6.5 Land Tenure Arrangements and Financing Initiatives The absence of security of tenure is the dominant barrier to the enjoyment of adequate housing. Without security of tenure communities are at risk of eviction and dramatic changes to their source of livelihood and access to basic services. Notwithstanding the regular occurrence of forced evictions and a somewhat dysfunctional urban development regime, the Philippines is often celebrated for its innovative approaches to providing security of tenure options to the urban poor. The tenure options listed below are available in the Philippines as alternatives to traditional ownership structures and are designed to promote security of tenure among communities who face difficulties in obtaining adequate housing. (a) Am ortisation The process of amortisation, a mortgage-style arrangement, is the principal means of tenure security administered by the NHA in its resettlement sites. The arrangement provides beneficiaries with a subsidised loan over their house and lot, with regular monthly payments to be made over a 25-year period. The monthly payment rate increases incrementally over the period of amortisation. Upon completion of the term of amortisation, the beneficiary becomes the legal owner of the house and lot. Unlike typical tenure arrangements, however, there are significant restrictions on how the beneficiary may deal with his or her interest in the property during the amortisation period. These restrictions are identified in section 14 of the UDHA as follows: ‘Should the beneficiary unlawfully sell, transfer, or otherwise dispose of his lot or nay right thereon, the transaction shall be null and void. He shall also lose his right to the land, forfeit the total amortization paid thereon, and shall be barred from the benefits under this Act for a period of ten (10) years from the date of violation.’ According to this provision, which purportedly reinforces the terms of the amortisation agreement, beneficiaries are restricted from any such transfer or dealing with the property. (b) Com m unity M ortgage Program m e The CMP is a mortgage financing programme which assists legally organised associations of residents of informal settlements to own the lots they occupy, providing them security of tenure and endeavouring to improve their neighbourhood and homes to the extent of their affordability. The CMP promotes a community-driven approach, which aims to improve the living conditions of poor households by providing them community loans to secure tenure on the land they occupy or choose to, fund site development and housing construction. Unlike other housing loan programmes that involve the seller and the buyer, the CMP involves four entities: the community, the landowner, the originator (now called CMP-Mobiliser) and the Social Housing Finance Corporation, with clear tasks in facilitating the programme. Community organisations apply to SHFC for consideration of their proposal. The processing of CMP loan applications will essentially involve due diligence verification by SHFC on the CMP loan application and the community’s acquired property will serve as their collateral. The 59