1

The Housing Industry Roadmap Implementation: The Housing Industry Roadmap Implementation:

SUBDIVISION SUBDIVISION SUBDIVISION SUBDIVISION

& HOUSING& HOUSING& HOUSING& HOUSING

DEVELOPERS DEVELOPERS DEVELOPERS DEVELOPERS

ASSOCIATIONASSOCIATIONASSOCIATIONASSOCIATION

GAINS AND CHALLENGESGAINS AND CHALLENGES

2

0%

1%

2%

3%

4%

5%

6%

7%

8%

9%2

00

0

20

01

20

02

20

03

20

04

20

05

20

06

20

07

20

08

20

09

20

10

20

11

20

12

20

13

20

14

Annual GDP Growth Rate

Source: Philippine Statistics Authority

PH Credit Rating History

Source: DOF

SNAPSHOT OF PHILIPPINE ECONOMYSNAPSHOT OF PHILIPPINE ECONOMY

PH Ranking in Third Party Reports for Institutionalized Public Accountability

Third Party Report 2010 Latest Change

Transparency International Corruption Perceptions Index 134 85 (2014) +49

World Bank Ease of Doing Business 144 95 (2015) +49

World Economic Forum (WEF) Global Competitiveness Index 85 52 (2014) +33

2014-2015

Basic Requirements Sub-Index

Pillar 1: Institutions 125 67 +58

Pillar 2: Infrastructure 104 91 +13

The Heritage Foundation Economic Freedom Index 109 76 (2015) +33

Subcategory

Freedom from Corruption 143 95 (2015) +48Sources: DBM, Transparency International, and The Heritage Foundation as cited in the 2015 SONA Technical Report

(5,000,000)

-

5,000,000

10,000,000

15,000,000

20,000,000

25,000,000

30,000,000

1989 1994 1999 2004 2009 2014

OFW Remittances

Source: Philippine Statistics Authority

SNAPSHOT OF PHILIPPINE ECONOMYSNAPSHOT OF PHILIPPINE ECONOMY

3

• An industry response in 2011 to a BOI challenge for focused development

• A process of collaboration with a research institution (UA&P-CRC)

To come up with a study on the housing backlog

The Call to ActionThe Call to Action

SHDA ROADMAP

– To come up with a study on the housing backlog

– To identify the various housing segments

– To determine the economic multipliers

• Launched in the 21st SHDA Convention in Davao (2012) to validate strategies and action plans, and generate support

4

The Roadmap was presented to the various

government institutions & fora:

HUDCC Council

Being HeardBeing Heard

BOI Board & DTI Industry Fora

NEDA & PIDS

Congress

TOPS, OSHDP, NREA & CREBA

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The Roadmap serves as our guide for advancing

our advocacies and strengthening our

organization

Focused activities: aligned with the roadmap

Internal BenefitsInternal Benefits

Focused activities: aligned with the roadmap

Empowered teams: clustered pillars

Established linkage: engaged other housing

organizations to attain common position

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20152015--2016 ORG STRUCTURE2016 ORG STRUCTURE

STRATEGIC COMMITTEES PUBLIC RELATIONS & PARTNERSHIPS

• PR & Advocacy

• Media Relations

• Government Relations

• Partnerships

• Speaking Engagement

PRO: Eduardo M. Alunan (External PR)

Rene A. Ledesma, Jr. (Internal PR)

Advisers: Willie J. Uy

1ST VP: Rodel B. Racadio

Advisers: Paul H. Tanchi

Jose S. De Guzman

Marilu M. Alferez

Production: Renato S. Tan

Regulatory: John Paul T. Dy

Subsidy & Incentives: Wilfredo M. Tan

Financing: Eleuterio D. Coronel

Legislative: George T. Siy

Chairman:

Ricky M. Celis

CHAPTER RELATIONS

& MEMBER DEVELOPMENT ADMINISTRATIVE

& OPERATIONAL

SUPPORT2nd VP: Fely T. Ramos

Corporate Secretary: Lillian Y. Reyes

Advisers: Roy D. Calleja

Mariano D. Martinez

Regional Governors:

Luzon: Dennis Leveriza, Jr.

Visayas: Mgen. Rufo A. De Veyra AFP (Ret)

Rey L. Ralota

Mindanao: Lemuel R. Podador

Vivian S. Vestil

Treasurer: John Paul T. Dy

Auditor: Jeffrey T. Ng

Housing Fair: Jonathan G. Lu

Research : Noel S. Gonzales

Adviser: Bansan D. Choa

• Secretariat

• Education

Program

• Ways & Means

(Golf, events

sponsorships)

• Speaking EngagementLegislative: George T. Siy Ricky M. Celis

President:

Armenia C. Ballesteros

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20152015--2016 PRIORITIES2016 PRIORITIES

Increase & Sustain

production capacity to

12% Growth/yr

Improve Regulatory

Environment

Comprehensive &

Targeted Government

Housing Subsidy

Generate & Mobilize

Fund for End-User

Financing

Legislate Measures to

enhance Operating

environment

Cost

Containment

• Standardize

Common Items

Mass Housing in

BOI IPP

• Streamline

Registration &

ProductionPolicy

FrameworkAffordability

Financing

Program

Streamline

HLURB process •Ads approval

•Salesperson/brokers/

Sustainable

HDMF Housing

Program

National Land

Use

RESA Law

Legislative

Agenda

Common Items

• Supplier

Agreements

Use of Building

Technology &

Systems to

reduce

Construction Cost

& Time

Voluntary

Certification on

Green Building

Registration &

Availment Processes

Rationalize &

Adjust Price Caps•Work with NEDA &

HUDCC to establish

affordability level

Accreditation of

Soc LRB for in-

city development

Integration with

BOI upstream

industries

•Salesperson/brokers/

dealers accreditation

•Time of completion

•TLS retention

•DAR Conversion

requirement

Speed up Titling

Process w/ LRA•Help Desks in MM &

Regions

•Supply of judicial

forms

Online ONETT

payment w/ BIR (CWT, DST, CGT)

Set-up of Viable

Securitization

Facility

Establish a

Mortgage

Insurance

Product

Enhance Credit

Bureau

Capabilities

RESA Law

Amendment

UDHA Law

Amendment

Local Govt Code

Amendment

Creation of

DHUD

Rationalization

of Fiscal

Incentives

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Initial GainsInitial Gains

SHDA Roadmap priorities are now part of a bigger

process to develop a Housing Policy Framework

SHDA Roadmap Objectives

1. Increase housing production: 1M

by 2016; 2M by 2022;

7M by 2030

National Housing Summit*

Thematic Groups

1. Land and Housing

2. Participatory Governance7M by 2030

2. Implement a comprehensive

government housing subsidy

program for target segments to

enhance affordability

3. Generate and mobilize funds for

End-User Financing

4. Improve the Housing Regulatory

Environment

*Spearheaded by Congressman Albee Benitez & Senator JV Ejercito. To be completed by Feb 2016.

2. Participatory Governance

3. Financing

4. Urban Development

Primary Outputs:

Legislative: legislative reforms

supportive of affordable housing

Executive: primary reference in strategic

planning and implementation of

housing programs

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Closing the Gap: Vision, Goals & StrategiesRoadmap

6000000

7000000

8000000

9000000

10000000

7M Homes by 2030

3.9m

10.1 Housing

Need

Roadmap milestones to eliminate housing backlog

0

1000000

2000000

3000000

4000000

5000000

6000000

20

11

20

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1M Homes by 20162M Homes by 2022

3.9m

Backlog

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WE ARE ON TRACKWE ARE ON TRACK

License to Sell

705K units

Housing Starts

Source: Extracted from PSA Data 2014

730K units

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-

20,000,000

40,000,000

60,000,000

80,000,000

100,000,000

120,000,000

140,000,000

160,000,000

180,000,000

Value of Residential Construction

Source: Philippine Statistics Authority

WE ARE ON TRACKWE ARE ON TRACK

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95

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14Source: Philippine Statistics Authority

Estimated Share of Residential Construction and Its Value Creation to GDP (at current prices)In P’Millions

Source: Philippine Statistics Authority and SHDA Roadmap

2000 to 2010

(average)

2011 2012 2013 2014

GDP (at current prices) 5,902,596 9,706,300 10,564,900 6,750,079 7,164,017

Value of Residential Construction 56,167 100,221 125,865 133,784 152,756

% Share of Residential Construction to GDP 1.0% 1.0% 1.2% 2.0% 2.1%

Value Creation of Residential Investment (P3.32 for every pes os) 186,473 332,734 417,870 444,162 507,149

% of Value Creation of Residential Construction to GDP 3.2% 3.4% 4.0% 6.6% 7.1%

Jobs Created (P2.3 for every P'M) 129,183 230,508 289,488 307,702 351,338

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Initial GainsInitial Gains

• Industry production level within 1M target

• HLURB and BOI socialized housing compliance

supports delivery of more socialized housing

units nationwideunits nationwide

• Supply agreement with cement, paint, roofing

material; reverse trade arrangements for

other housing suppliers being explored

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Initial GainsInitial Gains

• Listing of Economic and Low-Cost Mass

Housing in the 2014-2016 Investment

Priorities Plan

• Adjustment of price ceiling (BP 220)

– Socialized: from P400K to P450K

– Economic: from P1.25M to P1.7M

• Computerization of LRA, enhanced titling

process through Government to Government

arrangement: eCAR issuance

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Initial GainsInitial Gains

• Collaboration with LRA, HDMF, HLURB, AND

OTHER KSA’S for streamlining processes

• Nationwide roll out of HLURB Guidelines on

Ads, and Accreditation of Ads, and Accreditation of

Salesperson/Brokers/Dealers

• HDMF Loan Program for Typhoon Yolanda

Victims

• NHMFC Bulk Take Out Program

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National EngagementsNational Engagements

Cagayan de Oro Quezon

Iloilo Tacloban

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INDUSTRY PARTNERSINDUSTRY PARTNERS

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New ChallengesNew Challenges

• Concerns on land conversion: clarification filed

with DOJ on Conversion issue

• BIR: position papers submitted

a. Request for No-Ruling on CWT Exemption

- Socialized Housing Project under RA 7279

-Low Cost Housing Projects registered under EO 226-BOI

b. Request for issuance of RMC to clarify

implementation of eBIRForms facility for One

Time Transactions (ONETT) of real estate dealers

and/or developers (CWT, CGT, DST)

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New ChallengesNew Challenges

• HLURB: position papers submitted

a. Setting of Fixed Time of Completion

b. Temporary License to Sell Retention

• SEC and PIC: position paper submitted

Implementation of IFRS 15: revenue of real estate developer should be recognized overtime (POC Method) Method)

• DPWH: discussions on the implementation of Green Building Referral Code; and Accelerographs Installation

• ERC: Request for approval of Meralco Capex for socialized housing projects

• BSP: Discussions on Limit on Real Estate Loans of Banks and Real Estate Stress Test Limit for Exposures

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New ChallengesNew Challenges

• Continuity of the collaboration between the

private and public sector beyond personalities

• Infrastructure for urban development

• Land Prices, the need to go vertical –• Land Prices, the need to go vertical –

SOCIALIZED LOW RISE BUILDINGS

• Access to financing for the poor

• Streamlining of the permits

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New ChallengesNew Challenges

• Pending Bills

a. Amendments of RA 7279: include socialized MRB in the

definition of socialized housing and consider it as a mode of

compliance

b. Amendments of RESA Law : not to limit the developers right

to sell their developed properties; educational requirement to sell their developed properties; educational requirement

for salespersons and brokers; and removal of modification of

the 1:20 ratio of sales broker per salesperson

c. NALUPA: balanced provisions for development “Best Use”

d. Bill on Fiscal Rationalization: Shift to 15% reduced tax rate

for strategic domestic activity (no ITH), inclusion of mass

housing in BOI IPP as a strategic activity

e. Creation of Department of Housing

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THANK YOU!THANK YOU!