SHFC Aims to Transform Lives with Resilient Communities Amid Housing Challenges

At the 2nd Socialized Housing Summit held at Ateneo de Manila University, Atty. Junefe G. Payot from the Social Housing Finance Corporation (SHFC) presented an approach to combat the Philippines’ housing backlog through resilient community-driven projects. Amidst a critical period where the production of socialized housing units plummeted to an all-time low in 2023, SHFC’s innovative strategies come as a beacon of hope for low-income Filipino families.

The SHFC, a key shelter agency attached to the Department of Human Settlements and Urban Development (DHSUD), has taken a front seat in implementing President Ferdinand Marcos Jr.’s flagship Pambansang Pabahay Para sa Pilipino Housing (4PH) Program. This initiative aims to eradicate the housing backlog by fostering community-guided programs that not only provide homes but also uplift the quality of life for the impoverished sectors, both formal and informal.

Payot elaborated on the legal frameworks underpinning the right to adequate housing, emphasizing the government’s constitutional commitment to ensure affordable housing and basic services to underprivileged citizens. The presentation highlighted the importance of security of tenure, availability of services, affordability, and habitability as minimum elements for adequate housing, aligning with both national and international human rights treaties.

In addressing the urban housing crisis, SHFC has championed the vertical housing approach, a solution designed to maximize limited urban spaces while providing more housing units than traditional horizontal developments. This method not only tackles the scarcity and high cost of urban land but also prevents uncontrolled urban sprawl, contributing positively to environmental sustainability. Payot cited several ongoing SHFC projects, including those in Pasay City, Bulacan, Valenzuela City, Naic, Cavite, and Quezon City, showcasing the diverse benefits of strategic location, self-contained communities, livelihood opportunities, green and walkable spaces, and flexible design choices.

The SHFC projects stand as self-contained communities, offering residents access to essential amenities, recreational spaces, and livelihood opportunities, thereby fostering local economic development and social capital. These initiatives not only aim to provide shelter but also to enhance the overall well-being and quality of life for vulnerable groups. Ongoing projects in key urban areas like Tondo and San Miguel, Manila; San Fernando City, Pampanga; Tagoloan, Misamis Oriental; and Calinan, Davao City, underline SHFC’s commitment to addressing the urban housing need comprehensively.

However, the journey towards resolving the housing crisis is fraught with challenges. Payot called for government support in various forms, including adjustments to the socialized housing price ceiling, maintenance of affordable interest rates for homebuyers, and encouragement of private sector participation in policy creation for the 4PH Program. These measures, along with an updated Housing Industry Roadmap, are critical for guiding both the government and private sector efforts in fulfilling the nation’s housing needs.

As the organizers, ACSent and SEDPI, convened the summit on March 18-19, 2024, at the Ateneo de Manila University, the event underscored the urgency of collaborative efforts in surmounting the housing challenges. SHFC’s vision of transforming lives through resilient communities offers a promising path forward, highlighting the indispensable role of innovative housing solutions in building a more inclusive and sustainable future for all Filipinos.

Understanding the housing crisis in the Philippines

Housing in the Philippines is a topic that doesn’t just hit close to home – it IS home. Sadly, it’s a topic also rife with serious issues. As of 2018, there were over 6 million units of housing backlog in our country, a staggering statistic stemming from the twin demons of unaffordable housing and inadequate access to housing funds.
 
Housing deficit crisis
 
To better comprehend the gravity of the situation, it’s important to first understand what “socialized housing” means. These are homes priced at a maximum of PhP580,000, an attempt to accommodate those of us who may not have much leeway in our budgets.
 
But here’s the rub: data from the HLURB, HUDCC, and Center for Research and Communication paint a bleak picture. The demand for housing in the socialized and economic segments outstrips supply, resulting in deficits of over 663,283 and a staggering 1,962,077 units, respectively. The story isn’t much better in the low-cost segment, with a deficit of 462,160. the housing crisis in the Philippines
Market segmentHousing demandHousing supplySurplus (Deficit)
Socialized1,143,048479,765(663,283)
Economic2,503,990541,913(1,962,077)
Low-cost704,406242,246(462,160)
Mid-cost72,592322,995250,403
High-cost18,235242,246224,011
Why the discrepancy? Simply put, it’s business. Developers are more attracted to the mid and high-end market segments, where profits are more lucrative. Low-cost and socialized housing come with thinner margins, making the recovery of costs for essential infrastructure challenging.
 
Beyond construction: Comprehensive solutions to the housing crisis
 
Coming to terms with the scale of our housing problem can be daunting, to say the least. However, as a social development worker who has seen these challenges unfold over the past 20 years, I believe that seeking market-based solutions alone won’t cut it. The scale of the problem is so vast that it calls for concerted, strategic efforts from both public and private sectors.
 
The good news? The government has already taken steps towards bridging the housing gap. With a target of constructing one million new houses every year from 2022 to 2028, the journey towards providing homes for every Filipino family has already begun.
 
However, this ambition should be complemented with strategic initiatives that go beyond just construction of houses. Government subsidies should be extended towards building essential infrastructure for socialized, economic and low-cost housing, such as roads, drainage systems, and more. This not only aids in the development of the housing units but also ensures that these communities are livable and sustainable in the long run.
 
Furthermore, incentives should be extended to developers and other market players who are willing to venture into the socialized and low-cost housing market. These incentives could be in the form of tax breaks and less stringent document requirements for subdivision development, encouraging more participation in these crucial market segments.
 
Lastly, financing subsidies should be extended to first-time homebuyers. For instance, Pag-IBIG has a 3% interest rate for socialized housing. Banks and other financial institutions could also extend this same rate, with the balance compared to the prevailing market rate subsidized by the government. This financial assistance could be the key to unlocking the doors of homeownership for many Filipinos.
 
Turning dream into reality: A call for coordinated effort
 
The road to providing homes for every Filipino family is a long one, and fraught with many challenges. But with coordinated efforts from the government, civil society, private sector, and each one of us, we can turn this dream into a reality.  It’s not just about owning a house, but about building a home, a community, and ultimately, a nation.