Administrative Relationships And Lending Systems In Philippines Finance Essay

The cost of nice lodging is high as the market tends to reapportion rights to most valuable usage of land. Past lodging plans enabled non-poor families to derive entree to the formal market. Socialized lodging remains unaccessible particularly to the urban hapless. And informal colonies persist. These were reported in the Medium Term Philippine Development Plan for 1999 to 2004. Good administration in the idiom of the Asian Development Bank involves four basic elements – answerability, engagement, predictability and transparence. Good administration coupled with information and communicating engineering ( ICT ) consequences in e-governance. One bookman noted that the demand for duty, expertness, and coordination tends to convey about centralisation of decision-making maps and separation of determination from action. He posited that there is a inclination for decentalisation because a really big portion of the information relevant to determinations originates at the operating degree and the separation of determination from action additions clip and work force costs of doing and conveying determinations. Does e-governance of lodging and urban development exist in the Philippines? What is the function of ICT, if any, in the centralisation and/or decentalisation of the administrative relationships of the Housing and Urban Development Coordinating Council ( HUDCC ) with cardinal shelter bureaus and support bureaus? Has ICT influenced the centralisation and/or decentalisation of determination devising within HUDCC? Is at that place a relationship between ICT and centralisation and/or decentalisation of HUDCC imparting systems? Is the demand for nice lodging now being met? These are some inquiries that the paper attempts to turn to. This historical, instance and descriptive survey aims to find: ( I ) if there is a correlativity between ICT and centralisation and/or decentalisation of administrative relationships, ( two ) if there is a correlativity between ICT and centralisation and/or decentalisation of imparting systems and ( three ) whether the demand for nice lodging is being met at the minute.

Keywords-Information and communicating engineering, good administration, administrative and imparting systems, nice lodging, centralisation and decentalisation.

Introduction

Executive Order No. 90 ( December 17, 1986 ) created the Housing and Urban Development Coordinating Council ( HUDCC ) . Under the immediate control and supervising of the President of the Philippines, HUDCC had the chief map of organizing the activities of the authorities lodging bureaus to guarantee the achievement of the National Shelter Program, and was composed of a Chairman, the Heads of the cardinal lodging and support bureaus, a representative each from the National Economic Development Authority ( NEDA ) , the Departments of Finance, Budget and Management, Public Works and Highways, the Development Bank of the Philippines, and two representatives from the private sector.

The Chairman of the Council serves as ex officio Chairman of the regulating boards of the cardinal lodging bureaus, viz. : the National Housing Authority ( NHA, as the exclusive authorities bureau engaged in direct shelter production to supply lodging aid to the lowest 30 % of urban income earners through slum upgrading, squatter resettlement, development of sites and services and building of core-housing units ) , National Home Mortgage Finance Corporation ( NHMFC, as the major authorities place mortgage establishment with the initial chief map of runing a feasible place mortgage market using financess from SSS, GSIS and HDMF and developing a system to pull private institutional financess into long-run lodging mortgages ) , Housing and Land Use Regulatory Board ( HLURB, as the exclusive regulative organic structure for lodging and land development charged with encouraging private sector engagement in low cost lodging through liberalisation of development criterions, simplification of ordinances and decentalisation of blessings for licenses and licences ) and Home Insurance and Guaranty Corporation ( HIGC, now Home Guaranty Corporation or HGC, which assists private developers to set about low and in-between income mass lodging production and promote private institutional financess and commercial loaners ) .

Support ( funding ) bureaus include the Home Development Mutual Fund ( HDMF or Pag-Ibig Fund, to use financess non required for provident benefits for lodging loans for members ) , Social Security System ( SSS, as primary supplier of financess for long-run lodging mortgages for low and middle-income private sector employees ) and Government Service Insurance System ( GSIS, as the primary supplier of financess for long-run lodging mortgages for low and middle-income authorities employees ) .

Under E.O. 90 ( s. 1986 ) , the President of the Philippines is the section caput of the coordinating, key and support ( funding ) bureaus of the National Shelter Program, exerting direct control and supervising over them. HUDCC took over from the Ministry of Human Settlements. Under E.O. 90, it was granted powers and maps to:

Formulate national aims for lodging and urban development and to plan wide schemes for achievement of these aims ;

Determine the engagement and organize the activities of the cardinal authorities lodging bureaus in the national lodging plan ;

Monitor, reappraisal and measure the effectual exercising by these bureaus of their assigned maps ;

Aid in the maximal engagement of the private sector in all facets of lodging and urban development ;

Recommend new statute law and amendments to bing Torahs as may be necessary for the attainment of authorities ‘s aim in lodging ;

Formulate the basic policies, guidelines and implementing mechanisms for the disposal or development of acquired or bing assets of the cardinal lodging bureaus ;

Exercise or execute other powers and maps as may be deemed necessary, proper or incidental to the attainment of its intent and aims.

Significantly, Executive Order No. 357 ( May 24, 1989 ) was issued to beef up the bing organizing mechanism of the National Shelter Program by deputing overall administrative supervising over the cardinal lodging bureaus, viz. , the NHA, NHMFC, HLURB, and HGC, to the HUDCC playing as the Presidential arm on the National Shelter Program under the direct control and supervising of the President of the Philippines. Pursuant to the jurisprudence, HUDCC was specifically directed to reexamine the organisation, plans and undertakings of cardinal lodging bureaus every bit good as deconcentrate its operations and of the cardinal lodging bureaus by incorporating the regional activities of these bureaus in order to achieve an just regional distribution of lodging benefits.

Executive Order No. 190 ( July 19, 1994 ) created the National Information Technology Council ( NITC ) . Pursuant to the jurisprudence, all sections, major bureaus and government-owned or-controlled corporations ( GOCCs ) shall each denominate an Information Systems Planner, who is at least a Director or of tantamount rank, who shall function as the Agency ‘s action officer for the NITP2000 and IT-related affairs, peculiarly for the readying, development, and execution of the Information Systems Plans of the section and its affiliated bureaus, other major bureaus of the authorities and the GOCCs. As a major authorities bureau, HUDCC is covered by this Executive Order.

Executive Order No. 159 ( October 12, 1999 ) reiterated the function of the HUDCC. Under E.O. 159 ( s. 1999 ) , it shall go on to concentrate on policy preparation and way scene for the authorities ‘s shelter plan, while the Presidents/Chief Executive Officers of the cardinal shelter bureaus shall be responsible and accountable for the execution of their several lodging plans and undertakings.

On May 28, 2001, Executive Order No. 20 ( s. 2001 ) was promulgated to further beef up the HUDCC as the exclusive lead bureau in the execution of the authorities shelter/housing plans. Among its primary powers and maps under the jurisprudence are to:

Coordinate and supervise the activities of all authorities bureaus set abouting lodging undertakings, including those of Local Government Units ( LGUs ) , to guarantee the achievement of the ends of the authorities ‘s lodging plan ;

Promote the maximal engagement of the private sector in all facets of lodging and urban development ;

Formulate the basic policies, guidelines and implementing mechanisms for the disposal or development of acquired or bing assets of the cardinal lodging bureaus which are non required for the achievement of their basic authorization ;

Identify, program and procure local and foreign support for lodging plans and undertakings ;

Supply waies to the HLURB to guarantee rational land usage for the just distribution and enjoyment of development benefits.

Recommend new statute law and amendments to bing Torahs as possibly necessary for the attainment of authorities ‘s aims in lodging ; and

Undertake other maps as provided by bing Torahs.

Under E.O. 20 ( s. 2001 ) , the HUDCC shall exert administrative supervising over the NHA, NHMFC, HDMF, HLURB and HGC, which bureaus shall stay affiliated to HUDCC for policy and plan coordination. For this intent, said bureaus shall supply manpower, logistical support and other installations to the HUDCC Chairman. The HUDCC Chairman was given the rank of Department Secretary and was designated a regular member of the Cabinet and the main implementing functionary of all authorities shelter/housing plans and related maps and activities. The HUDCC Chairman shall besides function as ex officio Chairman of the regulating boards of NHA, NHMFC, HDMF and HLURB and Vice Chairman of HGC.

Executive Order No. 272 ( January 20, 2004 ) authorized the creative activity of the Social Housing Finance Corporation ( SHFC ) and directed the transportation of the Community Mortgage Program ( CMP ) , Abot-Kaya Pabahay Fund ( AKPF ) Program, and other societal lodging powers and maps of the NHMFC to the SHFC. The jurisprudence authorized the NHMFC to form and set up the SHFC, as a wholly-owned subordinate formed in conformity with the Corporation Code and pertinent regulations and ordinances issued by the Securities and Exchange Commission [ SEC ] . The jurisprudence besides provides that upon incorporation, the SHFC shall be under the administrative supervising of the HUDCC. The SHFC shall be the lead authorities bureau to set about societal lodging plans that will provide to the formal and informal sectors in the low-income bracket and shall take charge of developing and administrating societal lodging plan strategies, peculiarly the CMP and the AKPF Program ( amortization support plan and developmental funding plan ) .

In consonant rhyme with the 1999-2004 Medium Term Philippine Development Plan ( MTPDP ) , institutional strengthening for lodging and urban development will be pursued through the creative activity of the Department of Housing and Urban Development ( DHUD ) . The purpose is to further beef up the coordination and supervising of policy on shelter bringing, finance and ordinance of lodging and urban development services. The proposed jurisprudence speaks of supervising and control. This end or scheme is continued in the 2004-2010 MTPDP. The transmutation of the HUDCC into the DHUD besides aims to set up a lead bureau for administration to turn to the pressing issues of a runaway population growing, rapid urbanisation, urban poorness, growing disparities, and hapless urban environment.

Good administration in the idiom of the Asian Development Bank ( ADB, 2005 ) involves four basic elements – answerability, engagement, predictability and transparence. Electronic administration ( e-governance ) refers to the usage of information and communicating engineering ( ICT ) to advance good administration, harmonizing to ADB. Simon ( 1947 ; 1997 ) noted that the demand for duty, expertness, and coordination tends to convey about centralisation of decision-making maps and separation of determination from action. He posited that there is a inclination for decentalisation because a really big portion of the information relevant to determinations originates at the operating degree and the separation of determination from action additions clip and work force costs of doing and conveying determinations.

Does e-governance of lodging and urban development exist in the Philippines? What is the function of ICT, if any, in the centralisation and/or decentalisation of the administrative relationships of HUDCC with cardinal shelter bureaus and support bureaus? Has ICT influenced the centralisation and/or decentalisation of determination devising within HUDCC? Is at that place a relationship between ICT and centralisation and/or decentalisation of HUDCC imparting systems? Is the demand for nice lodging now being met? These are some inquiries that the paper attempts to turn to. This historical, instance, descriptive, and analytical survey purposes to find: ( I ) if there is a correlativity between ICT and centralisation and/or decentalisation of administrative relationships, ( two ) if there is a correlativity between ICT and centralisation and/or decentalisation of imparting systems and ( three ) whether the demand for nice lodging is being met at the minute.

Background and literature reappraisal

In his book Administrative Behavior ( 1947 ; 1997 ) , Herbert Simon wrote that troubles of transmittal from beginnings of information to determination centres tend to pull the latter to the former, while troubles of transmittal from determination centres to points of action create a pull in the opposite way.[ 1 ]Simon adds that the pulls that tend to convey about a centralisation of decision-making maps and a attendant separation of determination from action are the demand for duty, expertness, and coordination ; the fact that a really big part of information relevant to determinations originates at the operating degree and that the separation of determination from action additions clip and man-power costs of doing and transmitting determinations are the chief pulls in the opposite way – that of decentalisation.[ 2 ]

He notes that the formal system of communications – channels of communicating which have been consciously established, e.g. , unwritten communications, memorandum and letters, paper-flow, record and studies, and manuals – is shortly supplemented by an informal web of communications based on societal dealingss within the organisation, through which will flux information, advice and even orders.[ 3 ]

Harmonizing to Simon, decision-centers ( executive places ) must be staffed with individuals who can help the executive in communications maps, and the organisation develops specialised depositories of official “ memory ” – files, records, libraries, follow-up systems.[ 4 ]Organization units may be established for specific information-gathering maps, e.g. , accounting, review, administrative analysis, intelligence, and the similar.[ 5 ]

From the information processing point of position, Simon argues that division of labour agencies factoring the entire system of determinations into comparatively independent subsystems.[ 6 ]The division is necessary because of the delimited reason of both worlds and computing machines.[ 7 ]The figure of options and effects that can be considered is badly restricted by the limited capacities of the available processors.[ 8 ]Therefore, a factorisation that minimizes mutualities and permits a maximal grade of decentalisation of concluding determination to the subsystems and maximal usage of comparatively simple and inexpensive coordinating devices is needed.[ 9 ]The size of determination jobs handled by organisations must be reduced to manageable proportions by factorisation and the figure of determinations to be processed must be limited by using attending direction.[ 10 ]Attention direction for an organisation is the same for an single homo being, that is, treating capacity must be allocated to specific determination undertakings, and if entire capacity is non equal to entire undertakings, so priorities must be set.[ 11 ]The built-in capacity bounds of information-processing systems impose demands on organisational design: ( I ) the entirety of determination jobs be factored in a manner that would minimise mutuality of constituents ; and ( two ) the full system be so structured as to conserve attending which is scarce.[ 12 ]

Cuaresma ( 1997 ) notes that under a policy of decentalisation and local liberty, local authorities units take on an progressively of import function in socioeconomic development.[ 13 ]She speaks of decentalisation from the centre to local authorities units and observes that as the economic system reaches higher degrees of growing, and as the quality of life of the people improves, local authoritiess tend to play a more important function in guaranting the bringing of public goods and services.[ 14 ]Pressures for alteration, modernisation and globalisation will necessitate local authoritiess to better and redefine their range and quality of service bringing, and for the national authorities to ease the strengthening of local authoritiess.[ 15 ]

In Corona v. Court of Appeals,[ 16 ]the Philippine Supreme Court ruled that “ An affiliated bureau has a larger step of independency from the Department to which it is attached than one which is under departmental supervising and control or administrative supervising. This is borne out by the “ sidelong relationship ” between the Department and the affiliated bureau. The fond regard is simply for “ policy and plan coordination. ” With regard to administrative affairs, the independency of an affiliated bureau from Departmental control and supervising is farther reinforced by the fact that even an bureau under a Department ‘s administrative supervising is free from Departmental intervention with regard to assignments and other forces actions “ in conformity with the decentalisation of forces maps ” under the Administrative Code of 1987. Furthermore, the Administrative Code explicitly provides that Chapter 8 of book IV on supervising and command shall non use to rent establishments attached to a Department. ”

This means that fond regard is a decentralised type of administrative relationship while supervising and control is centralized. In between the two prevarications administrative supervising.

Harmonizing to Peters, mentioning Simon:

“ As Simon ( 1947 ) pointed out about a half century ago, the solutions for organisational jobs tend to come opposing braces, and about inevitably reformists will reason that organisations have gone excessively far in the way of one terminal of the continuum and will suggest the other terminal of that dimension as the solution ( see besides Peters and Wright 1998 ) . When organisations become excessively centralized, the obvious solution is to deconcentrate until the deficiency of control produced by that agreement produces demands for a return to centralisation, and so the circle starts once more. ”[ 17 ]

Findingss and Analysis

Plans and Directions

From 2001 to 2004, it was reported that HUDCC accomplished 56 % of its mark for socialised lodging ( below PhP225,000 ) and 122 % for low cost lodging ( PhP225,000 – PhP2M ) , as may be gleaned from the following tabular array:

Table 1[ 18 ]

The information reflect an overall achievement rate of 73.6 % .

In footings of shelter security units for family donees, the followers were besides reported:

Table 2[ 19 ]

Notably, authorities introduced in 1999 the Multi-Window Lending System ( MWLS ) to replace the Unified Home Lending Program ( UHLP ) which was under the NHMFC.[ 20 ]UHLP had been saddled with a low loan refund rate and immense arrears.[ 21 ]The MWLS utilised authorities fiscal establishments as separate loaning Windowss for lodging loans to specified mark patronage. The GFIs committed and lent at government-directed subsidised rates for socialized and economic lodging, and at market rates for unfastened lodging ( Table 2 ) .[ 22 ]As of December 2000, of the PhPP37 billion committed by five GFIs for lodging, entire use was merely PhP5.6 billion ( 15 % ) for 26,011 shelter security units ( i.e. , a batch, house or house and batch bundle ) .[ 23 ]There was a felt demand to reexamine the MWLS and place a sustainable lodging finance system that would supply low-income families entree to low-cost shelter.[ 24 ]

Table 3[ 25 ]

MULTI-WINDOW Lending SYSTEM

Funder

Clients

Commit-ment

( P Bn )

Up to P180,000

Loan Footings

P180,000-P500,000

P500,000-P5 Million

HDMF

Fund Member

10.0

9 %

12 % -16 %

Market

GSIS

Government Employees

6.0

9 %

12 % -16 %

Market

Selective service

Private Employees, Trade Union, OFW ‘s

9.0

9 %

13 %

Market

LBP

LGU employees, Cooperative

members, private

developers, select

line bureaus

6.0

9 %

13 %

Market

DBP/

Private Banks

Private employees,

Developers, LGU ‘s

6.0

9 %

Market

Market

Notes:

a/ Fixed rate for full loan term ; loan period non more than 30 old ages

b/ SSS, GSIS, HDMF: repricing every 5 old ages ; LBP, PNB: one-year repricing

c/ Price scopes per lodging bundle were as follows: P180,000 and below for socialised lodging ; over P180,000-P500,000 for low-cost or economic lodging ; over P500,000-P2.0 million for medium-cost lodging ; over P2.0-P5.0 million for unfastened lodging.

Beginning: Housing and Urban Development Coordinating Council ; Medium Term Philippine Development Plan ( 1999-2004 )

Similarly, in 1999, Republic Act ( RA ) 8763 was passed to increase the capitalisation of the HGC from P2.5 billion to P50 billion and to widen its corporate life for another 50 old ages.[ 26 ]The same jurisprudence provided for the prioritization of socialised and low-priced lodging bundles. The increased capitalisation strengthened the recognition guarantee capacity of HGC.[ 27 ]

Housing Finance[ 28 ]

At present, HUDCC undertakes lodging finance via the HDMF, CMP, DPUCSP, AKPF, and HGC.

HDMF

The HDMF or Pag-IBIG Fund has plans to turn to the lodging demands of its members and private developers:

a.A Credit Facility for Individual Members

This is a funding plan for active Pag-IBIG members here and abroad who have completed the necessary monthly contributions.A The lodging loan may be used to buy a to the full developed batch or house and batch, purchase of batch and building of a residential unit thereon, building or completion of a house on a batch owned by the member, place betterment, and refinancing of an bing mortgage with an establishment acceptable to Pag-IBIG. Under this plan, Pag-ibig members may borrow up to PhP2.0 million, which shall be paid at a upper limit of 30 ( 30 ) old ages. A The prevalent involvement rates under the Abot-Kamay Pabahay Program approved in November 2006 are –

Table 4

Loan Ceiling

Interest Rate ( p.a. )

Up to PhP 300,000

6 %

Over PhP 300,000 – PhP 750,000

7 %

Over PhP 750,000 – PhP 2,000,000

10.5 %

b.A Facilities for Private Developers

A?aˆsA§A The Pag-ibig Credit Facility for Developers purposes to supply a liquidness mechanism for private developers to enable them to go on developing lodging undertakings pending the take-out of delivered and complete lodging loan applications.A Under this installation are several strategies which the developer may avail of:

-A Pag-IBIG Developmental Loan Program, which seeks to make extra lodging stock lists through the proviso of developmental funding at easier footings and lower rates to developers or advocates of lodging undertakings.

-A Pag-IBIG City Program, which provides a ready stock list of completed lodging units in a undertaking to be known as Pag-IBIG City, which shall be available for sale at more low-cost monetary values to Pag-IBIG members.

This plan besides aims to take down the undertaking funding costs for lodging development since HDMF shall supply a faster turnaround of the developer ‘s investing, thereby increasing his capacity for lodging production. This shall redound to the benefit of Pag-IBIG members in footings of lower priced lodging bundles.

-A Takeout Mechanism under the Developers ‘ CTS/REM Scheme

In order to fast track the authorities ‘s lodging plan, Pag-IBIG opened the takeaway mechanism under the developers Contract To Sell/Real Estate Mortgage ( CTS/REM ) mechanism by supplying an express take-out window for commissioned developers who meet the criterions set by Pag-IBIG Fund for undertaking development and house building.

The plan aims to heighten the plus quality of the Pag-IBIG mortgage loan portfolio by establishing a recognition risk-sharing mechanism with lodging developers.A It besides defines the parametric quantities in the allotment and expense of financess allocated for lodging, specifically for developer-assisted member-loans.

– A Program for the Development of Medium/High-Rise Condominium Building ( MHRB ) Projects in Metro Manila and Highly Urbanized Cities

This plan aims to supply a ready stock list of condominium units for sale at more low-cost monetary values to eligible Pag-IBIG members in the Metro Manila country and extremely urbanised cities.A Through this plan, Pag-IBIG members who are working in the Metro Manila country and extremely urbanised metropoliss will hold an chance to get condominium units in the country, thereby cut downing transit costs to and from their topographic points of home ground.

Through a faster turnaround of their investings in the building and development of medium/high-rise condominium edifices in the Metro Manila country and extremely urbanised metropoliss, this plan will supply developers with a liquidness mechanism that will increase their capacity for lodging production and cut down undertaking funding costs.

c.A A Developmental Housing Loan Program for Local Government Units ( LGUs )

This plan is geared towards prolonging the capablenesss of LGUs to fast track the development and execution of lodging undertakings in their several vicinities, and to do lodging accessible and low-cost for its employees and components.

d.A A Group Land Acquisition and Development ( Glad ) Plan

The GLAD Program purposes to supply fiscal aid to organized groups of officially employed Fund members for the acquisition and development of natural land or partly developed land, which shall function as the site of their lodging units.

CMP

The Community Mortgage Program ( CMP ) utilizes an advanced system of mortgage funding whereby donees, through the construct of community ownership, may get a privately-ownedA undivided piece of land of land.A Financing through the CMP is intended chiefly to help occupants of blighted or depressed countries or the urban hapless. The CMP, implemented by the SHFC, is a three-stage loan plan – land purchase, site development, and house construction/improvement.A Depending on its present capacity and demands, the adoption community association may avail itself of the CMP loan either on three phases, or on a erstwhile basis.A Maximum loanable sum per family-beneficiary is PhP120,000 for those located in Metro Manila and other extremely urbanised countries, or up to PhP100,000 per household in other countries, collectible up to 25 old ages at 6 % involvement per annum. Since the start of its execution in 1989, CMP has granted a sum of PhP6.4 billion loans to procure the term of office of 182,800 informal colonist households countrywide.

DPUCSP

The Development of Poor Urban Communities Sector Project ( DPUCSP ) was envisioned to lend to the Government ‘s overarching end of poorness relief. It addresses the implicit in lacks in the shelter sector that contribute to the prevalence of urban poorness, and to the exposure of the hapless, doing their exclusion from mainstream society. The Undertaking was designed under a proficient aid grant funded by the Asian Development Bank ( ADB ) . With the Development Bank of the Philippines ( DBP ) as implementing bureau and HUDCC as inadvertence bureau, the DPUCSP shall supply different stakeholders with funding installations to:

Improve entree of the hapless urban families to procure land term of office, low-cost shelter, basic municipal substructure services, and community installations ;

Avail of fiscal services for microenterprise development, place betterments, and lodging ; and

Aid in the decentalisation of shelter sector activities and beef up the function and capacity of local authoritiess to run into their shelter sector duties, as provided for in the Local Government Code.

To achieve the aims of DPUCSP, the Undertaking has been designed to dwell of three parts: Site Development and Tenure Distribution ; Shelter Finance Provision ; and Capacity Building and Implementation Support.

AKPF

The Abot-Kaya Pabahay Fund ( AKPF ) was created pursuant to RA 6846 or the Social Housing Support Fund Act, with the aims of heightening the affordability of low-priced lodging by low-income households and supplying developmental funding for low-priced lodging undertakings therefore extinguishing hazards for the support bureaus involved in lodging. The plan is intended to give amortisation support, hasten the development of land into suited sites for societal lodging ( by supplying developmental funding to developers of low-cost lodging undertakings ) , and set up a strong warrant system to guarantee feasible hard currency flow for the support bureaus involved in lodging. The plan is divided into three constituents viz. :

Amortization Support – A qualified borrower shall be eligible to use for disposal support.A Eligible borrowers with the appropriate household income shall be entitled to a monthly amortisation support for the first five old ages of the loan amortisation period.

Developmental Financing – Under this constituent, advocates of low-priced lodging undertakings shall be entitled to a developmental funding loan non transcending 80 % of the full undertaking cost. Both the Amortization support and Developmental funding constituents of the AKPF are administered by the SHFC.

Cash Flow Guarantee – This plan, with HGC as legal guardian and decision maker, seeks to extinguish recognition hazard for funders of socialised lodging loans.

HGC

The HGC provides guaranty screen to investings and credits for lodging through its guarantee installations to promote Bankss and other fiscal establishments to impart their resources into place edifice and ownership. HGC provides hazard screen on the outstanding principal and involvement output up to 11 % . HGC guaranteed loans and investings are exempt from all revenue enhancements up to 11 % . There are several types of warrants HGC offers such as:

Retail Loan Guaranty – guarantee coverage on loans/credit installation extended for the purchase/acquisition of a single-family abode.

Developmental Loan Guaranty – a guaranty installation covering loans extended for the development of subdivisions, townhouses, residence halls, flats and other residential homes.

Guaranty for Securitization Scheme – guarantee screen on securities or fiscal instruments or on the receivables backing-up the securities.A The issue is backed-up by a pool of assets, such as receivables and/or existent estate belongingss.

ICT in HUDCC

HUDCC has personal computers. Its web system consists of waiters, workstations and pressmans. There are portable/handheld PCs, port hub, UPS, flatbed scanners, modems, informations picture projection system, CAD schemer, digital cameras, and back-up tapes. Its networking package includes Mail Server, System Management Server and Internet Information Server. Tools and public-service corporations include Server Protect for Windows NT, Scan Mail, Office Scan for Workstations and Anti Virus. It has internet entree installations, web sites, facsimile machines, ready to hand Cams, wireless and cellular engineerings and desktop publication. HUDCC besides has geographic information system ( GIS ) . HUDCC ‘s determination support system includes a digital library.

Equally far as records direction is concerned, HUDCC ‘s digital library enables an employee to research electronically for relevant paperss and stuffs by utilizing his Personal computer at his ain workstation. In footings of “ netware, ” HUDCC has a local country web ( LAN ) , intranet and internet systems. There is a database for fixed assets and equipment. HUDCC besides has a functioning papers tracking system. Through a Personal computer at the Receiving Section of HUDCC, paperss received are traced by identifying in relevant information such as the name of the papers transmitter and day of the month. These systems are particularly utile for policy and decision-making, coordination, monitoring and rating.

There are besides signifiers and manuals downloadable from the web sites. These systems besides help cut down the processing clip of minutess at HUDCC.

Housing Demand

But the demand for lodging continues to lift. Housing demand from 2005 to 2010 has reached 3.75 million, with 56 % of the demand coming from Southern Tagalog, Metro Manila and Central Luzon:[ 29 ]

Table 5[ 30 ]

The banking system and private sector take part minimally in socialised lodging, partially because they can non vie with the subsidised ( i.e. , below market ) lodging loan involvement rates of authorities lodging plans.[ 31 ]The push of authorities is to switch towards a market-oriented lodging finance system.[ 32 ]Outsourcing, upgrading of runing systems and processs, and sweetening of fiscal system direction are seen as schemes to heighten aggregation efficiency and service of lodging loans.[ 33 ]

Decision

In HUDCC, ICT is apparently bettering entree to, and the analysis and airing of, information. Personal computing machines together with the criterion applications package, “ netware ” ( LAN, intranet and internet systems ) and ICT systems ( digital library, database of fixed assets and papers tracking system ) are in topographic point for the analysis of informations collected and measuring of success. Internal coordination is hence enhanced.

ICT besides played a function in the coordination, monitoring and rating of the bureaus attached to HUDCC. This was shown in the displacement from the Unified Home Lending Program ( UHLP ) so handled by NHMFC to the Multi-Window Lending System ( MWLS ) . The displacement in 1999 from UHLP to MWLS besides represented a motion from centralisation ( rigidness ) to decentalisation ( flexibleness ) in lodging finance ( imparting system ) and service bringing. This was so because the information, determination and action centres involved were unifying. Constantly, ICTs of the entities that participated in MWLS were besides tapped in service bringing. This besides created a spiral of “ labour flexibilization ” – a term that denotes the ability of employers to cut down the cost of labour, increase labour productiveness and beef up direction control over the work procedure and workers, as exemplified by the by-product of non-core concerns through subcontracting and outsourcing.[ 34 ]This was particularly true of Bankss that participated in the MWLS since merely built-in banking maps ( i.e. , those related to sedimentations and sedimentation pickings ) may non be outsourced under the General Banking Law of 2000 ( RA 8791 ) . Therefore, pursuant to the said jurisprudence, information engineering services may be outsourced capable to anterior blessing of the Monetary Board of the Bangko Sentral ng Pilipinas, aside from recognition probe and belongings assessment services which are related to loaning.

Decentralization can besides be gleaned from the fact that HUDCC soon undertakes lodging finance via the HDMF, CMP, DPUCSP, AKPF, and HGC.

Temporal and spacial considerations, that is, clip and man-power costs of doing and conveying determinations, besides lead to the brotherhood of beginnings of information, determination centres and points of action ( decentalisation ) of imparting systems. This is fostered by the demand among lodging bureaus to cut down dealing processing clip. Service bringing to stakeholders is enhanced through downloadable signifiers and manuals at web sites. However, entree to web sites is a job particularly for the urban hapless.

The decentalisation in lodging finance ( imparting system ) and service bringing has similarly given drift for more centralised signifiers of administrative relationships. Torahs have been passed to beef up HUDCC, that is, from mere coordination to administrative supervising of the cardinal lodging bureaus. The Medium Term Philippine Development Plan evinces a motion in the way of supervising and control, as may be gleaned from the proposed creative activity of the Department of Housing and Urban Development ( DHUD ) .

In footings of administrative relationships, determination centres are non merged with information and action centres in visible radiation of the demand to beef up duty, expertness and coordination, particularly for policy devising, at HUDCC. The separation of determination centres from beginnings of information and points of action is made possible by ICT through the LAN, intranet and cyberspace installations, digital library and papers tracking system of HUDCC.

However, one point needs to be factored into the proposal to make DHUD. The Administrative Code ( 1987 ) provides that the Secretary ‘s supervising and command shall non use to rent establishments or government-owned or controlled corporations attached to the section.[ 35 ]This was emphasized by the Philippine Supreme Court in Corona v. Court of Appeals, supra.

Be that as it may, it can be seen that in HUDCC, ICT is act uponing the motion towards decentalisation of imparting systems and centralisation of administrative relationships. The motion in opposite waies seems to be imposed by the built-in capacity bounds of information-processing systems, a state of affairs described by Simon ( 1997 ) as the delimited reason of both worlds and computing machines. Decentralization of imparting systems or operations tends to minimise the mutuality of the bureaus involved while centralisation of administrative relationships tends to conserve the scarce resource – attending – particularly in policy devising which is a chief map of HUDCC.

ICT, centralisation of administrative relationships and decentalisation of imparting systems in HUDCC appear to be correlated. Meanwhile, demand for nice lodging continues to lift in tandem with population growing despite the accomplishment rate of HUDCC.