1. POLICY ISSUES IN AFFORDABLE HOUSINGBy
Thiru. Dharmendra Pratap Yadav, IAS,
Managing Director,
Tamil Nadu Housing Board,
Chennai

2. POLICY ISSUES IN HOUSING
WHAT IS AFFORDABLE HOUSING ?
Affordability is a relative term linked to one’s income, expenditure, commitments and savings.
Perception of affordability for a speculator will differ from the one who really needs shelter.
Need for shelter is fundamental to the human being. However owning a shelter is not.

3. OUR TARGET GROUP FOR AFFORDABLE HOUSING
Slum Dwellers
People Working In Unorganised Sector
Lower & Middle Income Group People In Government, Trade & Industries

4. AFFORDABILITY AMONG TARGET GROUP
A). Slum Dwellers
INCOME Rs.3,000 to 6,000
EMI Rs.500 to 1,000
B). Workers in Unorganised Sector
INCOME Rs.6,000 to 10,000
EMI Rs.1,000 to 1,500
C). LIG & MIG, People in Government, Trade & Industries
INCOME Rs.10,000 to 20,000
EMI Rs.2,000 to 4,000

5. URBAN HOUSING SCENARIO IN INDIA
About 28% of India’s Population lives in Urban Areas and 23.1% of the Urban Population lives in slums
About 28% of the total Urban Population lives below poverty
For the first time, Central Government focussed on Urban housing through JNNURM (Introuduced in 65 cities)
ISHUP and Affordable Housing in partnership introduced later
Initiatives from the States include reservation for EWS/LIG in new lay outs, Provision for additional FSI in Projects catering exclusively to the EWS and LIG Section and TDRs to the evacuees of various infrastructure projects.

6. ISSUES AFFECTING AVAILABILITY AND AFFORDABILITY IN HOUSING
Land – Model Projecting Joint Development with land owners required besides city redevelopment plans.
Construction Material availability – Arrest Market volatility
Ensure assured credit to the EWS and LIG Sections
Social and Physical Infrastructure Gaps – need for new townships possessing quality health, education, recreation and connectivity infrastructure connecting the work places with faster, affordable and assured transport.

7. EXPECTED OBJECTIVES OF COMPREHENSIVE HOUSING POLICY
Policy should provide mechanism wherein the Central and the State Governments work in unison towards achieving the objective of affordable housing by divising an accepted road map and act on it
Devise mechanisms to assess the requirement of total housing stock and kinds of housing required – Ownership, Rental and Social Housing
Facilitate availability of land through partnership with the land owners
Draw Master Plan for new townships with all connecting Physical and Social Infrastructure with plan for funding the same.
Propose mechanisms to keep speculators away

8. BASIC FEATURES OF A HOUSING POLICY
Recognise housing as a fundamental right of every citizen
Government to make large chunks of land available for development of Townships and housing through partnership with the land owners and through redevelopment plan of the cities.
Government to promote Public and Rental Housing in a big way through concessions and subsidised rental housing to include promotion of Government rental and as well as private rental housing.

9. BASIC FEATURES OF A HOUSING POLICY (cont.)
Define affordability as capacity of an individual to pay rent ranging between 1/4th to 1/3rd of his monthly income.
Revise rent control rules and reduce intervention of courts to promote entry of organised sector in rental housing
Commitment towards development of Social and Physical infrastructure

10. A Word on Land Acquisition through Partnership
Government should assess housing demand in each city
Declare convenient pockets of land as residential pockets
Housing Boards / Planning bodies to hold dialogue with the land owners of the notified area regarding their consent to forgo part of their land for development of Infrastructure, road, sewage, parks, drainage, etc and some portion for poor housing.
After fixing land for common and poor housing purpose, the remaining area shall be proportionately divided among the land owners based upon their ownership which they can sell to the developer or keep with themselves

11. A Word on Land Acquisition through Partnership
As the lands reserved for commercial purpose and those lying on wider roads command premium, it shall be factored in while apportioning the balance land among the land owners.
Land owners shall bear the cost of infrastructure development by way of cash or kind.
Boards/Planning Bodies/Developers to add their supervision charges and profits in the development cost.
Long term association of land owners to the township projects to ensure sustainable income for them besides income from land sale.

12. FACILITATE PPP
Decide the objective of PPP clearly whether it is aimed at creating more housing stock or earning profit on the Government land
Develop proper PPP regime where standard documents of PPP are adopted and one do not have to go again and again to the Finance and law for clearance
Provide various concessions e.g. reduce registration charges for EWS and LIG Housing, tax concessions, duty concessions on building materials for affordable sections. Providing incentives for PPP in rental housing.
Make various processes including planning approvals simple and faster.