Pre-WWII to 1972 – Housing Policies & Urbanization
Burnham Plan & Sanitary Barrios
The Burnham Plan for Manila, proposed in 1905 by American architect Daniel Burnham, was
one of the earliest comprehensive urban planning efforts in the Philippines. As part of American
colonial policies, the plan aimed to modernize Manila, transforming it into a well-organized,
ef cient, and aesthetically pleasing capital. Inspired by the grand designs of cities like
Washington, D.C., and Chicago, Burnham envisioned wide boulevards, ample green spaces, and
distinct zoning regulations that would separate commercial, residential, and government districts.
The plan emphasized symmetry, order, and sanitation, which were seen as necessary to create a
"modern" city under American rule.
However, while the Burnham Plan did introduce some lasting improvements in Manila’s
infrastructure, it was largely designed with the needs of the elite in mind. The wide boulevards
and parks were situated in areas where government buildings and upper-class residences were
located, while working-class communities and informal settlers remained marginalized. Housing
was not a primary focus of the plan, which ultimately contributed to the expansion of
unregulated informal settlements over time.
Alongside the Burnham Plan, the Sanitary Barrios initiative sought to address the severe health
risks posed by overcrowded and unsanitary living conditions in Manila's slums. These barrios
were planned neighborhoods that aimed to improve hygiene and prevent the spread of diseases
such as cholera and tuberculosis. While this initiative had good intentions, in practice, it
disproportionately bene ted the middle class, while low-income settlers continued to live in
squalid conditions with limited access to clean water and proper waste disposal. The inability of
the government to provide long-term housing solutions meant that informal settlements
continued to grow, eventually becoming a permanent feature of urban life in the Philippines.
Historical & Political Context:
• The Burnham Plan re ected American colonial priorities, which emphasized
modernization and control over urban spaces.
• It was part of broader infrastructural investments meant to display American authority
and civilizational in uence in the Philippines.
• Despite introducing modern zoning and urban planning, the plan failed to address social
equity, leaving the lower classes vulnerable to unsanitary and informal housing
conditions.
People’s Homesite and Housing Corporation (PHHC)
The devastation caused by World War II left Manila and other urban centers in ruins, creating a
massive housing crisis. In response, the People’s Homesite and Housing Corporation (PHHC)
fi
fl
fl
fi
was established in 1947 to address the urgent need for residential reconstruction. The PHHC
focused on providing affordable housing for government employees and working-class families,
particularly in the newly developed city of Quezon City, which was originally intended to
become the new capital of the Philippines.
While the PHHC managed to develop several housing projects, it struggled to keep up with the
overwhelming demand for affordable homes. Rapid urban migration from rural areas further
complicated the problem, as thousands of families moved to the city in search of better economic
opportunities. However, the high cost of living and limited government resources meant that
many of these migrants were unable to afford formal housing. This led to the proliferation of
informal settlements, which the government attempted to address through slum clearance
programs—efforts that often displaced communities without providing sustainable alternatives.
Historical & Political Context:
• The PHHC was established during the post-war reconstruction period, aligning with U.S.
economic aid programs such as the Philippine Rehabilitation Act of 1946.
• The focus on government employees re ected post-war economic rebuilding strategies,
where state workers were prioritized in social programs.
• Housing inequality persisted as land reforms remained insuf cient, preventing many
working-class Filipinos from accessing secure home ownership.
Urban Inequality & Informal Settlements
By the mid-20th century, urban inequality became increasingly evident in Philippine cities.
Wealthy neighborhoods had access to better infrastructure, while informal settlements lacked
basic services such as electricity, clean water, and sanitation. As the government prioritized
economic development and urban beauti cation, many of the poor were pushed to the fringes of
society.
Slum clearance programs, such as those initiated in Manila, sought to remove informal
settlements and replace them with modern infrastructure. However, these programs often resulted
in forced evictions without providing adequate relocation or livelihood opportunities for affected
families. Many displaced settlers simply relocated to other slum areas, leading to a continuous
cycle of displacement and resettlement.
Historical & Political Context:
• Urban inequality was exacerbated by land monopolization, where elite landowners
controlled vast tracts of urban property.
• Informal settlements grew due to rural poverty and lack of agrarian reforms, forcing
many to migrate to cities for survival.
fl
fi
fi
• Slum clearance efforts often aligned with beauti cation and development programs
that prioritized business interests over social welfare.
1972 – 1986 (Marcos Era: Housing & Urban Issues)
BLISS (Bagong Lipunan Improvement of Sites and Services)
The Bagong Lipunan Improvement of Sites and Services (BLISS) program was launched in
1979 as part of President Ferdinand Marcos’ New Society Program under Martial Law. This
initiative aimed to provide affordable housing by constructing high-rise residential buildings
for low- and middle-income families.
Despite its ambitious goals, BLISS was plagued by corruption, mismanagement, and poor
implementation. Many of the housing units were substandard, lacked basic amenities, and
deteriorated quickly. The program also suffered from political favoritism, as allocation of
housing units was in uenced by connections to government of cials.
Historical & Political Context:
• The program was part of Marcos’ broader urban development projects aimed at
showcasing the Philippines as a modern nation.
• Martial Law policies allowed the government to forcibly relocate communities, often
without due process.
• The BLISS program’s failures re ected wider economic issues during the latter part of
Marcos’ rule, including debt-driven infrastructure spending and declining public trust.
Tondo Foreshore Development Project
The Tondo Foreshore Development Project, launched in 1975, was one of the largest slum
upgrading programs in Philippine history. It aimed to improve sanitation, infrastructure, and
housing conditions in Tondo, Manila’s largest slum area.
Although the project initially showed success in improving sanitation and utilities, it failed to
provide sustainable employment opportunities for relocated families. Many residents returned
to informal settlements due to the lack of livelihood in new locations.
Historical & Political Context:
• The project was meant to improve Manila’s image for foreign investors and
international events.
• The failure to provide sustainable employment for relocated settlers led to continued
urban poverty.
fl
fl
fi
fi
1986 – 1998 (Aquino & Ramos Years: Housing Reforms &
Privatization)
Community Mortgage Program (CMP)
The Community Mortgage Program (CMP) was introduced in 1988 under President Corazon
Aquino as a means of providing security of tenure for informal settlers. The CMP marked a
signi cant shift from previous housing strategies that focused on government-led mass housing
and forced relocation. Instead, this program empowered urban poor communities to collectively
purchase the land they occupied using government-assisted nancing. The process involved
community associations negotiating with landowners and securing nancing through the Social
Housing Finance Corporation (SHFC), which provided low-interest loans.
CMP was widely considered one of the most effective and inclusive housing programs in
Philippine history. Unlike traditional relocation programs that disrupted livelihoods, this
initiative allowed people to remain in their communities while gaining legal ownership of their
homes. However, its implementation was slowed by bureaucratic inef ciencies, funding
shortages, and legal complexities surrounding land ownership. Despite these challenges, the
CMP remains one of the government’s longest-running social housing programs, with many
urban poor communities bene ting from it.
Historical & Political Context:
• The CMP was developed in the aftermath of Martial Law, when the Aquino
administration sought to reverse Marcos-era authoritarian housing policies.
• It aligned with democratization efforts, shifting power to communities and emphasizing
grassroots participation.
• The program re ected global trends in participatory urban planning, as many
developing countries were moving toward community-based housing solutions rather
than state-led mass housing projects.
Urban Development and Housing Act (UDHA) of 1992
The Urban Development and Housing Act (UDHA), signed into law in 1992 under President
Fidel V. Ramos, was one of the most comprehensive housing laws in Philippine history. Also
known as Republic Act 7279, it aimed to institutionalize land tenure security, housing
affordability, and urban planning reforms. The UDHA was built on the principles of
equitable land access, fair housing rights, and balanced urban development.
One of the key provisions of the UDHA was the requirement for private developers to
allocate 20% of their total projects for socialized housing. This was meant to increase
affordable housing supply and integrate low-income communities into mainstream urban
fi
fl
fi
fi
fi
fi
development. The law also regulated evictions, ensuring that relocations followed a humane and
just process, with provisions for adequate resettlement.
Despite its ambitious goals, the UDHA faced severe implementation challenges. Many private
developers found loopholes to bypass the 20% requirement, opting to develop low-cost
housing in far- ung areas rather than integrating it into urban centers. Additionally, weak
enforcement mechanisms meant that informal settlers continued to face forced evictions despite
legal protections under the law.
Historical & Political Context:
• The UDHA was implemented during the post-Cold War era, when market-oriented
reforms and privatization dominated economic policies worldwide.
• The Ramos administration, known for its neoliberal economic policies, emphasized
public-private partnerships (PPPs) in urban development, shifting the burden of
housing provision from the state to the private sector.
• The law re ected broader efforts to professionalize urban planning and move away
from ad-hoc housing projects, which had de ned past administrations.
Asian Financial Crisis (1997) and its Impact on Housing
The Asian Financial Crisis of 1997 had signi cant repercussions for the Philippine housing
sector. The crisis originated in Thailand and quickly spread across Asia, causing massive
currency devaluations, economic slowdowns, and a decline in investor con dence. The
Philippine peso lost nearly 50% of its value, leading to an economic downturn that severely
impacted housing nance and development.
As a result of the crisis:
• Interest rates skyrocketed, making home loans unaffordable for many middle-class and
low-income families.
• Private sector investment in housing plummeted, as developers faced nancial
constraints and reduced access to credit.
• Government housing programs faced budget cuts, delaying major projects and reducing
the number of socialized housing units available.
• Many low-income families were pushed further into informal housing, as economic
hardships prevented them from accessing affordable homeownership.
Despite these setbacks, the crisis highlighted the vulnerabilities of a privatized housing
system that depended heavily on market forces. The downturn underscored the need for stronger
government intervention in housing nance, particularly in providing safety nets for low-
income families affected by economic shocks.
fl
fl
fi
fi
fi
fi
fi
fi
Historical & Political Context:
• The crisis was part of a larger nancial collapse in Southeast Asia, affecting countries
like Thailand, Indonesia, Malaysia, and South Korea.
• It exposed the risks of nancial deregulation, as many economies—including the
Philippines—had relied heavily on foreign capital and speculative real estate investments.
• The crisis forced the Philippine government to rethink its approach to housing nance,
leading to later reforms aimed at strengthening domestic housing institutions.
Overall Impact of Aquino & Ramos-Era Housing Reforms
While both Aquino and Ramos introduced landmark housing policies, their effectiveness
varied. Aquino’s CMP succeeded in empowering urban poor communities but faced slow
implementation due to legal and nancial barriers. Ramos’ UDHA had strong legislative
intent, but weak enforcement allowed developers to sidestep their obligations, limiting its
impact.
Additionally, the Asian Financial Crisis of 1997 exposed the weaknesses of market-driven
housing policies, demonstrating that housing affordability cannot be left solely to private sector
forces. Moving forward, the lessons learned from these two administrations would shape future
policies under Estrada and Arroyo, where housing privatization and corruption scandals
would become key issues.
1998 – 2010 (Estrada & Arroyo Years: Housing, Economy, &
Governance)
Task Force on Mass Housing (Estrada Administration, 1998–2001)
During the short tenure of President Joseph Estrada, the government sought to address the
rising housing backlog by creating the Task Force on Mass Housing. The primary goal of this
initiative was to reduce the housing de cit, which had reached approximately 3.3 million units
at the time. To achieve this, the administration prioritized the development of socialized housing
projects for the urban poor, particularly in areas with high concentrations of informal settlers.
However, Estrada’s administration faced signi cant funding constraints and governance
issues, leading to an underwhelming performance in housing delivery. The initial target of
350,000 housing units per year was far from met, with only 274,727 units being turned over
during Estrada’s 2.5-year presidency. Many of these units suffered from poor infrastructure,
lack of utilities, and defective land titles, making them unsustainable for long-term residence.
Historical & Political Context:
fi
fi
fi
fi
fi
fi
• Estrada’s government inherited the urban housing crisis from past administrations,
particularly from Marcos-era forced relocations and Ramos-era privatization policies.
• The administration’s housing policies were part of a larger anti-poverty campaign, but
political instability and corruption allegations undermined the effectiveness of these
programs.
• The impeachment and subsequent removal of Estrada in 2001 disrupted the
implementation of long-term housing solutions.
Public-Private Partnerships (PPP) & Pabahay 2000 (Arroyo Administration,
2001–2010)
Upon assuming of ce in 2001, President Gloria Macapagal Arroyo introduced a more market-
driven approach to housing, expanding the role of Public-Private Partnerships (PPP) in the
development of mass housing. Under Arroyo’s leadership, the Pabahay 2000 Program was
implemented to improve the accessibility of affordable housing for low-income families.
PPP initiatives encouraged private developers to participate in housing projects, allowing the
government to reduce direct costs while accelerating the production of housing units. While this
approach resulted in an increase in housing supply, it also created signi cant challenges in
affordability. Many PPP projects catered more to middle-class buyers, making it dif cult for
low-income families to access decent housing.
Additionally, some projects faced issues of exclusion, as urban poor communities were often
relocated to distant resettlement areas where access to jobs and services was limited. This
continued the long-standing problem of forced displacement and informal resettlement cycles.
Historical & Political Context:
• Arroyo’s housing policies aligned with her broader economic liberalization strategies,
which emphasized private sector involvement in social services.
• The government shifted from state-funded housing solutions to market-driven
approaches, believing that the private sector would be more ef cient in addressing
housing needs.
• This shift resulted in higher housing production but did not effectively address urban
inequality, as many projects remained unaffordable for the poorest sectors of society.
Corruption & Economic Impact of Housing Policies
Despite the increase in housing production under Arroyo, her administration was heavily
criticized for corruption. A survey conducted by Pulse Asia Inc. in 2007 labeled Arroyo as the
"most corrupt Philippine leader in history," surpassing even Marcos and Estrada. Many
fi
fi
fi
fi
government-funded housing projects were tainted by mismanagement and allegations of fund
misallocation, reducing their effectiveness in addressing urban poverty.
The economic impact of housing policies during this period was also a mixed outcome. While
the Philippines experienced GDP growth, many Filipinos continued to suffer from widening
income inequality. Housing shortages persisted, and mass migration of workers abroad
(Overseas Filipino Workers or OFWs) became a de ning feature of the Arroyo years. Many
OFWs sent remittances for housing investments, yet affordable housing options remained
limited.
Historical & Political Context:
• The Arroyo administration was marked by economic growth but high levels of
corruption, which impacted housing funds and project ef ciency.
• The rise of real estate speculation and gentri cation led to housing markets favoring
wealthier Filipinos, further marginalizing low-income families.
• Arroyo’s housing policies, while increasing housing production, failed to resolve the
root causes of informal settlements and poverty, leading to continued urban inequality.
Conclusion: Lessons from a Century of Housing Policies
The evolution of Philippine housing policies from pre-World War II colonial planning to post-
war reconstruction, authoritarian development, democratization, and market-driven reforms
re ects the nation’s shifting political and economic priorities. Despite multiple housing programs
over the decades, the Philippines continues to face challenges in housing affordability, urban
inequality, and sustainable development.
Key Takeaways:
• Government-led housing initiatives (e.g., PHHC, CMP, BLISS) played an important
role in shaping urban landscapes, but lack of funding, corruption, and mismanagement
undermined their success.
• Market-driven approaches (e.g., UDHA, PPP) increased housing production but often
failed to address affordability for the poorest communities.
• Slum clearance and forced relocations have historically disrupted communities without
proper long-term support, resulting in recurring cycles of informal settlement
growth.
• Economic downturns, such as the 1997 Asian Financial Crisis, exposed the
vulnerabilities of housing nance systems that relied too heavily on private sector
investments and market-driven policies.
fl
fi
fi
fi
fi
