Housing policy

Housing Policy:
Initiative of the Government of India. Objectives: 1. To provide shelter for the homeless. 2. To Improve the housing conditions for the inadequately housed. 3. To provide a minimum level of basic services and amenities to all. The role of Government:

1. As a provider for the poorest and vulnerable sections

2. As a facilitator for other income groups and private sector by the removal of constraints and the increased supply of land and services.

 First National Housing Policy in India formulated in 1988.

With a change of Government in 1990, a new National Housing Policy was announced in August, 1994.
Further, The National Housing & Habitat Policy was announced in July, 1998 Initiated policies with the involvement of multi-stakeholders, permitting Foreign Direct Investment in housing and real estate sector, etc. Most of the policies initiated were generic and applicable to both rural and urban areas. Taking into account emerging challenges of required shelter and growth of slums, the first ever urban areas specific National Urban Housing and Habitat Policy, 2007 was announced in December 2007

First Five Year Plan (1951-56)

Construction for government employees and weaker sections Ministry of works and Housing; National Building Organisation; Town and Country Planning Organisation

Second Five Year Plan (1956-61) Industrial Housing scheme modified to cover all workers.
Rural Housing; Slum Clearance; Sweepers Housing
Organisations set up to prepare Master Plans for important towns.

Rehabilitation of refugees from Pakistan; Building of Chandigarh An Industrial Housing Scheme with 50% subsidy for land and construction

Third Five Year Plan (1961-66)

Co ordination of all agencies; orienting programs to Low Income Groups A Scheme (1959) to give loans to State Govts. for acquisition and development of land for 10 yrs

Fourth Five Year Plan (1969-74)

Balanced urban growth; dispersal of population

Housing and Urban Development Corporation (HUDCO)

Master Plans for major cities to be prepared.

Environmental Improvements/ Urban Slums (1972-73) for 11 major cities

Fifth Five Year Plan (1974-79)

Reiterated preceding plans; promoted smaller towns as new urban centres A Task Force set up for development of small and medium towns The Urban Land Act to distribute land holding in urban area

Sixth Five Year Plan (1980-85)

Integrated provision of services alongwith shelter for the poor Integrated Development of Small and Medium Towns (IDSMT)

Positive inducements for setting up new establishments in towns

Seventh Five Year Plan (1985-90)

Entrust major responsibility of housing construction to private sector The National Housing Bank (NHB); NBO reconstituted to Building Material Technology Promotion Council; Urban Basic Services for the Poor (UBSP)

Eighth Five Year Plan (1992-97)

Recognized the role of urban sector in the national economy Urban Poverty and Alleviation Programme of Nehru Rojgar Yojana (NRY)

National Housing Policy 1988- housing and services for all

URBANIZATION o The process of urbanization is marked by a concentrated increase in the population of larger cities. o The provision of urban infrastructure in Indian cities is lagging far behind the pace of urbanization. o The growth of the Indian workforce is also characterized by an increasing level of urbanization. o There is a huge gap in the availability and requirements of funds for urban infrastructure development

 The pressure of urban population and lack of housing and basic services were very much evident in the early 1950s. The positive aspects of cities as engines of economic growth in the context of national economic policies were not much appreciated. Thus, the problems of urban areas were treated more as welfare problems and sectors of residual investment than as issues of national economic importance.

GROWTH OF SLUMS

URBANIZATION POLICY:
This policy intends to promote sustainable development of habitat in the city with a view to ensuring equitable supply of land, shelter and services at affordable prices to all sections of society. The policy places special emphasis on urban poor namely EWS and slum dwellers.

The policies of urban development and housing in India have come a long way since 1950s. Formulation of National Urban Housing & Habitat Policy 2007. Jawaharlal Nehru National Urban Renewal Mission. Interest Subsidy Scheme for Housing the Urban Poor. Affordable Housing in Partnership : Modification in JNNURM Setting up of a High Power Task Force on Affordable Housing. Launch of the Rajiv Awas Yojana

National Urban Housing and Habitat Policy 2007 (NUHHP)

It was formulated keeping in view the changing socio-economic parameters of the urban areas and growing requirement of shelter and related infrastructure. The Policy promotes various types of public-private partnerships for realizing the goal of Affordable Housing for All with special emphasis on the urban poor.

The NUHHP-2007 focuses the spotlight on multiple stakeholders namely, the Private Sector, the Cooperative Sector, the Industrial Sector for labor housing the Services/ Institutional Sector for employee housing.

Salient features of NUHHP: Goal of the Policy is Affordable Housing for All with special emphasis on the urban poor. Strategy framework is multiple partnership of States with various stakeholders, cooperatives, employee welfare housing organizations, private sector, state parastals. Special emphasis has been laid on SC/ST/BC/Minorities, empowerment of women within the ambit of the urban poor with emphasis on security of tenure.

Jawaharlal Nehru National Urban Mission (JNNURM)

JNNURM was launched in December 2005 with aim to cover construction of 1.5 m houses for urban poor during the Mission period (2005- 2012). It has two Sub-Missions :

Basic Services for the Urban Poor (BSUP) seeks to provide seven entitlements/services

Security of tenure Affordable housing Water Sanitation

Health Education Social security

in low income segments in the 65 Mission Cities.

The Integrated Housing and Slum Development Programme (IHSDP) seeks to provide the above mentioned 7 entitlements, services in towns/cities other than the Mission Cities.

Under JNNURM, more than 1.5 million houses have been sanctioned for the poor About 1300 projects have been sanctioned covering urban India

These projects involve an outlay of more than Rs.33,860 crore and Central Govt. subsidy of Rs.18,500 crore.

Interest Subsidy Scheme for Urban Poor

A new Pilot Scheme for providing interest subsidy on housing loans availed by EWS/LIG for acquisition/construction of houses Encourages poor sections to avail of loan facilities through Banks. Subsidy will be 5% on the interest charge for EWS/LIG upto Rs.1 lakh for the full period of the loan Loan repayment period permissible from 15 to 20 years.

Levy of pre-payment charges would not be permitted.

Targets to cover 0.31 million households under EWS/LIG segments Total subsidy during 11th Five Year Plan Rs.1100 crore.

Affordable Housing in Partnership : Modification in JNNURM

Modification in the guidelines of JNNURM (BSUP) to facilitate and incentivize land assembly for affordable housing.
Provision of central assistance of 25% for the cost of the provision of civic services for projects for affordable housing at an approximate cost of Rs.5000 crore. The objective of the scheme would be to support the construction of 1 million affordable dwelling units in the first phase, with a minimum of 0.25 million EWS dwelling units. Disbursement of funds linked to the actual provision of amenities. A normative cap per EWS/LIG dwelling unit to be fixed in consultation with the States for the purpose

Affordable Housing in Partnership : Modification in JNNURM

Criterion for eligible projects:

Contd.

Dwelling units should be a mix of EWS/LIG/MIG categories with the maximum size of a dwelling unit being at 1200 sq.ft super area, with at least 25% of them for EWS. The States would be encouraged to promote projects in the Public Private Partnership (PPP) mode in a manner in which there are competing private sector suppliers in the market for affordable housing.

State Governments could also consider seeding new areas for development through their Housing Boards, Development Authorities as well as through the various employee welfare organizations.
The scheme will be operated in the same manner as the JNNURM.

Task Force on Affordable Housing

Ministry set up Task Force headed by Deepak Parekh on Affordable Housing for defining Affordability, suggesting financial instruments and other measure to reach the goal. Report submitted in December 2008 11 main recommendations of the Task Force 1 on what can be termed affordable; 1 on the need to gather statistics; 4 on making land available at reasonable cost; 1 addressing rental housing; 1 asking for state Boards to be revived; 2 suggesting how to garner financial resources; 1 on reducing costs of construction by technology innovation; The important ones pertain to the definition, land issues and financing. Ministry is taking a final view on the recommendation of the Task Force.

Rajiv Awas Yojna

Rajiv Awas Yojana (RAY) for the slum dwellers and the urban poor envisages a Slum-free India through encouraging States/Union Territories to tackle the problem of slums in a definitive manner. It calls for a multi-pronged approach focusing on:

Bringing existing slums within the formal system and enabling them to avail of the same level of basic amenities as the rest of the town;
Redressing the failures of the formal system that lie behind the creation of slums; and Tackling the shortages of urban land and housing that keep shelter out of reach of the urban poor and force them to resort to extra-legal solutions in a bid to retain their sources of livelihood and employment.

Role of Central Government: To act as a facilitator and enabler To advise and guide respective State Governments to adopt and implement the National Urban Housing & Habitat Policy in a time bound manner. To promote balanced regional development in the country by suitably decentralizing functions relating to development of the Housing Sector and promotion of an ecologically sound habitat. To develop suitable financial instruments for promotion of housing for the EWS and LIG groups serviced by basic amenities. To promote action plans for creation of adequate infrastructure facilities relating to water, drainage, sanitation, sewerage, power supply and transport connectivity. To develop economically viable housing promotion models and standards for provision of physical, social and economic services. To develop suitable fiscal concessions in collaboration with the Ministry of Finance for promotion of housing and urban infrastructure with special focus on EWS/LIG beneficiaries

Role of State Government:

To prepare the State Urban Housing and Habitat Policy.

To act as a facilitator and enabler in collaboration with ULBs/ Parastatals/ Private Sector/ Co-operative Sector/ NGOs with regard to Integrated Slum Development Projects as well as Integrated Township Development Projects. To ensure suitable flow of financial resources to potential EWS/LIG beneficiaries as well as undertake viability gap funding of large housing and habitat development projects.
To prepare medium term and long term strategies for tackling problems relating to provision of adequate water supply, drainage, sewerage, sanitation, solid waste management, power supply and transport connectivity.

To promote and incentivize decentralized production and availability of local building materials.

Role of State Government: Contd. To prepare and update Master Plans along with Zonal Plans, Metropolitan Plans, District Plans and the State level Regional Plan by respective agencies with provision of adequate land for urban poor.
To promote well designed Public-Private Partnerships for undertaking housing and infrastructure projects To encourage Cooperative Group Housing Societies, Employees Organizations, labor housing promotion organization, Non-Government Organizations (NGO) and Community Based Organizations (CBO) to have Partnerships with Urban Local Bodies/Parastatals in relation to housing related micro-finance and housing development. To promote in-situ slum up gradation with partnership between the Central Government, State Government, Urban Local Bodies, Banks/MFIs and potential beneficiaries.

Role of banks and housing finance institutions: Promote innovative financial instruments like development of Mortgage Backed Securitization Market (MBSM), and Secondary Mortgage Market.

Enhance/ strengthen the income spread of housing loans portfolio to increasingly cover BPL and EWS beneficiaries.
Adopt a more flexible and innovative approach in relation to credit appraisal norms. Develop financial products which encourage EWS and LIG beneficiaries to take insurance cover. Plowing part of their resources towards financing slum improvement and up gradation programs. Devise innovative housing finance schemes for targeting the EWS and LIG segments, with suitable subsidy support from the government. Promote MFIs and SHGs for mobilizing savings and playing a significant role in housing .

Agencies for Housing schemes:

The following are some of the agencies established with a view to tackle the housing problem under various housing schemes. 1. State housing board 2. Co-operative housing societies 3. Private enterprises 4. Individuals STATE HOUSING BOARD: To undertake housing programmes To arrange finance To work in liaison between the central agencies and the state, housing boards have been set up in many states. The functions of the Board are: 1.To construct new houses to reduce the shortage of houses. 2.To increase the standard of the types of houses to be constructed through other agencies. 3.To implement the housing schemes of state and central government as are entrusted to it from time to time

The housing board undertakes the execution of the following housing schemes: Government of India under the plan provides funds for the implementation of housing schemes. These are augmented by loans got from the Life Insurance Corporation of India (L.I.C). 1.INTEGRATED SUBSIDIZED HOUSING SCHEME(ISHS) The houses for industrial workers are provided under this scheme and for EWS houses are provided under subsidized rental housing scheme with a uniform pattern of central assistance i.e 50%loan + 50% subsidy over 25 years @ interest of 7% and 11% in case of default in payment. a. Subsidised Industrial Housing Scheme The board has suggested the following types of accommodation 1.Small two roomed houses with min. Plot size of 232 sq. Ft. (21.56 sq. mtrs). 2.Regular two roomed houses with min. Plot size of 356 sq.ft.(33 sq.mtrs.). 3.Hostel with min. plot size of 112 sq.ft.(10.4 sq.mtrs). 4.Dormitories with min. plot size of 87 sq. Ft.(8.08 sq.mtrs).

The eligibility for occupation is as under For small two room houses, max.wages of workers shouldnt exceed Rs.250 p.m. For regular two room houses max.wages of workers shouldnt exceed more than Rs.350 p.m. A worker whose wages fall above Rs.350 p.m. but do not exceed Rs.500 p.m. may continue to occupy subject to his capacity to pay the economic rent. No worker whose wages Rs.500 p.m. is eligible to occupy the house.

b. Subsidized rental housing scheme The houses are provided on rental basis for E.W.S. of community whose annual income is below Rs.4200. The loan assistance is based on ceiling cost of standard rents. These costs are also revised for different types of accommodation and places.
2. LOW INCOME GROUP HOUSING SCHEME The L.I.G. housing scheme was introduced in 1954 for the person whose annual income doesnt exceed Rs.7200 and who do not own houses either in their own names or in the name of wives/children. Long terms housing loans are given to eligible persons. The loan assistance is restricted to 80% of estimated cost of construction which shouldnt exceed Rs.12000.

 The rate of interest is 7% for the repayment of 10 yrs and 71/2 % if the period exceeds 10 yrs with a maximum of 25 yrs. The accommodation to be provided in each house built under this scheme shouldnt be less than 232 sq.ft.(21.56sq.mtrs) and not more than 1200 sq. ft.(111.54 sq.mtrs) of floor area. As far as possible two room house are built and costly structures are discouraged. Suitable type design are prepared by the board and are made available for sale. 3.MIDDLE INCOME GROUP HOUSING SCHEME The M.I.G. housing scheme was introduced in1959 for the persons whose income is between 7000 to 15000 p.a and who do not own houses in their names. The loan assistance is restricted to 80% of estimated construction cost which shouldnt exceed Rs.25000. The method of repayment is same as in L.I.G. The accommodation to be provided in each house built under this scheme shouldnt be less than 700sq.ft.(65sq.mtrs.). 4.HIGH INCOME GROUP HOUSING SCHEME Under this scheme persons whose annual income is between 15000 -25000 p.a. are eligible to get a loan of Rs. 60000.

Integrated Development of Small and Medium Towns Scheme To develop infrastructure in small and medium towns capable of generating economic growth Mega City Scheme - To undertake development of infrastructure in five mega cities (Mumbai, Chennai, Kolkata, Hyderabad, and Bangalore in the country

Accelerated Urban Water Supply Scheme -To extend financial support to state governments/municipalities to provide water supply facilities in small/medium towns. A new scheme (UIDS) is under consideration to Improve infrastructural facilities and help create durable public assets in cities & towns Enhance public-private-partnership in infrastructural development Decentralize urbanisation and promote planned development of towns, cities and metros

A.P. State Housing Corporation Limited(APSHCL)

Households with annual income of Rs. 13000 or less are eligible for sanction of houses under various schemes.
ELIGIBILITY FOR SANCTION OF HOUSES

SC&ST BACKWARD MINORITIES OTHER EWS Weaker sections housing program in A.P: Self help & Mutual help. By the beneficiaries Full participation in decision-making & implementation.

Valmiki Ambedkar Awas Yojana (VAMBAY)

Since the launch of BSUP under JNNURM in 2005, VAMBAY in Andhra Pradesh has been subsumed under it, along with other existing programme such as National Slum Development Programme (NSDP) and Swarna Jayanti Shahari Rojgar Yojna (SJSRY)

To ensure an integrated provision of drinking water, sanitation and drainage facilities along with housing.
VAMBAY envisages redevelopment of existing slums and also relocation of slums. VAMBAY also simultaneously added the component of common toilets along with nimal bharat abhiyan (NBA) aimed at providing health services and an enabling urban environment to urban poor.

Rajiv Gruha Kalpa (RGK)

VAMBAY housing project & Indiramma Housing project were inadequate to meet the demands, which led to the formation of RGK. It envisioned the construction of 2 lakh housing units in 2005-2006 for the EWS and LIG classes, with 100,000houses in Hyderabad agglomeration area alone. Hyderabad was to have 14 projects, and two in Ranga Reddy district. The ownership of the dwelling unit was to be transferred to the beneficiary at the end of the 20-year loan period.

This scheme was grounded in 2006-2007 and only four of the 16 sanctioned projects have been completed to some degree and handed over to the beneficiaries.
The remaining proposed projects under the programme RGK were merged with the INDIRAMMA programme.

THANK YOU
- A. Bhavana - Aishwarya Ramakrishnan - Gaurav - Pallavi Yadav