VOL. IV NO.

PHOTO BY GERALD M. NICOLAS

OCTOBER 2017

Q U I C K FAC TS

HOUSING THE POOR

THE CHALLENGE OF URBANIZATION

I URBANIZATION IN THE PHILIPPINES

NFORMAL SETTLEMENTS
are a glaring manifestation
of poverty and inequality
amid the growth and prosperity In 2010,
POVERTY INCIDENCE AMONG INDIVIDUALS

45.3%
brought by urbanization, the
spatial concentration of diverse or 41.9 million of the 92.3 million RESIDING IN URBAN AREAS
populations and economic Filipinos lived in urban areas.
The Autonomous Region in Muslim Mindanao
activities. Meeting the housing (ARMM) has the highest proportion of poor
need of informal settlers, who people among its urban population.
make up a significant proportion
of the urban population, has been Philippines
and remains a daunting task and
challenge for the government and NCR

the private housing market. Central Luzon

PHILIPPINE STATISTICS AUTHORITY (PSA) 2013
CALABARZON
This issue of the Intersect Quick
Facts provides a broad picture of By 2050,

56.3%
Ilocos Region
urbanization in the Philippines of the total population will live Zamboanga
and of how informal settlements in urban areas. Peninsula
have been a defining feature of Davao Region
UNITED NATIONS 2015
this significant and irreversible
demographic trend. It describes MIMAROPA
Urban economies in
briefly the government’s
agglomerations like Metro Manila Bicol Region

80%
approaches in responding to
drive the rapid urbanization in the
the housing needs of informal Philippines, and contribute 80%
Central Visayas
settlers, and presents innovative of the country’s gross domestic Northern
solutions by non-government product (GDP).
Mindanao

actors that allow the poor to Eastern Visayas

ICF INTERNATIONAL 2014
take full advantage of laws that
Western Visayas
guarantee their right to adequate In 2016, the National Capital
housing. Region (NCR) accounted for SOCCSKSARGEN
36.6% of the GDP, followed by the
urbanizing regions adjacent to it:
37% Caraga

RESEARCH AND LAYOUT BY CALABARZON (Cavite, Laguna, ARMM

Gerald M. Nicolas Batangas, Rizal, and Quezon) with
16.8% and Central Luzon with 9.5%. NOTE: ESTIMATES FOR THE CORDILLERA AUTONOMOUS REGION
EDITED BY (CAR) AND REGION II (CAGAYAN VALLEY) WERE EXCLUDED DUE TO
NOTE: AT CONSTANT 2000 PRICES; PSA 2017a VERY LOW LEVEL OF PRECISION. PSA 2017b.
Anna Marie A. Karaos
There are
MOST POPULOUS CITIES, 2015 MOST DENSELY POPULATED CITIES
145 CITIES Quezon City 2,936,116
AND URBAN AREAS, 2015
PERSONS PER SQUARE KILOMETER
in the Philippines, Manila 1,780,148

33
Davao City 1,632,991 Metro Manila

Caloocan City 1,583,978 Manila 71,263

of which are Cebu City 922,611 Mandaluyong City 41,580
“highly urbanized cities”,
i.e., with a minimum Pasay City 29,815
population of 200,000 Philippines 100,979,303
and with the latest annual Caloocan City 28,387
Metro Manila 12,877,253
income of at least
Navotas City 27,904
Php 50 million.

Cities/Urban Municipalities
Outside Metro Manila

12.9
GMA, Cavite 16,505

Rosario, Cavite 14,547

MILLION Mandaue City, Cebu 14,402

San Pedro City, Laguna 13,547

Bacoor City, Cavite 13,009

The population of
Metro Manila
(16 cities and 1
municipality) was
POPULATION DENSITY OF
13% of the national KEY CITIES, 2015
population in 2015.
PERSONS PER SQUARE KILOMETER

Baguio City, Benguet 6,005

Naga, Camarines Sur 2,532

Iloilo City, Iloilo 5,719

Cebu City, Cebu 2,929

Cagayan de Oro City 1,637

POPULATION
Davao City 668

MORE THAN 1,000,000

2,444
Davao City is the largest city
MORE THAN 200,000 in terms of land area, three
BUT LESS THAN 1,000,000
KM2 times that of Metro Manila.
100,000 TO 200,000

LESS THAN 100,000 PSA 2016, PSA 2017c; MAP FROM WIKIPEDIA

CITIES AT RISK CHAJEDIDIAH/WIKIMEDIA COMMONS

RUSSELL WATKINS /DFID - UK

UNICEF

Located in the so-called typhoon belt

of the Pacific and along the “Ring of
Fire,” the Philippines is particularly
vulnerable to natural hazards. Because
of their large populations, cities are
most at risk of disasters. Poor urban
planning and management worsens SUPER TYPHOON YOLANDA, 2013 TROPICAL STORM SENDONG, 2011 TROPICAL STORM ONDOY, 2009
the situation. TACLOBAN CITY CAGAYAN DE ORO CITY METRO MANILA

7
of the 25 coastal cities around Almost 90% of city wiped out^ At least 228,000 persons affected+ At least 123,000 persons affected by flood
the world susceptible to a one- waters from knee to rooftop deep*
2,678 deaths^^ 674 deaths+
meter sea level rise are in the 241 deaths**
Philippines: Butuan, Davao, Iloilo, ≈60,000 damaged or destroyed houses^^ Almost 20,000 damaged houses+
Caloocan, Malabon, Manila, and At least 65,000 houses damaged**
Taguig (ADB 2017, De Vera 2017).
^NG 2015; ^^ NATIONAL DISASTER RISK REDUCTION AND MANAGEMENT COUNCIL (NDRRMC) 2013;
+NDRRMC 2012; *NATIONAL DISASTER COORDINATING COUNCIL (NDCC) 2009; **VIROLA 2009

2
 INFORMAL SETTLEMENTS REFLECT THE INABILITY OF CITIES TO COPE WITH RAPID URBAN GROWTH

HOW MANY INFORMAL SETTLERS ARE THERE?

The lack of affordable housing
options, especially for low-income
families, has resulted in the growth
of heavily populated informal In terms of individuals, The National Economic and WHERE ARE
settlements. Informal settlers are
generally those who occupy lands
the World Bank (2017, 59)
estimates that
Development Authority (NEDA)
(2017, 12-4) puts the number of informal
THEY?

2.2 MILLION
without the consent of the property settler families (ISFs) in 2011, both in
owner (Reyes et al 2012, 15). In recent urban and rural areas, at
DANGER AREAS
years, however, the term has been 51%
applied to those in danger areas (e.g.,
along riverbanks, railways, under PERSONS 1.5 MILLION 767,502

FAMILIES
the bridge) and areas earmarked for
government infrastructure projects OR 5.4% OF THE URBAN
or for other uses excluding human POPULATION IN 2012 LIVED
habitation (e.g., protected areas, IN INFORMAL SETTLEMENTS
except for indigenous peoples). REGIONS WITH THE MOST ISFs PRIVATELY-
MAGNITUDE AND PERCENTAGE SHARE OWNED LANDS
Not all informal settlers are income- OF NATIONAL TOTAL
poor. Those who are earning 378,517 25%
relatively higher income than Metro Manila 584,425 39%

1.3
the rest in their community live
in informal settlements because CALABARZON 221,284 15%
affordable alternatives near their MILLION GOVERNMENT-
Bicol 142,028 9%
WERE IN OWNED LANDS
18%
places of work are few (Ballesteros
2010, 8). Many thus opt to endure METRO MANILA
poor living conditions—overcrowded
Central Luzon 117,670 8%
265,361
neighborhoods, substandard housing, Northern Mindanao 82,272 5%
inadequate access to safe water and OTHERS
basic sanitation, and high exposure NATIONAL HOUSING AUTHORITY/ LOCAL GOVERNMENT UNITS/ DEPARTMENT OF PUBLIC
to natural and human induced WORKS AND HIGHWAYS, CITED IN ICF INTERNATIONAL 2014
hazards—because the cost of land
and housing in cities is simply REGARDLESS OF THE DIFFERENCES IN AVAILABLE ESTIMATES, THE FACT REMAINS THAT MILLIONS OF FAMILIES CAN
prohibitive. ONE DAY LOSE THEIR HOMES WHEN THE LEGAL OWNERS OR GOVERNMENT DECIDE TO EVICT THEM FROM THE LAND.

GOVERNMENT’S RESPONSE TO HOUSING THE POOR AND INFORMAL SETTLERS

The 1987 Constitution guarantees
people’s right to housing, but does not GOVERNMENT ADDRESSES THE HOUSING NEED OF LOW-INCOME
INFORMAL SETTLERS USING THREE APPROACHES.
mention providing housing for free.

“The State shall, by law, and for

the common good, undertake, in
cooperation with the private sector, OFF-CITY ON-SITE OFF-SITE,
a continuing program of urban
land reform and housing which will RELOCATION UPGRADING IN-CITY HOUSING
make available at affordable cost
decent housing and basic services
to underprivileged and homeless Resettlement is offered mainly The Community Mortgage The CMP also offers loans for
citizens in urban centers and to low-income families in Program (CMP) of SHFC lends to community associations to buy a
resettlement areas.” “danger areas” and sites of legally organized communities piece of land in an entirely new
government infrastructure up to ₱100,000 per household to site where the members intend to
ARTICLE XIII, SECTION 9 projects. The NHA is the purchase the land they have been relocate, but such projects are very
shelter agency in charge of occupying from a willing owner. few.
Republic Act 7279 or the Urban developing resettlement sites. The community association
Most of these large-scale can also borrow ₱30,000 for site NHA has been constructing low-
Development and Housing Act of 1992
housing projects are located development and ₱120,000 for rise housing for informal settlers
(UDHA) mandates local governments to
in areas outside the city and house construction per household. but many of these are in bad shape
undertake shelter planning, designate after a few years. SHFC implements
social housing sites, and formulate and far from work and livelihood The group loan is paid monthly
opportunities, educational for up to 25 years and carries an the High-Density Housing Program
implement social housing programs for which lends to community
institutions, and public interest rate of 6% per annum.
the “poor and underprivileged.” associations for constructing
hospitals.
The national government, for its part, is Presidential proclamations multistory housing.
tasked to formulate the national urban A household makes graduated grant informal settlers a chance
development and housing framework payments for a house and to acquire government-owned Some local governments implement
and regulate housing and settlements. lot, starting at a subsidized lands that have not been used housing projects usually in
amount of ₱200 per month in for the purpose for which they partnership with non-government
National shelter agencies provide
the first four years, increasing were acquired or allocated. organizations such as Gawad Kalinga
support to local governments for site
incrementally to up to ₱1,330 Families in proclaimed sites do and Habitat for Humanity. Some local
development and house construction governments such as Quezon City
(i.e., National Housing Authority per month. Awardees have not enjoy security of tenure until
up to 30 years to pay for their they receive their Certificate of have their social housing projects
or NHA) and financing (i.e., Social refinanced by the SHFC.
house and lot. Entitlement for Lot Award (CELA).
Housing Finance Corporation or SHFC).

3
A DROP IN THE BUCKET... ...FOR A HUGE HOUSING TARGET  NHA Housing Production 836,730

<0.5%
Resettlement for informal settler families 300,100
The share of housing in the annual
national bugdet is less than 0.5% or Housing for soldiers and police personnel 42,800
0.12% of GDP (NEDA 2017, 12-2). Settlements upgrading 39,900

Housing for employees 24,100

1.7 MILLION
For 2017, the NHA
and SHFC received Mixed-used development 15,800

0.39%
Housing assistance for calamity victims 414,030
HOUSEHOLDS
TARGETED FOR DIRECT  Community-driven Housing 385,524

OF THE HOUSING ASSISTANCE Community Mortgage Program (CMP) 250,591

₱3.35 TRILLION FROM 2017-2022 High Density Housing Program (HDHP) 134,934

NATIONAL BUDGET
 Retail and Development Financing 516,957
OR ₱12.965 BILLION
End-user financing through the Home Development 516,957
GENERAL APPROPRIATIONS ACT FOR FISCAL YEAR 2017 Mutual Fund (PAG-IBIG)
NEDA 2017

INNOVATIONS FROM THE GROUND

Non-government actors (e.g., civil society organizations and universities) and people’s organizations, have gradually been recognized by government
and organized poor communities engage national government (on laws and shelter agencies as an effective and viable approach to providing housing
policies) and local governments (on city shelter plans and housing projects) to informal settler families. City-wide shelter planning and slum upgrading
to push for in-city relocation of informal settler families. “People’s plans”, initiatives have been piloted in cities with the support of international
referring to community-initiated housing processes long advocated by NGOs development organizations such as the World Bank and UN-Habitat.
TAO-PILIPINAS

FRANCESCO

XAVIER ECOVILLE
ERNESTVILLE POPE FRANCIS VILLAGE XAVIER ECOVILLE
BARANGAY GULOD, QUEZON CITY BARANGAY 99 (DIIT), TACLOBAN CITY BARANGAY LUMBIA, CAGAYAN DE ORO CITY
The project was initiated by 212 families This in-city housing project for at least 600 Xavier Ecoville is a “special resettlement project”
affected by Tropical Storm Ondoy in 2009 Yolanda-affected families adopts the “people’s of the Xavier University-Ateneo de Cagayan
and organized themselves to look for a safer plan” approach which emphasizes meaningful for more than 500 families affected by Tropical
place where to transfer within the barangay. participation of families in almost all the steps of Storm Sendong. The university helped organize
project implementation—from conceptualization, the residents to form two organizations: the
To pay for the land fully and construct design, and planning to actual construction and homeowners’ association that would work with
their houses, the association accessed post-occupation management of the community the barangay government and deal with general
loan from the SHFC through the High- The implementer, a consortium of NGOs and problems in the community, and the multipurpose
Density Housing Program. The Quezon Church organizations called FRANCESCO, cooperative that would implement livelihood
City government provided ₱7.7 million to leveraged resources from various sources such projects. It also mobilized students and faculty
cover the installation of a drainage system, as international NGOs (for land acquisition, members of different departments and students
concreting of pavements, and construction temporary shelters, livelihood) and government for various project components such as health and
of the retaining wall. (development permits). livelihood.
KARAOS ET AL. 2017 XAVIER ECOVILLE PROJECT 2016

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