URBAN HOUSE CONSTRUCTION AT THE BASE OF THE PYRAMID IN METRO MANILA

Transcription

1 URBAN HOUSE CONSTRUCTION AT THE BASE OF THE PYRAMID IN METRO MANILA BCI-FELLOWSHIP 2013 Urban house construction at the BoP in Metro Manila represents a substantial market opportunity for the construction industry with a replacement cost of up to $666 million, an annual spending of $40 million and the potential to unlock land asset value of $481 million in Quezon City alone. This report maps the informal settler population and analyses the informal house construction in Metro Manila specifically in Quezon City by construction material and house type.

2 This publication was developed by Asian Social Enterprise Incubator Inc. as part of the BCI Fellowship funded by BCI Asia Authors: Markus Dietrich Jeanette Credo-Figueroa Engr. Nikko Nestor F. Espenilla November 2013 BCI Asia BCI Asia Philippines, Inc. 3/F, HRC Center Building, 1 04 Rada St., Legaspi Village, Makati City, Philippines 1200 Web: Asian Social Enterprise Incubator Inc. 37 Nicanor Reyes Street Loyola Heights 1108 Quezon City Philippines info@asei.com.ph Web: FairBuilding Network info@fairbuilding.org Website: 2

3 [ ] TABLE OF CONTENTS EXECUTIVE SUMMARY MAPPING OF INFORMAL SETTLEMENTS IN METRO MANILA MAPPING INFORMAL SETTLEMENTS IN QUEZON CITY CONSTRUCTION AT THE BOTTOM OF THE PYRAMID LINKING SOCIO-ECONOMIC CLASS TO TYPE OF HOUSE CONSTRUCTION CHARACTERISTICS OF EACH HOUSING CATEGORY CATEGORY A HOUSING CATEGORY B HOUSING CATEGORY C HOUSING CONSTRUCTION MATERIAL MARKET ANALYSIS QUEZON CITY APPROACH TO HOUSING FOR THE BOP ON-SITE DEVELOPMENT THROUGH THE COMMUNITY MORTGAGE PROGRAM (CMP) AND DIRECT SALE OFF-SITE DEVELOPMENT IN COORDINATION WITH THE NATIONAL HOUSING AUTHORITY OR PUBLIC PRIVATE PARTNERSHIP RELOCATION 57 BISTEKVILLE 1 AND 2 UNLOCKING ASSET VALUE OF INFORMAL SETTLEMENTS CONCLUSION REFERENCES APPENDIX

4 EXECUTIVE SUMMARY Public data about the magnitude of informal settler families (ISFs) in Metro Manila is inconsistent. The National Housing Authority said that there were 554,000 ISFs in The Social Housing Finance Corporation projected that there would be 581,059 ISFs in The National Statistical Coordination Board reported that there were 140,308 families living in houses rent-free and without the consent of owners in their 2010 Census for Population and Housing while the National Statistics Office said that there were 2,372,000 ISFs also citing the 2010 Census as basis. Social Weather Stations did a survey in 2012 and gathered that there were 1,043,680 poor families in Metro Manila presumably living in informal settlements. Asian Social Enterprise Incubator, Inc. (ASEI) through the BCI Fellowship sought to determine the magnitude of ISFs in Quezon City, the city with the largest population of ISDs in Metro Manila, to establish the baseline for its market analysis for urban house construction at the base of the pyramid. Key informant interviews with public sector officials, academia, the private sector and IFS families and a review of related documents were the methods used in data gathering. The Housing, Community Development, and Resettlement Department of Quezon City reported that there were 194,287 informal settler families living in 146,567 houses as of To validate data obtained from the local government unit, the research team probed 60 out of 1,234 informal settlement communities in Quezon City and found 40% more families and 24% more structures than stated in the local government report. As the sampling was not representative it is probably safe to say that the number of informal settler families and the structures are higher than the statistics show. In addition, it can be estimated from the government figures that approximately P20 billion or $481 million in locked land assets cannot be utilized due to the occupancy of informal settlements. The housing structures in informal settlements can be categorized into 3 groups: Category A for all wood materials, Category B for houses made of mixed wood and hollow block/ concrete materials, and Category C for all hollow block/concrete materials. Category A is composed of lightweight materials usually a combination of low grade wood, ply wood boards and galvanized iron roofing sheets all held together by standard nails with very basic plumbing and electrical installations. It costs P46,245 or $1,069. Families living here typically belong to Class D or Class E with average monthly incomes of P15,917 ($368) and below. 4

5 Category B is a combination of wood and concrete materials. It requires minimal use of formworks. Poured concrete is used for the base of the columns and slab on grade. It does not have any steel reinforcement. It costs P86,441or $1,999. Families living here typically belong to Class C or Class D with average monthly incomes ranging from P15,917 to P50,250 ($368 to $1,162). Category C is the most durable of the three category types. It requires reinforced poured concrete cast in place with formworks and scaffolding to construct. Skilled workers are needed to erect such a structure. It costs P131,053or $3,030. Families living here typically belong to Class C with an average monthly income of P50,250 ($1,162). All estimated costs are based on a two storey 24 square meter floor area housing unit. The most commonly used construction materials are wood of the coco lumber and good lumber types, marine plywood, corrugated galvanized iron sheets, portland cement, white sand, gravel, concrete hollow blocks, and rebar of 10mm and 12mm sizes. Mostly informal settlers use generic brands and purchase their supplies from local hardware stores. The estimated total market size for construction material in informal settlements in Metro Manila on replacement basis amounts to up to P29 billion or $666.8 million. The annual market assuming an annual growth rate of 6% amounts to P1.7 billion or $40 million. This represents a substantial market opportunity for the construction industry particularly in cement accounting for a significantly higher percentage of the market compared to other commonly used materials. The cumulative percentage of reinforcing steel represents 20% of the total market, though fewer in terms of quantity, the standard unit price of steel per weight (kg) is priced higher than other material. Wood makes up 17% of the market; in particular, good lumber is a secondary preference in structural framing because of its ease of usability and diversity in use. Utilities have less impact in the construction market. Informal settlers tend to install very minimal plumbing and electrical installations. The market for paint is mostly untapped as the vast majority of informal houses are not painted. This represents a substantial market opportunity for paint manufacturers. In addition to new informal house development there exists a substantial market for home improvement. Informal settler families spent an average of P12,268 ($284) on home repairs and improvement particularly on roofing, walls, flooring and the entire house. The average budget that these families expected to allot for repairs and investments in two years was P26,635 ($616) according to one small sample in a study. 5

6 Families living in informal settlements are not only those from socio-economic class E but also families from classes C and D as well. These informal settler families have already invested in their housing units. 88% of the houses surveyed were made of mixed wood and hollow block/concrete or all hollow block/concrete materials. With the given estimated costs of building these house structures, it means that informal settlers loose a substantial investment when forced to leave. Thus, it is essential to explain to them the advantages of security of land tenure and home ownership along with the sanctions that they face if they would not work together with the government in the case of relocation. But it also shows that these households have the means and funds to build their own houses. It also proofs that there is a good opportunity for the finance sector to study flexible payment terms that could be offered to these families. The study shows that they can afford to construct a house; the problem is on land and especially in a place such as Quezon City where land costs are very high. A balance of affordability, accessibility, and opportunities for livelihood has to be found requiring a collaborative efforts from the officials of the barangay, city, and national levels; public, private, and civic sectors, and the informal settler families themselves to house those at the base of the pyramid in communities that are safe, have good living conditions, and opportunities for productivity. The BCI Media Group supports this advocacy through its BCI Foundation and its executive arm the Fair-Building Network. This is a construction industry initiative to support building projects for social justice. Stakeholders include government and non-government organizations, private developers, construction industry, microfinance institutions, research/academia, homeowners associations, corporate partners and individual donors. Each of these stakeholders can offer valuable support to Fair-Building Network by being involved in construction projects for those at the base of the pyramid. 6

7 MAPPING OF INFORMAL SETTLEMENTS IN METRO MANILA As of the 2010 census on population, the Philippines had a burgeoning population of 92,337,852 and 11,855,975 of them were living in the National Capital Region. The United States of America s Bureau of Census estimates the Philippine population to be at 105,720,644 as of July 2013 the 12th largest population the world. A large population translates into more households which mean additional demand for housing. The country s housing backlog is estimated to reach 4.56 million units by the end of Statistics indicate that housing production is behind by 3.9 million units; percent of which is classified under socialized housing (priced at P400,000 and below), percent under economic housing (P400,000 - P1.25million price range) and percent under low-cost housing (P1.25million-P3million price range). Poor households cannot afford to buy their own homes because of rising land and house prices especially within Metro Manila. According to the Social Weather Stations second quarter of 2013 survey, 40% of families in Metro Manila considered themselves poor. That translates to 948,478 families. With a minimum wage of P466 per day and the increasing daily cost of family living gauged at P988 as of March 2011, those at the base of the pyramid barely have the means to survive. It is no surprise then that in a society where poverty is widespread, slums or informal settlements are a common sight.the Metro Manila Development Authority estimates that there are more than 500,000 families living in slum areas in Metro Manila. A study by thesocial Housing Finance Corporation (SHFC) projected the number of informal settler households in the National Capital Region (NCR) for 2010 to reach 581,059. Tables 1 and 2 below show that Quezon City has the most number of informal settler households with 219,380 while Marikina has the least number of informal settler households with 1, 756 households < February < May , Chamber of Real Estate and Builders Association, Inc. Transforming Slums Into Formal Communities. ph/2012/10/08/transforming-slums-into-formal-communities/ 2013 < September < February < February

8 Table PROJECTED INFORMAL SETTLER HOUSEHOLDS IN NCR Source: SOCIAL HOUSING FINANCE CORPORATION (SHFC) MAPPING OF INFORMAL SETTLEMENTS IN METRO MANILA source: census.gov.ph.nscb.gov.ph Informal Settlers 250, , , ,000 INFORMAL SETTLERS Served Beneficiaries 50,000 0 Caloocan Las Pinas Makati Malabon Mandaluyong Manila Marikina Muntinlupa Navotas Paranaque Pasay Pasig Pateros Quezon City San Juan Taguig Valenzuela CITIES IN NATIONAL CAPITAL REGION Table PROJECTED NUMBER OF INFORMAL SETTLER HOUSEHOLDS IN NCR PER CITY Source: SOCIAL HOUSING FINANCE CORPORATION (SHFC) 2010 PROJECTED INFORMAL SETTLER HOUSEHOLDS IN NCR PER CITY CITY NUMBER OF HOUSEHOLDS CITY NUMBER OF HOUSEHOLDS Quezon City 219,380 Muntinlupa 17,319 Manila 104,643 Caloocan 15,135 Las Pinas 42,883 San Juan 11,447 Pasay 27,616 Navotas 10,189 Taguig 25,637 Pateros 7,605 Paranaque 24,971 Pasig 7,133 Malabon 21,137 Makati 4,861 Mandaluyong 20,950 Marikina 1,576 Valenzuela 18,577 TOTAL 581,059

9 As of the 2010 census on population, the Philippines had a burgeoning population of 92,337,852 and 11,855,975 of them were living in the National Capital Region. The United States of America s Bureau of Census estimates the Philippine population to be at 105,720,644 as of July 2013 the 12th largest population the world. A large population translates into more households which mean additional demand for housing. The country s housing backlog is estimated to reach 4.56 million units by the end of Statistics indicate that housing production is behind by 3.9 million units; percent of which is classified under socialized housing (priced at P400,000 and below), percent under economic housing (P400,000 - P1.25million price range) and percent under low-cost housing (P1.25million-P3million price range). Poor households cannot afford to buy their own homes because of rising land and house prices especially within Metro Manila. According to the Social Weather Stations second quarter of 2013 survey, 40% of families in Metro Manila considered themselves poor. That translates to 948,478 families. With a minimum wage of P466 per day and the increasing daily cost of family living gauged at P988 as of March 2011, those at the base of the pyramid barely have the means to survive. It is no surprise then that in a society where poverty is widespread, slums or informal settlements are a common sight.the Metro Manila Development Authority estimates that there are more than 500,000 families living in slum areas in Metro Manila. A study by thesocial Housing Finance Corporation (SHFC) projected the number of informal settler households in the National Capital Region (NCR) for 2010 to reach 581,059. Tables 1 and 2 below show that Quezon City has the most number of informal settler households with 219,380 while Marikina has the least number of informal settler households with 1, 756 households.

10 Table 3.MAGNITUDE OF INFORMAL SETTLER FAMILIES As of July 13 NATIONAL CAPITAL REGION SPECIFIC LOCATION (Barangay Area) TOTAL NO. OF INFORMAL SETTLERS FAMILIES(Isfs) DANGER AREA GOVERNMENT INFRASTRUCTURE SITE/PROJECT CLASSIFICATIONS GOVERNMENT- OWNED LANDS PRIVATE LANDS/ PROPERTIES OTHER AREAS NORTH SECTOR Caloocan 79,280 2,129 9,872 67,279 Malabon 27,203 1,849 25,354 Navotas 11,052 6,652 4,400 Valenzuela 21,404 4, ,037 15,164 TOTAL 138,939 14, , ,797 - EAST SECTOR Quezon City 232,181 31,275 1,125 77, ,463 17,378 Marikina 10, ,578 Pasig 4,173 4,173 TOTAL 246,468 35,834 1,275 77, ,041 17,378 WEST SECTOR Caloocan 30,913 26,029 4,884 Malabon 23,847 1, , Navotas 14,857 5,238 5, ,926 TOTAL 69,617 32,298 6,060 26,339 4,920 - SOUTH SECTOR Las Pinas 14,107 2, ,019 Makati 10, ,591 1, Muntinlupa 20,712 3, ,317 14,847 Paranbaque 28,539 3,320 11,172 11,587 2,460 Pasay 34,450 4,200 18,000 12,250 Pateros 2,029 1, Taguig 19,458 5,439 12,399 1,620 TOTAL 129,401 21,196 12,855 39,059 53,208 3,083 GRAND TOTAL 584, ,219 21, , ,966 20,461 7 Chito Cruz. Social Housing Program < Program-by-Chito-Cruz> (August 2013) SOURCE: Local Government Units as Consolidated by the National Housing Authority-National Capital Region (

11 Close to 20,000 families were identified to be living along the 8 major waterways of Metro Manila which were Estero de Maypajo, Estero de Sunog Apog, Estero Tripa de Gallina, Manggahan Floodway, Maricaban Creek, Pasig River, San Juan River, and Tullahan River. Affected families were offered P18,000 to relocate to off-site locations or rent a house far from the waterways while waiting for a permanent site. There are existing relocation sites in Bulacan and Laguna and in-city resettlement are also under construction in Manila, Caloocan, and Mandaluyong. But even though families living along waterways areprioritized, the government also recognizes the need to movefamilies living in informal settlements to safer grounds. This means an aggressive effort towards relocation and demolition of these communities with the government citing provision of decent housing, decongestion of the metropolis, and efforts to achieve zero casualties during the rainy season as reasons for doing so. The 2010 Census of Population and Housing, totalling 2,634,374 housing units,included a survey of the construction materials of the roof and outer walls of housing units in the National Capital Region (NCR). (See Table 4). These figures include those living in formal and informal settlements. Concrete, brick or stone arethe most common construction materials used with almost 64% of households using these for their outer walls. Use of mixed concrete, brick, stone and wood is in second place with 22% while outer walls made of wood is in third place at 13%. Other construction materials used are makeshift or improvised materials such as tarpaulins, galvanized iron or aluminium, bamboo, sawali, cogon, nipa, asbestos, and glass. There are also 605 housing units without any walls at all while some houses were not reported. In building their roofs, majority of the units surveyed use galvanized iron or aluminium. Other construction materials used for roofing are tile concrete, clay tile, a mix of galvanized iron and concrete, wood, cogon, nipa, anahaw, and asbestos. A small percentage of participating households use makeshift or improvised materials while there were also some houses that were not reported. 8 Burgonio, TJ. Government offers P18K per family. Philippine Daily Inquirer, June 24, 2013< net/431511/p18000-offered-to-each-squatter-family-to-live-away-from-waterways> < March 2013

12 Table 4. OCCUPIED HOUSING UNITS BY CONSTRUCTION MATERIALS OF THE ROOF AND OUTER WALLS: 2010 CONSTRUCTION MATERIALS OF THE ROOF CONSTRUCTION MATERIALS TOTAL OCCUPIED TILE CONCRETE/ HALF GALVANIZED WOOD COGON/ MAKESHIFT/ ASBESTOS/ NOT OF THE OUTER WALLS HOUSING UNITS CLAY TILE IRON AND HALF NIPA/ SALVAGED/ OTHERS REPORTED CONCRETE ANAHAW IMPROVISED NCR MATERIALS TOTAL 2,634, , ,484 17, ,667 5, CONCRETE/BRICK/STONE 1,673,498 99,100 31, WOOD 337,395 3,884 17, HALF CONCRETE/BRICK/ 583,962 8, , STONE AND HALF WOOD GALVANIZED IRON/ 11, , ALUMINUM BAMBOO/ SAWALI/ 2, COGON/ NIPA ASBESTOS GLASS MAKESHIFT/ SALVAGED/ 16, IMPROVISED MATERIALS OTHERS/ NOT REPORTED 7, NO WALLS SOURCE: NATIONAL STATISTICS OFFICE, 2010 CENSUS OF POPULATION AND HOUSING ( occupied-housing-units-country-increased-48-million-results-2010-census-population-and) 12

13 MAPPING INFORMAL SETTLEMENTS IN QUEZON CITY Quezon City is located in the north-eastern partof Metro Manila and has a land area of square kilometres or 16,112.8 hectares. It has the largest land area among the cities in Metro Manila. The city has a total population of 2,761,720 as of the 2010 Census of Population and Housing making it the most populated city in the National Capital Region. Quezon City represents 23.29% of the total population in Metro Manila which stands at 11,855,975. Based from the study of the National Statistics Office, there was an average annual population growth rate of 2.42% in Quezon City in the period from 2000 and Population density is at 17,170 persons/sq kmliving in 706,564 households. The average household size is 4.3 persons. Quezon City has 142 barangays, the smallest administrative division in the Philippines,which aregrouped into 6 districts. District 4 has the most number of barangays with 38 followed by Districts 1 and 3 with 37 each. District 5 has 14 barangays while Districts 6 has 11. District 2 has the least number of barangays at 5(See Table 7). District 2 only has 5 barangays but it is the most populated with more than 60% of the city s total population. However, public records as of December 2012 still use the old division of 4 legislative districts in the city. Table 7. Number of Barangays Per District DISTRICT I II III IV V VI VII NUMBER OF BARANGAYS < May < May < May < May

14 POVERTY SITUATION IN QUEZON CITY Quezon City is one of the least poor cities in the Philippines. It is part of the Eastern Manila District (District 2 of NCR) that has a poverty incidence of 3.1% as of Based from its 2012 population, this translates to around 19,910 households whose incomes fall below the poverty threshold of P5,458 per month for a family of five. This poverty is often manifested in informal settlements. Families living here are striving to survive and having security of tenure is far from their immediate priorities. However, this number just refers to the poorest of the poor and increases to 275,000 when the Asian Development Bank s definition of families at the base of the pyramid or those whose monthly income amount to P18,000 is used. This number is actually close to the number of informal settler families in Quezon City. Table 8 shows the distribution of informal settler families according to each district in Quezon City. District 2 has the highest concentration of informal settlements accounting for 61% of the city s total number of informal settler families. District 4 has 16% while Districts 1 and 3 have 13% and 10% respectively. The total number of identified informal settler communities in the city is 1,234. It can also be noted that the number of structures is less than the number of families. This suggests that on average 1.3 families occupy a single structure in these informal settlements. Table 8. Distribution of Informal Settler Families in Quezon City, By District As of December 2012 Number of Families Number of Structures Number of Communities DISTRICT I 24,021 15, DISTRICT 2 119,269 96, DISTRICT 3 19,521 13, DISTRICT 4 31,476 21, TOTAL 194, ,567 1,234 Source: Housing, Community Development, and Resettlement Department (Formerly Urban Poor Affairs Office), Quezon City Hall. December < May 2013 Subdivision and Housing Developers Association, Inc. The Philippine Housing Industry Plan , 2011, p.21 14

15 The local government cites the easy accessibility of the city from nearby provinces, availability of large areas of unsecured and undeveloped lands, lax implementation of the Urban Housing and Development Act (RA 7279), unresolved conflicts in land title claims, negligent security arrangements of utility companies, and lack of cohesiveness in the implementation of housing programs as the reasons behind the proliferation of informal settler families in Quezon City. Table 9.Magnitude of Informal Settlers in Quezon City As of December 2012 AREA Private Properties Government Property Area Priority Development Road Lots/ Road Right of Ways Transmission Line Creekside MWSS PRRP (Pasig River Rehabilitation Program) Open Space Sidewalk Tullahan River Dumpsite Government Projects Under the Bridge Landslide Zone TOTAL Number of Families Number of Structures *Source: Housing, Community Development, and Resettlement Department (Formerly Urban Poor Affairs Office), Quezon City Hall Quezon City Local Government. The Housing and Resettlement Policies of the Bautista Administration. 2010, p.4 15

16 Table 9 shows the magnitude of informal settlements in Quezon City as of December According to Miss Gemma Ingalla of the Census Survey Section of the Housing, Community Development, and Resettlement Department (HCDRD) of the Quezon City Local Government, surveys on the informal settler families are conducted regularly since 1989 and records updated continuously. About half of the total number of informal settlers or 52% occupy private properties. Majority of these families (76,177 out of the total 194,287) can be found in the second district of the city while the rest are more or less equally distributed in the remaining 3 districts. 21% or 40,909 of informal settler families in Quezon City live in areas which are considered danger zones namely road lots or road right of ways, transmission line, creekside, Metropolitan Waterworks and Sewerage System (MWSS) sites, Pasig River Rehabilitation Program sites, sidewalks, Tullahan River, dumpsite, under the bridge, and along landslide zones. 18% or 34,453 families live on government properties such as those owned by the national and local governments, National Housing Authority, University of the Philippines, Department of Environment and Natural Resources, and others. 8% or 14,715 families reside in areas of priority development also owned by the government. These are areas seen as having high-value tourism and investment potentials such as South and West Triangles, the Quezon City Central Business District or the North and East Triangles, and Damayang Lagi vicinity. The remaining 1% or 2,658 families live in open spaces particularly in Districts 2 and 3 such as vacant lots intended to be turned into parks and playgrounds. It can be estimated from the figures that approximately P24bn or $570 millionin locked land assets cannot be utilized due to the occupancy of informal settlements. These values exclude informal settlement communities under bridges and landslide zones. Table 10. Magnitude of Informal Settler Families In Quezon City as of 2010 Private Properties Government Properties Government Infrastructure Danger Zones Total Families 96,341 80,651 16,200 28, ,805 Structures 78,581 68,348 10,730 19, ,134 Source: The Housing and Resettlement Policies of the Bautista Administration. Quezon City Local Government

17 Table 10 presents the number of informal settler families (ISFs) in Quezon City as of Most of the families or 43.5% occupy private properties followed by government properties at 36.5%. Those who live in danger zones comprise 13% of the total number of informal settler families while 7% occupy government infrastructure. Table 11. Comparing the Magnitude of ISFs as of 2010 and 2012 Area Public Property Public Properties DIFFERENCE Families 96, ,464 Structures 78,581 98,553 Families 100,783 93,504 Structures 75,171 71,423 Families -4,442 31,960 Structures 3,410 27,130 TOTAL 221, , , ,594 27,518 30,540 Table 11 compares the magnitude of informal settler families from 2010 to 2012 in terms of those occupying private and public properties. There is an increase in the number of informal settler families occupying private properties but at the same time, there was a decrease in the number of housing structures. This could mean that more families share one housing unit. There was a decrease both in the number of informal settler families and housing structures for those living in public property. Since the government has direct control over these properties, it could have been easier for them to implement housing programs for those families whereas for those living in private properties, they would need to collaborate with private landowners. Analysing the breakdown of those living in public property (see attachment entitled QC_Stats), it is alarming to note that there is an increase in the number of families living in danger zones from 28,613 families in 2010 to 40,909 families in It could be interpreted that those families who were resettled from government properties just took shelter in private properties or danger zones just to be able to stay near their sources of livelihood. There is a decrease of 27,518 families in the total number of informal settlers living in Quezon City from 221,805 to 194,287 over those two years. Is this indicative of a vigorous housing program being implemented by the city government? This cannot yet be concludedas the decrease in the number of families does not match the number of beneficiaries of the local government s housing programs over the past 10 years which was only 22,866 families (see Table 5 on page 10).Further research is required to evaluate 17

18 the reasons for the decrease in the number of informal settler families either from the side of the government or the families themselves. The research team undertook an effort to verify the data obtained from the local government unit by conducting site visits in 60 informal settlements located in different districts in Quezon City representing 5% of the total number of informal settlement communities identified by HCDRD. However, the barangays did not have data readily available for the number of informal settlers in their areas and manyresidents were uncooperative because the survey was conducted during the height of the demolition issue for informal settlements. Given this situation, the research team performed ocular inspections and interviews with selected settlersto arrive at estimates for the number of families and houses as well as the categories for the construction of their housing units. # DISTRICT ADDRESS BARANGAY DATA FROM LGU (2012) NUMBER FROM SITE VISIT HOUSING CONSTRUCTION CLASSIFICATION NO. OF FAMILIES NO. OF HOUSES NO. OF FAMILIES NO. OF HOUSES CATEGORY COUNT A B C 1 D1 Sitio San Jose Bgy. Bahay Toro Bahay Toro D1 Juan Luna St., Bgy Bungad Bungad D1 Lamasur, Bgy. Ramon Magsaysay Ramon Magsaysay D1 West Riverside Bgy. San Antonio (Gaisano Property) San Antonio D2 F. Carlos St., Bgy. Apolonio Samson Apolonio Samson D2 Kaingin Bukid, Bgy Apolonio Samson Apolonio Samson D2 Howmart Rd., Bgy. Apolonio Baesa Apolonio Baesa D2 Mendez St., Bgy. Baesa Baesa

19 9 D2 Sitio 6,Talanay,Saret Hills Blk I Bgy. Batasan Hills Batasan Hills D2 Saret St., Bgy. Batasan Hills Batasan Hills D2 Sitio Talanay Bgy. Batasan Hills Batasan Hills D2 Villareal ST., Dulo Blk. I Bgy. Gulod Gulod D2 Artillery Rd., Bgy. Holy Spirit Holy Spirit D2 Int. Samonte St., Bgy Holy Spirit Holy Spirit D2 Samonte St., (Holy Family Assn., Bg. Holy Spirit) Holy Spirit D2 60 Sampaguita St., Bgy. Pasong Putik Pasong Putik D2 Everlasting St., Bgy. Pasong Putik Pasong Putik D2 Sampaguita St., Bgy. Pasong Putik Pasong Putik D2 Champaca Left Oval, Bgy. Pasong Putik Pasong Putik D3 Area 6, Luzon Ave., Bgy. Old Balara Old Balara D3 AREA-I, Luzon Ave., Bgy. Old Balara Old Balara D3 Erwin Garcia, Bgy., E. Rodriguez E. Rodriguez D4 18 Mother Ignacia St.,Bgy. Paligsahan(SAMAKA) Paligsahan D4 Sitio Samson,Santolan Rd. Bgy. Valencia Valencia D4 Main Ave., Bgy. Bagong Lipunan Bagong Lipunan D4 Kapiligan St., Bgy. Dona Imelda Dona Imelda D4 Masaraga-Manunggal Sts., Bgy Tatalon Tatalon Gov t Father Aguilar (Botanical Garden), Bgy. Central Central

20 29 Gov t Daang Tubo, Bgy. U.P Campus UP Campus Danger Matumtum-Latunan, Sapocoy-Ragang Sts. Manresa Danger 224 Sto.Domingo St.,Bgy. Balingasa Balingasa APD APD Area, Bgy. Malaya Malaya APD Bgy. San Antonio, Madrigal Estate San Antonio D1 Cattleya St., Ext. Bgy. Bahay Toro Bahay Toro D1 Pook Masagana Bgy. Bahay Toro Bahay Toro D1 #31 Abagao Cmpd. Bgy. Bahay Toro Bahay Toro D2 Pingkian 3., Peregrine St., Bgy. Pasong Tamo Pasong Tamo D2 Lupang Pangako Ph.IV Bgy. Payatas Payatas D2 Samar-Sorsogon Sts. Area-C Veterans Vill Bgy. Payatas Payatas D2 Don Carlos Subd. Bgy. Payatas Payatas D2 Lupang Pangako Ph.II Bgy. Payatas (Isang Salup) Payatas D2 Lupang Pangako Ph 3 ABDC Bgy. Payatas Payatas D2 Nitang Ave.,Area 3,Bgy. Gulod Gulod D2 Lupang Pangako, Phase II, Bgy. Payatas Payatas D2 Cenacle drive 8-A. Bgy. Culiat Culiat D3 Kaingin I, Bgy Pansol Pansol D3 Kaingin II, Bgy. Pansol Pansol D3 Area 9, Luzon ave., Bgy. Old Balara Old Balara

21 49 D3 Area-B Bgy. Old Balara Old Balara D4 E. Rodriguez Ave., Bgy. Damayang Lagi Damayang Lagi D Mo.Ignacia St., Bgy. South Triangle South Triangle D4 41 SCt. Bayoran St.,Bgy. South Triangle South Triangle D4 641 Kitanlad St., Bgy Tatalon Tatalon D4 186 Kapiligan ST., Bgy. Dona Imelda Dona Imelda Gov t NIA Road, Bgy. Pinahan Pinyahan Danger La Felonila, Bgy. Damayang Lagi Damayang Lagi Danger Tandang Sora Ave., Bgy. Old Balara Old Balara APD Bgy. Sto.Domingo, P. Florentino Don Pepe Sto. Domingo APD Bgy Sauyo Sauyo APD ZIP AREA, Bgy. Krus na Ligas Krus na Ligas TOTAL A total of 60 informal settler communities were surveyed. Based on the 2012 data of the Housing, Community Development, and Resettlement Department (formerly Urban Poor Affairs Office), 33,260 families are living in these communities in 23,486 housing units.the community survey showssubstantially higher numbers. The estimated number of families living in these communities was at 46,765 while there were 29,163 housing units. There is a difference of 13,505 for the number of families and 5,677 for the number of houses favouring numbers from the community survey. The survey showed a discrepancy of 40.6% in the number of families and 24.2% in the number of houses. Even if these are just estimates based on a non-representative sample, it can be deducted that there are more informal settlers than the official statistics imply. However, there are also cases wherein the government already relocated the families living in these areas but the families went back to their original locations. They always cite livelihood and access to social services as the main reasons why they could not leave the premises of these informal settlements.

22 CONSTRUCTION AT THE BOTTOM OF THE PYRAMID The housing structures in informal settlements can be categorized into 3 groups: Category A for all wood materials, Category B for houses made of mixed wood and hollow block/concrete materials, and Category C for all hollow block/concrete materials Table 12. Housing Categories in Informal Settlements in Metro Manila Category A(All Wood Materials) B(Mixed Wood and Hollow Block/Concrete Materials) C(All Hollow Block/Concrete Materials Total Number of House Structures 31, , , ,036 Percentage 9% 32% 59% 100% Sources: and The figures in Table 12 are from the 2010 Census on Occupied Housing Units by Construction Materials of the Outer Wall and Roof and the projected number of informal settler households in Metro Manila for the same year. Based from this study, the most prevalent type of housing category among informal settlements in the National Capital Region was the all hollow block/concrete house at 59%. This was followed by houses made of mixed wood and hollow block/concrete materials with 32%. The least common type of housing unit was made of all wood materials having only 9%. Table 11 in page 20 shows the different housing structures that can be found in informal settlements in Quezon City. Majority or 52% of the informal settler families live in housing units made of hollow block/ concrete. This is followed by housing units made of mixed wood and hollow block/concrete at 36%. Informal settler families that occupy housing units made of all wood make up 12% of the sample population. These figures are very close to the census figures for whole Metro Manila. The most common construction materials and the quantity and the cost in wood works, roofing works, doors and windows, electrical works, plumbing works, and miscellaneous works were determined. The price of each construction material was determined from prevailing market price and labor cost was computed by computing 30% from the price of the construction material which is the standard rate in the construction industry. Differences in prices for building each type of housing structure was brought about by the differences in the quantities used. Table 13 shows the total cost in pesos and dollars for each housing category in the informal settlements. 22

23 Table 13. Housing Categories in Informal Settlements and Estimated Cost* Category Description Average Amount in Pesos Average Amount in US$** A All Woods Materials P46,245 P46,245 B Mixed Wood and Hollow Block/ P86,441 P86,441 Concrete Materials C All Hollow Block/Concrete P131,053 P131,053 Materials *For a 2 Storey 24 square meter floor area **Exchange rate as of September 20, 2013: $1 = Php , Bangko Sentral ng Pilipinas ( LINKING SOCIO-ECONOMIC CLASS TO TYPE OF HOUSE CONSTRUCTION In 2011, the Social Weather Stations (SWS) published the stratification of income classes in the Philippines with corresponding average annual family incomes. Table 14 shows the average monthly income for each class in Philippine Peso and US Dollars. Their study revealed that 60% of Filipino families belong to Class D which means that this is where the masses are. 30% of the families were under Class E who are the poorest segment of the Philippine population. Table 14. Average Monthly Income for each Socio-economic Class SOCIO-ECONOMIC CLASS AB C D E Source: Social Weather Stations PERCENTAGE OF THE POPULATION 1% 9% 60% 30% AVERAGE MONTHLY INCOME P154,750 $ 3,591 P50,250 $1,166 P15,917 $369 P5,167 $119 Family Income Distribution in the Philippines from 1985 to Social Weather Stations. September

24 In the study Bayanihan: Building Not Only A House But A Home - A Right, A Need, and A Responsibility of Every Filipino. the Asian Social Enterprise Incubator, Inc. through BCI Fellowship determined the average monthly income of informal settlers and the type of construction materials used in building their houses (See Table 15). Informal settlers living in Bonny Serrano, Quezon City and Barangay Tumana, Marikina can be classified under Class C. The dominant housing categories in these communities are All Concrete and Mixed Wood and Hollow Block/Concrete. Those living inmatang Tubig, Tondo, Novaliches, and Pasig can be classified under Class D and the dominant housing categories in these communities are All Wood and Mixed Wood and Hollow Block/Concrete. Housing units in Manila North Cemetery, whose residents are under Class E, do not fall into any housing category as they used improvised materials in building their houses such as tarpaulins and plastics. Based on the above study it can be deducted that those families living in all concrete/hollow block structures belong to Class C since these are relatively expensive to build. Families living in mixed wood and concrete/hollow block and all wood houses can be classified under Class D while those families in all wood houses can be classified under Class E as these are the least expensive units. These data show that families living in informal settlements are not only the poorest of the poor or the income poor but do include the lower middle class. Table 12. Housing Categories in Informal Settlements in Metro Manila AREA AVERAGE MONTHLY INCOME (P) Socio Economic Class CATEGORY OF HOUSE CONSTRUCTION Matang Tubig, Quezon City 12, D A (All Wood) Tondo, Manila 11, 165 D A (All Wood) Bonny Serrano, Quezon City 26, C C (All Concrete/ Hollow Block) Manila North Cemetery, Manila 3, E N/A (Improvised Materials) Novaliches, Quezon City 14, D B (Mixed Wood and Hollow Block/Concrete) Brgy Tumana, Marikina 16, D B (Mixed Wood and Hollow Block/Concrete) Santo Tomas, Pasig 12, D B (Mixed Wood and Hollow Block/Concrete) Source: ASEI, BCI Fellowship Bayanihan: Building Not Only A House But A Home - A Right, A Need, and A Responsibility of Every Filipino 24

25 CHARACTERISTICS OF EACH HOUSING CATEGORY Figure 1.1: Front and Right Side Perspective Figure 1.2: Opened Front and Right Side Perspective Category A Houses are typically composed of lightweight materials usually a combination of low grade wood, ply wood boards and galvanized iron roofing sheets all held together by standard nails with very basic plumbing and electrical installations. Floor to ceiling heights span approximately 2m often with open ceilings leaving structural and electrical components of the structure exposed to the view of floor below. Houses of this category do not make use of flooring at the ground level floors. Instead, alternative ground cover is utilized such as loose ply boards, cardboards, and low-cost canvas materials. Windows are made from minimal amounts of low grade wood, ply boards, small hinges and do not permit light into the room when fully closed. The most common style used is swivel or sliding type windows either in the vertical or horizontal direction. The strength of the structure of a typical Multi-level Category A house relies on wooden columns and beams, usually composed of coco lumber, for structural support. Good lumber can be used interchangeably with coco lumber yet it is more uncommon in the construction of Category A houses Figure 1.3: Structural Components (Wooden beams, columns and floor systems 25

26 because good lumber typically is more expensive, about twice the price of coco lumber. Coco lumber has become the preferred option, disregarding the often irregularly shaped section and rough texture of the surfaces of the beams; the material has been used for scaffolding and formworks in standard constructions and proves to be sufficient enough to hold up the suspended plywood floor systems, walls, doors and windows of Category A structures. Column sections would be approximately 3 to 4 x 8 to 10 beams and would generally sit on a hard surface on the finished grade line. These structures have been known to lay on paved concrete surfaces. To compensate for the poor structural integrity, houses would be braced using adjacent concrete walls, trees and other structures. Floor systems are composed of a number of 2 x 3 to 4 joists spaced approximately 12 and rests on the wooden floor beams. ¼ marine plywood boards are typically used as flooring for suspended floor systems. These boards rest on top of the floor joists and would be held down with standard nails. Upper level floors are accessed using what seems to be a ladder -like staircase built with two 2 x 8 to 10 stringers. Treads would be 1 to 2 x 4 in section and would span 28 to 36. These treads are held up 1 x 1 corbels and have rise heights of more than 6. The steep and narrow characteristics of the stairs make it suitable for the tight spaces of Category A houses. The staircase can either be fixed or movable. Figure 1.6: Roof System To enclose the interior area of the unit, a form Figure 1.4: Upper Level Access of dry wall construction is done utilizing 2 x 2 to 3 beams to form the wall framing. In some cases, 1 to 1.5 bamboo is used for the wall framing. The vertical members of the framing at the upper most level of the structure extend vertically providing structural support to the roofing system. Wall framing is built around openings for doors and windows. These opening are often reinforced with additional pieces of wood for further support. Walls are usually covered on the exterior side of the structure only with either 26

27 3/16 to ¼ thick marine plywood boards, galvanized iron roofing sheets or in some cases loose fabric. Figure 1.4: Upper Level Access The most common type of roof type of roofing for Category A houses are monoslope types. Slope varies depending on location of canals, topography and structures directly adjacent to the house. Main components of the roof include 2 x 2 to 3 purlins resting on 2 x 3 rafters. These rafter spans from roof beams along the perimeter of the wall of the house. Purlins extend beyond the exterior wall with an overhang of about half a meter or to lengths as restricted by the available space. Like framing used for the wall, the purlins and rafters are sometimes replaced with 1 to 1.5 bamboo instead. Wall and roof systems are generally held together using common nails however lashing is sometimes done particularly in cases when bamboo is used as an alternative. Corrugated GI sheets are typically used as the primary roofing material. Some Category A houses have been observed to be constructed using other less resilient materials such as nipa, canvas or plywood boards. The GI sheets are directly nailed to the purlins and water-proofed using sealants or other methods of improvised water proofing. During events of strong winds, roofing materials are prone to be blown off from the structure and as a precaution, debris such as tires, rocks or other materials that are heavy enough are used to weight down the roofs from being blown off. Overall, much of the materials used do not seem to be standardly cut particularly wooden beams; as a result, long spanning structural members have to be spliced in several locations. Materials for surface covers such as GI sheets and plywood boards usually come in irregular sized pieces compared with commercial sizes which result in staggering assemblies and seemingly random placement of materials. These can be seen common for several Category A houses. 27

28 Completed structural perspective of a typical 2 storey, 24 square metercategory A dwelling Sample of a Category A housing in Barangay Doña Imelda, Quezon City Constructing this kind of structure costs P46, Families living in this kind of housing belong to Class D or Class E with average monthly incomes of P15, and below. This type of house is dominant in Barangays Damayang Lagi, Pasong Putik, Pinyahan, and South Triangle in Quezon City. CONSTRUCTION AT THE BOTTOM OF THE PYRAMID Figure 2.1: Front Side and Right Side Perspective Figure 2.2: Opened Front and Right Side Perspective 28

29 Category B houses are units built with a combination of wood and concrete materials. Lower levels are typically constructed with concrete in order to keep the wood elements of the structure from direct contact with the ground. Moisture is quickly absorbed by wood which increases the rate of deterioration and shortening the lifespan of the wood. Construction of this type of housing requires minimal use of formworks. Poured concrete is usually used only for the base of the columns and slab on grade. The slab on grade is much thinner than floor slabs done for standard construction of houses. These slabs are less than an inch thick and do not have any steel reinforcement and as a result, cracks manifest due to the differences in soil pressure where the slab rests on. Floor to ceiling heights of Category B houses span approximately 2 meters. Houses of this category make use of good lumber as a preference over coco lumber for the wooden structural components. The structure is held up by composite columns where the wood is adjoined with the reinforced concrete footings by steel fasteners. A portion of the wood is also embedded in the RC footing during the pouring to further strengthen the connection. RC footings for this type of structure are set about half a meter below the finished grade line and backfilled with soil. The footing extends just short of a meter above the finished floor line where it connects with the wooden columns. Figure 2.3: Structural Framing These columns hold up the 2nd floor beams from which the floor joists and bridging span from. Alternative configuration of the structural frame of the house makes use of an all-concrete column instead of a composite column. The main vertical reinforcements are left exposed at the top of the column. The exposed bars are then bent over the wooden beams to hold them in place. This practice is done so that in the even the owner of the house decides to change the wood levels into concrete; it s easier for builders to access the main bars of the column for splicing. Suspended concrete beams can then be added as a suspended floor slab system adds another floor. Some category B houses may have canopies extending from the front side of the 2nd floor. The roofing system for these canopies is also supported by the floor beams and columns. Upper levels are accessed using wooden staircases. The staircase usually has either a single stringer or two stringers with one on each side of the treads. These staircases are fixed and would often have additional handle rails on the sides built from 1 x 1 good lumber pieces. Each tread is approximately 29

30 1.5 to 2 thick and would span 28 to 36 or depending on the available space. For enclosure, the lower levels usually make use of concrete walls. These walls are built using standard 4 thick hollow blocks with Ø10mm rebar passing through the grout in between blocks and cells. The concrete hollow blocks and rebar wrap around the wooden columns, where they may occur, giving the perception that the wooden columns are embedded within the concrete walls. All wood floor levels make use of dry wall construction with wall frames built using 2 x 2 to 3 good lumber. Only the exterior side is usually covered with 3/16 to ¼ marine plywood to enclose the inner floor area. For Category B houses, fiber cement boards can be used as an alternative to marine plywood. Figure 2.6: WoodenMonoslope Roof System Though the material is more expensive and requires more sophisticated tools to install, fiber cement boards are more durable against moisture and weathering. Vertical members of the wall framing are usually extended to the roof of the structure. These 30

31 members hold up the 2 x 3 wooden roof beams. The most common roof type for category B houses is monoslope type roofing with wooden roof rafters and corrugated GI Sheets. It is not uncommon to find type B houses that have gable roofs that make use of either a wooden roof truss or wooden roof rafters topped off with corrugated GI Sheets usually at gauge 26. Overhangs of these roofs can extend as much as a meter and may be may not extend sometimes beyond the exterior wall of the structure. Purlins span from the roof rafters or wooden trusses. The sizes vary to from 2 x 2 to 3 and are spaced about 28 to 32 off center of the wood member. Purlins are held in place by standard nails where the members overlap with the rafter or the top chords of the wooden trusses. These connections are sometimes done using short 1 x 1 wooden pieces as fasteners. Roofs are topped off with corrugated GI sheets that are nailed to the roof rafters and applied with sealant for water proofing. Some homes place debris on their roof to further weigh down the GI sheets. Completed structural perspective of a typical 2 storey, 24 square meter Category B dwelling Sample of a Category B housing in Barangay Ermin Garcia, Quezon City This unit costs P86, Families living in this kind of housing belong to Class C or Class D with average monthly incomes of ranging from P15, to P50, This type of house is dominant in Barangays San Antonio, Santo Domingo, and Tatalon. 31

32 CATEGORY C HOUSING (Concrete 24 sqm two storey unit) Figure 1.1: Front and Right Side Perspective Figure 1.2: Opened Front and Right Side Perspective Category C houses or completely concreted houses are the most durable of the three category types. These houses require reinforced poured concrete cast in place with formworks and scaffolding to construct. Skilled workers are needed to erect such a structure. Electrical and plumbing components would be relative basic but may have more sophisticated fixture and installations depending on the owners of the houses some have septic tanks installed. The floor to ceiling heights ranges from 2.00 meters to 2.80 meters with 0.3 to 0.4 meter depth intervals between floor levels. Intervals include the suspended beam depths and ceiling clearances. These houses often have balconies extending over the front side also serving as a canopy for the main entrance of the house. Welded steel grills are often installed as a security precaution in balconies or on windows. These vary from prefabricated steel and glass, assemblies to aluminum, wood and glass or all-wood type assemblies. Doors may also prefabricated wooden doors and may vary between screen doors or steel gate types. These doors may also be crafted on site depending on the skill of the laborers. Figure 1.3: Structural Components (Wooden beams, columns and floor systems 32

33 Figure 3.4: Reinforced Concrete Foundation, Concrete Columns and Slab on Grade Figure 3.5: Suspended RC beams, Columns and Floor Systems The structural strength of type C houses relies on reinforced concrete frames. Footings of columns members go down as deep as 1 meter below the finished grade line and a have spread footing approximately 1 x 1 m to 1.5 x 1.5m Ø10 to 12mm reinforcements..3 x.3 or.2 x.4 m columns extend from these footing with 12mm to 16mm vertical reinforcements depending weather or not the house was design to accommodate vertical expansions. Each column further reinforced with Ø10mm ties. These columns hold suspended reinforced beams reinforce with Ø12mm beams with Ø10 stirrups. Suspended floor may be monolithically poured reinforced concrete floor slabs or wooden floor joist systems. Floor systems are often cantilevered for balconies and either two-way or 1 way slab support systems for suspended floor slabs inside the structure. The elevated floors are accessed with tight RC staircases or strategically placed wooden staircases. These staircases are poured monolithically with the suspended floor slabs and would often have pedestal footings at the base of the staircases. In this type of structure, it is crucial for the top of the staircase to be braced again on a suspended floor beam at the upper levels. Figure 3.6: RC Staircase Walls of Category C houses are made from concrete 4 hollow blocks which rest on wall footings or concrete beams at the base. Ø10 mm rebar are passed through and in between hollow blocks of the walls for sup- 33

34 ports. Each cell is filled with grout until full. Stiffener columns and lintel beams are seldom used for the construction for Category C houses but in cases where they are incorporated in the structure, stiffener columns can be found along door frames, windows, corners with no columns. Lintel beams on the other hand can be seen on at the top of doors and windows. Roofs are often constructed with gable type or monoslope configurations. 2 x 3 to 4 rafters or trusses are often used to support 2 x 3 purlins. These are spaced 28 to 32 off center then topped off with corrugated GI sheets. Roof rafters and the bottom chord of trusses rest on top of the columns are often tied down with vertical rebar exposed at the top of columns. Some structures do no top the structural frame of the house with roof beams. This is done in anticipation of future vertical expansions of the structure. This configuration allows builders to unknot the exposed vertical rebar and straighten to be spliced further for another floor. This method requires more reinforcement which can be done if initially more vertical rebar or thicker diameter Figure 3.7: Structural Framing rebar were installed. Some houses opt to build expansions using wood. Good lumber is the most common choice for this and the layout makes use of the floor joist and wooden framing to accommodate the wood level expansion. Construction of this type of structure requires longer time to construct because of the setting of the concrete and the construction of formworks and scaffolding. These types of structures are built typically to be permanent installations. Among the three housing types, Category C houses are the most closely associated type to formal low-cost housing. In some cases, a number of these houses satisfy construction standards and appear to be of formal low-cost houses with the exception that owners of these homes do not possess any documentation that shows proof of ownership to the property on which it was built on. The construction of the house does not follow any area provisions such as setbacks nor does it have any homogeneity among structures adjacent Figure 3.8: Roof Framing 34

35 to it. Clusters of houses of this type will often reveal a staggering roof line when view at level as there is no formal provision regarding structure and roof heights. Some of the more distinct exterior features that distinguish Category C from formal houses are the lack of finishes on the walls such plastering and paint that visually smoothen the façade. Older houses would exhibit more worn out textures due to the effects of weathering. Evidence of poorly done maintenance repairs such as GI roofing patches, irregularly spliced wooden members on exposed roof frames and ply board replacements for broken windows are apparent upon initial inspection. Seemingly tangled strands of electrical wiring branch off thicker bundles into the electrical receiver mounted on the side of the house. Main entrances of these dwellings often have simply designed doors either wooden or screen type that barely clears the height of the average person. Upon entering these houses, relatively low ceiling heights compared to formal houses can be observed along with tight walking spaces sometimes obstructed by furniture. Painted concrete hollow blocks generally line the sides of the interior of category C houses which are illuminated with just sufficient lighting from fluorescent bulb hanging from the ceilings. The kitchen can easy be located as there are no distinguishing boundaries between the living room, dining room and the kitchen which is composed by a basic counter topped line with 150mm x 150mm ceramic tiles with a stainless steel kitchen sink embedded in it. The toilet and bathroom is typically located near the kitchen to minimize water supply piping. The bathroom has three basic features namely; a small lavatory, a toilet with or without flushes and small clears area for bathing with a dipper and a bucket. Fixture drainages lead directly into sewers relying only pipe traps to prevent infestations or backlog from sewages. Formal houses are required to have septic tanks built in as direct sewage dumping into public sewer lines is supposed to be prohibited. The plumbing systems for formal houses have more sophisticated systems considering venting and volume of water that has to run through the system. Ascending the wooden or concrete staircase leads to the sleeping quarters on the upper level. Similar to formal low cost houses, the sleeping quarters may be separated from the staircase with a wall or may have an open layout with or without cabinets built into the walls. These walls typically have the same style as walls that can be seen in the lower levels. Upper levels typically have balconies or access to the exterior of the house. This allows owners room to hang and dry their clothes with minimal or less risk to their laundry being stolen or entrance of unwelcome guests to their homes. Some category C house owners install grills to line their balconies and windows due to security reasons. 35

36 Looking at the concrete frame of the house, it is common for Category C houses to not have concrete roof beam built into the structural frame at the top. For concrete structures, suspended concrete floor slabs and beams are usually poured monolithically. By not providing a beam at the top of the structure, this gives the option of expanding the structure vertically using concrete otherwise if beams were installed; only wooden floor joist systems can be accommodated unless the owner decides to go for a more costly retrofitting procedure. Providing concrete roof beams is typically required for formal structures to satisfy structural provision. The roof framing systems of Category C houses are often built using low grade wood which has a tendency to deteriorate faster than conventionally used wood in formal housing. As a result purlins, roof beams, trusses and rafters are often excessively spliced with more pieces of wood. Most of the wood members used are also shorter or irregularly cut in comparison commercially sold wood used for construction of formal houses. Some formal houses even opt to use welded angle bars as rafters and roof trusses. Roof sheets would also be excessively overlapped due to the various sheet patches and make shift repairs. The features that distinguish Category C houses from formal low-cost houses are due to the cost cuts and budget constraints that were done in the construction of the house. Completed structural perspective of a typical 2 storey, 24 square meter Category C dwelling Sample of a Category C housing in Barangay Malaya, Quezon City This category costs P131, Families living in this kind of housing belong to Class C with an average monthly income of P50, This type of house is dominant in Barangays Baesa, Batasan Hills, Culiat, E. Rodriguez, Pansol, Sauyo, and UP Campus. More pictures of the different features of informal houses are available in Appendix 1. 36

37 CONSTRUCTION MATERIAL The most commonly used construction materials across all the housing categories included in the survey in informal settlements in Quezon City (See Table 16) are marine plywood, corrugated G.I. sheets, wires and flexible hose. The Ø16 mm rebaris only used in Category C houses. The coco lumber wood is only used in Category A houses. Category B houses, being a mix of wood and concrete use the same construction materials as those of Categories A and C except for the Ø16 mm rebar and coco lumber wood. Table 16. Most Commonly Used Construction Materials Across All Housing Categoriesin Informal Settlements in Quezon City No. Description Unit Ave. Quantity/ Category Total Cost (Materials Only) (PHP = USD 1.00) A B C A B C 1 Wood (Coco Lumber) bd.ft PhP 7, PhP - PhP - 2 Wood (Good Lumber) bd.ft PhP - PhP 15, PhP 1, Marine Plywood pcs PhP 9, PhP 6, PhP 3, Ga. 26 Corrugated GI Sheets pcs PhP 3, PhP 5, PhP 5, Portland Cement bags PhP - PhP 7, PhP 19, White Sand cu.m PhP - PhP 1, PhP 2, /4 Gravel cu.m PhP - PhP PhP 5, Concrete Hollow Blocks pcs PhP - PhP 3, PhP 5, Ø 10mm rebar kg PhP - PhP2, PhP 11,

38 10 Ø12 mm rebar kg PhP - PhP 1, PhP 3, Ø16 mm rebar kg PhP - PhP - PhP 4, mm² TW Wire ln. m PhP PhP PhP mm² TW Wire ln. m PhP PhP PhP /2 Flexible Hose ln. m PhP PhP PhP Receptacles & outlet pcs PhP 1, PhP 1, PhP 1, Light Switches pcs PhP PhP PhP Light Bulb/Flourescent pcs PhP PhP PhP /2 PVC Pipe (12 /pc)(blue) pcs PhP PhP PhP Hose Bibb pcs PhP PhP PhP Kitchen Sink pcs PhP PhP 1, PhP 1, Lavatory pcs PhP - PhP PhP Toilet Bowl w/o Flushtank pcs PhP - PhP PhP 2, C.W. Nails kg PhP PhP PhP Paint sq. m PhP 6, PhP 6, PhP 6, Door pcs PhP PhP PhP 10, Window Panel (Wood) pcs PhP 3, PhP 1, PhP - 27 Window Panel (Steel&glass) pcs PhP - PhP 3, PhP 6, Ceramic Floor Tiling pcs PhP- PhP 3, PhP 5, PhP 35, PhP 66, PhP 94, USD USD 1, USD 2,200.52

39 Table 17 shows the common brands of construction materials used and their sources. Mostly informal settlers use generic brands and purchase their supplies from local hardwarestores. Table 17. Common Brands and Sources of Most Commonly Used Construction Materials Most Commonly Used Materials Item No. Description Common Brand/s Sources 1 Wood (Coco Lumber) Generic Local Hardwares, Informal Suppliers, Scavenged Material 2 Wood (Good Lumber) Generic Local Hardwares, Informal Suppliers, Scavenged Material 3 Marine Plywood Generic Local Hardwares 4 Ga. 26 Corrugated GI Sheets EPO Local Hardwares, Roofing Manufacturers, Scavenged Material 5 Portland Cement Lafarge, Eagle Local Hardwares 6 White Sand Generic Local Hardwares 7 3/4 Gravel Generic Local Hardwares 8 4 Concrete Hollow Blocks Generic Local Hardwares 9 Ø 10mm rebar Generic Local Hardwares 39

40 10 Ø12 mm rebar Generic Local Hardwares 11 Ø16 mm rebar Generic Local Hardwares mm² TW Wire Generic Local Hardwares, Scavenged Material mm² TW Wire Generic Local Hardwares, Scavenged Material 14 1/2 Flexible Hose Polyflex, Polypipe Local Hardwares 15 Receptacles & outlet Omni, Firefly, Panasonic Local Hardwares, Scavenged Material 16 Light Switches Omni, Firefly, Panasonic Local Hardwares, Scavenged Material 17 Light Bulb/Flourescent Philips, Firefly Local Hardwares 18 1/2 PVC Pipe (12 /pc)(blue) Neltex, Emerald Local Hardwares 19 Hose Bibb Neltex, Emerald, beaver Local Hardwares 20 Kitchen Sink Neltex, Emerald, beaver Local Hardwares, Scavenged Material 21 Lavatory Neltex, Emerald, beaver Local Hardwares, Scavenged Material 22 Toilet Bowl w/o Flushtank Americab Standard Local Hardwares, Scavenged Material 23 C.W. Nails Generic Local Hardwares, Scavenged Material 24 Paint Boysen, Coat Saver Local Hardwares 40

41 MARKET ANALYSIS According to the 2010 Census on Occupied Housing Units by Construction and the projected number of informal settler households in Metro Manila for the same year, there are 350,036 house structures in informal settlements in the National Capital Region. Housing and Urban Development Coordinating Council (HUDCC) reported that the number of informal settler households in Metro Manila increased by 81.13% from 2000 to 2006 citing Family Income and Expenditure Survey (FIES) and the National Statistics Office (NSO) as its sources. This translates to an annual growth rate of 13.5%. Ballesteros, in her research for Philippine Institute for Development Studies, reported that the average growth rate of slum population in Metro Manila during the same period was 8.55%. The research team has been getting inconsistent data from other government sources regarding the annual growth rates going as low as 2%.Based on these diverging estimates an average 6% annual growth rate for informal settlers in the National Capital Region was assumed for the market analysis. The estimated total market size for construction material in informal settlements in Metro Manila on replacement basis amounts to P23 - P29 billion or $ million (See Table 18). The lower range of the market size was based on the government census data. It was made apparent however that upon visiting the sites, the number informal settlement structures were 23% more than what was recorded in the census data. The annual market assuming an annual growth rate of 6% amounts to P1.4 - P1.7 billion or $32-40 million. This represents a substantial market opportunity for the construction industry particularly in cement accounting for a significantly higher percentage of the market compared to other commonly used materials. Cement often used with gravel and white sand accounts for 5% and 3% of the estimated market respectively and has been widely used in informal construction as components of concrete flooring, beams and columns, staircases, hollow block mortar fill, grout as well as a material for quick repairs and other applicable uses. The cumulative percentage of reinforcing steel represents 20% of the total market, 2010 < February < May , Chamber of Real Estate and Builders Association, Inc. Transforming Slums Into Formal Communities. ph/2012/10/08/transforming-slums-into-formal-communities/ 2013 < September < February < February

42 the standard unit price of steel per weight (kg) is priced higher than other material. Reinforcing steel is generally coupled with concrete mixtures providing tensile strength. In relation, preference of concrete construction proportionally correlates with the market opportunity for reinforcing steel. Reinforced concrete structures are generally more desirable for informal settlers as these types serve as permanent structures give the tenants better sense of security and stability. Based on the census records, only about half of the recorded informal settlement households have erected concrete Category C housing structures leaving the remaining half to potentially develop their dwelling into concrete structures. Alternatively low grade wood, particularly good lumber is a secondary preference in structural framing common for Category A and B houses. Wood makes up 17% of the market. The reliability of the material has been based on its ease of usability and diversity in use. To some informal settlers, the material is more ideal than concrete for basic dwellings which are often made up of light materials. Assembling structures using wood does not require complex or heavy duty equipment furthermore, the time it takes to assemble wood frame structures is much faster than erecting concrete structures. This shows the efficiency of wood over concrete construction and repair. Wood is used as an alternative material to concrete for beams, columns, floor supports, roof framing, trusses and rafters, furniture construction and other uses. Wood frames are usually used along with wooden ply boards as walling, flooring or generally wood surfaces including furniture. The disadvantage of wood for informal settlers is that wood type structures are temporary and are easily demolished. The market opportunity in wood material construction lies in the fact that wood decays relatively fast and requires constant maintenance. For wall materials, wood ply boards can be interchangeably used with concrete hollow blocks for concrete structures. Wood structures are limited to only using wooden ply boards as walling. The two materials make up 8% and 7% of the market in materials for informal construction. In all types of informal structures, corrugated galvanized iron roofing sheets are traditionally used. As an alternative, some dwellings use GI sheets in replacement of ply board for walls. The material s advantage over wood is that it has better resilience against weathering as it was originally designed to withstand direct exposure to direct head from the sun and other harsh weather elements. The material has been vulnerable to strong winds that cause the material to detach from the structure. Furthermore, the material on its own has been known to trap heat within in the structures causing discomfort for tenants. Regardless, the material is very commonly used for all types of informal structures accounting for 8% of the market. 42

43 Utilities have less impact in the construction market. Informal settlers tend to install very minimal plumbing and electrical installations. Electrical utility compensates for 3% while plumbing utilities compensate for 4% of the total market of construction supplies for informal construction. Sub-categories in both utilities individually account for only 1% or less of the total market. The market for paint is mostly untapped as the vast majority of informal houses are not painted. This represents a substantial market opportunity for paint manufacturers. 43

44 44

45 45

46 Replacement Value Currency P $ Wood (Coco Lumber) 251,111,065 5,754,149 Wood (Good Lumber) 2,116,472,441 48,498,451 Marine Plywood 1,825,157,711 41,823,045 Ga. 26 GI Sheets 1,928,838,374 44,198,862 Portland Cement 4,914,942, ,624,724 White Sand 714,960,781 16,383,152 3/4 Gravel 1,205,366,467 27,620,679 4 CHB 1,714,469,327 39,286,648 Reinforcing Steel 4,478,785, ,630,283 Electrical Utilities 889,785,326 20,389,214 Plumbing Utilities 1,061,974,220 24,334, ,742,766 3,958,358 2,381,644,944 54,574,815 C.W. Nails Paint Replacement Value Currency P $ 2.0 mm² TW Wire 92,570,400,851 2,145,813, mm² TW Wire 44,603,426,142 1,033,922,720 1/2 Flexible Hose 12,195,165, ,688,125 Receptacles & outlet 414,631,200 9,611,293 Light Switches 348,204,311 8,071,495 Light Bulb/Fluorescent 136,372,406 3,161,159 Replacement Value Currency 46 P $ 1/2 PVC Pipe 77,007,920 1,785,070 Hose Bibb 93,599,626 2,169,671 Kitchen Sink 525,054,000 12,170,931 Lavatory 222,972,932 5,168,589 Toilet Bowl w/o Flush tank 143,339,742 3,322,664

47 Replacement Value Wood Ga. 26 GI Sheets Electrical Plumbing C.W. Nails Paint P544,091,197 P120,972,441 P 67,297,225 P 58,596,026 P 22,052,268 P214,348,044 Further subdividing the market size per housing category, Category A houses make up only 9% of the informal settlement structure in Metro Manila. Actual values of each material can be seen in the table above. Best market opportunities for materials lies in wood accounting for 53% of the materials used construct these settlements. These include plywood boards, coco and good lumber beams. This material requires maintenance or frequent replacement due its properties. Generally very minimal plumbing and electrical utilities are incorporated construction of these dwellings, approximately 6%. GI roofing sheets and paint are also very commonly used for category A houses. Replacement Value Wood Ga. 26 GI Sheets Portland Cement White Sand 3/4 Gravel CHB Steel Reinforcements Electrical Plumbing C.W. Nails Paint P 2,547,408,552 P 618,303,590 P 789,681,216 P 129,989,368 P 93,249,590 P 402,233,368 P 493,392,604 P 239,273,779 P 352,836,288 P 78,408,064 P 762,126,382 Further subdividing the market size per housing category, Category A houses make up only 9% of the informal settlement structure in Metro Manila. Actual values of each material can be seen in the table above. Best market opportunities for materials lies in wood accounting for 53% of the materials used construct these settlements. These include plywood boards, coco and good lumber beams. This material requires maintenance or frequent replacement due its properties. Generally very minimal plumbing and electrical utilities are 47

48 incorporated construction of these dwellings, approximately 6%. GI roofing sheets and paint are also very commonly used for category A houses. Replacement Value Wood Ga. 26 GI Sheets Portland Cement White Sand 3/4 Gravel CHB Steel Reinforcements Electrical Plumbing C.W. Nails Paint P 1,101,241,468 P 1,189,562,342 P 4,125,261,769 P 584,971,412 P 1,112,116,877 P 1,312,235,958 P 5,702,915,024 P 583,216,471 P 650,541,906 P 72,282,434 P 1,405,170,516 Category C houses make up 59% of the informal settlement structure in Metro Manila. Being all concrete structures, these houses use minimal wood taking up 6% for the market opportunity for type C houses. Reinforced concrete is predominantly utilized in the construction of these houses making steel reinforcements the highest in the list of market opportunities being that the unit price of steel is relatively higher than other materials and is thoroughly utilized for concrete framing which account for 32% followed by concrete components such as Portland cement, white sand, gravel and concrete hollow blocks. Aside from house construction, families in informal settlements make incremental improvements or repairs in their homes. A study done by Alcazaren, Ferrer, and Icamina showed that the top four items that informal settler families spend on for improvements and repairs are roofing (22%), entire house (22%), walls (14%), and flooring (12%). See table below. They found out that informal settler families spend an average of P12,268 on home improvements and repair. Common materials that they bought were wood, plywood, cement, hollow blocks, iron sheets, nails, tarpaulin, linoleum, and paint. 45.1% of the participants said they had plans of making repairs and improvements in the next two years that they expect to allot for these repairs and investments is P26,635. As this study is based on a very small sample, no extrapolation for a total market site was undertaken Alcazaren, Paulo, Luis Ferrer, Benvuto Icamina. Lungsod Iskwater: The Evolution of Informality as a Dominant Pattern in Philippine Cities. 48

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50 QUEZON CITY APPROACH TO HOUSING FOR THE BOP With the highest number of informal settler families in Metro Manila, Quezon City is a good case study to analyse government s approach to move informal settlers to formal houses and thereby reduce the number of informal settlements in the city. In its urban development strategy, the local government of Quezon City is using a social and disaster risk management approach. As seen in Figure 1, the local government believes that a well-planned city is key to economic growth. But along this better economic productivity, a city should also be safe and clean so that residents are secured about their living conditions. It is essential to manage urban development, disaster risk, and the environment for an economically vibrant, safe, clean and healthy city. This will make Quezon City an ideal place to live in. The Housing and Resettlement Policies of the Bautista Administration included interventions such as on-site development, resettlement, and relocation. After mapping the informal settlers in the city, they identified priority areas for clearing. These are those families living in danger zones, in areas targeted for high-value tourism and investment development, in government infrastructure, in city-owned properties considered prime with high commercial value, and those living in privately owned properties which are considered with prime value and whose owner is in agreement for property swap with the local government. Figure 1. Quezon City s Development Framework Source: The Housing and Resettlement Policies of the Bautista Administration. Quezon City Office of Mayor Herbert M. Bautista, Quezon City Local Government. Office of Mayor Herbert M. Bautista, Quezon City Local Government.The Housing and Resettlement Policies of the Bautista Administration. Quezon City 2010, p

51 With the highest number of informal settler families in Metro Manila, Quezon City is a good case study to analyse government s approach to move informal settlers to formal houses and thereby reduce the number of informal settlements in the city. In its urban development strategy, the local government of Quezon City is using a social and disaster risk management approach. As seen in Figure 1, the local government believes that a well-planned city is key to economic growth. But along this better economic productivity, a city should also be safe and clean so that residents are secured about their living conditions. It is essential to manage urban development, disaster risk, and the environment for an economically vibrant, safe, clean and healthy city. This will make Quezon City an ideal place to live in. The Housing and Resettlement Policies of the Bautista Administration included interventions such as on-site development, resettlement, and relocation. After mapping the informal settlers in the city, they identified priority areas for clearing. These are those families living in danger zones, in areas targeted for high-value tourism and investment development, in government infrastructure, in city-owned properties considered prime with high commercial value, and those living in privately owned properties which are considered with prime value and whose owner is in agreement for property swap with the local government. Table 5. Beneficiaries of Housing Programs in QC Program Number of Families Period Covered CMP 10, Target Beneficiaries in Ongoing Programs 3,809 Direct Sale ,073 Resettlement (Bistekville 1&2) 507 Ongoing Relocation 5928 Ongoing Total Beneficiaries 17,984 4,882 22,866 Source: Powerpoint Presentation of HCDRD, QC Hall as of December 2012 Office of Mayor Herbert M. Bautista, Quezon City Local Government. The Housing and Resettlement Policies of the Bautista Administration. Quezon City 2010, p.21. Office of Mayor Herbert M. Bautista, Quezon City Local Government. The Housing and Resettlement Policies of the Bautista Administration. Quezon City 2010, p.20. Ibid., p.2. 51

52 ON-SITE DEVELOPMENT THROUGH THE COMMUNITY MORTGAGE PROGRAM (CMP) AND DIRECT SALE The Community Mortgage Program (CMP) extends loans to qualified community organizations whose members are low income families. Vice President Jejomar Binay who is the chair of the Housing and Urban Development Coordinating Council (HUDCC) reported last July 2011 that there were 9,882 beneficiary families under the CMP. This allows them to acquire and own the private lands that they are occupying. The program has three stages land purchase, site development and house construction or upgrading. This proves to be the most successful housing program of the local government because of its affordability with monthly amortizations ranging from P From 1990 to 2012, the total number of CMP beneficiaries in Quezon City reached 10,607 families belonging to 242 community organizations. According to HCDRD there are about 3,809 applications being processed as of this time coming from 46 different community organizations. Through CMP, which is also called the Land for the Landless program, the local government aims to legalize the status of tenure of the informal settler families. The HCDRD mediates talks and negotiations for the acquisition of lands which the beneficiaries can occupy. They also validate the listing of beneficiaries and facilitate the individualization process for loan payment and land title transfer. The department documents the loan process and assists the National Home Mortgage and Financing Corporation and other agencies in conducting background and site inspections. HCDRD also issues certificates to identified beneficiaries of programs who are already due awarding of land. For the Direct Sale Program, there have been 128 titles transferred to beneficiaries as of 2011 to At the same time, 202 beneficiaries have been fully paid and 612 have signed contracts to sell. There are 5 projects underway with 1,073 intended beneficiaries. The HCDRD of Quezon City offers direct sale assistance for qualified beneficiaries who have the capacity to pay their own house and lot. The department facilitates the processing of loan documents, conducts dialogues with the clienteles, monitors and helps upgrade efforts for the collection of payments, issues schedules of payments, notices, and demand letters to beneficiaries. Once loan is approved, the clienteles sign the contract to sell after which they should pay their amortizations regularly until the end of the loan. Payment terms depend on the client s capacity to pay. They can get a loan for 5 years or extend it for 20 years. After the loan is fully paid, HCDRD helps the beneficiaries in processing the transfer of titles to their name. Salin-Diwa. Tri-Annual Publication of the Partnership of Philippine Support Service Agencies, Inc. (PHILSSA). Quezon City. October Llapano, Jose Rodel Informal Settler Families Gained From Government Housing Program. The Philippine Star. July 4, Page < May

53 OFF-SITE DEVELOPMENT IN COORDINATION WITH THE NATIONAL HOUSING AUTHORITY OR PUBLIC PRIVATE PARTNERSHIP The local government identified 5 NHA resettlement sites available for qualified beneficiaries which can be seen below. These are nearby provinces to the city. Table 6. NHA Resettlement Sites for Informal Settler Families of Quezon City Site 4 Southville 8, Barangay San Isidro, Rodriguez, Rizal Southville 8C (1K Site 3), Barangay San Isidro, Rodriguez, Rizal Southville 6, Barangay Gaya-Gaya, San Jose del Monte, Bulacan Saint Martha Estate Homes, Batia, Bocaue, Bulacan San Jose Heights, Barangay Muzon, San Jose del Monte, Bulacan Repayment period for the units is for 30 years with 6% interest per year for the lot and 0% for the housing unit. Payment scheme is graduated amortization starting P200 and ending at P1330 changing periodically from years 1-4, 5-8, 9-10, 11-14, 15-18, 19-20, 21-22, 23-24, and RELOCATION The city government reports that a total of 5,928 families have been relocated from 2010 to Among them, 2,673 families were informal settler families living near waterways and 3,255 families were from other danger areas and priority projects. This year, Quezon City was one of the cities identified with many informal settlement communities in danger zones. The local government acted immediately and collaborated with other government agencies to relocate families living in these areas. While some agreed to relocate in resettlement communities, others were not that cooperative. Residents of Sitio San Roque clashed with policemen while those living in West Kamias put up barricades and protests against the authorities. Many of these families were adamant about relocation because the resettlement communities were far from their sources of livelihood and there were reported problems about electricity and water supply. These are the issues that the government need to address to make its housing program for the poor more effective. BISTEKVILLE 1 AND 2 Bistekville 1 is a socialized housing project of the local government located at the Oviedo Property in Barangay Payatas. This is a joint venture of the Quezon City local government unit, Habitat for Humanity as the developer, and Home Development Mutual Fund for financing. The project covers a total land 53

54 area of 15,651 square meters. House construction is of the two-storey type with a lot area of 26 square meters. 154 units will have 2 owners while 199 units can be owned by one family each. Bistekville 2 is a socialized housing project at the Arce Property in Barangay Kaligayahan. This is done by the city government in partnership with Phinma Properties as land and housing developer, Arce the landowner, and Home Development Mutual Fund for financing. It has a total land area of 48,876 square meters. There are over 1,000 units with each unit having 28 square meters lot area. For these two projects, the beneficiaries can avail of a P400,000 loan from Pag-IBIG. Their monthly amortization will start at P7, which will gradually be reduced to P2, on the 30th year. According to our research and interviews with Phinma management, the Bistekville 2 approach is the first public private partnership on inner city relocation transforming an informal settlement into a formal housing community. It is the first time the private sector engages in this form in tackling the problem of informal settlers as an inclusive business strategy. Phinma Properties realised that there is a huge market opportunity worthwhile exploring. Bisteckville 2 has also shown a way forward to unlock the assets value of land occupied by informal settlements to the benefit of the original land owner and former informal and now formal settlers. Carcamo, Dennis. Cops, informal settlers clash in Quezon City demolition. July 1, Lantin, Jerome. West Kamias residents set up barricade against demolition.july 30,

55 UNLOCKING ASSET VALUE OF INFORMAL SETTLEMENTS Informal settlers have built their dwellings on land areas belonging to private, government and public locking up the land assets.taking out the informal structures under bridges, Quezon City has 145,786 informal housing structures with an average lot size of 12sm. Adding 20% circulation space, the total square meters occupied by informal settlements amount to 2,099,318.40sqm. Assuming an average land value of P10,000 per square meter, approximatelyp20 billionor $481 million of land value is therefore currently locked up by informal settlements in Quezon City alone. More research is required to further study the effective land asset value but this estimate already shows the magnitude of the opportunity. 55

56 CONCLUSION The Phinma Properties engagement in the Bisteckville 2 project in a public private partnership (PPP) engagement with Quezon City government demonstrates that private sector engagement in socialized housing can be a profitable and scaleable business. It offers thereby a way forward to help solving the issue of informal settlements in Metro Manila and unlock land assets. More engagement by the private sector is needed to achieve this goal. This report highlights the substantial market opportunity for the construction industry in this sector. Detailed engineering analysis of informal houses and revisited government statistics on informal settlers are the basis for the market estimates by housing category and construction material. The analysis of the informal settler families shows that the majority live in concrete houses and many have formal or steady informal jobs offering the opportunity to develop financial products catering to this market segment. It is now up to local government units to develop more PPP projects for socialized housing and for the construction industry to develop products, services and business models to engage in this market opportunity. 56

57 REFERENCES Chamber of Real Estate and Builders Association, Inc. Transforming Slums Into Formal Communities Burgonio, TJ. June 24, Government offers P18K per family. p18000-offered-to-each-squatter-family-to-live-away-from-waterways 9 National Statistics Office, 2010 Census of Population and Housing occupied-housing-units-country-increased-48-million-results-2010-census-population-and 10 The Housing and Resettlement Policies of the Bautista Administration. Quezon City Local Government Ibid. 12 Ibid. 13 Ibid. 14 Salin-Diwa. Tri-Annual Publication of the Partnership of Philippine Support Service Agencies, Inc. (PHILSSA). Quezon City. October Llapano, Jose Rodel Informal Settler Families Gained From Government Housing Program. The Philippine Star. July 4, Page Ibid. 18 Carcamo, Dennis. July 1, Cops, informal settlers clash in Quezon City demolition. philstar.com/nation/2013/07/01/960356/cops-informal-settlers-clash-quezon-city-demolition 19 Lantin, Jerome. July 30, West Kamias residents set up barricade against demolition http:// http://

58 SHDA The Philippine Housing Industry Plan: The Housing and Resettlement Policies of the Bautista Administration. Quezon City Local Government Social Weather Stations Credo, Jeanette and Markus Dietrich Bayanahin: Building Not Only A House But A Home - A Right, A Need, and A Responsibility of Every Filipino. 31HUDCC Philippine Development Plan Ballesteros, Marife Linking Poverty and the Environment: Evidence from Slums in Philippine Cities. Philippine Institute for Development Studies. 33http://business.inquirer.net/86960/transform-slums-reduce-housing-backlog 34Alcazaren, Paulo, Luis Ferrer, Benvuto Icamina Lungsod Iskwater: The Evolution of Informality as a Dominant Pattern in Philippine Cities. 58

59 APPENDIX Actual pictures of the different features of informal houses 59