Post-Disaster Housing and Sanitation Improvements

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Focus Areas: Water & Sanitation | Housing

This is an incremental housing and sanitation project for households who were resettled on land provided by the Government. The project began in 2012. To date, four communities have benefited from this project - Riverview HOA, New Baldoza HOA, Uswag Development Council, Kabalaka HOA and Sto. Nino Sur.

Location: Iloilo, Philippines


To date:

  • Fifty-six (56) Federation members and active savers have incrementally developed their homes through the project’s support. Three out of six groups have actually taken additional loans. These loans have been used to develop other portions of their houses ranging from ceilings, concrete wall, fencing and tiled flooring. 
  • Affordability and structural surveys have also been conducted in two (2) settlements. 
  • Ninety-nine (99) households, who expressed desire to apply for housing and sanitation funds as well as housing improvement loans, have been enumerated. 

The disbursed loans will cover the cost of construction materials, which will be used to develop or upgrade structures in accordance with the housing programme of Iloilo. Loans will be disbursed when savings meet the requirement for labour expenses. 

Community capacity:

Savings programmes have been introduced to support this and other projects initiated by the community. Community members participated in the project through provision of cash and/or labour as equity. 


To date, the Iloilo City Government has acquired sixteen (16) relocation sites upon which the project can be replicated. In order for the project to be scaled up, the community support base needs to expand and requires the formation of institutionalized partnerships with Governments in the form of memorandums of understanding (MoU) and memorandums of agreement (MoA). 

Before the project can be initiated in other relocation sites, the target communities need to be organized first to hasten the process of community mobilization. The planned intervention must be in line with Government's priorities and objectives so that the Federation can easily leverage tangible resources that will complement funds for incremental housing in those areas. The Government must also be highly receptive in order for the incremental mode of housing provision, as one strategy for citywide slum upgrading, to be mainstreamed. This requires long-term support from policy makers as incremental housing entails compliance with existing housing regulations imposed by building officials. 


Although the first phase of this project has not yet achieved the required scale of implementation, providing opportunities for self-help initiatives using Urban Poor Fund (UPF) loans has enabled communities to successfully demonstrate that incremental housing solutions are viable options for upgrading the housing conditions of poor urban families in relocation projects. The community process has also spurred an appreciation, amongst project beneficiaries and Local Government units,  of  the importance of enforcing housing standards and regulations on land development which in this case, was strictly tied-up with incremental housing improvements.


SDI Contributions:

SDI contributed US$55,000.00

Resources Leveraged:

The Federation gained assistance from the College of Engineering and Architecture of the University of San Augustin, in order to conduct the structural surveys to assess existing structures and formulate technical plans for those applying for the loans. The Federation was also able to leverage land and the provision of basic site services primarily from the Local and National Governments to target beneficiaries. 

State Subsidy:

The State subsidy was in the form of land and the delivery of certain services. 

Costs recovered from community:

Loan repayments began in August 2013 and continue.

Sonia Cardinogara (+63) 2 455 9480
Project social media channels:

Project information updated: 10 March 2016

Project in depth

Detailed Information

This project sees the Alliance in the Philippines, Philippine Action for Community-led Shelter Initiatives Inc (PACSII) and Homeless People’s Federation Philippines Inc (HPFPI), respond to needs of re-settled slum households for affordable financing for housing and sanitation. Project activity began in 2012. Like many other relocation sites, residents are deprived of access to basic services, infrastructure and livelihood activities. Residents lack the financial means to build sustainable and disaster-resilient structures (particualry relevant in the Philippines) and lack formal credit opportunities from financial institutions. At the onset of the project HPFPI was not present in all the settlements being targeted. 


The aim was to provide loans for the incremental construction of houses and sanitation facilities for families who live on relocation sites.

Community capacity:

Project beneficiaries were involved during the procurement of their housing materials, which gave them the opportunity to directly negotiate for discounts with suppliers. This is one of the Federation’s strategies to establish credit reputation among the project beneficiaries, as the latter are fully aware from the start of how they are going to utilize their loans.

Throughout the project community members were encouraged to build up their community finance through savings programmes, introduced at the onset of the project. Communities also contributed their labour to decrease construction costs. Federation members are tasked with recording and monitoring the purchase of construction materials as well as managing labourers. Skills learnt and management being done by Federation members helps ensure the sustainability of the project whilst decreasing costs and enabling maintenance and further construction.


There is an increasing desire for such projects to be scaled up, with increasing numbers of slum dwellers being resettled on Government-provided land. To scale up, the Federation must expand its community base by engaging other organized urban poor communities that are not yet affiliated to the existing city-wide urban poor network. It is also important for HPFPI to work closely with the Local Government in a more structured and planned manner. This can be achieved by institutionalizing existing partnerships through signed MoA / MoUs with Local Government and other support institutions.

By assuming relevant positions in various technical working groups/special committees established as part of government policy and decision-making bodies, the Federation can easily influence development platforms that support resettlement and incremental housing initiatives. It is a lot easier to lobby for possible logistical, technical and other forms of assistance from the Government to speed-up the delivery of basic services to the resettlement sites once the Federation has taken part in planning and policy formulation aspects at the local level. 


The Federation is trying to use the project to develop partnerships with Local Government, tertiary institutions, and the Iloilo City Urban Poor Network (ICUPN). Even though the Local Government has been engaged in delivering basic services to the relocation site, there is room for improvement as well as the formalization of existing relationships.

The project aims to impact housing policies, showing that incremental housing solutions are viable options for relocation projects. This would include reforms to housing and subdivision regulations including exempting target groups from housing-related fees and other regulatory charges. The project also aims to enable the Federation to refine instruments and guidelines for loan applications – appropriate to beneficiary incomes. 

Through the project, HPFPI has improved its process, methods and tools in determining the income and loan affordability levels of its target beneficiaries. For instance, it modelled an entirely different repayment scheme which combines strategies of different microfinance institutions that have been successful in extending small-scale loans to low-income communities. 

This project also helps the Federation to refine its structures and guidelines for loan applications and affordability for beneficiaries. Community mobilization and the funds of community savings merged with UPFI funds sparked Government’s fast tracking and improvement of service delivery to sites as well as subsidizing some infrastructure and site development costs. 


SDI Contributions:

SDI contributed US$55,000.00. Of this amount, US$50,000.00 was used to cover capital expenses and the difference (US$5,000.00) covered project-linked technical assistance costs. 

Costs recovered from community:

When loans are repaid, a revolving fund will be formed allowing for further loans to be issued for housing and sanitation. Loans are payable within a three (3) year period with collections being done on a monthly basis. Members with good repayment track records and that have fully repaid loans can reapply for future loans with HPFPI using the revolved funds. Plans for future activity include extending loans to support livelihood/income generating activities to augment household incomes.

HPFPI. (n.d.). Community-Managed Housing. [Online]. Available:
HPFPI Iliolo. (n.d.). Iloilo City Urban Poor Network: Milestones and Experiences on Community-driven Slum Upgrading and Citywide Partnership Initiatives. [Online]. Available:
Panay News. (2014). Iloilo's Housing Programme Offers Lessons to Other Cities. [Online]. Available:

Funding Information



Funding type:

Grant funding

Implementing Partners

Home People's Federation of the Philippines Inc.