Published on September 19, 2013,

MANILA — The Subdivision and Housing Developers Association Inc. (SHDA) has proposed a public-private partnership (PPP) to resolve the housing situation for informal settler families (ISF).

According to the Housing and Urban Development Coordinating Council (HUDCC), more than 570,000 ISF live in communities with unacceptable sanitary standards, high crime rates, and lower access to education and employment.

Four out of 10 residents of Metro Manila, the highest urbanized area in the country, live in the slums.

While socialized housing for the underprivileged continues to be developed, SHDA noted that these developments have largely risen in non-urban areas in the past 20 years.

Over half a million ISF “will grow at least at the same pace as the national population growth rate, plus the rate of migration from the provinces because of the promise of jobs in urbanized areas,” said Paul Tanchi, SHDA Chairman and National President.

SHDA said many relocated settlers simply return to the cities since they already work there. The situation is further compounded by the migration of provincial job seekers.

The SHDA’s proposal will mean construction investments on their part plus subsidy and the provision of housing loans from the government.

Under the proposal, private developers will prepare building plans, undertake and finance the construction of socialized low-rise buildings, assist in the processing of housing loans for beneficiaries, and also organize a condominium corporation for these housing projects.

In turn, SHDA hopes the government will subsidize the provision of in-city land that is fully developed and buildable.

Government agencies can then assist by recognizing the project as the developers’ compliance to the socialized housing requirement, setting a price ceiling for the socialized housing units, and extending affordable home loan values to the beneficiaries.

The concerned local government unit can also help fast track permits and provide property management for completed projects.

SHDA will provide more details at the 22nd National Developers’ Convention and General Membership Meeting on September 26 to 27 at Fairmont Makati.

The national convention will feature a number of housing industry luminaries as resource persons, including officials from HUDCC, National Economic and Development Authority, Housing and Land Use Regulatory Board, Home Development Mutual Fund, Board of Investments and the Land Registration Authority.