The Subdivision Owners Association of the Philippines (SOAP) was established in 1970 to unify subdivision developers and advocate for government policies that improve the industry's viability resulting in public welfare.
The Birth of the Organization
1970
The Subdivision Owners Association of the Philippines (SOAP) was established in 1970 to unify subdivision developers and advocate for government policies that improve the industry's viability resulting in public welfare.
Pag-IBIG fund as the Game Changer
1980
The availability of Pag-IBIG financing for low-income earners at a low-interest rate and payable in 20 years in 1980 was a game changer for the industry, allowing developers to offer house and lot packages instead of just lots and titles transferred to the buyer under a real estate mortgage.
Suspension of Pag-IBIG Fund
1984
The Pag-IBIG home financing program was suspended after four years of operation due to low collection efficiency and exacerbated by a period of political and economic crisis, resulting in the first “Nightmare Episode of Developers”, wherein constructed houses with pre-qualified buyers were left unsold, causing financial strain for developers with some unable to survive.
New Housing Program of President Aquino
1986
President Cory Aquino signed Executive Order 90 into law, creating the Housing and Urban Development Coordinating Council (HUDCC) and the Unified Home Lending Program (UHLP), which received funding not only from Pag-IBIG but also from SSS and GSIS, with NHMFC administering the program and developers acting as loan originators.
The Founding of SHDA
1987
In response to the government's focus on housing, SOAP underwent reorganization in 1987 and changed its name to the Subdivision and Housing Developers Association (SHDA).
SHDA’s First National Developers Convention
1992
SHDA made history by partnering with HUDCC to organize its first successful National Developers Convention in 1992, which culminated with a Plaque of Recognition awarded to President Cory Aquino for her highly successful housing program that delivered 400,000 housing units during her term.
UHLP Funding Crisis
1995
The UHLP continued under the term of President Fidel Ramos from 1992 to 1995, but the lending program faltered again due to very low collection efficiency, causing the NHMFC to close down its lending operations, which was a second “Nightmare Episode of Developers”.
Pag-IBIG Fund Revived UHLP
1996
SHDA's persistent appeals led to the revival of the housing program when President Fidel Ramos ordered Pag-IBIG Fund to take over the administration of UHLP using its own funds to release overdue loan proceeds to developers; however, the program only lasted until 1998 when Pag-IBIG ran out of funds and halted lending operations due to poor collection efficiency, leaving 8 billion in unpaid takeouts, resulting in a third "Nightmare Episode of Developers".
Developer CTS Program Resolved 8-Billion Overhang
2000
Due to the chronic failure of the home lending program which led Pag-IBIG Fund to be unable to pay the 8-billion overdue receivables of developers, SHDA proposed a credit risk-sharing scheme called the Developer Contract-to-Sell (CTS) 2000 Program, which required developers to buy back defaulting buyer accounts within 24 months with a backup guarantee by a private bank or the SHDA Guaranty Fund. The program successfully revived the housing program, resulting in steady growth in loan takeout performance of Pag-IBIG from 2001 to 2009.
Executive Order 45 Reduced Housing Permit Processing Time
2001
SHDA proposed the issuance of Executive Order (EO) 45 to President Arroyo in 2001, mandating parallel processing of permits with fewer signatures required and imposing deadlines subject to sanctions for delay, reducing housing approvals from over 24 months to just 6 months, and resulting in a significant increase in the takeout of housing loans from 3 billion in 2001 to 40 billion in 2009 with the combined effect of the CTS 2000 Program and EO 45.
The Globe Asiatic Case
2009
The Globe Asiatic case caused a temporary slowdown in the Pag-IBIG home lending program in 2009, leading to the need for stricter borrowing rules and the elimination of the Buy Back Guaranty of Developers. However, the strengthened CTS Scheme enabled lending operations to return to normal by 2010 with a 50 Billion allocation that continues to grow every year.
The Creation of DHSUD
2019
SHDA played a crucial role in the creation of DHSUD by advocating for the creation of a separate agency to oversee the country's housing and urban development. The association lobbied for the passage of Republic Act No. 11201, which established DHSUD as the primary national government agency responsible for housing, human settlements, and urban development and was signed into law by President Rodrigo Duterte on February 14, 2019.
SHDA Now
2023
After 53 years since its inception, SHDA remains committed to advocating for the development of the housing industry and is optimistic on working with the new administration to address regulatory bottlenecks and position housing as a top government program.
After 53 years since its inception, SHDA remains committed to advocating for the development of the housing industry and is optimistic on working with the new administration to address regulatory bottlenecks and position housing as a top government program.
