Efficiency and Effectiveness Review

of the NHA Resettlement Program

Marife M Ballesteros
17 July 2013

Objectives of the Review

O Assess cost effectiveness of NHA

resettlement modalities
O Examine welfare issues in resettlement

sites

Overview of the Resettlement Program

O Resettlement involves the relocation of

informal settlers occupying public and

government lands to a developed site with
housing component
O Resettlement program is NHAs main program

from 2003-2011
O Resettlement has the largest share in NHA

budget

NHA Housing Production by Program, 2003-2011

Program
Total
Resettlement
Slum Upgrading
Sites And Services
Core Housing
Medium-Rise Housing
Source: HUDCC, NHA

Total (2003-2011)
Units
Share
201,876
100.00%
171,594
85.00%
19,776
9.80%
8,653
4.29%
1,793
0.89%
60
0.03%

Share of Resettlement Program to NHA Expenditure, 2007-2011

In Percent
2007-2011
Item
Total
Project Development
(Including Housing Support)*
Land Acquisition/Assembly
Other Project Related Capital Outlay b

78.92

Other
Programsa
21.08

75.90
0.43
2.58

18.04
0.69
2.35

Resettlement

Source: NHA Corporate Operating Budget

Notes:
Total NHA budget 2007-2011: P29.37 or P 5.9B annually
* The NHA corporate budget presents housing support as separate expenditure item but according to NHA this
amount is still part of project development cost.
aOther Programs include: Slum Upgrading, Sites and Services, Completed/Core Housing, Medium Rise
Housing
bOther Project Capital Outlay: Socialized Housing Units Participation (SHUP), Local Housing, Socio Economic
and Environmental Programs, Program Administration

Resettlement Expenditure Share by Region

In Percent
Item
Total GMA
Total
Project Development
(Including Housing Support)*
Land Acquisition/Assembly
Other Project Related Capital
Outlay

2007-2011
GMA
Regions
NCR
Other GMA

93.51

16.23

77.29

6.49

90.60
0.40

15.92
-

74.68
0.40

5.58
0.14

2.51

0.31

2.20

0.76

Source: NHA Corporate Operating Budget

Notes:
Other GMA: Northern and Central Luzon, Southern Luzon and Bicol

Resettlement Modalities
O By Method
O Completed Housing
O Incremental Housing
O LGU- NHA Joint venture (Resettlement

Assistance Program)
O By Location
O In- city
O Off -City

Number of Resettlement Projects Developed by Modality and by Location, GMA

(2003-2011)

Project
GMA
NCR
Bulacan
Pampanga
Laguna
Cavite
Rizal

All
45
6
14
6
9
2
8

Modality
Completed
Incremental
Housing
Housing
In-City Off-City In-City Off-City
15
17
6
0
3
3
1
6
3
6
4
2
1
1
8
-

Mixed *
In-City
4
4
0
-

Off-City
3
0
3
-

Source: NHA Corporate Planning Office

Notes:
In- City NCR Completed Housing Projects: Northville 1B, Punturin, Valenzuela City; Northville 2B, Bagumbong, Caloocan City
Southville 3, NBP, Muntinlupa City
In- City NCR Incremental Housing Projects: Northville 1 & 2, Bignay, Valenzuela City; Northville 2A, Canumay, Valenzuela City
* Both CH and IH in one site
Includes Bulacan Projects: Northville 3, Meycauayan, Northville 5, Bocaue, Northville 8, Malolos, Northville 9, Calumpit
Laguna Projects: Southvile 1, 1A and 1B, Cabuyao

Resettlement Processes and Work Program

(All Modalities)
Assumption: 1000 families
Activities

I. PRE-RELOCATION PHASE
LIAC Mtgs., Census Validation
Site Selection/Consultation
Completion of Pre-Relocation Doc./ Lot
Unit Assign/ CA Acquisition of Dev.
Res. Lots
Bidding Process (only for LGU-NHA
modality)
II. RELOCATION PHASE
Movement of Families
Provision of HML
Food Assistance
Staging Area/Power/Water
Provision of Community Facilities
III. POST-RELOCATION PHASE
Turnover of cleared area to proponent
community/
Community Integration and
Development/
Start of Estate Management
IV. ESTATE MANAGEMENT

Feb

Mar

Apr

May

Jun

Year 1
Jul

Aug

Sep

Oct

Nov

Dec

Year 2
Jan

(Output: Masterlist of Beneficiaries)

(Output: Site Selected/Resource Mobilized)
(Output: Masterlist of HH Subdivision
Plan)

Distribution of Resettlement Budget by Type of Expenditure, 2007-2011

(In Percent)
Item
Project Development
New Works
Carry-Over Works
Housing Support
Utilities
Survey & Titling
Repair Works
Othersa
EHAP
Gender and Development
Livelihood Assistance for Northrail
Southrail Relocatees
Land Acquisition/Assembly
Land Acq.-Proj. Dev't
Land Acquisition-Others
Land Assembly
Other Project Related Capital Outlay b

2007-2011
95.10
45.56
49.54
0.72
0.12
0.06
0.04
0.46
0.04
0.67
0.34
0.07
0.27
3.50

Source: NHA Corporate Operating Budget

Notes:
aOthers include: Land Improvement Capital Outlays
bOther Project Capital Outlay: Socialized Housing Units Participation (SHUP), Local Housing, Socio
Economic and Environmental Programs, Program Administration

Annual Utilization based on New Works

Utilization of Resettlement Project Development Budget for New Works, 20072011
In Percent

Year
2007
2008
2009
2010
2011
Average (2007-2011)
Source: NHA Corporate Operating Budget

*not programmed

Utilization (New Works)

Total
GMA
Regions
20.56
20.79
58.19
71.38
71.70
31.56
69.34
64.88
139.89*
37.77
39.40
24.37
30.89
27.86
61.62
38.86
37.82
53.50

Comparative Cost of Completed and

Incremental Housing for In City Projects
Off-City
Northville 4A,
Marilao, Bulacan

In-City
Northville 5A
Sta Maria

Incremental
Housing
In-City
Northville 1, Bignay,
Valenzuela City

Completed Housing
Item

Standard
Cost

Total Project Cost/Unit

200,000

211,058

109,564

419,275

Lot Cost/Unit

100,000

105,838

49,723

162,505

Housing Cost/Unit

75,000

72,746

38,523

86,270

Housing + Lot Cost/Unit

175,000

178,584

88,246

248,775

Relocation Cost/Unit
Utilities Cost/Unit
Community Facilities
Cost/Unit
Number of Housing Units

12,500
2,500

29,216
2,214

11,331
2,614

166,350
3,442

1,044

7,372

709

1,703

1,943

1,299

10,000

Source: NHA Corporate Planning Office and Financial Management

Department
Notes:
Standard Allocation per Family under NHA Relocation Program, HCL is PhP 75,000 per Board Resolution No. 5114
dated July 18, 2008; Source: NHA Corporate Planning Department
Values deflated using CPI for Housing base 2000: NCR (Bignay, Valenzuela), Region 3 (Marilao and Sta. Maria, Bulacan)

Comparative Cost of Completed Housing Projects

In-City vs. Off-City
Item
Total Project Cost/Unit
Lot Cost/Unit
Housing Cost/Unit
Housing + Lot Cost/Unit
Relocation Cost/Unit
Utilities Cost/Unit
Community Facilities Cost/Unit

In-Citya
164,822
73,870
57,302
131,171
20,606
3,483
9,561

Off-Cityb
143,198
67,342
44,210
111,552
20,997
2,792
7,859

Specific Project
Item

Total Project Cost/Unit

Lot Cost/Unit
Housing Cost/Unit
Housing + Lot Cost/Unit
Relocation Cost/Unit
Utilities Cost/Unit
Community Facilities Cost/Unit

Northville 2B, Bagumbong

Caloocan City
152,848
73,529
55,551
129,080
19,032
3,900
835

Southville 2, Trece
Martirez, Cavite

146,942
69,913
43,270
113,183
23,091
2,658
8,011

Source: NHA Corporate Planning Office and Financial Management Department

Notes:
Values deflated using CPI for Housing base 2000: NCR (Bignay, Valenzuela), Region 3 (Marilao and Sta. Maria, Bulacan)
a

In-City NCR Completed housing project: Northville 2B, Bagumbong Caloocan City and Southville 3, NBP, Muntinlupa City

b Off-City

Southville Completed Housing Project: Southville 2, Trece Martirez, Cavite and Southville 5, Timbao, Bian

Comparative Cost Benefit Ratio

Completed Housing vs Incremental
Cost Item
(in Pesos per Unit or HH)

Total Project Cost/unit

Lot+Housing Cost/unit
School building (for 1000 units; 15 class, 3-storey)
Total Investment Cost
Other cost
Interest subsidy on housing loan component, PV
O&M, 1% of investment cost, PV 30 years, 8%
MOOE and PS of school = P1409/yr, PV 30 yrs, 8%
Livelihood program, non-infrastructure
Total interest and operating subsidy
TOTAL COST, PV
MARKET RENT, PV 30 years
CBR 1(TOTAL COST/MR)
CBR 2 (TOTAL COST/MR) a/

Completed
Housing
Completed Housing
Marilao-Off City Sta Maria, Bulacan-In City

Incremental
Bignay- In City

211,058.00
178,584.28
23,000.00
234,058.00

109,564.00
88,246.44
23,000.00
132,564.00

419,275.00
248,775.08
23,000.00
442,275.00

34,715.00
33,721.00
15,862.22
3,000.00
87,298.22

34,715.00
17,507.00
15,862.22
3,000.00
71,084.22

34,715.00
47,201.07
15,862.22
3,000.00
100,778.29

321,356.22
41,138.89

203,648.22
20,569.00

543,053.29
84,370.00

7.8
4.0

9.9
6.3

6.4
3.5

Notes:
Market rent based on average rental rates urban phil and NCR from FIES 2009 and rental rate Index of 8%
Rental rate IH is weighted average of urban phil actual rental and imputed rental rates. Weights based on assumption of share of households with improved
house area and design.
In city rental based on NCR average rental values and off city based on urban philippines with lower growth index since it represents areas farther from
NCR and at the outskirts of municipality centers.
a/

Assume govt owns land at end of 30 year period

Comparative Cost Benefit Ratio

In City vs Off City
Cost item

In city

Off city

(in Pesos per Unit or HH)

NCR b/

Southville b/

In City
Bagumbong,
Caloocan

Off City
Southville 2, Trece
Martires

Total Project Cost/unit

164,822.00

143,198.00

152,848.00

146,942.00

Lot+Housing Cost/unit

131,171.00

111,552.00

129,080.00

113,183.00

23,000.00

23,000.00

23,000.00

23,000.00

187,822.00

166,198.00

175,848.00

169,942.00

34,715.00
29,673.00

34,715.00
25,784.00

34,715.00
24,408.00

34,715.00
23,466.00

15,862.22
3,000.00
83,250.22

15,862.22
3,000.00
79,361.22

15,862.22
3,000.00
77,985.22

15,862.22
3,000.00
77,043.22

School building (for 1000 units; 15 class, 3-storey)

Total Investment Cost
Other cost
Interest subsidy on loan financing component, PV
O&M, 1% of investment cost, PV 30 years, 8%
MOOE and PS of school = P1409/yr, PV 30 yrs,
8%
Livelihood program, non-infrastructure
Total interest and operating subsidy

Notes:
Market rent based on average rental rates urban phil and NCR from FIES 2009 and rental rate Index of 8%
Rental COST,
rate CCSPV
is weighted average of urban phil actual rental
and imputed rental245,559.22
rates. Weights based 253,833.22
on assumption of share
of
TOTAL
271,072.22
246,985.22
households
with improved
house area and design.
MARKET
RENT,
PV 30 years
41,139.00
28,164.00
41,139.00
28,164.00
In city rental based on NCR average rental values and off city based on urban philippines with lower growth index since it represents areas
arther from NCR and at the outskirts of municipality centers.

CBR 1 (TOTAL COST/MR)

a/ Assume govt owns land at end of 30 year period
CBR
2 (TOTAL COST/MR) a/
b/

6.6
3.9

8.7
5.1

6.2
3.5

NCR In City includes data from Northville 2B, Bagumbong, Caloocan City and Southville 3, NBP, Muntinlupa City;
Off City includes data from Southville 2, Trece Martirez, Cavite and Southville 5, Timbao, Binan, Laguna

8.8
5.0

Indicators of Resettlement Impact

O Housing Improvement or investment
O Payment/Collection

O Turnover or abandonment of housing

O Welfare indicators (income, employment)

Northville 2, Bignay, Valenzuela (Incremental Housing)

Northville 4A, Marilao, Bulacan and Southville 2, Trece

Martirez, Cavite ( Completed Housing)

Collection Efficiency
by Modality and by Project
Year

Efficiency Rate
Completed
Incremental
Housing
Housing
Northville 10-16 Bignay, Valenzuela

2009
2010
2011
Average (2009-2011)

9%
9%

Source: NHA Treasury Department

*Efficiency Rate based on amortization due

Performance Rate based on NHA collection target

20%
20%
20%
20%

Performance Rate
Completed
Incremetnal
Housing
Housing
Northville 10-16 Bignay, Valenzuela
39%
39%

92%
79%
45%
72%

Collection Efficiency
In-City vs. Off-City
Year
2009
2010
2011
Average (2009-2011)

Efficiency Rate
In-Citya
Off-Cityb
30%
21%
13%
17%
4%

Performance Rate
In-Citya
Off-Cityb
67%
51%
23%
39%
8%

Source: NHA Treasury Department

Notes:
a In-City Developer Contract Project: Northville 2B, Bagumbong Caloocan City
b Off-City Developer-Contract Project: Southville 2, Trece Martirez, Cavite

Welfare Issues:
Off-City Resettlement Programs
O Lack/Inadequate Facilities
O Increase Crime

O Lack of Employment/Livelihood Programs

O Higher Transportation Cost

Welfare Analysis

Data based on household survey under the Social Impact

Monitoring (SIM) study on Ondoy and Pepeng commissioned by
the World Bank

SIM study included an assessment of socioeconomic conditions of

relocated households due to Ondoy In-city and Off-city.
In city: Eusebio Bliss Maybunga, Pasig
Off city Resettlement: Southville, Langkiwa Site 3, Binan, Laguna

Sample households
Maybunga 80 hhs; Langkiwa 100 hhs

Welfare analysis involved econometric analysis to come up with

household groups that are comparable

Key Findings from Welfare Analysis

Significant reduction in household income in off-city

resettlement. Income difference of P3,466/month

Reduce expenditure on basic needs (food, water

electricity)
Reduce access to basic services in off-city resettlement.

No water connection within 18 to 20 months

Lower per capita food consumption in off-city

resettlement
Significantly lower proportion of school age members

going to school despite presence of community schools

No significant difference in proportion of employed

household but significantly more women employed

Summary of Effectiveness/Efficiency
Indicators by Modality
Criteria

Completed Housing

Incremental Housing

Participatory

2/5

4/5

Community/Housing
Ownership

1/5

5/5

Housing Acceptability

2/5

5/5

Containment of
population sprawl

1/5

5/5

Sustainability

1/5

4/5

Cost Effectiveness
(CBR analysis)

1/5

5/5

Note: Scale of 1 to 5 ; 1 as poor and 5 as good

Summary of Effectiveness/Efficiency
Indicators by Location
In-City

Off-City

LGU Commitment

5/5

2/5

Infra Investment
(incl. livelihood)

Low

High

Welfare Benefits

5/5

2/5

Recommendations
O NHA Resettlement program to focus on in-city

resettlement and incremental housing

O The feasibility of horizontal development in-city

should be considered
O Large scale resettlement has to be undertaken in

connection with land regulations and LGUs

O critical role of LGUs shelter and land use planning

O Apply JV arrangement in GMA

Recommendation (Contd)
O Community participation a major factor in

success of program but housing

acceptability is a necessary condition
O Importance of livelihood in resettlement
areas requires that site should be within
industrial/commercial zones.
O Strategy of developing new towns for

resettled families should be reviewed

Recommendation (contd)
O Mixed used development is key to housing

solution
O Need to rationalize housing subsidy

direct vs finance subsidies

Thank you

Welfare Analysis
OFF-CITY

IN-CITY

Difference
(OFFCITY-INCITY)

p value

Average Monthly Household Income

Average Household Expenditure
Average Household Expenditure-Food

9469.70238
7470.21429
4237.34524

12935.598
12166.518
6178.3929

-3465.89583
-4696.30357
-1941.04762

0.001
0.000
0.000

***
***
***

Average Household Expenditure-Transportation

Average Household Expenditure-Water
Average Household Expenditure-Electricity
Average Household Expenditure-Medicine

900.809524
262.130952
492.261905
256.821429

967.92857
405.43155
860.84226
152.69048

-67.1190476
-143.300595
-368.580357
104.130952

0.682
0.000
0.000
0.291

n.s
***
***
n.s

Proportion of HH Members (ages 6 to 22) going

to school

0.27580268

0.34819903

-0.072396354

0.038

**

0.37158147

0.33124966

0.040331809

0.185

n.s

0.47281746

0.55365647

-0.080839004

0.158

n.s

0.34146826

0.22480159

0.116666667

0.028

**

Variable

Proportion of Employed Household Member

Proportion of Men Household Member
Employed
Proportion of Women Household Member
Employed

Slum Rehabilitation Projects

Dharavi

Oshiwara (Phase 1),

Oshiwara (Phase 2)

Location

Dharavi, Mumbai, State of

Maharashtra

Goregaon, Oshiwara District,

Mumbai

Goregaon, Oshiwara District,

Mumbai

Number of families to
directly benefit

147

780

2,480

Projected total cost

879,532

2,896,393

10,247,564

Developer Contribution

Building design &

construction +Rs20,000/hh
($465)

Building design & construction

+Rs20,000/hh ($465)

Building design &

construction
+Rs20,000/hh ($465)

Household

Moving in cost Rs 20,000/hh

Maintenance cost

Moving in cost Rs 20,000/hh

Maintenance cost

Moving in cost Rs 20,000/hh

Maintenance cost

Projected total cost

recoveries

1,085,057 (Residential unit

sales
(65%), TDR sales (28%) and
Commercial unit sales (6%))

3,387,866 (TDR sales (100%)

16,406,061
(TDR sales (89%), Residential
unit sales (8%) and
Commercial unit sales (2%))

Projected peak finance

requirement and sources
(in order of size)

489,984 (National Housing

Bank (backed by a 85,353
guarantee from
Homeless International),
CLIFF and SPARC/Nirman)

1,092,137 (CLIFF and

SPARC/Nirman)

2,067,894
(ICICI Bank (backed by a 50%
guarantee from USAID), CLIFF
and SPARC/Nirman)

Other resources
mobilized

Land (private) and

infrastructure
(government)

Land (private) and infrastructure

(government)

Land (private) and

infrastructure
(government)

Distribution of Resettlement Expenditure by Source of Funds

(In Percent)
2007-2011
Item

Project Development
Housing Support
Utilities
Survey & Titling
Repair Works
Others
EHAP
Gender and Development
Livelihood Assistance for Northrail Southrail
Relocatees
Land Acquisition/Assembly
Other
Project
Related
CapitalBudget
Outlay
Source:
NHA Corporate
Operating
Total

National
Government
Equity/Subsidy
94.4
42.1
4.6
7.2
4.6
25.7
99.9
91.8
94.0

Corporate
Borrowings

Corporate
Funds

2.9
46.9
40.6
-

2.7
11.0
8.8
2.2
0.0
-

6.3
3.2

0.1
8.2
2.8