Southville 7 Making Resettlement Work transforming Southville 7

For a long time, Southville 7 in Calauan, , was one of the National Housing Authority’s (NHA) more BOX 1: an oral history of Southville 7 challenging resettlement areas. Today, nestled between Laguna Bay and the foothills of about Engineer Maria Belinda Valencia-Sevalla, better known in Calauan as Ma’am Bel, remembers the earliest days 75 kilometers south of Metro , Southville 7 is home of Southville 7. She was on the 1997 relocation and to 5,000 resettled families and is on its way to becoming a topographic survey team of the National Housing resettlement success. This is the story of how things turned Authority (NHA), and helped design the site from 1998 around. 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. Constructed in 1999, the housing project was originally The Calauan Housing Project—the development’s original meant for government employees, but its relatively name—was completed in 1999 for government employees. isolated location and a lack of basic services and local By 2006, the site began accepting people from jobs meant that only a few took up residence. It became a outside Calauan. It was renamed Southville 7 to receive relocation site in 2006 when 700 families were displaced funds from the Philippines North–South Railway South from informal settlements by a major fi re and to make Line development project, via Malampaya funds.a To align way for infrastructure projects. This was a time before itself with the objectives of the new funding, Southville 7 housing projects and resettlement sites were designed had to change its vision from socialized housing to housing to incorporate local services and social infrastructure, so for relocated informal settlers. In 2009, the ABS-CBN conditions were not particularly conducive to rebuilding Lingkod Kapamilya Foundation and the NHA signed a lives after displacement. memorandum of understanding, and Southville 7 opened its gates once more to allow the resettlement of victims of In 2009, the Pasig River Rehabilitation Commission was Typhoon Ondoy. In the other Southville neighborhoods, working to clean up the Pasig River tributaries in Metro the developer was to provide the homes, while the NHA was to provide basic services like water and electricity. Manila and needed to resettle vulnerable families living on Facilities were not part of the original plan, but through an the river banks. The commission was working with the ABS- Asian Development Bank grant, these became possible. CBN Lingkod Kapamilya Foundation (ALKFI), the nonprofi t In 2015, after rising through the ranks at NHA, Ma’am 1 arm of one of the Philippines’ biggest media networks. The Bel was asked to serve as the NHA’s offi cer-in-charge for NHA off ered ALKFI homes in Southville 7 in exchange for Southville 7. Her offi ce has increased collection of housing ALKFI taking on the management of the community. ALKFI loan repayments, and she has been a visible force in the accepted, and invited private sector and nongovernment community. groups such as Habitat for Humanity to invest in the She is upbeat about Southville 7’s future, sharing the construction of houses and community facilities. Other community’s upgrading plans. These include selling large organizations provided basic health care and livelihood commercial lots to potential businesses—hopefully a opportunities to supplement the Calauan government’s factory or a mall—to bring jobs and stimulate economic limited resources to support the growing population. 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 1 When the grant was approved, the organization was known as ABS- projects. The Malampaya project is a joint undertaking between the CBN Foundation, but they changed their name in 2013. Lingkod Philippine government and Shell Philippines Exploration BV (SPEX), which Kapamilya translates as “family servant,” and is the name of the entity has generated more than P200 billion in revenues for the government. from which AFI originated in 1989. Figure 1: Map of Southville 7 in Calauan, laguna

2 Southville 7: Making 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 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.

But just a few months after ALKFI started work in Southville multisector partnerships, community development and 7, Typhoon Ondoy flooded much of Metro Manila in innovation, and social entrepreneurship. September 2009. Thousands of families were affected, and the NHA decided to open the doors of Southville 7 to Over the years that followed and with the project’s support, more than 3,000 families who had just lost everything. The Southville 7 began to transform into a model resettlement Calauan government worried about the influx. Electricity site. The experiences since have influenced other and potable water supplies were already sporadic. ALKFI, postdisaster resettlement efforts. For example, in January NHA, and the Calauan government struggled to help 2015, government representatives and community leaders the community recover. They realized they needed more from Tacloban, recently devastated by super typhoon support to meet the needs of the displaced families. In 2010, Yolanda, visited Southville 7 to learn from their Calauan ALKFI approached the Asian Development Bank (ADB) to counterparts. Southville 7 also received government officials explore partnership opportunities in Southville 7. from Myanmar in June 2014 and shared best practices for resettlement and housing projects. In April 2012, ADB’s Japan Fund for Poverty Reduction (JFPR) approved a $1.5-million grant to address the growing In this collection of case studies, ALKFI and ADB are challenges in Southville 7. Promoting Partnerships and pleased to share the impacts, challenges, and lessons from Innovation in Poor and Underserved Communities recognized the experiences in Southville 7, along with a framework that that community integration and organization would be outlines the steps other organizations can take to make crucial for the success of the resettlement site. With ALKFI resettlement work. as the implementing agency, the grant aimed to support 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.

Case study 1 establishing a Public–Private Partnership Water Partnerships in Southville 7 for Water The lack of clean water was long a concern of Southville In 2014, ALKFI and the NHA considered how best to 7 residents. In July 2013, the NHA awarded Centennial approach the water problem. Centennial’s level III water Water Resource Ventures the exclusive right to provide connections were too costly as a universal solution. ALKFI level III water connections in Southville 7.2 However, many and NHA convened residents, discussed options, and carried homeowners could not afford the one-time connection fee out a community survey. The residents agreed that a level II of ₱3,500. Those who could afford the private connection water system, complemented by the existing shallow wells, frequently could not pay the monthly bills. Residents of Site would best meet their needs. ALKFI and NHA suggested 1 used a single water station constructed by Caritas Manila a network of communal water stations in Site 1, initially for and 22 shallow wells.3 Families in Site 2 relied on shallow 2,300 families. Knowing they could not provide the water wells but the water was not potable. Site 3 residents were themselves, they proposed a public–private partnership able to enjoy level III water services provided by Centennial to bring water to the community. They suggested that a if they could afford the payments. group of five homeowners’ associations should partner with

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. 4 Southville 7: Making ReSettleMent WoRk

Laguna Water District, which was already supplying the of profit covers maintenance and other operating expenses single water station, to expand its services through multiple of the water consortium. water stands. The project would finance the installation of a pipe from Laguna Water to the communal water The water consortium ensures that the water project runs stations. Residents preferred water supplied by Laguna to smoothly and efficiently. The homeowners’ associations that by Centennial because they believed that Laguna’s oversee daily operations and accounting of the water water quality was better.4 This arrangement would shift the consortium. Each association also engages one maintenance burden of connection fees and monthly bills away from the worker to ensure the smooth mechanical operation of the households and to the group of homeowners’ associations. water station. A series of public water system operations and maintenance workshops and financial management classes The public–private partnership has three objectives: strengthened the skills of consortium members to ensure to expand water distribution, to initiate community the water system’s success. A manual for public water participation and partnerships, and to solidify the system operations will further empower the association homeowners’ associations skills in project and financial water groups. management so they could take over the operations. Beyond simply providing a utility, the partnership introduced a pro- impacts poor dimension, generating income for the community Access to convenient and clean water in Southville 7 has and fostering community participation in operation improved both the health and well-being of residents. But and maintenance. The partnership aimed to ensure there are many other benefits. Good quality water has also sustainability and promote ownership and accountability created livelihood opportunities like ice production. Jaimie among community members. Sapitanan, who lives in Site 1, said that people who make and sell ice particularly appreciate the convenience. There Construction of the water station was completed in is a ready market for expanding the Laguna water service March 2015 and clean water has flowed since May 2015. beyond Site 1 across Southville 7, despite being only level II, Five homeowners’ association water groups operate one he says, because of the high quality of the water. Residents or two water stations each. ALKFI and the homeowners’ of other sites, including those with level III access provided association water consortium, comprising representatives by Centennial, now want the same water quality. from each association, oversee the five water groups. The water system now serves approximately 2,300 households The homeowners’ association water group members’ in Site 1. In late 2015, Centennial expanded services to Site 1 capacity and willingness to operate the water system and 2. As of May 2016, Centennial’s level III water services are growing. As they gain experience, water consortium are available to all Southville 7 residents who are able to members report increasing confidence, and that they rely pay the ₱3,500 connection fee and maintain the monthly less upon ALKFI’s supervision. They are looking forward to payments. About 84% of households are Centennial managing the stations independently. The water consortium customers. has adopted sound management principles—such as meeting regularly to discuss management and financial The water project generates much-needed income for concerns—and members realize that this promotes homeowners’ associations, providing about ₱36,000 in total efficiency and transparency. 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 Challenges ₱2,000 per month for 3–4-hour daily shifts from 6 a.m. to 6 The water groups still rely on ALFKI for the physical p.m. where they record and remit the daily transactions.6 Of maintenance of the water system. System leaks are a the profits, 75% goes to the association’s community fund common problem, and the homeowners’ associations do and allowance for operations personnel. The remaining 25% 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. Southville 7: Making ReSettleMent WoRk 5 ABS-CBN Lingkod Kapamilya Foundation. ABS-CBN Kapamilya Lingkod

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.

Payment delinquency is also a potential challenge, so the Lessons associations need to closely monitor their members and The provision of a basic utility can be transformative for keep accurate records to avoid disconnection, which would a community and should be a priority in all resettlement stop water access to all the associations in Site 1. Proper sites to ensure good health, well-being, and livelihood documentation is important at all levels, among all parties opportunities for residents. As a result of the public–private of the partnership, down to the record of water purchase. partnership in Southville 7, water services now reach 92% of All records and agreements must be kept as documentation all residents. Safe drinking water has had a multiplier effect, to promote a culture of systematic record-keeping and providing home-based livelihood opportunities like selling transparency. ice, ice candy, and home-cooked meals.

Another challenge is ensuring continuous service at the As a pro-poor vehicle, the partnership has successfully water stations. During the day, despite the short 3-hour incorporated strategies for community participation. The shifts, water monitors sometimes have to leave their posts water consortium’s management of the facility brings during their shifts to attend to household concerns such as financial benefits to the community. The monthly earnings tending to young children or preparing meals. To mitigate of the five associations support other neighborhood the challenge, ALKFI advised that the associations need to initiatives and the water monitor positions provide much- speak with monitors to emphasize the importance of the job needed employment for community women, with the for their income and livelihood. added benefit of being close to home.

A third challenge is in supporting the community’s shifting The association water groups and the water consortium preferences for water supply. Although the level II system are instrumental to the success of the water project. in Site 1 can be upgraded to level III, the upgrade would Financial management training coupled with daily hands- eliminate the homeowners’ association income, which on experience in operating the stations has built the provides other community benefits such as the funds to water consortium’s management skills. These skills are employ water monitors. transferrable to other initiatives. 6 Southville 7: Making ReSettleMent WoRk

The public–private partnership model could facilitate lent money based only on the strength of their community provision of other services for Southville 7. For example, if leader’s endorsement and a brief business proposal. The an independent power source, such as a small solar plant, fund’s objectives are to provide non-interest bearing loans could generate enough power, and if a trained community to foster small-scale entrepreneurship, enhance economic group could operate and maintain it, an electricity activity, increase the community’s financial capital for partnership could benefit the community. The Southville livelihoods, and encourage risk-averse people to set up a 7 public–private partnership model is highly adaptable and business. beneficial for social projects because of its integrated pro- poor strategies and active community participation. impact ALFKI and its partners promoted the Community Innovation Fund, trained potential recipients in business CaSe Study 2 skills, helped prepare proposals, and endorsed applications encouraging entrepreneurs from their associations. ALKFI and Bayan EDGE formed a credit committee to screen applications; those that through the Community passed were forwarded to the project steering committee.9 The committee approves loan proposals at its monthly innovation Fund meetings and checks that Community Assistance Fund and Starting over in Southville 7 is not easy, especially for Community Innovation Fund proposals do not overlap with families resettled far away from familiar surroundings in their own development plans.10 During the first two loan an area notorious for its lack of livelihood opportunities. tranches, applicants receive a maximum of ₱8,000. After During its first 2 years in Southville, ALKFI offered demonstrating the capacity and discipline to pay on time, skills training and cash-for-work assistance to facilitate the recipients graduate to an increased loan amount. After relocation. A property development boom in Metro Manila the project completion, repayments will be turned over to drew many men to return there for construction jobs. the Bayanijuan Producers Association as a seed fund for ALKFI helped those remaining to set up businesses from livelihood projects. home to augment their household income. In October 2013, to foster community development and innovation, and to boost residents’ self-help capacities, ALFKI and Challenges its partners launched the Community Innovation Fund. ALKFI understood the fund was a high-risk investment ALFKI, Bayan Enterprise Developers Growers and Evolvers since most recipients had little or no experience in setting (EDGE), and the Bayanijuan (community of Filipinos) up a small business. A total of 288 recipients received a first Producers Association to jointly administer the Community loan tranche of less than ₱8,000. Despite completing the Innovation Fund.7 Bayan EDGE became the fund manager, Grassroots Entrepreneurship and Management training, given its microfinance experience and local knowledge.8 many loan recipients mismanaged or misused their capital and reneged on repayments. Furthermore, in focus group livelihood assistance, not microfinance. The Community discussions and informal monitoring visits, some recipients Innovation Fund is not a microfinance project. It supports admitted using their loans for personal needs, including livelihood assistance, serving as a bridge to its borrowers. daily household expenses, school fees, medical expenses, Initially, project funds were earmarked by ALKFI for grants and to service other debts. Some recipients insisted the to encourage and support livelihoods at resettlement sites loans were grants, despite being told of their repayment in Southville 7. However, ALKFI saw the opportunity for a responsibilities. Other recipients complained that the loans more sustainable solution, and established the Community were “too small to be of significant help,” and only provided Innovation Fund as a revolving fund. Normally, loan eligibility partial support to establish a business. rests on the “five Cs” of credit: character, capacity, capital, collateral, and condition. In contrast, the Community Logistical and bureaucratic constraints provided difficulties Innovation Fund is a character loan, where residents are 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. Southville 7: Making ReSettleMent WoRk 7 ABS-CBN Lingkod Kapamilya Foundation. ABS-CBN Kapamilya Lingkod

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 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. example, to qualify for funds, recipients must be a registered Regular repayment of the loans established an untarnished resident in Calauan. Many residents remained registered credit record, improves the chances of further borrowing with their previous local government unit to qualify for from other microfinance institutions, and promotes medical assistance and Christmas groceries, which they financial security for those that utilized the program as would not receive from the Calauan government, and thus intended. However, many others did not. Lessons from were ineligible for participating in the fund. them are numerous.

As of June 2016, ₱7.8 million zero-interest loans were honing entrepreneurial skills through training is essential. released to 659 recipients, twice the original target. Loans Requiring full training of all beneficiaries may have improved past their repayment due date amounted to ₱4.1 million, or fund performance. Originally a 2-week training package, nearly half the total released. Delinquent beneficiaries cite Bayan EDGE brought a simplified 4-day version of the small or no profits as the major reasons for the low repayment Grassroots Entrepreneurship and Management training that rate. The tranche approach for loan disbursements helped covered essential modules for operating a small business mitigate the high risk of nonrepayments, compared to a one- to Calauan.12 The training only became a requirement for time loan release.11 Forty-one recipients received ₱32,000 fund access at a later stage, resulting in only 362 (55%) of in three tranche payments; two recipients collecting four recipients completing it. Through training and mentoring, tranches have each received a loan totaling ₱64,000. recipients achieved a better understanding of business management and developed skills like bookkeeping. Since Bayan EDGE is also the fund manager, the training doubled Lessons as a screening mechanism; participants’ training outputs Committed recipients benefit from small loans. The become inputs to their project proposals. The trainers also Community Innovation Fund empowered its members evaluated participants’ commitment to work for the loan to reduce poverty through entrepreneurship, and some and looked for issues that would make participants poor entrepreneurs in the community put the fund to good candidates for loans. Bayan EDGE invested in participants use. Several expanded their small stores and are thriving; who exhibit potential, and trained select participants on others have created new businesses, such as peanut butter personal finance. production, and distribute outside the resettlement site.

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. 8 Southville 7: Making ReSettleMent WoRk indicators for monitoring must be broader than Microfinance has the potential to enrich borrowers repayment. Bayan EDGE tracked and reported regularly and generate employment—an engine of growth in the on the Community Innovation Fund, but focused only on countryside. For tangible and lasting change, beneficiaries repayments. The scope of monitoring should have included need more than a loan. They need to build their savings, income, and actual outputs to find out if the loan was technical skills and improve market access. The JFPR- actually used for its intended purpose. For example, project supported Community Innovation Fund initiated micro- data revealed that 74% of recipients had small variety stores. entrepreneurship in Southville 7, but livelihoods need The remaining 26% consisted of recipients who had small sustained investments in financial and human capital to food, manufacturing, agricultural, and services enterprises. achieve the project’s objectives. 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. . CaSe Study 3 homeowners’ associations are key the hierarchy of repayment priorities relates to The long-term needs of Southville 7 should be a matter of consequences of nonpayment. The glut of money lenders in concern for all stakeholders. While the local government Calauan made repayment collection more difficult because should provide basic services such as education, health care, the collection methods and interest rates of microcredit electricity, and water, other stakeholders may need to fill the institutions and moneylenders vary. Loan sharks impose the gaps. In Southville 7, the local government had very limited highest interest rates over relatively short periods. Informal resources to allocate to the resettlement site, so others like collectors and microfinance organizations make daily visits, nonprofit organizations, businesses, and community-based and in the event of nonrepayment, remain outside their organizations provided additional housing units, community homes until given payment. Others resort to maintaining a facilities, livelihood projects, and service delivery programs. blotter report of the borrower with the barangay, effectively preventing the borrower from securing the clearance Complementing these resources are homeowners’ necessary for job applications or gaining access to the fund. associations in Southville 7. In the Southville 7 Multisector Partnership Framework, the community envisions a resilient, On the other hand, the fund is interest-free and empowered, and improved quality of life. Under the project, noncollateral. Bayan EDGE, with Livelihood Assistance association leaders are trained to prepare development Committee members, knocks on recipients’ homes to collect plans, resolve challenges such as disasters and peace and weekly loan payments. But the Community Innovation Fund order, and voice concerns to the local government. staff poses no real threat to borrowers if they default and borrowers know nonrepayment does not harm the fund Homeowners’ associations have excelled in managing the or other borrowers. Considering the consequences of Southville 7 community. United Southville Seven in Calauan nonpayment, community members have to be practical by Homeowners’ Association was recognized nationally as an prioritizing loan sharks or the moneylenders with the most outstanding homeowners’ association in October 2015. severe tactics over the Community Innovation Fund. The association, which comprises mostly Typhoon Ondoy affected households, was recognized for its officers’ active the terms need to be better tailored to local needs. participation in community activities and its above-average An improved fund would be characterized by increased housing repayment rates.13 flexibility in terms of loan amounts, more appropriately tailored to the financing requirement of the enterprise, and Homeowners’ associations are the core unit of governance for the recipient to eventually be evaluated on capacity and and directly implement development programs. One of the condition. Potential recipients would show they are serious ALKFI’s priorities under the project was to help Southville 7 about establishing livelihoods in Calauan. Furthermore, organize and strengthen these associations. Community providing a cash transfer scheme to poor community organizing and social enterprise mobilization became staples members for their urgent needs would have ensured funds of Southville 7 homeowners’ association’s work. Officers were used for livelihood improvement, and ultimately received training in management and leadership, project improved loan collection. Lastly, the Community Innovation management, financial management, and community Fund must distinguish itself from other funds available to organizing and development. In addition, they participated local residents to attract clients able to meet the fund’s in the Grassroots Entrepreneurship and Management objectives. 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. Southville 7: Making ReSettleMent WoRk 9 ABS-CBN Lingkod Kapamilya Foundation. ABS-CBN Kapamilya Lingkod

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. investment mobilization, a community development households in Site 3 now enjoy improved waste collection planning workshop, and a participatory strategic planning services as a result of his training and budget submission. workshop for local leaders. Association members have learned to be resourceful in impact raising funds for their projects. If funds are lacking due The ten associations organized in Southville 7 all registered to the nonpayment of dues, they conduct fund-raising with the Housing and Land Use Regulatory Board, a activities to make up for the shortfall. They have gained government agency regulating policies on land use, practical experience in financial management through these housing, and homeowners’ associations. Since securing initiatives. Apart from training, the practical experience this accreditation, Southville 7 homeowners’ associations gained from being members of the consortium that manages have been invited to sit in budget and planning sessions the water utility provided by Laguna Water has given them of the local government. Southville 7 residents report an confidence in managing pooled funds. awareness of the benefits of the associations in general. Based on the results of the 2015 satisfaction survey, 217 of Challenges 277 respondents (78%) said that they understood clearly Sustainability will be a challenge. Southville 7 has been what a homeowners’ association was established to do. regarded as a model resettlement site mainly because of multisector and multistakeholder efforts led by ALKFI and Community management has improved through training NHA. The residents’ net satisfaction rating of delivery of under the project. Following training, homeowners’ basic services, which the project monitors, improved by at associations from barangays (neighborhoods) Dayap and least 30% from 2012 to 2015. However, as the project draws Santo Tomas submitted 5-year community development to a close, how can this momentum be maintained? After plans to the Calauan local government. Overall, the 2015 third party oversight for 6 years, a smooth turnover from the satisfaction survey showed that a majority (62%) of residents project implementation unit to Southville 7 homeowners’ felt their officers’ performance was fair. Dominador de Mesa, associations will be a challenge. ALKFI, in cooperation president of the United Pasig and Marikina Homeowners’ with NHA, the Calauan local government, nongovernment Association, was elated when Barangay Santo Tomas organizations, and homeowners’ associations, is preparing approved his proposal for a mini-dump truck for solid an exit strategy and sustainability plan. The Southville 7 waste collection in its 2016 development budget. He said multisector partnership framework will serve as a guide 10 Southville 7: Making ReSettleMent WoRk for empowering the Southville 7 community through new needs may arise that call for further, tailored capacity strengthened partnerships among stakeholders. building. In Southville 7, ALKFI and Consuelo Foundation conducted an organizational capacity assessment on the associations need office facilities. Most homeowners’ functional capacity of homeowners’ associations. In the associations do not have offices where they can workshop, stakeholders agreed that the associations should properly conduct work and respond to members’ needs. aspire to sustainability, where active participation is not Homeowners’ associations’ records are usually stored limited to the set of current officers, but also includes other in makeshift cabinets. One association officer said that members. Homeowners’ association members should also because of her leaky roof, she has to take extra care to make share their experiences with similar communities. 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. CaSe Study 4 Sharing experiences in innovation a perceived lack of transparency hinders trust. Despite The Promoting Partnerships and Innovation in Poor the successes the homeowners’ associations have had, and Underserved Communities project, as a pilot, has residents answering the survey said that information is generated extensive learning. As such, one project activity not always readily shared within and among homeowners’ is documenting and sharing these experiences, and using associations. This causes tension as some perceive it as them to develop other successful partnerships. In March intentional. Among those who expressed dissatisfaction 2016, ALKFI hosted a 4-day multisector partnership of the officers’ performance in the 2015 survey, 28 workshop to share and compare perspectives, and to respondents of 241 felt there was no transparency in terms develop a multisector partnership framework, partnership of homeowners’ association tasks and projects. Among the indicators, and a sustainability plan for Southville 7. negative evaluations of the officers’ performance, 27 said that there was no fairness in their selection of beneficiaries, Representing the Philippine government were the NHA, suggesting favoritism. Some felt officers did not cooperate the municipal government of Calauan, and the barangay or promote unity in the community. authorities of Dayap and Santo Tomas, Calauan. Five nongovernment organizations and foundations operating in Lessons the resettlement site also participated in the event: ALKFI, Capacity building for homeowners’ association officers Ayala Foundation, Consuelo Foundation, Salesians of Saint should include both hard and soft skills. While it is clear John Bosco, and Habitat for Humanity Philippines. that training on financial management, community development planning, and leadership development have During the workshop, Jaime Sapitanan, a former resident of been effective confidence-building measures, officers also Paco, Manila, narrated his experiences about his household’s need strong interpersonal skills to improve relations with relocation to Southville 7 resulting from Pasig river clean-up their constituents and other associations. NHA cited the activities. He recalled that when he first moved to Southville active participation of its officers in community activities 7, he had to wait a long time to get electricity and that residents as a success factor for homeowners’ associations. A survey had to walk about a kilometer to fetch water. Lina Catacutan, among Southville 7 residents revealed that homeowners’ a community organizer in Southville 7, remembered the associations carrying out their duties and informing early struggles in the resettlement site in 2010 when people households about upcoming activities and meetings demanded electricity, water, and livelihood opportunities. were likely to receive higher satisfaction ratings than their These narratives helped participants see the impact of their nonperforming counterparts.14 work over the past several years and the results on the lives of Southville 7’s residents. Mavic Yamson, president of HumanityVille Homeowners’ Association, expressed her gratitude for the training In the workshop, partners shared program updates, short- opportunities such as the workshops on conflict management and long-term plans, and challenges specific to Southville and child protection case management. She is confident 7, enabling participants to spot areas of overlap and that her association can manage when the nongovernment possible complementarities. There was also a discussion organizations stakeholders leave Calauan. As the on partnership issues, including the lack of mechanisms for homeowners’ associations move through the formative coordination, communication, feedback, and information stages in their development including becoming a legal entity, 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. Southville 7: Making ReSettleMent WoRk 11 ABS-CBN Lingkod Kapamilya Foundation. ABS-CBN Kapamilya Lingkod

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. definitions of roles and responsibilities. These issues were Local Interagency Committee, ensuring that stakeholders at then transformed into statements of intent, guided by the the local level are represented.15 Partners designated focal objective of strengthening coordination. points to tasks such as data collection and information sharing. impact Partners also planned activities together, including Participants of the workshop expressed their commitment joint project proposal, a 5-year development plan, to continue implementing high-quality programs in communication and monitoring and evaluation tools, Southville 7 to build empowered and resilient communities, capacity building for community leaders, resource where members could enjoy an improved quality of life. mobilization, regular dialogues between the local Sustainability remains at the core of the partnership government and homeowners’ associations, and regular framework and to enhance sustainability, responsibility strategy sessions. A core team, composed of the different for Southville 7’s development should be transferred to partner organizations, identified major outcomes, defining the homeowners’ associations and community residents. indicators, data collection tools, risks and assumptions, Within the framework—guided by the principles of and timeframe. They defined clear targets against baseline community participation, social inclusion, and respect for information. Moreover, the core team will develop an human rights—organizations are fostering the communities’ integrated database system for a common set of indicators. capacity to determine their own future. At the workshop, NHA agreed to be the data repository, while Ayala Foundation will develop the data collection Participants devised strategies to promote the partnership, instruments. ALKFI will lead information dissemination starting with a formal agreement among partners articulating efforts. Finally, at the barangay level, participants specific roles and responsibilities. The agreement facilitates brainstormed about strategies to resolve issues and information sharing and communication and reactivates the increase behavior change communication, and to increase community participation in Southville 7.

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. 12 Southville 7: Making ReSettleMent WoRk

Challenges Participants admitted that the workshop was the first time he had ever attended. Indeed, participants arrived ready they had sat down as partners to share updates on their to discuss the intricacies of partnership and dedicated to respective programs and to craft a strategic direction with finding a solution, which translated into meaningful results. the Southville 7 communities. Participants defined partners’ roles, tasks and, more importantly, their commitments as signatories to the Statement of Partnership. As the workshop Conclusions drew to a close, the vice-mayor of Calauan, the program Building the Southville 7 community in partnership with manager of Southville 7 Calauan, and the program manager multiple agencies with a range of mandates and operating of ALKFI signed a partnership statement, signifying a shared styles is challenging. Yet the ALKFI team has learned from commitment to sustainable partner communities. Vice- the experience and believes that the impact speaks for itself Mayor Dong Sanchez reflected that it was the best workshop and the project can be replicated and scaled up.

CHALLeNge 1 CHALLeNge 2 livelihood opportunities were limited for residents. The agencies perceived cooperation as too time consuming. project encountered many difficulties in providing livelihood In the beginning, resistance to collaboration in Southville opportunities in the resettlement site. Although multiple 7 was strong. Each agency had its own way of working, and initiatives promoted livelihoods, the number of people out usually operated independently. The model of collaborative of work well exceeded the capacity of the agencies to help. governance challenged every partner: not only did the The activities financed under the Community Innovation close coordination require an extra burden, it also seemed Fund and the Community Assistance Fund did generate unnecessary or too much. Working together took more time. some jobs, as did a few companies who agreed to outsource some of their operations in Southville 7. Training activities Furthermore, each agency faced the pressure of its own also provided relevant skills to support entrepreneurs. project timelines and bureaucratic processes. For example, ALKFI proposed changes to the Southville 7 development Private sector partners of all sizes bring value. ALKFI’s plan to incorporate not only housing units, but community solution to the limited livelihood opportunities was to facilities like play spaces, a public market, health center, attract investments from the private sector, no matter livelihood center, and an athletic field. However, the NHA how small the company. Some of these partners zeroed in must request reclassification for such changes to land use, on the dire need for livelihoods development. Civil society and report the change to the Commission on Audit, which organizations, including Don Bosco Calauan and the Ayala is a complex process that NHA typically would not do in a Foundation, connected private enterprises with Southville resettlement site, but agreed to facilitate for Southville 7. 7 residents. ALKFI also provided facilities for some of these enterprises so residents could provide labor. Businesses Shared vision and commitment brings focus to the operating in Southville 7 include handmade greeting card importance of collaboration. Although the partnership producers, bag makers, and rice processers. faced challenges, the shared vision of improving lives of Southville 7 residents united the agencies. Each stakeholder employment rates increased for the residents of contributed toward this shared vision, which served as a Southville 7. As the range of opportunities increased, compass, prompting them to put community needs first. All residents gained new skills and applied them as both nongovernment organizations working in Southville 7 are employees and as entrepreneurs. While some residents still now committed to staying through 2020, having signed a prefer going back to Metro Manila for higher-paying jobs, memorandum of agreement at a workshop in March 2016. others were hired in enterprises that set up shop inside Long-term investments in the community will bring higher Southville 7. Greeting cards exporter Kunst en Karte, for returns. instance, provides jobs to 50–150 residents, depending on the season. Each worker earns about ₱2,000–₱4,000 Collaboration brought multiple benefits through a month. A local tea leaf enterprise, Kapwa Greens, also better service delivery to Southville 7 residents. Lives invested in Southville 7, extending income opportunities have become better because of partner collaboration in to about 20 herb growers and tea bag packers. ALKFI Southville 7. Four years since the project began, an estimated established farm-to-market systems, linking Southville 7 to 92% of households enjoy at least level II access to water, the supply chain, such as connecting producers of locally while 43%, or 2,420 houses, have electricity. More than processed food to malls. other resettlement sites, Southville 7 boasts of community Southville 7: Making ReSettleMent WoRk 13 12 Steps that Made the Southville 7 experience a Success 7 experience Made the Southville that Figure 3: 12 Steps 14 Southville 7: Making ReSettleMent WoRk facilities that enliven and renew a sense of community: activities such as groundwork and social preparation. Had playgrounds and daycare centers, health centers, a there been proper coordination among NHA, ALKFI, livelihood center. Vice-mayor Sanchez confidently declares, and the sending local governments with the receiving “If you move to Southville 7, we will ensure that you will have governments at the municipal and barangay level, many a good life.” problems could have been avoided. Likewise, consultation and participation take time, but experience suggests they CHALLeNge 3 add value. disagreements and tensions over roles and responsibilities slowed progress. The NHA is the lead a strong partnership of different agencies resulted in agency in Southville 7. However, it was not always clear at dramatically improved living conditions for residents which level decisions were supposed to be made within of Southville 7. NHA division manager Maria Belinda NHA. Was it at the national or at the local level? The lack of Sevalla recognizes that the partners have a long list of clarity led to several delays. With roles and responsibilities accomplishments in Southville 7 to be proud of. “We enjoy not clearly delineated when the project began, problems good relations with one another. Partners’ efforts have over duplication of efforts or gaps in implementation contributed immensely to the site.” The consensus is that arose. Furthermore, some decisions were made at the without partnership, Southville 7 would not have been the topmost echelons of government, resulting in the municipal same. The countless challenges and hardships endured government and NHA Southville 7 feeling overlooked and while developing the partnership were worth it. In reflection, not consulted. The lack of ownership among those whose the four challenges generated meaningful lessons and support was crucial for the project to thrive became a major lasting positive impacts on the community. obstacle. CHALLeNge 4 The NHA cited the lack of stakeholder coordination as the Meaningful community engagement is challenging when reason for the local government’s issuance of a relocation agencies have poor coordination and communication moratorium in 2011, which forced displaced residents mechanisms. No coordinating agency emerged among from Metro Manila to look for other resettlement sites. the partners. NHA had little experience in working with Moreover, nongovernment organizations building houses the private sector, especially in a resettlement project. The in anticipation of the influx of families were concerned same applied to ALKFI, for whom handling resettlement about what would happen with the vacant units and projects was a first. However, Sevalla reiterated the need their commitment to their donors, which invested in for agencies to coordinate their programs and services with the construction of housing units. The issue of roles and NHA, as it was clear that proper coordination would prevent responsibilities was critical. overlapping programs and services. all agencies must enter the partnership as equals. A Without formal systems for coordination among all the successful partnership values the contributions of all organizations operating in Southville 7, service delivery members. When partners perceive that another partner was less efficient. For example, several nongovernment is privileged, or makes the decisions without consulting organizations each conducted their own household surveys, others, it indicates that the spirit of collaboration is missing. leading to consultation fatigue among residents and Especially in situations of top-down decision making, a lack inconsistent data. Other effects included competition for of support at the local level may mean policies and programs community members to contribute to community projects are not implemented and lead to a breakdown in relations. and initiatives, community leaders receiving multiple and Therefore, genuine respect for every partner, with careful conflicting requests to participate in local activities, delays attention to protocol, is essential. In equal partnerships, in service delivery, and missed opportunities for community strengths are recognized, contributions are valued, and members to be referred from one agency’s services to credit is given where due. another. all agencies must be involved from the onset. One major Facilitation by an outsider keeps focus on community takeaway from the project was that local stakeholders priorities. A third party facilitator, perceived by all should be involved from the beginning, not midway through partners as neutral, proved critical to the success of the the project. “If we were to do it again, inviting the receiving multistakeholder discussions. The facilitator ensured local government unit, Calauan, to participate in the that inputs of community representatives were placed relocation process, would have definitely helped the new front and center—a process that proved encouraging and residents gain acceptance,” reflected Miko Alino, deputy empowering. At the end of the activities, the facilitator had program manager. The municipal and barangay government skillfully “put it all together” in clear language everyone units were involved from the earliest stages of planning for understood, with specific indicators for results-based the relocation of the settlers, as NHA conducted its routine monitoring and evaluation. Southville 7: Making ReSettleMent WoRk 15 ABS-CBN Lingkod Kapamilya Foundation. ABS-CBN Kapamilya Lingkod

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.

Community participation, particularly among women, In contrast, in many other resettlement sites, couples improves results. Women are highly visible in Calauan. In exercise a pragmatic strategy—one spouse registers in fact, 9 of 10 homeowners’ association presidents in 2016 the resettlement site while the other remains registered in were women. Similarly, 11 of 12 Livelihood Assistance their original municipality so they can claim benefits such Committee members are women. While this is primarily as healthcare assistance, transportation allowance, and due to the majority of the site’s population being women, grocery items from both towns. As a result, they do not the project has nonetheless opened many doors for sever ties with the local governments from Metro Manila, them to participate in the range of training programs and who often are only too happy to welcome residents back. seminars offered by the different partners.16 These include gender sensitivity training, grassroots entrepreneurship and The increase in voter registration in Calauan secures larger management, conflict management, and livelihood training. revenue allocations for the municipality from the national Similarly, most of the projects supported by the Community government. With a bigger budget, local governments can Innovation Fund and Community Assistance Fund are run better provide for the needs of their expanding populations. by women. Patriarchal mindsets persist, but over time, it Furthermore, the 10 homeowners’ associations in Southville is hoped that the increased knowledge in women’s rights 7, facilitated through NHA, have been a catalyst for and gender sensitivity, coupled with higher incomes, will community governance. As shared in one of the cases, translate into political power for women in Calauan.17 the homeowners’ associations have represented their constituent-households in budget and planning sessions of Community ownership means increased voter registration the municipal government. which generates more funds for improvements. Because local residents are happier in Southville 7, they take the Development in the Philippines, coupled with the country’s step of moving their voter registration to Calauan. Voter proneness to natural disasters, may lead to a rise in the registration is an indicator of successful integration in a number of displaced people in need of new places to resettlement site, and the May 2016 national elections live. Creating new communities in resettlement sites is showed an increase of registered voters. Emolyn Bienvenida, undeniably challenging. While each site will be different, an ALKFI staff member, said only four jeepneys transported the experience in Southville 7 shows that collaborative voters back to Manila to vote, compared to busloads partnership can transform a basic housing site into a livable in elections past. Dominador de Mesa, a homeowners’ community. By challenging the business-as-usual approach association leader in Southville 7, added that fewer than to managing resettlement sites, the partners of Southville 7 200 people in his community went to Manila for the polls. have introduced a new model for working together. De Mesa also mentioned that many of his neighbors had already transferred their election registration to Calauan.

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. 16 Southville 7: Making ReSettleMent WoRk

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

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