In November 2013, super typhoon Yolanda hit the Philippines in full swing. Fragile shelter structures across the archipelago’s coastal areas did not withstand the strong winds and storm surges brought about by Yolanda. In the aftermath of the disaster, the government launched an emergency programme with the mission to ‘build back better’ [1]. The government was supported by the international humanitarian community, whose swift response matched the scale of the disaster in its scope and ambition. Yet serious funding challenges were said to hamper recovery.

 

Budget shortfalls are one of the most pervasive barriers to the successful implementation of recovery programs and a constant challenge faced by traditional development models. The idea that social enterprises could offer an answer to this issue has gained traction in the past years [2]. Social enterprises are organisations set up as revenue-generating business with social objectives, which allows them to be financially independent. As part of DPUs Junior Professional Programme, I was lucky to work closely with one of them.

 

Founded in 2014, LinkBuild is a young Housing Development Enterprise (HDE) whose mission is to scale up innovative, low-cost, and sustainable shelter solutions and programs for and with the poor. LinkBuild was set up as the latest addition of the Philippine Alliance, a grouping of 5 organisations that has a long history of successfully mobilising communities around savings groups in order to achieve secured land tenure. Given the current housing context in the Philippines, the need for this kind of program has never been more urgent.

 

The Housing Context in the Philippines

 

A new day begins in Quezon City, one of Metropolitan Manila’s 16 cities. The streets have been buzzing since the early morning hours, the traffic slowly pulsating through their aching junctions. As I work my way through the streets, I walk past busy informal settlements. Some are squatter settlements, the result of spontaneous and unplanned occupation of land. Others are informal subdivisions. The residents here live on a surveyed plot and they usually have proof of ownership or land-lease rights.

 

 

In Metro Manila, one out of every four people resides in informal settlements, often within disaster-prone areas. As an alternative, several shelter programs are being implemented by government and non-government actors. Yet the delivery of these programmes has been unable to cope with the rocketing demand for affordable housing. Driven by natural population growth and rural to urban migration, the main urban areas in in the Philippines are growing at a breath-taking pace. The country is projected to be 80% urbanised by 2025 [2] – an increase of 30 points from 2015. Moreover, officials are talking of a housing backlog of 5.7 million houses of which 60% are believed to be economic and social housing [3].

 

Most worryingly, some of the latest government’s efforts to deliver shelter programs have been proven to be counterproductive. A recent operation plan that aimed to relocate over 104,000 informal settler families out of danger zones in Metropolitan Manila, relocated 67 per cent to off-city sites [4]. The programme beneficiaries call these off-city sites the ‘death zones’. They feel effectively disconnected from their earlier life as they struggle to deal with the loss of their livelihoods and networks. Reports show that up to 60% of individuals that were relocated out of Metro Manila eventually return to the city [5]. If given the option, many ISF would rather remain in the old site despite the immediate risks they face instead of moving outside of the city.

 

 

At the same time, the private sector has recognised affordable housing as a potential growth market, yet it is struggling to set foot in the sector. From a purely financial perspective, affordable housing provision is a cut-throat affair. In Metro Manila, developing affordable housing amounts to ‘financial suicide’, as a local housing developer recently put it. The high land prices, as well as the additional costs of building in a congested city mean that selling houses for less than 7.500£, the maximum unit price at which they are considered to be affordable, can only be achieved at a loss. Even the supply of houses within the ‘economic housing’ brackets, at a unit cost of no more than 19.000£, is a hard trick to pull off.

 

The fundamental problem with these government and private programmes is that they treat informal settlers as an issue that needs to be dealt with, or an opportunity that ought to be exploited. What they fail to see is that informal settlers can be actors in the housing delivery process.

 

Imagining a Social Enterprise Model for the Provision of Pro-Poor Housing

 

As a social enterprise, LinkBuild is set as a revenue-generating business with social objectives. This distinguishes it from traditional NGOs that rely on international aid and funding to run their programmes and operations. Historically, the Philippine Alliance members have operated as traditional NGO’s. However, the donor landscape is shifting as it tries to make its beneficiaries’ programmes more investor-friendly. As a result, donors increasingly treat capital disbursements to partners as an investment, which has important implications for organisations like LinkBuild. This new trend is pushing LinkBuild to imagine a business model that sits comfortably within the highly competitive real-estate sector while staying true to its vision of reaching and mobilising the marginalised communities.

 

To achieve financial sustainability, LinkBuild’s latest wave of housing projects is being conceived as mixed-income developments. The idea is to make a part of the 670 units fit for middle-income clients. The units, which will be more spacious, will be sold at a price surplus, effectively subsidising the construction of the more affordable units. While this new approach seems like radical change in direction, it does have a compelling argument in its favour. It offers a possibility for the organisation to become financially independent over time.

 

In the short run, LinkBuild’s operations would still heavily rely on the access to a starting capital. LinkBuild has therefore partnered with Real Equity For All (ReAll – former Homeless International), one of the few investors who are venturing into the housing market at the bottom of the pyramid. The capital enables LinkBuild to cover the costs of ‘hard investments’ such as purchasing and developing land, as well as the construction of the housing units; and thus, LinkBuild cannot be thought of as a stand-alone organisation, at least not for the time being.  However, in the medium run LinkBuild is hoping to achieve financial sustainability sustaining through the profit generated by the sales of surplus houses.

 

Strong Communities Make a Difference

In line with the tradition of community-oriented organisations like the Community Architects Network and the Asian Coalition of Housing Rights, LinkBuild works closely with the communities that it seeks to reach. The Philippine Alliance is the main enabler of this process. Each organisation in the Alliance plays a strategic role in delivering LinkBuild’s housing projects, as their active networks and expertise allows them to mobilise and engage communities through participatory processes. For example, through the Homeless People Federation Philippines, Linkbuild is able to link with strong communities (see Chart 1) in different regions. After connecting with the communities,  LinkBuild conducts market research and hosts workshops with clients and communities to ensure that it is able to reach target clients; that it meets their specific needs; and that the project is financially viable. In the end, the gathered information directly feeds into the architects’ final project design.

Moreover, the close ties of the Philippine Alliance with the local government units help to navigate the hurdles that land acquisition and development may pose. For example, in Mandate City, local government identified land and facilitated the negotiations for acquisition. Given the competitive nature of the sector, this form of support is crucial.  Least but not last, LinkBuild also follows international best practice of developing in-city projects. By purchasing land that is centrally located, the organisation hopes to deliver projects that actively contribute to the integration of marginalised communities to the existing city fabric.

 

All of the above factors allow LinkBuild to distinguish itself from the traditional housing developers that tend to have a top-down approach to housing delivery and are primarily concerned with meeting sales objectives.

Ultimately Linkbuild’s model still remains to be tested since the mixed-income housing projects are yet to be completed. As the organisation enters unexplored waters with the Philippine Alliance, it will continue to learn by doing. And there remains a lot to be learnt. Given the housing sector’s state of permanent emergency, planning for the future of the countries’ urban poor is crucial. Despite the scale of the problem, there are only few organisations bold enough to offer an alternative. As it paves its way to sustainability, LinkBuild might well be leading the path towards the ‘imaginative reformulation of the systems by which we manage change’ [7]. And it is leading the change by asking the right question – how do we build forward better?

 

References

 

[1] National Economic and Development Authority, 2013. Reconstruction Assistance on Yolanda:  Implementation for Results. [online] Available at: http://yolanda.neda.gov.ph/wp-content/uploads/2015/11/RAY-2.pdf

[2] Overseas Development Institute, 2013. Why and how are donors supporting social enterprises? [online]. Available at: https://www.odi.org/sites/odi.org.uk/files/odi-assets/publications-opinion-files/8894.pdf

[3] The World Bank, 2016. Closing the Gap in Affordable Housing in the Philippines: Policy Paper for the National Summit on Housing and Urban Development. [online] Available at: http://documents.worldbank.org/curated/en/547171468059364837/pdf/AUS13470-WP-PUBLIC-Housing-Summit-Policy-Paper-has-been-approved-P155561.pdf
[4] Lorenciana, C.R. (2013). Philippine housing backlog is 5.5M SHDA targets to build a million units by 2016. [online]. Available at: http://www.philstar.com/cebu-business/2015/07/13/1476445/philippine-housing-backlog-5.5m-shda-targets-build-million-units

[5] The World Bank, 2016. Closing the Gap in Affordable Housing in the Philippines: Policy Paper for the National Summit on Housing and Urban Development. [online] Available at: http://documents.worldbank.org/curated/en/547171468059364837/pdf/AUS13470-WP-PUBLIC-Housing-Summit-Policy-Paper-has-been-approved-P155561.pdf

[6] Housing and Urban Development Coordinating Council. 2014. Developing a National Informal Settlements Upgrading Strategy for the Philippines (Final Report). [online]. Available at: http://www.hudcc.net/sites/default/files/styles/large/public/document/NISUS%20Final%20Report_July2014.pdf

[7] Sumsook, B. 2016.  Cities for People and by People. [online]. Available at: https://unchronicle.un.org/article/cities-people-and-people

 

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David Hoffmann is an alumna of the MSc Urban Economic Development and a participant of the DPU/ACHR/CAN Young Professionals Programme. He currently works at LinkBuild, where he is involved with the design and implementation of organisational development strategies. Amongst others he organised workshops to encourage the knowledge exchange between community associations in Cebu and Davao.

 

*All pictures taken by D.H.

 

The Philippine Alliance has been an active agent in Mandaue City since 2000. Their work is primarily focused on two large sites, involving a large number of communities, each one at a different stage of settlement upgrading. The team collaborate with Local Government Units (LGU) to address the housing gaps within the city by adopting a sustainable citywide approach which benefits both the low-income groups, as well as the city’s vision of development.

This post explains the approach that has been adopted for the upgrading of the 6.5 Relocation Site in Paknaan, one of the two prominent sites where the Alliance is active in Mandaue City.

The relocation site is situated in Barangay Paknaan, on the periphery of Mandaue City, and covers an area of 6.5 hectares. Originally a mangrove area, the site was chosen to accommodate 1,200 families, organised into 12 Homeowner Associations (HOA). These families are being relocated from along Mahiga Creek in central Mandaue City, as part of the River Rehabilitation Program, after the area was devastated by flooding in January 2011.

Although the site was still a mangrove area, families started living in Paknaan in October 2011. Today, 465 families who were allocated a plot of land have moved on site, some building permanent housing, whilst others simply rebuilding houses out of light recycled materials.

10 out of the 12 HOAs are part of the Homeless Peoples Federation (HPFPI) and collaborate with the Alliance, particularly with regards to organising communities to save, enabling them to finance the construction of their new homes, or pay monthly amortizations for loan repayments. TAMPEI, the technical support unit to the Alliance, have provided assistance in the planning, design and construction stages of the upgrading process.

The Role of Homeowner Associations

The strong role of the HOA is interesting to note. In order for a family to be eligible for an upgrading or relocation programme, they must first form part of a HOA which is registered by the Housing and Land Use Regulatory Board. This requirement has driven communities to get organised and collaborate closely with one another, creating close-knit communities which take pride in the recognition they receive as a registered HOA.

This contrasts greatly with the situation in some other countries, for example the communities I encountered during fieldwork in Cambodia with the MSc Building and Urban Design in Development last year. The particular settlement we were working with in Battambang faced particular concerns regarding community mobilisation and organisation. As a students group, we were constantly challenging the concept of referring to the residents as a community since they did not actually work as a single unit, and found it difficult to support each other. Therefore, the requirement of forming part of a duly registered association acts as a form of mobilisation for residents to really act as a community.

Land Acquisition and Financial Support

One of the most important elements of slum upgrading is the acquisition of land, which allows families to have security of tenure, whether they are being relocated, or able to upgrade on site. Without the constant threat of eviction, families are able to invest in their homes by building permanent structures. To be able to do so, families need the financial support to buy the land, as well as to pay for the construction of the house and site development. This support either takes the form of the savings program run by the Federation, or loans.

An important stakeholder is the Social Housing Finance Corporation (SHFC). SHFC is mandated by the President of the Philippines, and aims to provide shelter solutions to organised, urban poor communities. It was created to lead in developing and administering social housing programmes, such as the Community Mortgage Program (CMP), which is currently being implemented in Paknaan. The CMP is a loan system, targeting residents of informal settlements, that aims to finance the lot purchase, site development and house construction, which will be repaid over 25 years.

By far the most encouraging approach that has been adopted in Mandaue City is the housing construction through personal savings. Some families, mobilised and organised by HPFPI, have been able to limit their loan from SHFC to the lot purchase, and finance the construction of their homes through their own personal savings.

The construction of their houses, which began in September 2014, was dependent on the capacity of the families to save a fixed amount per month to keep up with the rolling costs of construction since no capital was initially available for the project, other than the money they put aside.

In March 2015, 5 units were completed, with another 8 units still under construction. Out of the original 23, 10 families struggled to meet the monthly target, which means that the construction of their units has been delayed. However, these families have shown that persistence can challenge the notion of charity and free housing.

Housing and Service Provision

There are two approaches to the housing development, depending on the affordability of the family in question. If the family is able to cover the full expenses or monthly loan repayments, then the family may proceed to construct the full housing unit. If families are unable to take the full loan amount, they may instead opt to construct them incrementally – however, this second option has never actually been implemented.

Very often, residents aspire to apply for the complete rather than the incremental option, even though they probably cannot afford the loan repayments. This results in families being rejected from taking the larger loan, and therefore actually being unable to build any form of permanent housing.

As part of the TAMPEI team in Mandaue City, I have worked on the design of new housing units that cost less than the original low-cost row house design and are therefore a viable option for a greater number of families, without resorting to the incremental construction. So far, five alternative housing units have been developed, two of which are illustrated in the images below.

Service provision and site development in Paknaan is still lacking, particularly with regards to sanitation services. Through the initiative of one particularly active HOA called SMASH, two communal toilet blocks will be built soon. Through the collaboration between TAMPEI and SMASH, the design proposal and community management system were developed.

By far the biggest challenges that we have faced throughout the developments of the Paknaan relocation site have been due to the large number of stakeholders that are involved in the project… surely a common issue when approaching citywide upgrading!

Shortcomings and delays have been caused by both the communities, some of whom have been unable to keep up with their required savings, as well as the local government units, who have promised more than they can deliver with regards to the site development. However, it is only through close collaboration by actors across various levels that such large-scale projects can be implemented, and have a significant impact on the wellbeing of the city’s urban poor.

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Jessica is an architect and has recently completed the MSc in Building and Urban Design in Development at the DPU. Currently, she is working in the Philippines, as part of the DPU-ACHR joint internship programme. Her interests lie primarily in community-led upgrading, particularly with regards to housing and service provision.

The Philippine Alliance, where I am currently interning for 6 months as part of TAMPEI, has been involved in community mapping since 2013, when the first pilot project was conducted in the city of Valenzuela within Metro Manila. You can read about this in the Grounding Knowledge booklet produced by the 2013 DPU interns.

The purpose of participatory mapping is for the community, in partnership with the Alliance’s technical assistance team, TAMPEI, and the Homeless People’s Federation, to gather detailed physical and social information about an area. This reliable data serves as the basis for further planning, design and negotiation for upgrading or for relocation.

It can also initiate mobilisation, increase awareness over local issues and allow the community leaders and members to build up technical and organisational skills. This video about mapping by CAN/ACHR is worth having a look at!

Creating a Base Map

TAMPEI assists on the technical side of the process, while the Homeless People’s Federation oversees the community engagement component of mapping. A Core Team is established, usually made up of community leaders and representatives of various local institutions, and is trained by TAMPEI in spot mapping (creating a map outlining streets and landmarks), photo documentation, GPS boundary/landmark mapping and interviews.

These methods are then used by the Core Team to carry out an ocular visit of the areas to be mapped, which permits the collection of a first layer of information for the creation of a base map and brief description of the settlements. It is also a great way to start interacting with the wider community and its members, to explain the purpose of mapping in preparation for the steps to come.

Collecting Information at Household Level

The next phase actively involves the community in mapping out individual structures and collecting information at household level. The community representatives introduce the idea to the other members, the structures are mapped out on the base map, allocated a number, and the household survey forms (demographic data and housing information) are then filled out according to the structure numbering.

Within this phase, a focus group with the leaders and/or the elderly is conducted to create an in depth Settlement Profile (characteristics, issues, state of housing and infrastructure, access to services, employment opportunities, etc). Once this stage is completed, the Core Team encodes the data and a complete map is created to be presented to the community for validation.

The mapping procedure follows the CAN/ACHR methodology, although it is adapted along the way to fit with each specific context.

As part of the Metro Manila team, I’ve mostly been involved in mapping in the city of Muntinlupa: located along the Laguna de Bay lake and characterised by several high risk zones and widespread insecurity of tenure. So far it has been a very insightful experience terms of seeing the mapping being carried in practice and in furthering my learning on working with communities.

Lessons learnt during the process so far

One aspect I have found really interesting is the importance of flexibility, the ability to adapt to unforeseen circumstances, the capacity to modify plans, tools and methodologies while maintaining clear objectives and ensure they are met. Basically, at times things don’t seem to really go as initially planned… and that’s ok! It really is. As long as the process comes together and the goals are reached, it is ok to adapt and change plans.

Both small and big lessons are accumulated through time, and can help improve the process for the next mapping exercise. For example, some of the materials used to create the maps turned out to not be so user friendly and had to be rethought (at times sticking symbols for landmarks seems to be better than writing directly to avoid being confronted with undecipherable handwritings!).

These methodologies and lessons are shared across the regional offices. One occasion was during training that took place in Davao, Mindanao in March, where the Metro Manila team had a chance to share but also to learn from a specific local context that was quite different the capital. Key distinctions identified were working with different religious communities, language barriers due to difference in dialects, and on average lower income levels.

Clarity in communication

The importance of communication with the Core Team and with the community has struck me as eessential, especially in terms of clarifying the objectives and purposes of mapping, and of avoiding misunderstanding, misplaced expectations or conflicts.

For example, if communication is ineffective one of the recurrent issues we encountered is community members believing that by flagging up their house they might either be able to obtain a new one for free, or might be faced with eviction… The real objective was simply to collect data! This misunderstanding can lead to people refusing to engage in the activity, or signaling more houses than they actually own…

Another aspect that caught my attention is how the process varies according to many factors such as the actors involved, the type of incentives created to participate , and the trade-off between participation in the activity and other engagements, thought to the size of the community, the urgency of the need for a new plan for the neighbourhood and other considerations such as the layout of the community.

These changed from one place to the other, and even within the same areas varied significantly. Juggling between all these different considerations has possibly been the most challenging but stimulating aspects so far!

The goal of the mapping process

The ultimate goal of mapping is to inform planning and design, so that the solutions that TAMPEI and the communities elaborate together can truly respond to local needs. The organisational capacity, skills and data that results from this process guarantee greater power to the communities when it comes to engaging as an active group and pledge for change.

It is a fascinating process which brings many issues to light, but still remains a challenge: sometimes there is a pressure to move onto more ‘tangible’ aspects such as land purchase, access to loans, planning and design. I will be looking forward to see how this ties into the next steps and hopefully, since in the case of Muntinlupa it is being carried out at city-wide level, how this translates into more comprehensive and holistic development for the area.

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Mariangela Veronesi graduated from Environment and Sustainable Development in 2012 and has since been working on the World Habitat Awards for sustainable and innovative solutions to housing issues (www.worldhabitatawards.org) at the Building and Social Housing Foundation. She is also the co-founder of Bugs for Life (www.bugsforlife.org), a non-profit organisation for the promotion of edible insects, both in the UK and in West Africa, as a sustainable option contributing to global food insecurity. She is currently working in Metro manila with the Philippine Alliance National Team as part of the 6 months joint DPU-CAN-ACHR internship programme. Her interests also include gender issues and informal economies.

In January this year, three DPU alumni travelled to the Philippines to work with the Philippine Alliance as part of the DPU-CAN-ACHR Junior Professional programme for six months. This blog kicks off a four-part series from the interns, serving as an introduction to the work of the Alliance.

The next posts will explore and reflect on different aspects of its work; community mapping (as told by Mariangela Veronesi, based in Metro Manila), community mobilisation (thoughts from Laura Hirst, in Davao) and settlement planning and design (from Jessica Mamo, in Mandaue). This first post gives a brief overview of the history, structure and different partners in the Alliance, along with how they work with the urban poor in the Philippines.

The Philippine Alliance: a brief background

The Philippine Alliance works with the urban poor living in informal settlements across the Philippines. They also work with other vulnerable groups, such as communities living on land susceptible to natural and man-made disasters or those facing the threat of eviction. Through partnerships with local government and other stakeholders they provide sustainable housing solutions for the urban poor.

The Alliance itself is a partnership between five organisations; Homeless Peoples Federation Philippines Inc. (HPFPI), Philippine Action for Community-led Shelter Initiatives Inc. (PACSII), Technical Assistance Movement for People and the Environment Inc. (TAMPEI), Community Resources for the Advancement of Capable Societies (CoRe-ACS), and LinkBuild. Each of these organisations has a particular role, and work together throughout the process of acquiring land tenure and providing new housing solutions for the urban poor.

Homeless Peoples Federation Philippines Inc

The work of HPFPI started in the 1990s with the creation of savings groups among waste-pickers living on a garbage dump site in the barangay (neighbourhood) of Payatas, in Quezon City, Metro Manila. Originally addressing immediate needs, the programme evolved to tackle issues of land security and eviction. Its successes in Quezon City, in addition to local and international networking and exchanges, encouraged the federation to intensify its work and expand across the country.

Today HPFPI is a national federation of community associations and savers pursuing community-led housing and upgrading processes.

The main role of the federation is to promote and facilitate savings among member-communities, as a way of building their financial capability to invest in their own development. This mobilisation aims to uphold the aspirations of its members to secure their own land, maintain decent living conditions, break the cycle of poverty, and protect their dignity and human rights.

Philippine Action for Community-led Shelter Initiatives Inc

PACSII is a non-profit NGO, registered in 2002, and serves as the intermediary support institution to HPFPI, coordinating the Alliance’s programmes across the various regions, providing overall guidance in their mission.

PACSII provides extensive assistance on legal and financial matters, finding resources, serving as a legal holder for these resources, but most importantly giving the federation the space and opportunity to genuinely develop as a community-driven institution.

Technical Assistance Movement for People and the Environment Inc

TAMPEI is the technical support unit of the Alliance, supporting the federation in community-led technical processes, specifically through the design of low-cost incremental housing, community upgrading, community mapping and planning initiatives at different scales; from community to city level developments.

Community Resources for the Advancement of Capable Societies and LinkBuild

LinkBuild and CoRe-ACS are newly-formed social enterprise and micro-finance institutions which support the communities that form the federation. LinkBuild provides development finance and builds houses while Core-ACS provides end user financing for low-income families through accessible loan systems.

LinkBuild was formed in order for the Alliance to deliver sustainable housing to scale for HPFPI members, affiliates and partner community networks. HPFPI and TAMPEI are directly engaged in the project planning and implementation processes in order to ensure community preparedness and involvement.

Surplus and cross-subsidy projects are being explored as means to sustain the programs and make housing affordable for very low-income families. Houses constructed by Linkbuild are sold to CoRe-ACS, which is then responsible for handing over the houses to households who have been assessed and approved to receive a housing loan, and administrating and collecting these loans.

How the Alliance mobilises member-communities

Although the process varies depending on the context, the starting point for the federation has historically been the mobilisation of communities through the promotion of savings. As communities become mobilised, the aspiration of securing their own land becomes progressively more realistic. Another important stage is the collection of relevant data regarding the community, referred to as community mapping.

If the community has already been organised by HPFPI, the mapping process can represent a crucial step before moving onto planning and design. Nonetheless, mapping can also be used in communities that are not yet organised or involved with HPFPI.

In fact it is often used as a strategy to start interacting with a community and to then introduce the concept of organising and saving to find housing solutions. For large projects, such as housing development, mapping is an important stage which profiles the settlement.

Taking a participatory approach, data is gathered at the household level (for example the number of families, occupations, building structure and facilities), on physical characteristics (such as the boundaries of the settlement and the communities present) as well as on the historical development of settlements.

Once the data has been gathered, verified, analysed and synthesised by community members, it is presented to the wider community, to be used as a tool in the next stage of community land acquisition, planning and design.

What are DPU interns doing?

Throughout our time here we hope to be working in different capacities on all stages of the process in order to support the Alliance in its work and to learn from their experience.

Look out for the three forthcoming posts about our work and experiences in the coming weeks.

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Jessica is an architect and has recently completed the MSc in Building and Urban Design in Development at the DPU. Currently, she is working in the Philippines, as part of the DPU-ACHR joint internship programme. Her interests lie primarily in community-led upgrading, particularly with regards to housing and service provision.