Informal Settler Families (ISFs) are individuals or groups of people who live in housing units built on land they do not own or rent, often in areas that are not intended for residential use. This is the official and respectful term used by the Philippine government and non-government organizations to refer to this vulnerable sector of the population. Understanding the situation of ISFs is essential to comprehending the challenges and dynamics of urban development in the Philippines.
How Do Informal Settler Families (ISFs) Emerge?
The existence of informal settler communities is not a simple issue but a complex socio-economic phenomenon with deep roots. For a homebuyer to understand the landscape of a growing province like Bulacan, it’s important to recognize the factors that lead to the rise of these communities.
- Rural-to-Urban Migration: The primary driver is the movement of people from rural provinces to urban centers like Metro Manila and its immediate surrounding areas in search of better jobs and economic opportunities. This migration often outpaces the availability of affordable formal housing.
- Lack of Affordable Housing: The high cost of land and formal housing in cities is a significant barrier. For many families, the price of renting an apartment or buying a home through formal channels is simply beyond their financial reach.
- Poverty and Economic Precarity: Families living on minimum or unstable incomes often face a difficult choice between food, education, and shelter. Informal settlements become a last resort for survival, allowing them to live closer to their sources of livelihood without the burden of rent.
ISFs typically settle on vacant land, including idle private lots, public land not designated for housing, or high-risk “danger zones” such as along riverbanks, under bridges, along railroad tracks, or near garbage dumps.
Why is Understanding ISFs Important for Your Property Investment?
As a homebuyer looking for a property in the formal market, the issue of ISFs is important to understand for several practical reasons that can affect your investment and the community you plan to live in.
- Context for Government Housing Programs: Understanding the needs of ISFs provides the “why” behind the government’s major housing initiatives. The large-scale resettlement projects developed by the National Housing Authority (NHA) and the community-led land acquisition programs of the Social Housing Finance Corporation (SHFC) are direct government responses to address the ISF situation. Knowing this helps you see the bigger picture of the national housing strategy.
- Importance of Due Diligence: The presence of ISFs underscores the absolute necessity of conducting thorough due diligence before buying property, especially raw land. A homebuyer must ensure the property’s title is clean and that there are no existing occupants or claims on the land. Resolving issues with informal settlers on a property you’ve just purchased can be a very long, costly, and legally complex process.
- Impact on Local Development: The presence of large, established ISF communities is a major factor in a local government’s urban planning. LGUs must allocate significant resources to provide basic services and eventually implement housing solutions for these communities. The pace and direction of a municipality’s development—including new roads, commercial centers, and public facilities—are often influenced by how it chooses to address its ISF population.
ISFs in the Philippines: A Local Perspective
The Philippine government’s approach to ISFs is guided by Republic Act No. 7279, the Urban Development and Housing Act of 1992 (UDHA). This landmark law recognizes that ISFs have a right to decent housing and protection from inhumane treatment.
RA 7279 explicitly provides a legal framework that moves away from the old practice of violent and summary evictions. Under this law, evictions and demolitions can only be carried out under specific circumstances and must follow a just and humane process. This includes:
- Adequate notice (at least 30 days).
- Meaningful consultation with the affected families.
- The provision of an adequate relocation site, whether temporary or permanent.
The government’s preferred approach today is to provide long-term housing solutions rather than mere displacement. This is primarily done through two channels:
- Government-led Resettlement: The NHA builds and manages relocation sites, often in nearby provinces like Bulacan, to house ISFs moved from danger zones in Metro Manila.
- Community-led Programs: The SHFC, through its Community Mortgage Program, helps organized ISF communities to acquire and own the land they occupy, promoting on-site or in-city development.
Common Misconceptions About ISFs
- Misconception 1: “All ISFs are professional squatters or part of criminal syndicates.”
- Reality: While squatter syndicates that illegally sell land do exist and are a serious problem, they represent a very small minority. The overwhelming majority of ISFs are families who are simply trying to survive and are in their situation due to poverty and lack of other options.
- Misconception 2: “ISFs can be evicted at any time without any warning.”
- Reality: This is illegal. RA 7279 provides a clear legal process and a set of protections for ISFs, mandating proper notice, consultation, and relocation before any demolition can occur.
- Misconception 3: “ISFs don’t want to live in better conditions.”
- Reality: Most informal settlers desire the security and dignity of a formal home and secure land tenure. The primary barrier is financial. When given viable and truly affordable pathways to formal housing, such as through the government’s socialized housing programs, most ISFs are very willing to participate.
Practical Tip from an Expert
From my 15 years in the Bulacan real estate market, I’ve learned that the presence of an ISF community near a property you’re considering isn’t an automatic red flag, but it does require deeper research. Instead of making assumptions, check the municipality’s Comprehensive Land Use Plan (CLUP). If the LGU has a clear, funded, and ongoing program to upgrade the area or relocate the families to a proper resettlement site, it can signal a positive transformation for the entire district in the near future. An LGU that is proactively and humanely addressing its ISF population is often a sign of good governance.
Real-World Example
A large community of Informal Settler Families (ISFs) has been living for decades along the banks of a major river in Bulacan, a designated danger zone. The local government, in partnership with the National Housing Authority (NHA), initiates a resettlement program.
The ISFs are identified and enrolled in the program. The NHA develops a new, safe housing project in a nearby town with concrete houses, roads, electricity, and water access. The families are then voluntarily relocated from the riverbank to their new, permanent homes, which they will pay for through a highly subsidized 30-year amortization plan. This process illustrates the government’s strategy of moving ISFs from a state of high risk and no tenure to one of security and homeownership.
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