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Report No: ACS9036
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World
Housing Displaced People: A Simple, Innovative
Solution
Adapting Haiti’s Rental Assistance Program to the Philippines
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June 30, 2014
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UDRUR
EASPS
LCSDU
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Housing Displaced People: A Simple, Innovative
Solution
Adapting Haiti’s Rental Assistance Program to the Philippines
On November 8, 2013, Typhoon Yolanda made landfall in the Central Philippines. This disaster affected
7,110,958 out of 96.71 million persons in the Philippines, or approximately 7 percent of the population.
More than one million homes (1,012,790) were destroyed (518,878) or suffered major damage (493,912).
The highest level of damage was in Region VIII, where Tacloban is located. 95 percent of the families
located in Tacloban were displaced.
The proposal submitted under the Innovation Grant program for “Housing Displaced People: A Simple,
Innovative Solution,” was submitted eight days before the Typhoon struck. The original intent was to
assist the Philippines with a rental housing assistance tool modeled on a successful program in Haiti that
could be used in the event the country was hit with another major disaster. It was also intended to guide
Jordan with its rental-housing program for cross border refugees. With the urgent need created by
Typhoon Yolanda and a challenging security situation in Jordan, the Philippines became the sole focus of the
grant.
In the conditional cash transfer program for rental housing in Haiti, beneficiary families received a $500
payment to rent a dwelling, which was approximately one year’s rent. The family had to be living in a
temporary camp, agree not to move back to the camp and move to a unit that was considered safe. An
independent evaluation demonstrated the successes of the program. At the time of the evaluation, 23,233
families had been served, none of whom had moved back to the camps after one year. In addition,
properties were made safer. 77 percent of landlords made property improvements to meet the safety
conditions of the programs.
However, after the one-year subsidy ended, 75 percent of the program’s
beneficiaries left their accommodation to find new housing.
Prior to Typhoon Yolanda, te Government of the Philippines had piloted a conditional cash transfer project
for rental housing for homeless street families of Manila and been studying the feasibility of rental housing
for informal settlement families (ISFs). A study of two cities in Metropolitan Manila, Pasay City and Gaguig
City noted that there was indeed a supply of rental housing. In Pasay City, there was a supply of rooms with
shared toilet facilities at an average rent of P2940 ($67) per month. In Taguig City, rents were lower than
in Pasay, with rooms available at P1471 ($34) small houses for P1945 ($45). The study noted that ISFs
generally paid between P500 and P1000 ($11.45-$23.93), which demonstrated the amount that would be
necessary to fill the gap with a rental subsidy.
ACTIVITIES FUNDED
The grant permitted the Government of Philippines to develop a conditional cash transfer for rental housing
program, complete with an operational manual With the rental housing programs and the experience in
Haiti serving as a base, the following activities were funded under the Innovation Grant:
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Performed a Rapid Appraisal on the Implementation of a Rental Voucher Program Post Yolanda
Designed and conducted a supply and demand side survey
Reviewed the operational manuals that had been developed for other types of rental housing
assistance in the Philippines for adaptation in this context
Adapted the operational manual written for Haiti to the Philippines and wrote a new operational
manual to be used in future recovery efforts in the Philippines
Analyzed the current programs and services for evacuees provided by the Government of the
Philippines and by donor organizations
Assessed the potential for government-constructed housing based on past performance
Held a consultation meeting with the Government
Led a dissemination workshop with key stakeholders to review findings1
Wrote an operational manual for a rental assistance program.
RESULTS OF THE RAPID ASSESSMENTS AND OF THE SUPPLY AND DEMAND SURVEYS
The rapid assessment data showed that the Typhoon has the most dramatic impact on lower income
families. 60 percent of those displaced earned less than P3000 ($68.96) per month. Only 6.7 percent
were formal, salaried employees in the private sector or in the government. 40 percent were agricultural
workers and 36 percent were informally or casually employed. However, unlike Haiti, where the vast
majority of those displaced were renters, in the Philippines, renters were approximately 12 percent of those
affected.2 (Demographic tables may be seen in Appendix 1.)
Another difference between the Philippines and Haiti is that very few of those internally displaced in the
Philippines went to a public shelter or to an evacuation camp (3.58 percent). This makes program
dissemination and beneficiary intake more difficult as the target population is not as concentrated as it was
in Haiti. As of May 2014, 5000 people were living in evacuation centers and 20,000 people were living in
Government constructed bunkhouses, which have been serving as transitional shelter.
Income levels are critical to the demand analysis. At P1500, the maximum rent payment drops to P500,
which the demand analysis noted was the maximum the majority of families could pay.
The demand analysis also demonstrated that the majority of IDPs would prefer to live in or very near to
Tacloban City, a preference that is influenced by access to employment, schools and transport.
The supply analysis demonstrated that homeowners near the city would generally be agreeable to
accepting displaced families. However, given the destructive path of the Typhoon, many rooms and units
are not currently available. To address this, the homeowners’ main concern is capital for materials and
labor to strengthen or expand the existing structures.
The supply analysis also indicated higher than anticipated rent levels. While a one-room rental for three
persons would cost between P1500 and P2000, a low cost rental unit would cost between P3000 and
P5000.
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The second workshop and the finalization of the manual will be completed by June 30, 2014.
16.89 percent were not categorized and needed further validation.
OPERATIONS MANUAL
The Innovation Grant allowed the Philippines to develop an operations manual. This manual followed the
same principles as that in Haiti, but was adjusted for the specific country context. It includes the following
categories, with specific examples of what is included in each section.
Objectives
Example: To address the emergency and rehabilitation shelter needs of families with damaged houses,
return their lives to normalcy, which has been damaged by Typhoon Yolanda
Legal Bases
Example: Presidential Decree No. 1566, Strengthening The Philippine Disaster Control, Capability And
Establishing The National Program On Community Disaster Preparedness
Beneficiary Eligibility
Example: Families who are renters immediately prior to Typhoon Yolanda or the house should have
been totally destroyed by Typhoon Yolanda and limited resources prevents the family from repairing or
reconstructing their permanent shelter units such that they continue to live with relatives or friends in
evacuation centers, or in other makeshift shelters
Registration Process
Example: Families opting to avail of RSCG shall register in a station established for the purpose. Every
head of family, registered as such in the Department’s camp list, shall report to the registration station.
Rental Property Selection
Example: Each family accompanies a staff member for a visit, during which there is a necessary process
of verification
Payment Process
Example: Grants shall be transferred to the recipients in various payment modes such as cash cards,
on-site/ off-site over-the-counter transactions through an assigned government depository bank.
Follow up Visits
Example: To verify if the families are in fact living in the rental property and to follow-up with families
with ongoing protection needs that persist after leaving camps or emerge once the family is in the return
community.
ADAPTATION TO THE PHILIPPINES
While many of the operational guidelines were adapted from the Haiti manual, some key issues needed to
be changed based on the particular situation in the Philippines and based on lessons learned in Haiti.
These include:
Most of the beneficiaries (67 percent) in the Philippines formerly lived in structures the owned on owned
land or on land where the buildings were erected with consent. This is in comparison to Haiti where 86
percent of the rental program’s beneficiaries were renters. Program guidelines were written to include
both renters and owners.
Approximately 25,000 Philippines residents remained in camps or temporary shelters six months after the
Typhoon, whereas more than 1.5 million Haitians were in camps or temporary shelters six months after the
disaster. This meant that the program will start with those in camps or shelters, but that a broader outreach
will be needed to those who have resettle informally in unsafe situations.
A key element of the program involved property and area evaluations. In Haiti the Government assessed all
structures, coding them red, yellow and green. A staff member evaluated the property before a formal
rental contract was made between the beneficiary and the landlord. A property assessment system will
need to be planned and budgeted for in the Philippines, which will be done after the close of the innovation
grant.
The level of assistance would need to be adjusted based on the supply and demand analysis.
It cannot be
assumed that $500 per family would be sufficient. A P2500 subsidy that, combined with a P500 payment
from the family, would cost $687 per year. The Government of the Philippines will determine the specific level
of the subsidy before project rollout.
The timing of the subsidies will be adjusted to the time needed to return to normalcy. In Haiti, three
quarters of the program’s beneficiaries moved out of their rented accommodation after the program ended.
Given that the majority of the beneficiaries in the Philippines will be former homeowners, the rental assistance
period will need to be timed to the rebuilding process, or between 18 months and two years.
GOING FORWARD
The World Bank’s Manila office and the Government of the Philippines have expressed strong interest in
continuing this program. While the Innovation Grant provided seed funding for the program’s initiation,
the intention is to continue this program to full roll out with additional funds.
Appendix 1: Demographic Tables on Internally Displaced Families