GAINS AND CHALLENGES GAINS AND CHALLENGES 1 Annual GDP Growth Rate - - PowerPoint PPT Presentation

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

SUBDIVISION SUBDIVISION SUBDIVISION SUBDIVISION & HOUSING & HOUSING & HOUSING & HOUSING DEVELOPERS DEVELOPERS DEVELOPERS DEVELOPERS ASSOCIATION ASSOCIATION ASSOCIATION ASSOCIATION

GAINS AND CHALLENGES GAINS AND CHALLENGES

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0% 1% 2% 3% 4% 5% 6% 7% 8% 9% 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014

Annual GDP Growth Rate

Source: Philippine Statistics Authority

PH Credit Rating History

Source: DOF

SNAPSHOT OF PHILIPPINE ECONOMY SNAPSHOT OF PHILIPPINE ECONOMY

PH Ranking in Third Party Reports for Institutionalized Public Accountability Third Party Report 2010 Latest Change Transparency International Corruption Perceptions Index 134 85 (2014) +49 World Bank Ease of Doing Business 144 95 (2015) +49 World Economic Forum (WEF) Global Competitiveness Index 85 52 (2014) +33 2014-2015 Basic Requirements Sub-Index Pillar 1: Institutions 125 67 +58 Pillar 2: Infrastructure 104 91 +13 The Heritage Foundation Economic Freedom Index 109 76 (2015) +33 Subcategory Freedom from Corruption 143 95 (2015) +48

Sources: DBM, Transparency International, and The Heritage Foundation as cited in the 2015 SONA Technical Report

(5,000,000)

• 5,000,000

10,000,000 15,000,000 20,000,000 25,000,000 30,000,000 1989 1994 1999 2004 2009 2014

OFW Remittances

Source: Philippine Statistics Authority

SNAPSHOT OF PHILIPPINE ECONOMY SNAPSHOT OF PHILIPPINE ECONOMY

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• An industry response in 2011 to a BOI challenge

for focused development

• A process of collaboration with a research

institution (UA&P-CRC)

To come up with a study on the housing backlog

The Call to Action The Call to Action

SHDA ROADMAP

– To come up with a study on the housing backlog – To identify the various housing segments – To determine the economic multipliers

• Launched in the 21st SHDA Convention in Davao

(2012) to validate strategies and action plans, and generate support

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The Roadmap was presented to the various government institutions & fora: HUDCC Council

Being Heard Being Heard

BOI Board & DTI Industry Fora NEDA & PIDS Congress TOPS, OSHDP, NREA & CREBA

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The Roadmap serves as our guide for advancing

• ur advocacies and strengthening our
• rganization

Focused activities: aligned with the roadmap

Internal Benefits Internal Benefits

Focused activities: aligned with the roadmap Empowered teams: clustered pillars Established linkage: engaged other housing

• rganizations to attain common position

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2015 2015-

• 2016 ORG STRUCTURE

2016 ORG STRUCTURE

STRATEGIC COMMITTEES PUBLIC RELATIONS & PARTNERSHIPS

• PR & Advocacy
• Media Relations
• Government Relations
• Partnerships
• Speaking Engagement

PRO: Eduardo M. Alunan (External PR) Rene A. Ledesma, Jr. (Internal PR) Advisers: Willie J. Uy 1ST VP: Rodel B. Racadio Advisers: Paul H. Tanchi Jose S. De Guzman Marilu M. Alferez Production: Renato S. Tan Regulatory: John Paul T. Dy Subsidy & Incentives: Wilfredo M. Tan Financing: Eleuterio D. Coronel Legislative: George T. Siy

Chairman: Ricky M. Celis CHAPTER RELATIONS & MEMBER DEVELOPMENT ADMINISTRATIVE & OPERATIONAL SUPPORT

2nd VP: Fely T. Ramos Corporate Secretary: Lillian Y. Reyes Advisers: Roy D. Calleja Mariano D. Martinez Regional Governors: Luzon: Dennis Leveriza, Jr. Visayas:

• Mgen. Rufo A. De Veyra AFP (Ret)

Rey L. Ralota Mindanao: Lemuel R. Podador Vivian S. Vestil Treasurer: John Paul T. Dy Auditor: Jeffrey T. Ng Housing Fair: Jonathan G. Lu Research : Noel S. Gonzales Adviser: Bansan D. Choa

• Secretariat
• Education

Program

• Ways & Means

(Golf, events sponsorships)

• Speaking Engagement

Legislative: George T. Siy

Ricky M. Celis President: Armenia C. Ballesteros

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2015 2015-

• 2016 PRIORITIES

2016 PRIORITIES

Increase & Sustain production capacity to 12% Growth/yr Improve Regulatory Environment Comprehensive & Targeted Government Housing Subsidy Generate & Mobilize Fund for End-User Financing Legislate Measures to enhance Operating environment

Cost Containment

• Standardize

Common Items

Mass Housing in BOI IPP

• Streamline

Registration & Production Policy Framework Affordability Financing Program

Streamline HLURB process

• Ads approval
• Salesperson/brokers/

Sustainable HDMF Housing Program National Land Use RESA Law

Legislative Agenda

Common Items

• Supplier

Agreements Use of Building Technology & Systems to reduce Construction Cost & Time Voluntary Certification on Green Building

Registration & Availment Processes

Rationalize & Adjust Price Caps

• Work with NEDA &

HUDCC to establish affordability level

Accreditation of Soc LRB for in- city development Integration with BOI upstream industries

• Salesperson/brokers/

dealers accreditation

• Time of completion
• TLS retention
• DAR Conversion

requirement

Speed up Titling Process w/ LRA

• Help Desks in MM &

Regions

• Supply of judicial

forms

Online ONETT payment w/ BIR

(CWT, DST, CGT)

Set-up of Viable Securitization Facility Establish a Mortgage Insurance Product Enhance Credit Bureau Capabilities RESA Law Amendment UDHA Law Amendment Local Govt Code

Amendment

Creation of DHUD Rationalization

• f Fiscal

Incentives

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Initial Gains Initial Gains

SHDA Roadmap priorities are now part of a bigger process to develop a Housing Policy Framework

SHDA Roadmap Objectives

• 1. Increase housing production: 1M

by 2016; 2M by 2022; 7M by 2030 National Housing Summit* Thematic Groups

• 1. Land and Housing
• 2. Participatory Governance

7M by 2030

• 2. Implement a comprehensive

government housing subsidy program for target segments to enhance affordability

• 3. Generate and mobilize funds for

End-User Financing

• 4. Improve the Housing Regulatory

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

• 2. Participatory Governance
• 3. Financing
• 4. Urban Development

Primary Outputs: Legislative: legislative reforms supportive of affordable housing Executive: primary reference in strategic planning and implementation of housing programs

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Closing the Gap: Vision, Goals & Strategies

Roadmap

6000000 7000000 8000000 9000000 10000000

7M Homes by 2030

3.9m 10.1 Housing Need

Roadmap milestones to eliminate housing backlog

1000000 2000000 3000000 4000000 5000000 6000000 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030

1M Homes by 2016 2M Homes by 2022

3.9m Backlog

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WE ARE ON TRACK WE ARE ON TRACK

License to Sell

705K units

Housing Starts

Source: Extracted from PSA Data 2014

730K units

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• 20,000,000

40,000,000 60,000,000 80,000,000 100,000,000 120,000,000 140,000,000 160,000,000 180,000,000

Value of Residential Construction

Source: Philippine Statistics Authority

WE ARE ON TRACK WE ARE ON TRACK

1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 Source: Philippine Statistics Authority

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

In P’Millions

Source: Philippine Statistics Authority and SHDA Roadmap

2000 to 2010 (average) 2011 2012 2013 2014 GDP (at current prices) 5,902,596 9,706,300 10,564,900 6,750,079 7,164,017 Value of Residential Construction 56,167 100,221 125,865 133,784 152,756 % Share of Residential Construction to GDP 1.0% 1.0% 1.2% 2.0% 2.1% Value Creation of Residential Investment (P3.32 for every pesos) 186,473 332,734 417,870 444,162 507,149 % of Value Creation of Residential Construction to GDP 3.2% 3.4% 4.0% 6.6% 7.1% Jobs Created (P2.3 for every P'M) 129,183 230,508 289,488 307,702 351,338

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Initial Gains Initial Gains

• Industry production level within 1M target
• HLURB and BOI socialized housing compliance

supports delivery of more socialized housing units nationwide units nationwide

• Supply agreement with cement, paint, roofing

material; reverse trade arrangements for

• ther housing suppliers being explored

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Initial Gains Initial Gains

• Listing of Economic and Low-Cost Mass

Housing in the 2014-2016 Investment Priorities Plan

• Adjustment of price ceiling (BP 220)

–Socialized: from P400K to P450K –Economic: from P1.25M to P1.7M

• Computerization of LRA, enhanced titling

process through Government to Government arrangement: eCAR issuance

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Initial Gains Initial Gains

• Collaboration with LRA, HDMF, HLURB, AND

OTHER KSA’S for streamlining processes

• Nationwide roll out of HLURB Guidelines on

Ads, and Accreditation of Ads, and Accreditation of Salesperson/Brokers/Dealers

• HDMF Loan Program for Typhoon Yolanda

Victims

• NHMFC Bulk Take Out Program

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National Engagements National Engagements

Cagayan de Oro Quezon Iloilo Tacloban

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INDUSTRY PARTNERS INDUSTRY PARTNERS

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New Challenges New Challenges

• Concerns on land conversion: clarification filed

with DOJ on Conversion issue

• BIR: position papers submitted
• a. Request for No-Ruling on CWT Exemption
• Socialized Housing Project under RA 7279
• Low Cost Housing Projects registered under EO 226-BOI
• b. Request for issuance of RMC to clarify

implementation of eBIRForms facility for One Time Transactions (ONETT) of real estate dealers and/or developers (CWT, CGT, DST)

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New Challenges New Challenges

• HLURB: position papers submitted
• a. Setting of Fixed Time of Completion
• b. Temporary License to Sell Retention
• SEC and PIC: position paper submitted

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

• DPWH: discussions on the implementation of Green

Building Referral Code; and Accelerographs Installation

• ERC: Request for approval of Meralco Capex for

socialized housing projects

• BSP: Discussions on Limit on Real Estate Loans of Banks

and Real Estate Stress Test Limit for Exposures

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New Challenges New Challenges

• Continuity of the collaboration between the

private and public sector beyond personalities

• Infrastructure for urban development

Land Prices, the need to go vertical –

• Land Prices, the need to go vertical –

SOCIALIZED LOW RISE BUILDINGS

• Access to financing for the poor
• Streamlining of the permits

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New Challenges New Challenges

• Pending Bills

a. Amendments of RA 7279: include socialized MRB in the definition of socialized housing and consider it as a mode of compliance b. Amendments of RESA Law : not to limit the developers right to sell their developed properties; educational requirement to sell their developed properties; educational requirement for salespersons and brokers; and removal of modification of the 1:20 ratio of sales broker per salesperson c. NALUPA: balanced provisions for development “Best Use” d. Bill on Fiscal Rationalization: Shift to 15% reduced tax rate for strategic domestic activity (no ITH), inclusion of mass housing in BOI IPP as a strategic activity e. Creation of Department of Housing

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THANK YOU! THANK YOU!