presentation tries to focus on housing, its role and importance for communities and also how it can be made cost- effective in the background of Pradhan Mantri Awas Yojna
1. Jit Kumar Gupta
Former Director, College of Architecture, IET Bhaddal
jit.kumar1944@gmail.com
Pradhan
Mantri Awas
Yojana- PMAY
2. Housing is a ‘state subject’ and various state
governments have the power to legislate on
the subject.
Right to property is not a fundamental right
but only a legal right.
3. • Housing - basic human necessity,:
•Constituting major component of cities
•Occupying largest proportion of urban land
•Involving largest proportion of building component
Major determinant of quality of life
Provider of basic security
Provider of identity/dignity to human beings. .
Promoter of large employment-engaging 16% work force of
India
Promoter of industrialization – involving 290 industries
Major contributor to economy-Real estate sector contributing
9% to India’s GDP
Requires large network of support system- Roads, Water supply,
sewerage, sanitation, healthcare, education, electricity, open
spaces etc
• Housing also known to have:
Physical, Social , economic and environmental connotations.
4. Good housing reflects the general welfare of community.
• bad housing leads to serious consequences-- diseases, immorality etc.
• Good Housing makes people healthy, more happy and more productive
• Bad housing makes people sick and decrease productivity
Housing has great role and potentiality in promoting:
-- human welfare,
-- social life,
--economic growth
--health of community and
--various other related aspects of human life.
Considering multiple connotations—
- providing housing --major priority for both society / nation.
Government creates exclusive ministry for housing
Allocate funds for housing in their budgets
Create agencies like Housing Boards, HUDCO, National Housing Bank,
Development authorities
Frame Policies and Program for Housing– National Housing Policy
1994, 98, 2007, PMAY, RAY,
5. Housing as a right—included in ;
--The Habitat Agenda (1996),
-- Agenda 21 (1992),
--UN Vancouver Declaration on Human Settlements (1976),
---UN Global Strategy for Shelter to the Year 2000 (1988) .– which
--captures housing rights in following terms:
--the right to adequate housing is universally recognized by
the community of nations
...All nations without exception, have some form of obligation in
the shelter sector as exemplified by;
-- their creation of ministries or housing agencies,
-- by their allocation of funds to the housing sector and
-- by their policies, programmes and projects..
..All citizens of all States,
--poor as they may be,
--have a right to expect their Governments
--to be concerned about their shelter needs, and
--to accept a fundamental obligation to protect and improve ---
houses and neighborhoods',
---rather than damage or destroy them.
6. Labour intensive- Need large skilled and unskilled manpower
Mechanically intensive– requires number of machines to construct
Resource intensive– cement, sand , power, building material etc
Requires lot of money
Requires transport network to support
Requires land for construction- urban land very expensive
Housing Requires proper planning , designing and construction
Housing requires ventilation ,natural lighting and best indoor air
quality
Housing designed as Structurally safe and operationally efficient
Provide adequate space for living - avoiding over crowding
Housing needs number of other support systems
Open spaces- parks, play grounds
Housing require infrastructures and services-w/s, roads ,
electricity, sewerage, sanitation
Housing requires– schools, health care, recreation, shopping etc
7. Immobility --Housing construction --to be at
place where needed unlike food/ clothing
High Initial Investment- expensive to construct,
maintain and operate- dream for the poor
Multi- sectoral dimensions--– Housing need
the support of other sectors- transport,
finance, taxation, building industry, population,
land policy etc
Universality in requirement
Catering to all sections of Society– HIG, MIG,
LIG, EWS, Slum dwellers, homeless,
9. Housing shortage --most formidable challenges
urban housing shortage at 24.71 million dwelling units at
the end of 10th Five Year Plan for 66.30 million urban
households.
Group estimated :
--88% shortage in EWS category
-- 11% in LIG whereas
-- MIG/HIG shortage -- merely 0.04 million dwelling
units.
Technical Committee also looked at housing shortage in
all categories and observed that housing shortage in :
- ---99.9% of total EWS households,
--10.5% in LIG
--0.2% in MIG/HIG categories
Shortage in urban housing-- 26.53 million units by the year 2012.
16. India second largest urban system
globally after China
Indian Population reached
250 million in 1919
500 million in 1966 (47 yrs. Later)
1000 million in 2000 ( 34 yrs. Later)
1027 million in 2001 (10yrs. Later)
1210 million in 2011 (10 yrs. Later)
By 2050 Indian population --- 1600
million
50% living in Urban India.
Urban India --285.39 million in 2001
377 million in 2011.
Metropolitan Centres --53(2011)
Greater Mumbai --- 18.37 million --
most populous city (2011).
21. Rising Population
Tax incentives,
Speculation,
low interest rates,
Changing demographic structure,
rapid migration,
urbanisation,
better quality of life,
house as an investment,
Rising life span
Division of families-- Changing social fabric
Family size, divorce rates
will to own houses,-- housing considered most valuable asset,
higher rents,
easy availability of money,
Supportive housing policies and programs- Government
initiative- Housing for all
involving private sector
are the drivers of the housing demand and supply
24. Acute Shortage of Housing
Increasing gap between demand and supply
Majority of Shortage in EWS/LIG
High degree of Congestion
Houseless-ness
Dilapidation
Poor Quality of Housing- slums
Lack of Basic Services- water supply, sewerage,
roads, sanitation, electricity
Acute problem in metro/large cities
Limited houses available on rental basis
High rents
25. High cost of Urban Housing
Majority of Housing available in HIG/MIG
High land cost
Poverty/poor affordability
Rapid migration from rural to urban areas
Inefficient land market
High degree of speculation
Multiple ownership of houses
Single approach to housing
Wrong selection of beneficiaries
26. Low priority to EWS/LIG Housing by private
sector
Low priority to housing sector in past
Low fiscal allocation to housing sector
High labour cost
High Government charges
Low level of standardization/mechanization of
housing components
Lack of support from industry to make housing
cost-effective
Outdated /conventional technologies
Poor capacity of state housing agencies
Large amount of paper work/documentation
for loans etc
28. Slum & Non-Slum Households
India 2011 A compact area of at least 300 population or about
60-70 households of poorly
built congested tenements, in unhygienic environment usually with
inadequate infrastructure and lacking in proper sanitary and drinking water
facilities.
Indicator
Number of
households
(in lakh)
Total (Urban) 789
Slum 137
Non-Slum 652
Number of households (in %)
Slum 17.4
Non-Slum 82.6
29. In year 2001, India had 523.7 lakh
slum dwellers
In year 2011, India had 654.9 lakh
slum dwellers
25.1 percent decadal growth rate
of slum dwellers
32. Four major housing delivery models used globally:
Consumer-led,
Incented private development,
Public-private partnerships, and
Public-sector delivery.
choice of model depends on housing ladder/ capabilities / resources available.
Consumer-led delivery;-- Most common way families obtain housing
-- consumers hire contractors to construct homes,
-- with little knowledge to navigate an opaque/ fragmented construction
industry.
-- Government can improve - providing information /technical assistance
— providing information how much materials and labour should cost and
-- advice - how to write/ enforce contracts /manage timetables
. Certification—to help consumers making informed choices selecting builders
In-cented Private Development --In this model,
private developers receive financial / non-financial incentives to build housing,
---which are sold to consumers/--purchased by government for allocation to
citizens
-- operated as rental property.
Government determines incentives and
land which qualifies for such incentives
also ensures developers fulfil their commitments.ƒ
agency then sells or / rents the properties
33. ƒPublic- Private partnership– in this model
public sector – not passive but an active partner with private developer
Private developers may be given public land to be developed.
Finished units sold directly to homeowners by private developer/
allocated to buyers or renters by the government.
structure of partnership allocates risks/ affordable housing value
chain-- to the most natural owner.
PPP model can be used/leverages to involve private sector in affordable
housing
Public- Sector delivery.
--Development by a public-housing entity
-- remains important method for delivering affordable housing.
--Governments hire private-sector contractors
-- to build on public land
-- while retaining control and ownership of project.
-- The agency then sells/ rents properties-DDA/PUDA/HUDA/HOUSING
BOARDS
35. Scope---Housing for All” Mission for urban area
implementation -- during 2015-2022
-- For providing assistance for houses to eligible families
-- implemented as Centrally Sponsored Scheme (CSS)
--Eligibility--family not to own a pucca house in any part of India
-- States/Uts-- to decide a cut-off date for eligibility
Mission effective from 17.06.2015 up to 31.03.2022.
2. Coverage and Duration
All 4041 statutory towns --Census 2011 -with focus on 500 Class I
cities covered in three phases as follows:
• Phase I (April 2015 - March 2017) -- to cover 100 Cities selected
from States/UTs
• Phase II (April 2017 - March 2019) to cover additional 200 Cities
• Phase III (April 2019 - March 2022) to cover all other remaining
Cities
Flexibility regarding inclusion of additional cities in earlier phases
37. 7/28/2018 37
Housing for All – Four Verticals
1
2
3
4
Subsidy for beneficiary-led
individual house
construction
For individuals of EWS category
requiring individual house
-State to prepare a separate
project for such beneficiaries
-No isolated/ splintered
beneficiary to be covered
"In situ" Slum
Redevelopment
Affordable Housing
through
Credit Linked Subsidy
Affordable Housing in
Partnership
With private or public sector,
including Parastatal
Central Assistance per EWS house in
Affordable Housing Projects
1, 3 & 4 implemented
through State & UTs
Using land as a resource
With private participation
Extra FSI/TDR to make projects financially viable
38. - important component of PMAY for slum rehabilitation- supply side
leverages locked potential of land under slums
--for providing houses to eligible slum dwellers
Slums on Central/State Government /ULB land, Private
Land- taken up for “in-situ” redevelopment
Slums so redeveloped to be compulsorily de-notified.
Private partner for Slum Redevelopment selected through open
bidding process
When required, provide ;--additional Floor Area Ratio (FAR)/Floor
Space Index (FSI)/Transferable Development Rights (TDR)
--for making slum redevelopment projects financially viable.
Slum rehabilitation grant of Rs. 1 lakh per house, on an average
States/UTs have flexibility to deploy central grant for other slums
redevelopment with private participation, except slums on private
land.
Area to be transferred to be precisely determined
Excess area retained for housing other slum dwellers
Project to have two components-
-- Rehabilitation and
-- Free sale component
39. “In-situ” redevelopment of slums on private owned lands
for providing houses to eligible slum dwellers
-- incentivised by State Governments/UTs or ULBs by
giving additional --FSI/FAR or TDR to land owner
Central assistance cannot be used in such cases
Eligibility, cut off dates, beneficiary contribution, system of
allotment, etc. to be decided by State
A viable project to be prepared with REHAB component and
FREE SALE component
Consultations to be held with beneficiaries
Transit accommodation to be provided
FREE SALE component to be linked to project completion
Govt. agency to make allotments
Create a Single project account
Approval process to be streamlined by constituting a single
authority for planning, prescribing norms and approvals.
41. Credit linked subsidy component
- Demand side intervention
- to expand institutional credit flow to urban poor
-for LIG/EWS house acquisition/construction
Beneficiaries seeking housing loans from Banks/ HFC/
other institutions would be eligible
--for interest subsidy @ 6.5 % for a tenure of 15 years /
during tenure of loan- whichever is lower.
Net Present Value (NPV) of interest subsidy calculated
at a discount rate of 9 %.
-subsidy available for loan amounts upto Rs 6 lakhs
- Interest subsidy credited to loan account of
beneficiary
-- leading to reduced effective housing loan / Equated
Monthly Instalment (EMI)
-- Carpet area constructed/ enhanced should be upto
30 / 60 square metres for EWS and LIG,
(HUDCO) and National Housing Bank (NHB) identifid as
Central Nodal Agencies (CNAs)
43. 3rd mission component -- supply side intervention to increase EWS
housing
By Providing financial assistance by Govt
through its agencies /in partnership with private sector
Central Assistance @ Rs.1.5 Lakh per EWS house would be available
States/UTs to decide on;
- sale price of EWS houses /per square meter of carpet area-- to
make them affordable
- may extend other concessions- State subsidy, land at affordable
cost, stamp duty exemption etc.
Project can be a mix of houses for different categories
--Minimum 35% of houses must be EWS category
--- single project of at least 250 houses / reduced houses
-- allotment made to identified eligible beneficiaries
beneficiaries should be part of HFAPoA
Preference given to physically handicapped persons, senior
citizens, Scheduled Castes, Scheduled Tribes, Other Backward
Classes, minority, single women, transgender / other weaker and
vulnerable sections of society
families with disability/ senior citizens allotted house preferably on
the ground floor or lower floors.
.
45. Fourth component of mission–
-- to assist individual eligible EWS families unable to take
advantage of other components to
--either construct new houses or
-- enhance existing houses on their own
-- avail central assistance of Rs. 1.50 lakhs
-- must own land
-- residing either within/outside slums
- when in slums not covered- has a Kutcha or Semi-Pucca house.
Urban Local Bodies
-- to validate information given by beneficiary
-- building plan for the house submitted
ULBs to prepare an integrated city wide housing project
-- in accordance with City Development Plan (CDP)
-- construction of houses to be as per planning norms
-- scheme implemented in an integrated manner
-- Individual applicants for assistance not to be considered.
46. To ensure- sufficient funds for construction available to
beneficiary - including own contribution, Central/ State
Government assistance etc.
GoI assistance released into bank account of
beneficiary when balance cost of construction tied up
Financial assistance released in 3-4 instalments
--depending on progress of construction of house.
Beneficiary to start construction --using his own funds
Funds released in proportion to construction
last instalment of Rs. 30,000/- released only after
completion of house.
States to develop a system to monitor—
-- Progress of houses tracked through geo-tagged
photographs - each house to be monitored effectively.
48. Infrastructure status given to Affordable Housing
--to increase funding opportunities, loans,
reduced risk weightage, better transparency and
increased supply.
100 percent deduction of profits from housing
projects providing housing units upto 30 / 60
sq.m. carpet area -- to boost supply.
Refinancing of housing loans worth Rs.20,000 cr.
by the NHB-- likely to increase credit access to
EWS and LIG to make housing more affordable.
Increased allocation of Rs. 23,000 cr to PMAY to
enhance housing supply to low income population.
49. PPP models already operational in
country;
◦ Gujarat Model
◦ Bengal Model
◦ Punjab Model
◦ Haryana Model
◦ Rajasthan Model
◦ Mumbai Model- Slum Redevelopment
50. Land Pooling & Redistribution Schemes and Plot
Reconstitution Schemes
• -- Involving landowners -as coparceners in development
process.
• ---No compulsory acquisition of land
•-- Local authority not to incur any financial liability.
• Generates enough;
•-- land for affordable housing/Public purposes
•--Resources for infrastructure development
• --Brings large peri-urban potential land into land market.
•-- keeps land price stable
•--makes land market efficient. .
• P.R. Scheme successfully employed in Maharashtra,
Gujarat, Tamil Nadu, Punjab
• LPR Scheme used in Asian countries--Japan, Korea Taiwan.
51.
West Bengal
-- Housing Board and Ambuja Cement/Pearless etc
--created JVs for providing housing for poor
- Adopting project based approach
-- involving HIG, MIG, LIG, EWS, Commercial component
-- Using mechanism of cross subsidization LIG/EWS
-- by HIG/MIG housing and Commercial Component
- Land provided by Housing Board and
-- resources provided by builders
- majority of stakes with Private builder-51%-- to manage project
--PPP helped
-- private builders get past Urban Land Ceiling Act
-- facilitated smoother conversion of agricultural land for real estate use
-- allowed government to leverage land available with it
--helped release large parcels of land for real estate development
-- KMDA with DLF Ltd-- to build an industrial township-- in over 4,840
acres,-- expected to house over 600,000 people.
--Public-private projects essentially divided into three parts--,
catering to lower, middle and high income groups
-- housing for low-income groups offered at subsidized rates
--pricing of houses for middle-incomes set at no-profit-no-loss
levels
-- builders make profits in high-income segment of projects
52. • Haryana Pioneer state in country to
leverage private development
• Haryana involved
•-- reputed builders
•-- to buy land from farmers
•-- plan and develop it
•-- to create large housing stock
•-- through Plotted/flatted development
•-- by licensing colonies/Group Housing
• Private developers required to provide;
--20% of total plots for EWS category,
--- to be disposed off
-- to eligible persons
-- at a price fixed by State government.
53. •Punjab involved;
•-- builders/colonisers/developers
•-- by permitting to buy land from farmers
•-- plan and develop
•-- to create housing stock
•-- through Plotted/flatted development
•-- by licensing of colonies/Group Housing
• Private developers required to provide;
--10% of total residential area
--for the EWS plots in case area of colony 40 Hectare or more
--10% apartments for EWS category
--in case number of apartment is 100
--- to be disposed off
-- to the eligible persons
-- at a price fixed by State government.
State also used the concept of Town Planning Scheme
-- to pool the land of private owners
-- evolving layout plan of area
-Earmarked area for roads, open spaces, residential, commercial
--- Retained the area for roads/open spaces with local body
--- returning rest to landowner for selling plots
--- no charges levied
--no compensation paid for land up to 25%,
- with compensation upto35%
-- Affordable Housing policy already in place
54. 60% of Mumbai population lives in slums
-Slum Rehabilitation Authority set up in 1995
-- Slum land used as resource by authority
-- Developer provides free homes to eligible slum dwellers
-structure existing before 1995 eligible for 269 sft flat
-Developers submit proposal to Slum Rehabilitation
Authority
-Slum rehabilitated either in-situ or otherwise --if land
required for urban infrastructure
--Incentive FSI/TDR given to developer
---Area available surplus after resettlement can be sold by
developer commercially
---Profit from sale of land in open market used for cross-
subsidizing free housing
--- Commercial viability of Slum Redevelopment Scheme
varies-- from project to project depending on location
-- 400 projects were involved under the scheme.
60. Two broad Approaches— Sourcing additional land & Optimum
Utilisation of available land
Re--densification– Proposed model for -- Chandigarh
Using Terraces for Housing– New York Model
Promoting flatted development against plotted development-
----- Singapore Model
Cross- subsidisation– -- Hong Kong Model
Land Exchange Model- -- Punjab Model
OUVGL- Punjab Model
Taxing Vacant Urban Land- Punjab Model
Licensing Private Colonies– Haryana Model
Land Pooling and Land Distribution Model- Maharashtra/ Gujarat
Public &Private partnership-- ---West Bengal
TDR& AR- - Mumbai Model
Slum Rehabilitation----------- Mumbai Model
Reserving land for EWS Housing – Gujarat/Punjab /Haryana
62. Identifying constraints on demand side and supply side
-- find out strategies to overcome them
---adopting collaborative approach to promote synergies
Demand side constraints removal requires
- Identifying right beneficiaries.
- Innovating micro-mortgage financing mechanism to ensure a larger
reach to resources
Supply side constraints removal requires
i) Providing incentives for constructing affordable housing on mass scale
ii) Rationalizing building bye-laws / zoning regulations
iii) Providing higher density extra-FSI
Iv ) Streamlining land records – to improve urban planning / optimization of land
utilization.
v) Making land market more effective and efficient by:
- computerization of land records
- creating a urban land data base using GIS
- making data base of all urban lands
- creating efficient and effective dispute re-dressal mechanism
-
63. Developers believe that
if Government removes roadblocks- segment would
move to fast track.
Possible to have a profitable proposition in affordable
housing if:
i. Project and cost management made very strong.
ii. Improved/ state of art technologies used
iii Timeframe for construction reduced
iv Economies of scale used
iv Dwelling unit designed with care
v. Housing units/components standardized
vi. developing standard product
vii. Government policies rationalised
viii Off the table developed Land with approvals made
available
64. Creating JV or PPP with government agencies-- for land
where approvals are already in place.
-Shortening period of construction-- limited to 12 months --
phasing project.
Lowering cost of construction below Rs.1000/- per sq. ft
Considering affordable housing-- as a volume game and not
profit game
ensure 100% sale within a short span
High sale/ volume of project.
Involving enablers, providers and executor to work in
a united /single platform
Eliminating speculator investors
65. Successful Housing Projects for Affordable Housing have adopted
following model:
- Project Area to be in the range of 15-35 Acs
- Number of dwelling units 1500-3500
- Location not beyond 20-25 kms from city centre for metro cities
- Cost Reduction achieved by adopting limited options of units of
- 1RK, 1BHK with few 2BHK
- Area- 250-350 sq. ft. for 1RK & 400-500 sq ft for 1BHK
- Low construction cost- low rise G+3 or G+4 walk up apartments
- Shorter Period of construction
- -- Low rise structure
- -- adopting technologies involving Aluminum formwork
- --Building Information Modeling to complete project within 18-24m
- --Providing Basic Amenities including--
- -- landscaped gardens
- social amenities including
----- school
- -- shopping centre
--- based on size and scale of project.
66. Making land available at reasonable
prices
Ensuring equity and affordability
Bringing modern technology in housing
Ensuring Legal and institutional reform
Ensuring adequate supply to combat
demand
Adopting Low rise high density
developments