southville 7: making resettlement work · 2017-01-09 · for a long time, southville 7 in calauan,...

For a long time, Southville 7 in Calauan, Laguna, was one of the Philippines National Housing Authority’s (NHA) more challenging resettlement areas. Today, nestled between Laguna Bay and the foothills of Mount Banahaw about 75 kilometers south of Metro Manila, Southville 7 is home to 5,000 resettled families and is on its way to becoming a resettlement success. This is the story of how things turned around.

Constructed in 1999, the housing project was originally meant for government employees, but its relatively isolated location and a lack of basic services and local jobs meant that only a few took up residence. It became a relocation site in 2006 when 700 families were displaced from informal settlements by a major fi re and to make way for infrastructure projects. This was a time before housing projects and resettlement sites were designed to incorporate local services and social infrastructure, so conditions were not particularly conducive to rebuilding lives after displacement.

In 2009, the Pasig River Rehabilitation Commission was working to clean up the Pasig River tributaries in Metro Manila and needed to resettle vulnerable families living on the river banks. The commission was working with the ABS-CBN Lingkod Kapamilya Foundation (ALKFI), the nonprofi t arm of one of the Philippines’ biggest media networks.1 The NHA off ered ALKFI homes in Southville 7 in exchange for ALKFI taking on the management of the community. ALKFI accepted, and invited private sector and nongovernment groups such as Habitat for Humanity to invest in the construction of houses and community facilities. Other organizations provided basic health care and livelihood opportunities to supplement the Calauan government’s limited resources to support the growing population.

1 When the grant was approved, the organization was known as ABS-CBN Foundation, but they changed their name in 2013. Lingkod Kapamilya translates as “family servant,” and is the name of the entity from which AFI originated in 1989.

Making Resettlement WorkSouthville 7

transforming Southville 7BOX 1: an oral history of Southville 7

Engineer Maria Belinda Valencia-Sevalla, better known in Calauan as Ma’am Bel, remembers the earliest days of Southville 7. She was on the 1997 relocation and topographic survey team of the National Housing Authority (NHA), and helped design the site from 1998 to 1999. The site was originally a sugar plantation, is at the edge of a forest, in an area known to be a cobra habitat. The Calauan Housing Project—the development’s original name—was completed in 1999 for government employees. By 2006, the site began accepting people from outside Calauan. It was renamed Southville 7 to receive funds from the Philippines North–South Railway South Line development project, via Malampaya funds.a To align itself with the objectives of the new funding, Southville 7 had to change its vision from socialized housing to housing for relocated informal settlers. In 2009, the ABS-CBN Lingkod Kapamilya Foundation and the NHA signed a memorandum of understanding, and Southville 7 opened its gates once more to allow the resettlement of victims of Typhoon Ondoy. In the other Southville neighborhoods, the developer was to provide the homes, while the NHA was to provide basic services like water and electricity. Facilities were not part of the original plan, but through an Asian Development Bank grant, these became possible. In 2015, after rising through the ranks at NHA, Ma’am Bel was asked to serve as the NHA’s offi cer-in-charge for Southville 7. Her offi ce has increased collection of housing loan repayments, and she has been a visible force in the community. She is upbeat about Southville 7’s future, sharing the community’s upgrading plans. These include selling large commercial lots to potential businesses—hopefully a factory or a mall—to bring jobs and stimulate economic activity. “There is hope for Southville 7,” she says.a The Malampaya Fund refers to royalties from the operations of the natural

gas facility in the waters off the island of Palawan. Executive Order 848 authorizes the use of the fund for purposes other than energy-related projects. The Malampaya project is a joint undertaking between the Philippine government and Shell Philippines Exploration BV (SPEX), which has generated more than P200 billion in revenues for the government.

2 Southville 7: Making ReSettleMent WoRk

But just a few months after ALKFI started work in Southville 7, Typhoon Ondoy flooded much of Metro Manila in September 2009. Thousands of families were affected, and the NHA decided to open the doors of Southville 7 to more than 3,000 families who had just lost everything. The Calauan government worried about the influx. Electricity and potable water supplies were already sporadic. ALKFI, NHA, and the Calauan government struggled to help the community recover. They realized they needed more support to meet the needs of the displaced families. In 2010, ALKFI approached the Asian Development Bank (ADB) to explore partnership opportunities in Southville 7.

In April 2012, ADB’s Japan Fund for Poverty Reduction (JFPR) approved a $1.5-million grant to address the growing challenges in Southville 7. Promoting Partnerships and Innovation in Poor and Underserved Communities recognized that community integration and organization would be crucial for the success of the resettlement site. With ALKFI as the implementing agency, the grant aimed to support

multisector partnerships, community development and innovation, and social entrepreneurship.

Over the years that followed and with the project’s support, Southville 7 began to transform into a model resettlement site. The experiences since have influenced other postdisaster resettlement efforts. For example, in January 2015, government representatives and community leaders from Tacloban, recently devastated by super typhoon Yolanda, visited Southville 7 to learn from their Calauan counterparts. Southville 7 also received government officials from Myanmar in June 2014 and shared best practices for resettlement and housing projects.

In this collection of case studies, ALKFI and ADB are pleased to share the impacts, challenges, and lessons from the experiences in Southville 7, along with a framework that outlines the steps other organizations can take to make resettlement work.

Figure 1: Map of Southville 7 in Calauan, laguna

MML = Manolo M. Lopez, PH Ambassador to Japan, NHA = National Housing Authority.Note: Southville 7 is divided into three sites. Site 1 houses families relocated from the Pasig River and those affected by government projects in Metro Manila such as road widening. Households from the Pasig River and identified danger zones in Calauan, meanwhile, occupy units in Site 2. Families displaced by Typhoon Ondoy reside in Site 3.Source: National Housing Authority.

Figure 1: Map of Southville 7 in Calauan, laguna

Southville 7: Making ReSettleMent WoRk 3

Figure 2: Southville 7 timeline

ADB = Asian Development Bank, ALKFI = ABS-CBN Lingkod Kapamilya Foundation, NHA = National Housing Authority.Source: ALKFI.

2 Water supply level I indicates stand-alone water points (e.g., hand pumps, shallow wells, rainwater collectors) serving an average of 15 households within a 250-meter distance. Level II is piped water with a communal water point (e.g., bore well, spring system) serving an average of 4–6 households within a 25-meter distance. Level III refers to piped water supply with a private water point (e.g., house connection) based on a daily water demand of more than 100 liters per person. (Source: National Economic Development Authority. 2010. Philippine Water Supply Sector Roadmap. Manila.)

3 The Caritas Manila station sources water from the Laguna Water District.

Case study 1Water Partnerships in Southville 7The lack of clean water was long a concern of Southville 7 residents. In July 2013, the NHA awarded Centennial Water Resource Ventures the exclusive right to provide level III water connections in Southville 7.2 However, many homeowners could not afford the one-time connection fee of ₱3,500. Those who could afford the private connection frequently could not pay the monthly bills. Residents of Site 1 used a single water station constructed by Caritas Manila and 22 shallow wells.3 Families in Site 2 relied on shallow wells but the water was not potable. Site 3 residents were able to enjoy level III water services provided by Centennial if they could afford the payments.

establishing a Public–Private Partnership for WaterIn 2014, ALKFI and the NHA considered how best to approach the water problem. Centennial’s level III water connections were too costly as a universal solution. ALKFI and NHA convened residents, discussed options, and carried out a community survey. The residents agreed that a level II water system, complemented by the existing shallow wells, would best meet their needs. ALKFI and NHA suggested a network of communal water stations in Site 1, initially for 2,300 families. Knowing they could not provide the water themselves, they proposed a public–private partnership to bring water to the community. They suggested that a group of five homeowners’ associations should partner with


Laguna Water District, which was already supplying the single water station, to expand its services through multiple water stands. The project would finance the installation of a pipe from Laguna Water to the communal water stations. Residents preferred water supplied by Laguna to that by Centennial because they believed that Laguna’s water quality was better.4 This arrangement would shift the burden of connection fees and monthly bills away from the households and to the group of homeowners’ associations.

The public–private partnership has three objectives: to expand water distribution, to initiate community participation and partnerships, and to solidify the homeowners’ associations skills in project and financial management so they could take over the operations. Beyond simply providing a utility, the partnership introduced a pro-poor dimension, generating income for the community and fostering community participation in operation and maintenance. The partnership aimed to ensure sustainability and promote ownership and accountability among community members.

Construction of the water station was completed in March 2015 and clean water has flowed since May 2015. Five homeowners’ association water groups operate one or two water stations each. ALKFI and the homeowners’ association water consortium, comprising representatives from each association, oversee the five water groups. The water system now serves approximately 2,300 households in Site 1. In late 2015, Centennial expanded services to Site 1 and 2. As of May 2016, Centennial’s level III water services are available to all Southville 7 residents who are able to pay the ₱3,500 connection fee and maintain the monthly payments. About 84% of households are Centennial customers.

The water project generates much-needed income for homeowners’ associations, providing about ₱36,000 in total monthly net income; the association with most residents, Mount View Homeowners’ Association, earns about ₱20,000 per month.5 Water station employees earn up to ₱2,000 per month for 3–4-hour daily shifts from 6 a.m. to 6 p.m. where they record and remit the daily transactions.6 Of the profits, 75% goes to the association’s community fund and allowance for operations personnel. The remaining 25%

of profit covers maintenance and other operating expenses of the water consortium.

The water consortium ensures that the water project runs smoothly and efficiently. The homeowners’ associations oversee daily operations and accounting of the water consortium. Each association also engages one maintenance worker to ensure the smooth mechanical operation of the water station. A series of public water system operations and maintenance workshops and financial management classes strengthened the skills of consortium members to ensure the water system’s success. A manual for public water system operations will further empower the association water groups.

impactsAccess to convenient and clean water in Southville 7 has improved both the health and well-being of residents. But there are many other benefits. Good quality water has also created livelihood opportunities like ice production. Jaimie Sapitanan, who lives in Site 1, said that people who make and sell ice particularly appreciate the convenience. There is a ready market for expanding the Laguna water service beyond Site 1 across Southville 7, despite being only level II, he says, because of the high quality of the water. Residents of other sites, including those with level III access provided by Centennial, now want the same water quality.

The homeowners’ association water group members’ capacity and willingness to operate the water system are growing. As they gain experience, water consortium members report increasing confidence, and that they rely less upon ALKFI’s supervision. They are looking forward to managing the stations independently. The water consortium has adopted sound management principles—such as meeting regularly to discuss management and financial concerns—and members realize that this promotes efficiency and transparency.

ChallengesThe water groups still rely on ALFKI for the physical maintenance of the water system. System leaks are a common problem, and the homeowners’ associations do not check pipelines for leaks as routinely as they should.

4 Despite this common belief, neither Centennial nor NHA has received a formal complaint about water quality. ALKFI requested that Centennial provide homeowners’ associations and NHA with monthly water quality test results. Connection rates suggest increasing customer satisfaction with Centennial.

5 The level II water system has 7 communal water stations, where residents pay an average of P3.00 per container. Seventy-five percent of net profits go to homeowners’ associations, while the remaining 25% is allocated to the water consortium for maintenance costs. Most of the associations’ share (95%), meanwhile, is paid to water monitors assigned to the communal stations, while the remaining 5% serves as additional funds for community projects. Based on financial reports from May 2015 to March 2016.

6 As a comparator, workers at Kunsten Karte, a livelihood initiative in Southville 7, earn about ₱2,000–₱4,000 a month. The daily minimum wage in Calauan is ₱271 (₱5,962 a month, 8-hour shift) for nonagricultural businesses and ₱172 (₱3,784 a month, 8-hour shift) for small and medium-sized enterprises.


Payment delinquency is also a potential challenge, so the associations need to closely monitor their members and keep accurate records to avoid disconnection, which would stop water access to all the associations in Site 1. Proper documentation is important at all levels, among all parties of the partnership, down to the record of water purchase. All records and agreements must be kept as documentation to promote a culture of systematic record-keeping and transparency.

Another challenge is ensuring continuous service at the water stations. During the day, despite the short 3-hour shifts, water monitors sometimes have to leave their posts during their shifts to attend to household concerns such as tending to young children or preparing meals. To mitigate the challenge, ALKFI advised that the associations need to speak with monitors to emphasize the importance of the job for their income and livelihood.

A third challenge is in supporting the community’s shifting preferences for water supply. Although the level II system in Site 1 can be upgraded to level III, the upgrade would eliminate the homeowners’ association income, which provides other community benefits such as the funds to employ water monitors.

LessonsThe provision of a basic utility can be transformative for a community and should be a priority in all resettlement sites to ensure good health, well-being, and livelihood opportunities for residents. As a result of the public–private partnership in Southville 7, water services now reach 92% of all residents. Safe drinking water has had a multiplier effect, providing home-based livelihood opportunities like selling ice, ice candy, and home-cooked meals.

As a pro-poor vehicle, the partnership has successfully incorporated strategies for community participation. The water consortium’s management of the facility brings financial benefits to the community. The monthly earnings of the five associations support other neighborhood initiatives and the water monitor positions provide much-needed employment for community women, with the added benefit of being close to home.

The association water groups and the water consortium are instrumental to the success of the water project. Financial management training coupled with daily hands-on experience in operating the stations has built the water consortium’s management skills. These skills are transferrable to other initiatives.

Jaime Sapitanan and his fellow residents in Southville 7 Site 1 in Calauan, Laguna, used to rely on shallow wells for their water needs. They now have a network of communal water stations that provide clean drinking water to at least 2,300 families in the resettlement community.

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The public–private partnership model could facilitate provision of other services for Southville 7. For example, if an independent power source, such as a small solar plant, could generate enough power, and if a trained community group could operate and maintain it, an electricity partnership could benefit the community. The Southville 7 public–private partnership model is highly adaptable and beneficial for social projects because of its integrated pro-poor strategies and active community participation.

CaSe Study 2encouraging entrepreneurs through the Community innovation FundStarting over in Southville 7 is not easy, especially for families resettled far away from familiar surroundings in an area notorious for its lack of livelihood opportunities. During its first 2 years in Southville, ALKFI offered skills training and cash-for-work assistance to facilitate relocation. A property development boom in Metro Manila drew many men to return there for construction jobs. ALKFI helped those remaining to set up businesses from home to augment their household income. In October 2013, to foster community development and innovation, and to boost residents’ self-help capacities, ALFKI and its partners launched the Community Innovation Fund. ALFKI, Bayan Enterprise Developers Growers and Evolvers (EDGE), and the Bayanijuan (community of Filipinos) Producers Association to jointly administer the Community Innovation Fund.7 Bayan EDGE became the fund manager, given its microfinance experience and local knowledge.8

livelihood assistance, not microfinance. The Community Innovation Fund is not a microfinance project. It supports livelihood assistance, serving as a bridge to its borrowers. Initially, project funds were earmarked by ALKFI for grants to encourage and support livelihoods at resettlement sites in Southville 7. However, ALKFI saw the opportunity for a more sustainable solution, and established the Community Innovation Fund as a revolving fund. Normally, loan eligibility rests on the “five Cs” of credit: character, capacity, capital, collateral, and condition. In contrast, the Community Innovation Fund is a character loan, where residents are

lent money based only on the strength of their community leader’s endorsement and a brief business proposal. The fund’s objectives are to provide non-interest bearing loans to foster small-scale entrepreneurship, enhance economic activity, increase the community’s financial capital for livelihoods, and encourage risk-averse people to set up a business.

impactALFKI and its partners promoted the Community Innovation Fund, trained potential recipients in business skills, helped prepare proposals, and endorsed applications from their associations. ALKFI and Bayan EDGE formed a credit committee to screen applications; those that passed were forwarded to the project steering committee.9

The committee approves loan proposals at its monthly meetings and checks that Community Assistance Fund and Community Innovation Fund proposals do not overlap with their own development plans.10 During the first two loan tranches, applicants receive a maximum of ₱8,000. After demonstrating the capacity and discipline to pay on time, the recipients graduate to an increased loan amount. After the project completion, repayments will be turned over to the Bayanijuan Producers Association as a seed fund for livelihood projects.

ChallengesALKFI understood the fund was a high-risk investment since most recipients had little or no experience in setting up a small business. A total of 288 recipients received a first loan tranche of less than ₱8,000. Despite completing the Grassroots Entrepreneurship and Management training, many loan recipients mismanaged or misused their capital and reneged on repayments. Furthermore, in focus group discussions and informal monitoring visits, some recipients admitted using their loans for personal needs, including daily household expenses, school fees, medical expenses, and to service other debts. Some recipients insisted the loans were grants, despite being told of their repayment responsibilities. Other recipients complained that the loans were “too small to be of significant help,” and only provided partial support to establish a business.

Logistical and bureaucratic constraints provided difficulties to potential recipients wanting to enroll with the fund. For

7 Bayanijuan Producers Association is a network of more than 100 household-based businesses in Southville 7 established to complement livelihood assistance provided by ALKFI and development partners in the resettlement site.

8 Bayan EDGE is also affiliated with the Lopez Group of companies, to which ALKFI also belongs.9 The project steering committee is required to have representatives from the executing agency, implementing agency, local government unit, a

nongovernment organization and the community (through the Livelihood Assistance Committee and BayaniJuan Management Committee). The leaders of the 10 Southville 7 homeowners’ associations selected the Livelihood Assistance Committee representatives, who are predominantly women. BayaniJuan Management Committee, which also represents the homeowners associations, handles the Community Assistance Fund.

10 The Community Assistance Fund responds to basic community needs such as electrification and water. Using a community-driven approach, Southville residents submit proposals for community projects. Community Assistance Fund projects include solar-powered street lights, shallow wells and emergency equipment.


example, to qualify for funds, recipients must be a registered resident in Calauan. Many residents remained registered with their previous local government unit to qualify for medical assistance and Christmas groceries, which they would not receive from the Calauan government, and thus were ineligible for participating in the fund.

As of June 2016, ₱7.8 million zero-interest loans were released to 659 recipients, twice the original target. Loans past their repayment due date amounted to ₱4.1 million, or nearly half the total released. Delinquent beneficiaries cite small or no profits as the major reasons for the low repayment rate. The tranche approach for loan disbursements helped mitigate the high risk of nonrepayments, compared to a one-time loan release.11 Forty-one recipients received ₱32,000 in three tranche payments; two recipients collecting four tranches have each received a loan totaling ₱64,000.

Lessons Committed recipients benefit from small loans. The Community Innovation Fund empowered its members to reduce poverty through entrepreneurship, and some entrepreneurs in the community put the fund to good use. Several expanded their small stores and are thriving; others have created new businesses, such as peanut butter production, and distribute outside the resettlement site.

Regular repayment of the loans established an untarnished credit record, improves the chances of further borrowing from other microfinance institutions, and promotes financial security for those that utilized the program as intended. However, many others did not. Lessons from them are numerous.

honing entrepreneurial skills through training is essential. Requiring full training of all beneficiaries may have improved fund performance. Originally a 2-week training package, Bayan EDGE brought a simplified 4-day version of the Grassroots Entrepreneurship and Management training that covered essential modules for operating a small business to Calauan.12 The training only became a requirement for fund access at a later stage, resulting in only 362 (55%) of recipients completing it. Through training and mentoring, recipients achieved a better understanding of business management and developed skills like bookkeeping. Since Bayan EDGE is also the fund manager, the training doubled as a screening mechanism; participants’ training outputs become inputs to their project proposals. The trainers also evaluated participants’ commitment to work for the loan and looked for issues that would make participants poor candidates for loans. Bayan EDGE invested in participants who exhibit potential, and trained select participants on personal finance.

Representing the Philippine government in the Multisector Partnership Framework Workshop were the National Housing Authority (NHA) Southville 7, the Municipal Government of Calauan, and the barangay authorities of Dayap and Santo Tomas, Calauan. Nongovernment organizations operating in the resettlement site also attended the event: ABS-CBN Lingkod Kapamilya Foundation, Ayala Foundation, Consuelo Foundation, Don Bosco Calauan, Life Project 4 Youth and Habitat for Humanity Philippines.

11 Initially loans were released in three tranches, but this was later changed to two tranches.12 Grassroots Entrepreneurship and Management is a program of Bayan EDGE’s sister organization, Bayan Academy for Social Entrepreneurship and

Human Resource Development. Its services include training programs on entrepreneurship, management, and education for micro- and small-sized enterprises.

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indicators for monitoring must be broader than repayment. Bayan EDGE tracked and reported regularly on the Community Innovation Fund, but focused only on repayments. The scope of monitoring should have included savings, income, and actual outputs to find out if the loan was actually used for its intended purpose. For example, project data revealed that 74% of recipients had small variety stores. The remaining 26% consisted of recipients who had small food, manufacturing, agricultural, and services enterprises. If the data looked more closely at other characteristics of the borrowers, the fund might have been more tailored to the needs of the recipients. .

the hierarchy of repayment priorities relates to consequences of nonpayment. The glut of money lenders in Calauan made repayment collection more difficult because the collection methods and interest rates of microcredit institutions and moneylenders vary. Loan sharks impose the highest interest rates over relatively short periods. Informal collectors and microfinance organizations make daily visits, and in the event of nonrepayment, remain outside their homes until given payment. Others resort to maintaining a blotter report of the borrower with the barangay, effectively preventing the borrower from securing the clearance necessary for job applications or gaining access to the fund.

On the other hand, the fund is interest-free and noncollateral. Bayan EDGE, with Livelihood Assistance Committee members, knocks on recipients’ homes to collect weekly loan payments. But the Community Innovation Fund staff poses no real threat to borrowers if they default and borrowers know nonrepayment does not harm the fund or other borrowers. Considering the consequences of nonpayment, community members have to be practical by prioritizing loan sharks or the moneylenders with the most severe tactics over the Community Innovation Fund.

the terms need to be better tailored to local needs. An improved fund would be characterized by increased flexibility in terms of loan amounts, more appropriately tailored to the financing requirement of the enterprise, and for the recipient to eventually be evaluated on capacity and condition. Potential recipients would show they are serious about establishing livelihoods in Calauan. Furthermore, providing a cash transfer scheme to poor community members for their urgent needs would have ensured funds were used for livelihood improvement, and ultimately improved loan collection. Lastly, the Community Innovation Fund must distinguish itself from other funds available to local residents to attract clients able to meet the fund’s objectives.

Microfinance has the potential to enrich borrowers and generate employment—an engine of growth in the countryside. For tangible and lasting change, beneficiaries need more than a loan. They need to build their technical skills and improve market access. The JFPR-supported Community Innovation Fund initiated micro-entrepreneurship in Southville 7, but livelihoods need sustained investments in financial and human capital to achieve the project’s objectives.

CaSe Study 3homeowners’ associations are keyThe long-term needs of Southville 7 should be a matter of concern for all stakeholders. While the local government should provide basic services such as education, health care, electricity, and water, other stakeholders may need to fill the gaps. In Southville 7, the local government had very limited resources to allocate to the resettlement site, so others like nonprofit organizations, businesses, and community-based organizations provided additional housing units, community facilities, livelihood projects, and service delivery programs.

Complementing these resources are homeowners’ associations in Southville 7. In the Southville 7 Multisector Partnership Framework, the community envisions a resilient, empowered, and improved quality of life. Under the project, association leaders are trained to prepare development plans, resolve challenges such as disasters and peace and order, and voice concerns to the local government.

Homeowners’ associations have excelled in managing the Southville 7 community. United Southville Seven in Calauan Homeowners’ Association was recognized nationally as an outstanding homeowners’ association in October 2015. The association, which comprises mostly Typhoon Ondoy affected households, was recognized for its officers’ active participation in community activities and its above-average housing repayment rates.13

Homeowners’ associations are the core unit of governance and directly implement development programs. One of the ALKFI’s priorities under the project was to help Southville 7 organize and strengthen these associations. Community organizing and social enterprise mobilization became staples of Southville 7 homeowners’ association’s work. Officers received training in management and leadership, project management, financial management, and community organizing and development. In addition, they participated in the Grassroots Entrepreneurship and Management training, training in gender sensitivity and savings and

13 According to NHA Calauan, their households had a repayment rate of 33%, which is higher than the national average of 31% in NHA resettlement projects. As of May 2016, the repayment rate in Southville 7 increased to 41%. In addition, along with other Southville 7 homeowners’ associations, they represented the resettlement community in the 2016 budget approval meetings in the municipal government and bottom-up budgeting processes for 2017 development projects.


investment mobilization, a community development planning workshop, and a participatory strategic planning workshop for local leaders.

impact The ten associations organized in Southville 7 all registered with the Housing and Land Use Regulatory Board, a government agency regulating policies on land use, housing, and homeowners’ associations. Since securing this accreditation, Southville 7 homeowners’ associations have been invited to sit in budget and planning sessions of the local government. Southville 7 residents report an awareness of the benefits of the associations in general. Based on the results of the 2015 satisfaction survey, 217 of 277 respondents (78%) said that they understood clearly what a homeowners’ association was established to do.

Community management has improved through training under the project. Following training, homeowners’ associations from barangays (neighborhoods) Dayap and Santo Tomas submitted 5-year community development plans to the Calauan local government. Overall, the 2015 satisfaction survey showed that a majority (62%) of residents felt their officers’ performance was fair. Dominador de Mesa, president of the United Pasig and Marikina Homeowners’ Association, was elated when Barangay Santo Tomas approved his proposal for a mini-dump truck for solid waste collection in its 2016 development budget. He said

households in Site 3 now enjoy improved waste collection services as a result of his training and budget submission.

Association members have learned to be resourceful in raising funds for their projects. If funds are lacking due to the nonpayment of dues, they conduct fund-raising activities to make up for the shortfall. They have gained practical experience in financial management through these initiatives. Apart from training, the practical experience gained from being members of the consortium that manages the water utility provided by Laguna Water has given them confidence in managing pooled funds.

ChallengesSustainability will be a challenge. Southville 7 has been regarded as a model resettlement site mainly because of multisector and multistakeholder efforts led by ALKFI and NHA. The residents’ net satisfaction rating of delivery of basic services, which the project monitors, improved by at least 30% from 2012 to 2015. However, as the project draws to a close, how can this momentum be maintained? After third party oversight for 6 years, a smooth turnover from the project implementation unit to Southville 7 homeowners’ associations will be a challenge. ALKFI, in cooperation with NHA, the Calauan local government, nongovernment organizations, and homeowners’ associations, is preparing an exit strategy and sustainability plan. The Southville 7 multisector partnership framework will serve as a guide

Lea Nabor, a market vendor and a Typhoon Ondoy survivor, received PHP 10,000 worth of grocery gift certificates during a recognition ceremony for Community Innovation Fund good payers in November 2015. She won the top prize in the “Araw ng Parangal para sa mga Natatanging Negosyante ng Community Innovation Fund.” Nabor and 28 other borrowers were recognized for making sure no repayments were missed from their Community Innovation Fund loans.

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for empowering the Southville 7 community through strengthened partnerships among stakeholders.

associations need office facilities. Most homeowners’ associations do not have offices where they can properly conduct work and respond to members’ needs. Homeowners’ associations’ records are usually stored in makeshift cabinets. One association officer said that because of her leaky roof, she has to take extra care to make sure that their records are kept dry during the rainy season. Some officers have also said that a computer would help operations and record-keeping.

a perceived lack of transparency hinders trust. Despite the successes the homeowners’ associations have had, residents answering the survey said that information is not always readily shared within and among homeowners’ associations. This causes tension as some perceive it as intentional. Among those who expressed dissatisfaction of the officers’ performance in the 2015 survey, 28 respondents of 241 felt there was no transparency in terms of homeowners’ association tasks and projects. Among the negative evaluations of the officers’ performance, 27 said that there was no fairness in their selection of beneficiaries, suggesting favoritism. Some felt officers did not cooperate or promote unity in the community.

Lessons Capacity building for homeowners’ association officers should include both hard and soft skills. While it is clear that training on financial management, community development planning, and leadership development have been effective confidence-building measures, officers also need strong interpersonal skills to improve relations with their constituents and other associations. NHA cited the active participation of its officers in community activities as a success factor for homeowners’ associations. A survey among Southville 7 residents revealed that homeowners’ associations carrying out their duties and informing households about upcoming activities and meetings were likely to receive higher satisfaction ratings than their nonperforming counterparts.14

Mavic Yamson, president of HumanityVille Homeowners’ Association, expressed her gratitude for the training opportunities such as the workshops on conflict management and child protection case management. She is confident that her association can manage when the nongovernment organizations stakeholders leave Calauan. As the homeowners’ associations move through the formative stages in their development including becoming a legal entity,

new needs may arise that call for further, tailored capacity building. In Southville 7, ALKFI and Consuelo Foundation conducted an organizational capacity assessment on the functional capacity of homeowners’ associations. In the workshop, stakeholders agreed that the associations should aspire to sustainability, where active participation is not limited to the set of current officers, but also includes other members. Homeowners’ association members should also share their experiences with similar communities.

CaSe Study 4Sharing experiences in innovationThe Promoting Partnerships and Innovation in Poor and Underserved Communities project, as a pilot, has generated extensive learning. As such, one project activity is documenting and sharing these experiences, and using them to develop other successful partnerships. In March 2016, ALKFI hosted a 4-day multisector partnership workshop to share and compare perspectives, and to develop a multisector partnership framework, partnership indicators, and a sustainability plan for Southville 7.

Representing the Philippine government were the NHA, the municipal government of Calauan, and the barangay authorities of Dayap and Santo Tomas, Calauan. Five nongovernment organizations and foundations operating in the resettlement site also participated in the event: ALKFI, Ayala Foundation, Consuelo Foundation, Salesians of Saint John Bosco, and Habitat for Humanity Philippines.

During the workshop, Jaime Sapitanan, a former resident of Paco, Manila, narrated his experiences about his household’s relocation to Southville 7 resulting from Pasig river clean-up activities. He recalled that when he first moved to Southville 7, he had to wait a long time to get electricity and that residents had to walk about a kilometer to fetch water. Lina Catacutan, a community organizer in Southville 7, remembered the early struggles in the resettlement site in 2010 when people demanded electricity, water, and livelihood opportunities. These narratives helped participants see the impact of their work over the past several years and the results on the lives of Southville 7’s residents.

In the workshop, partners shared program updates, short- and long-term plans, and challenges specific to Southville 7, enabling participants to spot areas of overlap and possible complementarities. There was also a discussion on partnership issues, including the lack of mechanisms for coordination, communication, feedback, and information dissemination, as well as the challenges of unclear

14 ALKFI ran an informal survey to determine the perceived satisfaction of Southville 7 residents with regard to service delivery in the Calauan resettlement site. The Southville 7 Satisfaction Survey contained selected items from a questionnaire used for the baseline survey of the ADB-JFPR 9162 grant, Promoting Partnerships and Innovation in Poor and Underserved Communities.


definitions of roles and responsibilities. These issues were then transformed into statements of intent, guided by the objective of strengthening coordination.

impactParticipants of the workshop expressed their commitment to continue implementing high-quality programs in Southville 7 to build empowered and resilient communities, where members could enjoy an improved quality of life. Sustainability remains at the core of the partnership framework and to enhance sustainability, responsibility for Southville 7’s development should be transferred to the homeowners’ associations and community residents. Within the framework—guided by the principles of community participation, social inclusion, and respect for human rights—organizations are fostering the communities’ capacity to determine their own future.

Participants devised strategies to promote the partnership, starting with a formal agreement among partners articulating specific roles and responsibilities. The agreement facilitates information sharing and communication and reactivates the

Local Interagency Committee, ensuring that stakeholders at the local level are represented.15 Partners designated focal points to tasks such as data collection and information sharing.

Partners also planned activities together, including joint project proposal, a 5-year development plan, communication and monitoring and evaluation tools, capacity building for community leaders, resource mobilization, regular dialogues between the local government and homeowners’ associations, and regular strategy sessions. A core team, composed of the different partner organizations, identified major outcomes, defining indicators, data collection tools, risks and assumptions, and timeframe. They defined clear targets against baseline information. Moreover, the core team will develop an integrated database system for a common set of indicators. At the workshop, NHA agreed to be the data repository, while Ayala Foundation will develop the data collection instruments. ALKFI will lead information dissemination efforts. Finally, at the barangay level, participants brainstormed about strategies to resolve issues and increase behavior change communication, and to increase community participation in Southville 7.

Southville 7 is a 107-hectare government resettlement site in Calauan, Laguna. The government, through the National Housing Authority, helped form 10 homeowners associations to improve local governance of the area.

15 In Southville 7, the Local Inter-Agency Committee was created by the municipal government through Executive Order No. 008-2014. Chaired by the municipal mayor, it conducts monthly meetings to address concerns of Southville 7 beneficiaries and serves as a venue for providing updates on agencies’ programs and services.

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ChallengesParticipants admitted that the workshop was the first time they had sat down as partners to share updates on their respective programs and to craft a strategic direction with the Southville 7 communities. Participants defined partners’ roles, tasks and, more importantly, their commitments as signatories to the Statement of Partnership. As the workshop drew to a close, the vice-mayor of Calauan, the program manager of Southville 7 Calauan, and the program manager of ALKFI signed a partnership statement, signifying a shared commitment to sustainable partner communities. Vice-Mayor Dong Sanchez reflected that it was the best workshop

he had ever attended. Indeed, participants arrived ready to discuss the intricacies of partnership and dedicated to finding a solution, which translated into meaningful results.

ConclusionsBuilding the Southville 7 community in partnership with multiple agencies with a range of mandates and operating styles is challenging. Yet the ALKFI team has learned from the experience and believes that the impact speaks for itself and the project can be replicated and scaled up.

CHALLeNge 1livelihood opportunities were limited for residents. The project encountered many difficulties in providing livelihood opportunities in the resettlement site. Although multiple initiatives promoted livelihoods, the number of people out of work well exceeded the capacity of the agencies to help. The activities financed under the Community Innovation Fund and the Community Assistance Fund did generate some jobs, as did a few companies who agreed to outsource some of their operations in Southville 7. Training activities also provided relevant skills to support entrepreneurs.

Private sector partners of all sizes bring value. ALKFI’s solution to the limited livelihood opportunities was to attract investments from the private sector, no matter how small the company. Some of these partners zeroed in on the dire need for livelihoods development. Civil society organizations, including Don Bosco Calauan and the Ayala Foundation, connected private enterprises with Southville 7 residents. ALKFI also provided facilities for some of these enterprises so residents could provide labor. Businesses operating in Southville 7 include handmade greeting card producers, bag makers, and rice processers.

employment rates increased for the residents of Southville 7. As the range of opportunities increased, residents gained new skills and applied them as both employees and as entrepreneurs. While some residents still prefer going back to Metro Manila for higher-paying jobs, others were hired in enterprises that set up shop inside Southville 7. Greeting cards exporter Kunst en Karte, for instance, provides jobs to 50–150 residents, depending on the season. Each worker earns about ₱2,000–₱4,000 a month. A local tea leaf enterprise, Kapwa Greens, also invested in Southville 7, extending income opportunities to about 20 herb growers and tea bag packers. ALKFI established farm-to-market systems, linking Southville 7 to the supply chain, such as connecting producers of locally processed food to malls.

CHALLeNge 2agencies perceived cooperation as too time consuming. In the beginning, resistance to collaboration in Southville 7 was strong. Each agency had its own way of working, and usually operated independently. The model of collaborative governance challenged every partner: not only did the close coordination require an extra burden, it also seemed unnecessary or too much. Working together took more time.

Furthermore, each agency faced the pressure of its own project timelines and bureaucratic processes. For example, ALKFI proposed changes to the Southville 7 development plan to incorporate not only housing units, but community facilities like play spaces, a public market, health center, livelihood center, and an athletic field. However, the NHA must request reclassification for such changes to land use, and report the change to the Commission on Audit, which is a complex process that NHA typically would not do in a resettlement site, but agreed to facilitate for Southville 7.

Shared vision and commitment brings focus to the importance of collaboration. Although the partnership faced challenges, the shared vision of improving lives of Southville 7 residents united the agencies. Each stakeholder contributed toward this shared vision, which served as a compass, prompting them to put community needs first. All nongovernment organizations working in Southville 7 are now committed to staying through 2020, having signed a memorandum of agreement at a workshop in March 2016. Long-term investments in the community will bring higher returns.

Collaboration brought multiple benefits through better service delivery to Southville 7 residents. Lives have become better because of partner collaboration in Southville 7. Four years since the project began, an estimated 92% of households enjoy at least level II access to water, while 43%, or 2,420 houses, have electricity. More than other resettlement sites, Southville 7 boasts of community

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facilities that enliven and renew a sense of community: playgrounds and daycare centers, health centers, a livelihood center. Vice-mayor Sanchez confidently declares, “If you move to Southville 7, we will ensure that you will have a good life.”

CHALLeNge 3disagreements and tensions over roles and responsibilities slowed progress. The NHA is the lead agency in Southville 7. However, it was not always clear at which level decisions were supposed to be made within NHA. Was it at the national or at the local level? The lack of clarity led to several delays. With roles and responsibilities not clearly delineated when the project began, problems over duplication of efforts or gaps in implementation arose. Furthermore, some decisions were made at the topmost echelons of government, resulting in the municipal government and NHA Southville 7 feeling overlooked and not consulted. The lack of ownership among those whose support was crucial for the project to thrive became a major obstacle.

The NHA cited the lack of stakeholder coordination as the reason for the local government’s issuance of a relocation moratorium in 2011, which forced displaced residents from Metro Manila to look for other resettlement sites. Moreover, nongovernment organizations building houses in anticipation of the influx of families were concerned about what would happen with the vacant units and their commitment to their donors, which invested in the construction of housing units. The issue of roles and responsibilities was critical.

all agencies must enter the partnership as equals. A successful partnership values the contributions of all members. When partners perceive that another partner is privileged, or makes the decisions without consulting others, it indicates that the spirit of collaboration is missing. Especially in situations of top-down decision making, a lack of support at the local level may mean policies and programs are not implemented and lead to a breakdown in relations. Therefore, genuine respect for every partner, with careful attention to protocol, is essential. In equal partnerships, strengths are recognized, contributions are valued, and credit is given where due.

all agencies must be involved from the onset. One major takeaway from the project was that local stakeholders should be involved from the beginning, not midway through the project. “If we were to do it again, inviting the receiving local government unit, Calauan, to participate in the relocation process, would have definitely helped the new residents gain acceptance,” reflected Miko Alino, deputy program manager. The municipal and barangay government units were involved from the earliest stages of planning for the relocation of the settlers, as NHA conducted its routine

activities such as groundwork and social preparation. Had there been proper coordination among NHA, ALKFI, and the sending local governments with the receiving governments at the municipal and barangay level, many problems could have been avoided. Likewise, consultation and participation take time, but experience suggests they add value.

a strong partnership of different agencies resulted in dramatically improved living conditions for residents of Southville 7. NHA division manager Maria Belinda Sevalla recognizes that the partners have a long list of accomplishments in Southville 7 to be proud of. “We enjoy good relations with one another. Partners’ efforts have contributed immensely to the site.” The consensus is that without partnership, Southville 7 would not have been the same. The countless challenges and hardships endured while developing the partnership were worth it. In reflection, the four challenges generated meaningful lessons and lasting positive impacts on the community.

CHALLeNge 4Meaningful community engagement is challenging when agencies have poor coordination and communication mechanisms. No coordinating agency emerged among the partners. NHA had little experience in working with the private sector, especially in a resettlement project. The same applied to ALKFI, for whom handling resettlement projects was a first. However, Sevalla reiterated the need for agencies to coordinate their programs and services with NHA, as it was clear that proper coordination would prevent overlapping programs and services.

Without formal systems for coordination among all the organizations operating in Southville 7, service delivery was less efficient. For example, several nongovernment organizations each conducted their own household surveys, leading to consultation fatigue among residents and inconsistent data. Other effects included competition for community members to contribute to community projects and initiatives, community leaders receiving multiple and conflicting requests to participate in local activities, delays in service delivery, and missed opportunities for community members to be referred from one agency’s services to another.

Facilitation by an outsider keeps focus on community priorities. A third party facilitator, perceived by all partners as neutral, proved critical to the success of the multistakeholder discussions. The facilitator ensured that inputs of community representatives were placed front and center—a process that proved encouraging and empowering. At the end of the activities, the facilitator had skillfully “put it all together” in clear language everyone understood, with specific indicators for results-based monitoring and evaluation.


Community participation, particularly among women, improves results. Women are highly visible in Calauan. In fact, 9 of 10 homeowners’ association presidents in 2016 were women. Similarly, 11 of 12 Livelihood Assistance Committee members are women. While this is primarily due to the majority of the site’s population being women, the project has nonetheless opened many doors for them to participate in the range of training programs and seminars offered by the different partners.16 These include gender sensitivity training, grassroots entrepreneurship and management, conflict management, and livelihood training. Similarly, most of the projects supported by the Community Innovation Fund and Community Assistance Fund are run by women. Patriarchal mindsets persist, but over time, it is hoped that the increased knowledge in women’s rights and gender sensitivity, coupled with higher incomes, will translate into political power for women in Calauan.17

Community ownership means increased voter registration which generates more funds for improvements. Because local residents are happier in Southville 7, they take the step of moving their voter registration to Calauan. Voter registration is an indicator of successful integration in a resettlement site, and the May 2016 national elections showed an increase of registered voters. Emolyn Bienvenida, an ALKFI staff member, said only four jeepneys transported voters back to Manila to vote, compared to busloads in elections past. Dominador de Mesa, a homeowners’ association leader in Southville 7, added that fewer than 200 people in his community went to Manila for the polls. De Mesa also mentioned that many of his neighbors had already transferred their election registration to Calauan.

In contrast, in many other resettlement sites, couples exercise a pragmatic strategy—one spouse registers in the resettlement site while the other remains registered in their original municipality so they can claim benefits such as healthcare assistance, transportation allowance, and grocery items from both towns. As a result, they do not sever ties with the local governments from Metro Manila, who often are only too happy to welcome residents back.

The increase in voter registration in Calauan secures larger revenue allocations for the municipality from the national government. With a bigger budget, local governments can better provide for the needs of their expanding populations. Furthermore, the 10 homeowners’ associations in Southville 7, facilitated through NHA, have been a catalyst for community governance. As shared in one of the cases, the homeowners’ associations have represented their constituent-households in budget and planning sessions of the municipal government.

Development in the Philippines, coupled with the country’s proneness to natural disasters, may lead to a rise in the number of displaced people in need of new places to live. Creating new communities in resettlement sites is undeniably challenging. While each site will be different, the experience in Southville 7 shows that collaborative partnership can transform a basic housing site into a livable community. By challenging the business-as-usual approach to managing resettlement sites, the partners of Southville 7 have introduced a new model for working together.

16 Working-age family members, particularly males, seek job opportunities in Metro Manila. Some prefer to stay in Metro Manila during weekdays and go back to Calauan on weekends to save on transportation costs.

17 Studies have shown that when women enjoy increased incomes, they also enjoy greater decision-making in the household.

Basic utilities like electricity and water were not in place in Southville 7 when people displaced by the Pasig River rehabilitation and Typhoon Ondoy arrived in Calauan, Laguna. They used to queue in long lines to fetch water from shallow wells. Some donors, meanwhile, provided diesel generators for electricity.

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Creative Commons Attribution 3.0 igO license (CC BY 3.0 igO)© 2016 ADB. The CC license does not apply to non-ADB copyright materials in this publication.Corrigenda to ADB publications may be found at http://www.adb.org/publications/corrigendaPublication Stock No. ARM168589 [email protected]

Figure 4: developing Multisector Partnership for Southville 7 in Five Steps

southville 7: making resettlement work · 2017-01-09 · for a long time, southville 7 in calauan,...

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