MANILA, Philippines - The challenge of providing accessible and affordable housing solutions to the poor remains a great challenge in the Philippines. Housing issues go beyond the mere provision of decent liveable spaces to the growing number of informal settler families, to the core issue of poverty, inclusivity and cultural sensitivity.
There have been misconceptions and biases about the provision of housing solutions to some of the minority groups in the Philippines, primarily because of their race, culture, religion and beliefs. Some, due to stereotyping, are not given fair treatment when buying properties. Housing designs are also not amenable to their culture.
Conflicts, especially in some portions of Mindanao, have also contributed to the rising number of homeless families. Based on data from the local government of Zamboanga City, there are around 30,000 informal settler families in the city. Part of this problem can be attributed to the effects of the Zamboanga Siege in 2013, which displaced almost 14,300 families.
These issues prompted Social Housing Finance Corporation (SHFC) to develop innovative housing solutions that respond to the needs of all homeless Filipino families, regardless of their race and religion.
SHFC’s pilot project for a culturally-sensitive housing finance package, under the Community Mortgage Program (CMP), broke ground in Zamboanga City recently.
The 1.6-hectare housing project located in Mampang, Zamboanga City will benefit 105 informal settler families belonging to Multi-tribal Phase 1 Homeowner’s Association (MTHOA). These families have been served with demolition notices from the court, prompted by the petition of the landowner. Majority of the MTHOA members are informal-income earners, who earn a living from buying and selling of goods and providing driving and other support services.
It took them almost a decade to find the perfect government housing program that suits their needs and respects their beliefs. Said Amil Jr., MTHOA’s president, couldn’t contain his emotions when he spoke during the groundbreaking. Amil’s wife, who is also a community leader, died of a heart attack in December 2016 during the course of project application and processing.
“It feels great knowing that I was able to continue what my wife has started. We have a lot more things to do to ensure that what we have started will be sustained,” Amil said.
Other community members were also in tears as they recalled the hardships they’ve been through before they reached this milestone – a step closer in owning their own homes.
“For us mothers, we desire to have our own lot for our children as much as we wanted them to have adequate food and resources every day. Now this is already happening,” one of the community members said.
The total loan amount for the acquisition of the property was P10.43 million, and will be under a usufruct agreement, wherein SHFC will pay the landowner on behalf of MTHOA. Two years later, MTHOA will start paying monthly amortization to SHFC.
The Community Mortgage Program (CMP) is SHFC’s flagship program, which assists groups of legally-organized informal settler families to acquire security of land tenure and implement site development and/or upgrading and housing construction and/or repair projects. The maximum loanable amount per beneficiary is P250,000, payable within 25 years with an annual interest of six percent.
MTHOA’s housing project is a breakthrough for CMP since some guidelines were modified to respond to the customs and tradition of the Muslims. Unlike the normal CMP projects, charging of the annual six percent interest is not applicable in a Muslim housing finance program since their tradition forbids it. The interest or riba will be converted into ijara fee, which is equivalent to reward or wages for work done or rendered.
The practice of polygamy, house design and leadership titles were also taken into consideration in drafting the policy of this housing program. Foreclosure due to non-payment is allowed but how to proceed from there must be mutually agreed upon with the community.
Responding to the need for the development of an innovative and culturally-sensitive housing program, various sectors partnered in this endeavor, which included Ateneo de Zamboanga University, which conducted several community profiling and social preparation activities for MTHOA, Ateneo de Davao University-Al Qalam Institute for Islamic Identities and Dialogue in Southeast Asia & Engineering Department, ZAMPEN Urban Poor Alliance, Inc., LGU Zamboanga, Western Mindanao State University and National Commission on Muslim Filipinos.
SHFC President Ma. Ana Oliveros said that SHFC will continue to partner with other agencies in order to polish the policies of a culturally-sensitive housing finance that will respond to the needs of Muslims all over the Philippines. She also stressed SHFC’s thrust of providing more efficient services through streamlined processes.
“We will journey together in order to provide more accessible housing for the poor,” Oliveros said.
SHFC believes that a one-size-fits-all housing finance will not work and there’s a need to address and develop solutions based on the needs of the informal settler families. This pilot project is aimed at opening new horizons for the housing sector in order to provide empowerment and sustainability to all Filipino families through housing.
Al Qalam executive director Mussolini Lidasan said that the entire Ateneo de Davao University community is grateful for their partnership with SHFC and treats it as a great opportunity to reach out to both Christians and Muslims who are in need of shelter solutions. Lidasan added that the partnership is another victory in upholding cultural diversity and promoting peace building in Mindanao.
“The integration of a Sharia’a based mechanism in the whole project development brings us closer towards our goal to promote understanding and religious diversity. And providing impactful social service and creating an environment of peaceful co-existence,” he said.
Following the lot acquisition phase, MTHOA will undergo processing for the approval of the site development and housing construction loan that will enable the building of their houses.