challenges facing low-income Filipinos today: the need for accessible and sustainable housing.As the presentation concluded, it was clear that Rapisura’s approach to integrating housing solutions into microfinance offers a hopeful blueprint for addressing poverty. By focusing on savings, ethical financing, and community partnership, SEDPI is paving the way for a future where affordable housing is within reach for all, proving that, indeed, wealth can be built slowly and collaboratively.

ASA Philippines Foundation Showcases Impactful Home Financing Solutions at the 2nd Socialized Housing Summit

ASA Philippines Foundation, one of the giant microfinance institutions in the Philippines, presented its innovative Home Financing program at the 2nd Socialized Housing Summit, showcasing its contributions to addressing the housing needs of low-income communities. The summit, organized by the Ateneo Center for Social Entrepreneurship (ACSent) and Social Enterprise Development Partnerships Inc. (SEDPI) on March 18-19, 2024, at the Ateneo de Manila University, provided a platform for critical discussions on social housing initiatives in the Philippines.

Kamrul Tarafder, ASA Philippines’ Chief Executive Officer, highlighted the foundation’s significant reach, operating in 100% of the provinces and with extensive penetration in municipalities and cities throughout the Philippines. With over 1700 branches nationwide, the organization has a profound impact on providing access to financial services to marginalized communities.

Tarafder presented the Foundation’s Home Financing (HomFin) program, designed to address the dire need for affordable housing solutions. The HomFin program has disbursed over 12 billion PHP, significantly affecting the lives of numerous Filipinos. By offering non-interest-bearing loans and other subsidiary loans, ASA Philippines has displayed its commitment to financial inclusion and its innovative approach to socialized housing.

ASA Philippines has also demonstrated impressive financial performance, showcasing the Foundation’s sustainable growth. The financial position of the organization reflects a robust balance sheet with strong capital assets and an operational self-sufficiency that exceeds industry standards. Such financial health allows the Foundation to continue its crucial work in community services, providing extensive support from burial assistance to scholarships and business development programs.

A notable component of ASA Philippines’ presentation was its successful track record in debt repayment, including a groundbreaking ₱5 billion Gender Bond in 2023 and strategic partnerships with institutions like ADB and Citi. These achievements underscore the organization’s reputation as a reliable and innovative financial institution dedicated to sustainable development and economic inclusion.

Tarafder shared inspiring before-and-after photos of beneficiaries who have received HomFin funding, transforming not only their living conditions but also their lives. One striking story was that of Lourdes Otilano from Guinobatan, Albay, who, with the help of a HomFin loan, improved her family’s living conditions, demonstrating the program’s tangible impact.

Another impactful story was of Agustina Completo from Tabaco City, Albay, whose new home construction was funded through the HomFin program, illustrating the program’s reach and effectiveness. Stories of individuals like Lucita Boytiquel and Marissa Pisay, who received HomFin funding and ASA grants, show the organization’s dedication to uplifting lives and building resilient communities.The presentation concluded with a call to action for other organizations and individuals to engage in similar transformative work. Tarafder’s insights and the success stories shared provided a beacon of hope and a model for addressing the housing crisis.

Empowering Urban Poor: The Imperative Integration of People’s Plans in 4PH Housing Program

In a compelling presentation at the 2nd socialized housing summit, Buboy Magahis highlighted the pressing need for incorporating people’s plans into the Philippines’ Pambansang Pabahay para sa Pilipino (4PH) program, advocating for a more inclusive and sustainable approach to address the nation’s housing crisis. Hosted by ACSent and SEDPI at Ateneo de Manila University, the summit brought together voices from various sectors to forge actionable paths toward resolving housing challenges.

Magahis, representing the grassroots organization Kilos Maralita, shared poignant narratives of families living in peril along riverbanks, emphasizing the transformative potential of people’s plans in crafting viable housing solutions. Through a video presentation, attendees witnessed firsthand the community’s journey from the brink of eviction to the realization of their right to dignified housing, underscoring the importance of their active participation in the planning process.

Central to Magahis’s message were the following recommendations to enhance the 4PH program:

  1. Integrate People’s Plan: Advocating for the inclusion of comprehensive people’s plans in 4PH, Magahis stressed the necessity of community involvement in housing projects, ensuring that the solutions are tailored to the actual needs and capabilities of the urban poor.
  2. Provide Capital Subsidy: Recognizing the financial limitations of the target beneficiaries, he suggested that the government should offer a capital subsidy to reduce the loan amount, making it more accessible for low-income families to secure housing under the socialized housing bracket.
  3. Develop Multi-Use Spaces: Magahis proposed the inclusion of commercial spaces within housing developments to generate additional income. This innovative approach would enable homeowners to fund the maintenance of their buildings, thereby ensuring the sustainability of the housing projects.
  4. Site Development as Counterpart of Local Government Units To further reduce the cost of construction, local government units should shoulder site development so that this is not passed on to the homeowners making the houses more affordable.
  5. Facilitate a One-Stop-Shop for Requirements Processing: To streamline the often cumbersome process of acquiring housing, a unified platform for processing all necessary requirements was recommended, simplifying access for potential beneficiaries.
  6. Explore Rental Housing Concepts: Acknowledging the diversity of the urban poor’s financial capacities, he called for the development of rental housing models to accommodate those unable to afford home ownership.
  7. Institutionalize Property Management in Socialized Housing: To ensure the effective management of housing estates and the generation of income for maintenance needs, Magahis emphasized the importance of community involvement and management through institutionalizing property management in housing plans.

Magahis’s presentation at the summit served as a powerful call to action, urging policymakers, developers, and community leaders to recognize the vital role of the urban poor in shaping their housing futures. As the Philippines grapples with a significant housing backlog, the integration of people’s plans in the 4PH program emerges as a crucial step toward building resilient, inclusive, and sustainable urban communities.

The Imperative Integration of People’s Plans in 4PH Housing Program

Summit Concludes with Strategic Blueprint for Housing Crisis Resolution

As the 2nd socialized housing summit hosted by ACSent and SEDPI at Ateneo de Manila University drew to a close, Vince Rapisura provided key takeaways and actionable steps toward addressing the Philippines’ housing backlog. Emphasizing the commitment of Senator Risa Hontiveros to champion housing issues in her legislative agenda, Rapisura outlined a strategic approach to enhance the Pambansang Pabahay para sa Pilipino (4PH) program. Key proposals include diversifying housing modalities, securing funding for SHFC, streamlining licensing and permitting for developers, and incorporating people’s plans and horizontal development strategies.

Furthermore, Rapisura announced plans for a collaborative workshop aimed at bridging microfinance institutions and developers, reflecting the summit’s consensus on the need for multi-sectoral cooperation. He also called for partnerships with Pag-IBIG Fund to expand financing options for prospective homeowners. Highlighting the importance of fair labor practices, Rapisura advocated for improved pay and benefits for construction workers, essential to the sector’s sustainability.

Committed to maintaining the momentum, Rapisura announced the decision to host annual summits to tackle the 6.5 million housing unit backlog, inviting all stakeholders to contribute to the collective effort of building sustainable, inclusive communities across the Philippines.

Pag-IBIG’s Response to the Deep Socialized Housing Shortage: GLAD Program and Countryside Housing Initiatives

At the 2nd Socialized Housing Summit held at the Ateneo de Manila University, Pag-IBIG’s Chief Executive Officer, Marilene Acosta, highlighted the drastic drop in socialized housing production for 2023 and outlined the institution’s strategic initiatives to address this pressing concern.

Acosta reported a distressing figure, revealing that in 2023, the production of socialized housing units plummeted to a critical low, with only 11,257 units built out of the half a million needed. This gap exacerbates the cumulative housing deficit of approximately 7 million units, underlining a national crisis that demands urgent and innovative solutions. The chief executive reflected on the stark reality of informal settlements scattered across the nation’s cities, often situated in hazardous locations, and pondered on the failure to provide adequate housing solutions to the urban populace.

As a response to this shortfall and the clamor for horizontal development, especially in rural areas, Pag-IBIG is championing the GLAD (Group Land Acquisition and Development) program. Acosta reminisced about her tenure as manager of Pag-IBIG’s Baguio Regional Office, where she spearheaded several GLAD projects, facilitating groups like public school teachers to acquire and develop land for their housing needs. This program represents a beacon of hope for rural communities where title properties are scarce and high-priced.

In contrast to the 4PH program’s inclination towards vertical development, Pag-IBIG’s countryside housing program offers an alternative that resonates with Filipinos’ preference for ground-level dwellings. The program engages in public-private partnerships to stimulate housing development across various regions, aligning with the traditional Filipino aspiration for homes nestled in community-centric environments.

Despite the challenges, Pag-IBIG’s commitment to increase the inventory of socialized housing is unwavering. In 2024, Pag-IBIG pledged an allocation of ₱250 billion to fund the 4PH program, catalyzing the development and construction of housing units. Acosta proudly showcased the successful completion of pilot projects in Bacolod and Palayan City, setting the stage for forthcoming projects that are anticipated to provide around 18,000 families with new homes.

Furthermore, Acosta shed light on Pag-IBIG’s Community Housing Initiative program, inviting cooperation from various social enterprises, civil societies, microfinance institutions, and cooperatives to facilitate homeownership. This initiative is designed as a public-private partnership aimed at extending Pag-IBIG’s housing loan program to the underserved, thus embracing a more inclusive approach to housing development.

Emphasizing the importance of affordable housing finance, Acosta also discussed Pag-IBIG’s Acquired Asset Disposal Program, offering up to a 40% discount on bulk purchases to organizations helping their members acquire homes. This program is not only about providing a roof but also about instilling pride and a sense of community among the beneficiaries.

Acosta’s presentation concluded with an invitation to further strengthen collaborations to develop more inclusive housing programs, ensuring that every Filipino can access affordable and dignified shelter. She affirmed Pag-IBIG’s readiness and willingness to support the dream of homeownership, urging the summit’s attendees to consider Pag-IBIG as a partner in building sustainable communities for future generations.

The summit, orchestrated by ACSent and SEDPI on March 18-19, 2024, underscored the pivotal role of strategic partnerships and innovative financing solutions in bridging the significant housing gap, highlighting Pag-IBIG’s crucial role in this nationwide effort.

Citihub Founder Panya Boonsirithum Advocates for Affordable Urban Housing at the 2nd Socialized Housing Summit

In a striking presentation at the 2nd Socialized Housing Summit, held on March 18-19, 2024, at the Ateneo de Manila University, Panya Boonsirithum, the founder of Citihub, shared his visionary approach to addressing Metro Manila’s housing crisis. Organized by the Ateneo Center for Social Entrepreneurship (ACSent) and Social Enterprise Development Partnerships Inc. (SEDPI), the summit brought together a diverse group of stakeholders to tackle the challenges of socialized housing in the Philippines.

Boonsirithum, through his social enterprise, Citihub, highlighted the profound disparity between the burgeoning population of Metro Manila, which swells from 12.8 million at night to 15 million during the day, according to the 2015 NSO Census. This phenomenon exacerbates the city’s homelessness and housing inadequacy, particularly for low-income workers who commute daily to the metropolis’s economic hubs such as Makati, Pasay, and the Port Area of Tondo.

Citihub’s innovative solution, the “POP-UP Mobile Dormitory,” aims to provide affordable, dignified, and environmentally sustainable housing for these workers. For a remarkably low fee of P99 per day (or P2,995 per month), residents can enjoy bed accommodations inclusive of power and water, fully air-conditioned rooms, free Wi-Fi, cable TV, and round-the-clock security with CCTV. Additionally, residents benefit from complimentary rice and mineral water, further alleviating their living costs.

Boonsirithum’s vision for Citihub is bold and clear: to eradicate homelessness in Metro Manila by establishing a Citihub in every city within the metropolitan area. By doing so, Citihub aims to be a for-profit social enterprise that significantly reduces the environmental footprint of urban housing while addressing the pressing need for affordable accommodations.

The growth plans of Citihub are ambitious, aiming to establish a hub in each of the 16 cities of Metro Manila. This expansion strategy underscores Citihub’s commitment to widespread social impact, emphasizing the enterprise’s dual focus on environmental stewardship and social progress.

Boonsirithum’s message to the summit attendees was one of inspiration and action. He urged everyone to champion causes that contribute to the nation’s development and to take an active role in building the future. Citihub’s project serves not only as a testament to what can be achieved through innovation and social entrepreneurship but also as a call to action for other stakeholders to explore and implement solutions that provide sustainable, affordable housing.

The summit, organized by ACSent and SEDPI, provided a valuable platform for sharing ideas, strategies, and success stories like Citihub’s. By bringing together government agencies, private sector partners, social enterprises, and civil society allies, the event aimed to forge a collaborative network dedicated to ensuring accessible, sustainable, and dignified housing for every Filipino. Boonsirithum’s presentation at the summit reinforced the critical role of innovative approaches and public-private partnerships in bridging the gaps in the housing sector and building futures through innovating solutions.

Gawad Kalinga Ateneo Unveils Success in Building Communities at the 2nd Socialized Housing Summit

At the 2nd Socialized Housing Summit, Ms. Norlie Corneby of Gawad Kalinga Ateneo shared a profound narrative of community transformation and resilience, illustrating the organization’s triumphs in socialized housing. Held on March 18-19, 2024, at the Ateneo de Manila University, the summit, organized by the Ateneo Center for Social Entrepreneurship (ACSent) and Social Enterprise Development Partnerships Inc. (SEDPI), provided a platform for stakeholders to discuss the critical issues surrounding socialized housing in the Philippines.

Gawad Kalinga’s journey in community building, as presented by Ms. Corneby, showcased various successful projects across the nation, including Payatas Trese Blue Eagle Village in Quezon City, Kalayaan Village in Gabaldon, Nueva Ecija, and several others in Cavite and Nueva Ecija. Each project highlighted Gawad Kalinga’s commitment to not only provide homes but also foster communities where dignity, safety, and hope flourish.

A pivotal aspect of Gawad Kalinga’s approach, as detailed in the presentation, is the meticulous family screening and qualifying process, ensuring that the benefits reach those who need them most. This process is rooted in a deep understanding of the beneficiaries’ circumstances, aspirations, and potential to contribute to the community’s growth.

Values formation stands at the core of Gawad Kalinga’s mission, underpinning the belief that sustainable development transcends the physical construction of houses. Through various programs, residents engage in activities that nurture values of responsibility, community, and shared purpose. The essence of “Bayanihan,” or communal unity and cooperation, was underscored as a key ingredient in the success of each project, demonstrating that the spirit of collective effort can overcome substantial challenges.

Ms. Corneby’s presentation vividly captured the transformative power of socialized housing when coupled with a holistic approach to community development. By integrating values formation and leveraging the Bayanihan spirit, Gawad Kalinga Ateneo has not only built houses but has also rekindled hope and catalyzed positive change in marginalized communities.

The 2nd Socialized Housing Summit served as an eye-opening reminder of the impactful work being done across the Philippines to address housing needs. Gawad Kalinga Ateneo’s experience provided attendees with invaluable insights into the potential of socialized housing projects to transform lives and landscapes.

OSHDP Advocates for Robust Partnerships and Data-Driven Strategies in Socialized Housing

At the 2nd Socialized Housing Summit, held at the Ateneo de Manila University on March 18-19, 2024, Engr. Marcelino Mendoza of the Organization of Socialized and Economic Housing Developers of the Philippines Inc. (OSHDP) provided an in-depth look at the vital role mass housing developers play in addressing the country’s urgent housing needs. Organized by the Ateneo Center for Social Entrepreneurship (ACSent) and Social Enterprise Development Partnerships Inc. (SEDPI), the summit brought together key stakeholders to discuss innovative solutions to the housing crisis.

Mendoza shared heartwarming success stories, highlighting the transformative impact of socialized housing on beneficiaries, such as Angelie Mabulay, a visually impaired individual who, despite initial setbacks, successfully acquired a home through OSHDP’s intervention. These stories not only showcase the organization’s dedication but also emphasize the power of resilience and community support in overcoming adversity.

As OSHDP continues to champion “growth through dignified, decent, and affordable housing,” Mendoza outlined several forward-looking strategies to enhance the sector’s efficiency and responsiveness. A critical area of focus is addressing the significant data gap regarding the inventory of idle government land that could be utilized for socialized housing. Mendoza advocated for a more systematic approach to identifying and allocating these lands to maximize their potential for housing development.

Public and private partnerships were underscored as a cornerstone for advancing socialized housing initiatives. Mendoza called for strengthened collaborations between government agencies, private developers, and non-governmental organizations to pool resources, expertise, and capacities for more significant impact. Such partnerships could lead to innovative housing models that cater to the diverse needs of low-income families while ensuring sustainability and community resilience.

Another crucial area highlighted was the need for a transparent and equitable beneficiary selection and identification process. Mendoza proposed the development of a more structured queuing system to ensure fairness in allocating housing units and to prioritize those most in need. Additionally, the importance of social preparation prior to purchase was stressed, suggesting that potential homeowners be equipped with the knowledge and skills necessary for property and estate management to foster long-term success and community well-being.

In closing, Engr. Mendoza’s presentation at the summit served as a call to action for all stakeholders involved in socialized housing. By addressing data gaps, fostering public and private partnerships, and ensuring the equitable selection of beneficiaries, the sector can move closer to its goal of providing affordable, dignified, and decent housing for every Filipino family. The insights shared by Mendoza and other speakers at the summit underscore the urgent need for collective efforts to solve the housing crisis, bridging gaps through innovation, collaboration, and shared expertise.

Socialized Housing Production Hits Record Low,SHDA Highlights Compliance Challenges at Housing Summit

During the enlightening 2nd Socialized Housing Summit, Santiago F. Ducay from the Subdivision and Housing Developers Association (SHDA) presented a concerning update on the state of socialized housing in the Philippines. The year 2023 saw the production of socialized housing units plummet to a historic low since 2001, with only 10,113 units completed. This stark decline underscores the growing challenges developers face in adhering to the mandated socialized housing construction requirements, leading many to opt for alternative compliance methods.

Ducay’s presentation at the summit, organized by the Ateneo Center for Social Entrepreneurship (ACSent) and Social Enterprise Development Partnerships Inc. (SEDPI) on March 18-19, 2024, at the Ateneo de Manila University, highlighted the legal framework governing socialized housing development. Despite the clear mandates outlined in Republic Act No. 7279, also known as the “Urban Development and Housing Act of 1992,” and subsequent amendments, the actual construction of socialized housing has been fraught with obstacles. These challenges have prompted developers to favor incentivized compliance via escrow, a method that, while legally permissible, does not directly contribute to increasing the stock of socialized housing units.

The summit delved into the nuances of the compliance mechanisms available to developers, including joint ventures with local government units (LGUs) and non-government organizations (NGOs), development of new settlements, and participation in community mortgage programs. However, the preference for the escrow option points to a need for a more streamlined and less burdensome compliance process that encourages direct investment in the construction of socialized housing.

Ducay also addressed the critical issue of the socialized housing price ceiling adjustments, noting that the last revision in 2018 has not kept pace with the rising costs of construction and land acquisition. This gap further complicates developers’ ability to deliver affordable housing units to low-income families, exacerbating the housing crisis.

In light of these challenges, SHDA’s presentation called for government intervention to facilitate easier compliance and encourage more developers to invest directly in socialized housing projects. Suggestions included revising the price ceiling for socialized housing, offering tax incentives, and reducing bureaucratic hurdles that currently deter developers from undertaking socialized housing projects.

The 2nd Socialized Housing Summit served as a crucial platform for stakeholders across the housing sector to converge, share insights, and discuss innovative solutions to the pressing housing needs of Filipinos. With the collaboration of ACSent and SEDPI, the summit underscored the importance of collective efforts in addressing the affordability and accessibility of housing in the Philippines, especially for the marginalized and low-income populations. The historic low in socialized housing production highlights an urgent call to action for both the government and the private sector to reevaluate and enhance their strategies for fulfilling the nation’s housing needs.

DENR’s Engr. Romeo P. Verzosa Outlines Land Titling Reform at the 2nd Socialized Housing Summit

The second day of the 2nd Socialized Housing Summit, co-organized by the Ateneo Center for Social Entrepreneurship (ACSent) and Social Enterprise Development Partnerships Inc. (SEDPI) on March 18-19, 2024, at Ateneo de Manila University, featured Engr. Romeo P. Verzosa, Assistant Director of the DENR – Land Management Bureau. His presentation provided an essential overview of the challenges and proposed reforms in the land titling process, a critical step in addressing the Philippines’ housing crisis.

Verzosa began by outlining the mandate of the Land Management Bureau under Executive Order No. 192, emphasizing the role of the DENR in surveying, disposition, and administration of public Alienable and Disposable (A&D) lands. He stressed the adherence to the Regalian Doctrine, enshrined in the 1987 Philippine Constitution, which posits that all natural resources are owned by the State, excluding agricultural lands from alienation.

A primary concern highlighted in Verzosa’s presentation was the need for agricultural land classification before titling, with nearly half of the Philippines’ land resources designated as agricultural. He explained the titling process and the modes of acquiring public A&D lands, including Free Patent, Homestead, Sales Patent, and Special Patent, under the Public Land Act.

In a compelling part of his talk, Verzosa detailed the improvements in the agricultural free patent process through Republic Act No. 11573 and its Implementing Rules and Regulations (IRR), providing avenues for citizens to secure land rights. He underscored the streamlined process for acquiring residential free patents under RA 10023, facilitating easier access for Filipino citizens to residential lands.

One of the most insightful portions of Verzosa’s presentation focused on the challenges and proposed solutions for land titling, notably addressing the data gap in inventorying idle government land for socialized housing. He called for strengthened public and private partnerships to leverage resources for housing development. Additionally, the importance of establishing a fair and orderly beneficiary selection and queuing system was emphasized.

The talk also shed light on the vital steps before land can be awarded, such as social preparation and the bolstering of property and estate management institutions, ensuring that beneficiaries are well-prepared for homeownership.

The summit provided a platform for Verzosa to share the way forward, including tackling procedural bottlenecks and reinforcing the partnership between DENR and other government entities to support the issuance of Special Patents for public uses.