Pasig City Housing Program

Executive Summary

• The Pasig City Local Shelter Plan (LSP) 2023–2031 is a formal, city-led commitment to shift from a market-driven, housing-as-a-commodity model — which has proven structurally incapable of reaching the city's poorest residents — toward a housing-as-a-public service model anchored in public rental, community land trusts, and inclusive in-city development. It is anchored on Article XIII on Social Justice and Human Rights of the Philippine Constitution of 1987 and the Urban Development Housing Act of 1992 which provided for an urban land reform and socialized housing program for the country.

• This 2026 edition of the LSP reflects updated December 2025 pipeline data. The total ISF housing backlog with imminent danger of displacement stands at 14,573+ households as of 2025 — the definitive planning baseline. Against this, the city's confirmed pipeline of 15,838 units across 11 active and planned projects represents the first time supply is projected to exceed total identified demand. Factoring in new household formation at 1.3% per annum through 2031 — an additional 1,174 households — total projected demand reaches 15,747, yielding a net surplus of 91 units. Aside from this, there are ISFs in small communities of more or less 50 families which can better be endorsed to the National Government Enhanced Community Mortgage Program under the Social Housing Finance Corporation.

Executive Summary

Pasig City Housing Principles

The Housing Problem

• In-City and Near-City Location — Projects must be within or proximate to Pasig City.
• Adequate Street Networks — 15-minute threshold to jobs, schools, and health services by public transport.
• Vertical Development — 8-to-15 storey structures with rooftop gardens, rainwater harvesting, and passive ventilation; land scarcity makes this non-negotiable.
• Mixed-Use Development — Separate buildings and ground and second floors of residential buildings will be dedicated to commercial leasing, livelihood centers and other uses.
• Diverse Communities — Range of income groups to foster social cohesion, break cycles of concentrated poverty, and promote affordability, hence, implying mixed tenure to combine rental and lease-to-own housing.
• Climate Resilience — Elevated foundations (pilotis), 50% permeable green spaces, solar PV, and nature-based drainage.
• Community Participation — HOAs empowered to participate in masterplanning, building management, and monitoring.

The Housing Problem

• Immediate Displacement: 4,963 households face urgent relocation — 3,960 from waterways and creek danger zones, 280 from infrastructure projects, 705 from court-ordered evictions, and 18 homeless individuals.
• The Hidden Backlog: 5,205 doubled-up households (multiple families sharing a single dwelling), compounded by new household formation.
• 3255 ISFs in small communities averaging 50 households and occupying private lands.

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The Housing Problem

• Immediate Displacement: 4,963 households face urgent relocation — 3,960 from waterways and creek danger zones, 280 from infrastructure projects, 705 from court-ordered evictions, and 18 homeless individuals.
• The Hidden Backlog: 5,205 doubled-up households (multiple families sharing a single dwelling), compounded by new household formation.
• 3255 ISFs in small communities averaging 50 households and occupying private lands.

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• •Number of ISFs by different categories
• •Total
• •ISFs in Danger Zones and Big Private Properties
• •14,573
• •ISFs in Small Private Properties
• •(with 50 families on the average)
• •3,255
• •Total Number of ISFs by 2025
• •17,828

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The Housing Problem

Objectives

ZeroISF

a.New Vertical Housing

b.Community Initiated Housing Development Program ( CMP plus Home Improvement Loan )

Harnessing DHSUD Enhanced CMP

Long time Renters

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Objectives

• •There are various types of long-time renters in Pasig. Those who rent spaces from ISF dwellings are considered ISFs and they are included in the City’s Zero-ISF program.
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• • For low income government employees who are renting, the City will build mixed-used housing projects like VICPER.
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• •The bulk of renters, will be assisted by the city to avail of financing from Pagibig or suitable financial institutions through a one-stop shop economic housing center. Pasig can help negotiate wholesale prices from private developers through leveraging tax credits and PPP. Pasig city can enter into a JV with private developers in constructing economic housing units.
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• •Pasig City shall work with DSHUD in developing affordable housing projects through the 4PH program.
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Objectives

• •Policy Innovations
• • The current Pasig public housing system is mainly ownership-based interest free, land usufruct, market-driven land banking, blight-prone socialized housing communities with residues of patronage-based awarding of units being removed.
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• •Shift to In-City and/or On-Site development for socialized housing for the Informal Settler Families ( ISF ) from the main stress on Off-site or even Far-away Relocation Sites.
• •Mainly Public-Rental Model — LGU retains ownership; Socialized Rent set below 30% of Metro Manila Monthly Minimum Wage; directly addresses the 40–50% historical delinquency rate.
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Objectives

• •Residual Income Standard — Affordability calculated after verified survival costs are deducted. A family earning minimum wage of ₱15,290/month with ₱12,100 in basic expenses has a true housing paying capacity of ₱2300/month — not the ₱3,600 the 30% rule Area Median Income (AMI) would assign from the UN Habitat.
• •Community Land Trust (CLT) — LGU retains perpetual land ownership; residents hold 99-year inheritable leases; permanently removes housing from the speculative land market.
• •Digital Shelter Management System (DSMS) — AI-powered, CBMS-integrated platform need-based, need-based, eliminating patronage and automating beneficiary selection.
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FINANCIAL ARCHITECTURE

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A. GAA / City Budget

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B. Socialized Housing Bonds

Under RA 7160 Section 299 and BSP Circular No. 41, Pasig City will issue Socialized Housing Bonds as its primary capital instrument: 7% annual interest, 10-year redemption period, exempt from all national taxes. All bond-funded projects must incorporate ground-floor commercial leases whose income directly services bond principal and interest — a self-liquidating mechanism. Capital subsidies of up to 70% of construction cost per unit allow resident rent payments to remain within affordable thresholds.

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C. Special Purpose Socialized Housing Fund

A Special Purpose Fund is continuously replenished by: 100% of Idle Land Tax (ILT) revenues (up to 5% of assessed value on vacant land, RA 7160 Sec. 236); 100% of Socialized Housing Tax (SHT) revenues (0.5% on urban land assessed over ₱1.5M, RA 7279); all monthly rental, commercial lease payments and revenue from PPPs; a minimum mandatory appropriation of 5% of the annual General Fund; and Balanced Housing Fund allocations under RA 10884.

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FINANCIAL ARCHITECTURE

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•D. Private Sector Incentives

•Developer Tax Credits — Granted to private firms developing units for ISF families at rental rates below 30% of Metro Manila Monthly Minimum Wage.

•Tax Abatements — Temporary RPT reductions for landowners making idle property available for transition homes or public rental use.

•Impact Fees and Special Levies — Up to 60% of project cost on lands directly benefiting from LGU-funded public works.

•Wholesale Condominium Acquisition — City purchases ready-to-occupy units at ₱2.4M–₱3.5M/unit from developers (8990 Holdings, Empire East, DMCI) for immediate public rental stock.

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Monitoring and Evaluation

•Outcome Indicators

•DSMS Financial Performance — rental collection rates, delinquency trends, bond fund balances, and commercial lease income.

•Kabuhayan sa Kabahayan — skills training completion and formal employment rates among housing awardees.

•Multidimensional Poverty Index (MPI) — deprivations in education, health, food, and living standards among housing awardees.

•Livability Indices — travel time to schools, health centers, and markets from all project sites.

•Community Cohesion — HOA functionality, grievance mechanism effectiveness, and resident satisfaction.

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