Affordable and Resilient Housing Infrastructure

Group housing

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Affordable and Resilient Housing Infrastructure
Affordable and Resilient Housing Infrastructure
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SectorMost major industry classification systems use sources of revenue as their basis for classifying companies into specific sectors, subsectors and industries. In order to group like companies based on their sustainability-related risks and opportunities, SASB created the Sustainable Industry Classification System® (SICS®) and the classification of sectors, subsectors and industries in the SDG Investor Platform is based on SICS.
Infrastructure
Real Estate
Business Model Description

Invest in B2B/B2C models engaged in building affordable homes for the population in peri-urban, informal settlements, especially the areas surrounding Manila or those living in disaster-prone areas in Metro Manila, with a focus on sustainability. (15) In this model, the local government unit (LGU) plays a lead entrepreneurial (investor-of-first-resort) role.

Returns are arranged by the LGU and the Department of Socialized Housing and Urban Development, which range from 15% to 20%. To ensure transferability and sustainability of the program, the LGU will charge rental fees comparable to other public housing projects i.e. between USD 14 to 36 per month, lower than the average monthly rental for a comparable private apartment unit, about USD 50 to 70.

Valenzuela City Housing: With a total of 13 hectares, the Disiplina Village Ugong and Bignay accommodate around 4,594 informal settler families, clearing up Valenzuela City (a city within the Greater Metro Manila Area) from informal settler families (ISFs) living in danger zones. The floor area of each unit is 28 sq. m. including the loft. The project was initiated and implemented by the City Government with the funding support of the private sector such as the San Miguel Corporation and MERALCO, amounting to around USD 1.5 million. To ensure the transferability and sustainability of the program, the “Ordinance Establishing Disiplina Village as the Flagship Socialized Housing Program of Valenzuela City”, Ordinance No. 36, Series of 2011 was enacted by the City Council, that included provisions on basic services and funding being the responsibility of the city government to sustain a very low rental cost of only USD 50 per month, the lowest rate in a public rental housing project in the country.

Quezon City Housing: In 2014, Phinma Properties and the Quezon City Local Government partnered to build the Bistekville II Socialized Housing in Barangay Kaligayahan, with 1,101 housing units in the 4.8-ha land (4). Each socialized housing unit is amortized to the customer for around USD 50 per month for 30 years.

Between 2013 and 2019, 5,698 families have been provided safe and permanent shelters in Quezon City through social housing initiatives funded by the local city government. The current programme has finalized 37 communities and aims to complete 44 more communities by the end of 2019.

Expected Impact

Improving well-being and social security of low income households through providing affordable housing.

How is this information gathered?
Updated: 17 Mar, 2024
Philippines
Indicative ReturnDescribes the rate of growth an investment is expected to generate within the IOA. The indicative return is identified for the IOA by establishing its Internal Rate of Return (IRR), Return of Investment (ROI) or Gross Profit Margin (GPM).
15% - 20% (in ROI)
Investment TimeframeDescribes the time period in which the IOA will pay-back the invested resources. The estimate is based on asset expected lifetime as the IOA will start generating accumulated positive cash-flows.
Medium Term (5–10 years)
Market SizeDescribes the value of potential addressable market of the IOA. The market size is identified for the IOA by establishing the value in USD, identifying the Compound Annual Growth Rate (CAGR) or providing a numeric unit critical to the IOA.
USD 100 million - USD 1 billion
Average Ticket Size (USD)Describes the USD amount for a typical investment required in the IOA.
< USD 500,000
Direct ImpactDescribes the primary SDG(s) the IOA addresses.
Sustainable Cities and Communities (SDG 11)
Indirect ImpactDescribes the secondary SDG(s) the IOA addresses.
Decent Work and Economic Growth (SDG 8) No Poverty (SDG 1) Gender Equality (SDG 5)

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Sector Sources
  • 1) National Economic and Development Authority (NEDA). (2023). Philippine Development Plan 2023-2028. National Economic and Development Authority. https://pdp.neda.gov.ph/wp-content/uploads/2023/01/PDP-2023-2028.pdf 2) Board of Investments (BOI) Philippines. (n.d.). Securing the Future of Philippine Industries: Housing. Board of Investments (BOI) Philippines. https://industry.gov.ph/industry/housing/ 3) United Nations Human Rights Office of the High Commissioner. (n.d.). Women and the Right to Adequate Housing. https://www.ohchr.org/en/special-procedures/sr-housing/women-and-right-adequate-housing 4) Business Call to Action. (n.d.). PHINMA Property Holdings Corporation: Improving the lives of informal settlers by providing affordable and decent homes. https://static1.squarespace.com/static/6049e33a3512a120620cfe14/t/604b2b541405de1cceb4d867/1615539029804/BCtA_casestudy_Phinma.pdf 5) Philippine Statistics Authority. National Annual Poverty Survey Indicator 2019. https://psa.gov.ph/content/two-every-three-families-owned-house-and-lot-they-occupied-results-2019-annual-poverty 6) Ballesteros, M. 2010 December. Linking Poverty and the Environment: Evidence from Slums in Philippine Cities. Philippine Institute for Development Studies. https://www.econstor.eu/bitstream/10419/126823/1/pidsdps1033.pdf 7) Acosta, R. 2015. Urban slums report the highest death rates for children under five. Philippine Council for Health Research and Development. https://www.pchrd.dost.gov.ph/news_and_updates/urban-slums-report-the-highest-death-rates-for-children-under-five/. 8) Commission on Human Rights. 2019 January-February. An Initial Situationer of Urban Poor Women Focusing on Violence, Social Protection, and Housing. https://chr.gov.ph/wp-content/uploads/2022/01/An-Initial-Situationer-of-Urban-Poor-Women-Focusing-on-Violence-Social-Protection-and-Housing_January-February-2019.pdf 9) Department of Human Settlement and Urban Development. 2022 November 06. PBBM's housing program to trigger economic activities to 80 allied industries. Philippine Information Agency. https://pia.gov.ph/news/2022/11/06/pbbms-housing-program-to-trigger-economic-activities-to-80-allied-industries 10) Philippine Institute for Development Studies. 2022. 30% housing price-to-income rule not fit for PH—PIDS study. https://www.pids.gov.ph/details/news/press-releases/30-housing-price-to-income-rule-not-fit-for-ph-pids-study 11) PIDS. 2002. The Dynamics of Housing Demand in the Philippines: Income and Lifecycle Effects. https://pids.gov.ph/publication/research-paper-series/the-dynamics-of-housing-demand-in-the-philippines-income-and-lifecycle-effects#:~:text=The%20path%20toward%20acceptable%20housing%20is%20constrained%20due,available%20suffer%20from%20liquidity%20problems%20and%20bureaucratic%20delays.
IOA Sources
  • 12) Crisostomo, S. (2022, December 27). Review sought for socialized housing price ceiling. PhilStar. https://www.philstar.com/nation/2022/12/27/2233447/review-sought-socialized-housing-price-ceiling- 13) InCorp Global Pte Ltd. (2022, 6 June). Everything You Need to Know About the Real Estate Industry in the Philippines and its Trends for 2022 (InCorp). PrimeGlobal. https://www.primeglobal.net/news/real-estate-philippines-trends-incorp 14) Cities100. (2019, October). Cities100: In Quezon City, resilient communities are replacing vulnerable, informal settlements. https://www.c40knowledgehub.org/s/article/Cities100-In-Quezon-City-resilient-communities-are-replacing-vulnerable-informal-settlements?language=en_US 15) Philippine Statistics Authority. (n.d.) Statistics for Housing Policy. https://psa.gov.ph/sites/default/files/6.6.3%20Statistics%20for%20Housing%20Policy.pdf" 16) DHSUD Interview 17) Galing Pook Foundation https://galingpook.org/what-we-do/awards/awardees/disiplina-village-bagong-bahay-bagong-buhay/ 18) Industry.Gov. https://industry.gov.ph/industry/housing/ 19) Manila Bulletin (2023). https://mb.com.ph/2023/3/25/dhsud-taps-more-private-firms-for-pbmm-housing-program"