AFFORDABLE HOUSING POLICY, SCHEME AT VARIOUS LEVELS, ISSUES, HUBS, APPROACH, PUSH-PULL FACTORS, CASE STUDIES Follow on Instagram: @conceptive_architects

1. HOUSING
AFFORDABLE HOUSING
KEYWORDS: Affordable Housing Policy, Schemes at various levels, Issues, Hubs, Approach,
Push-Pull factors, Case studies
Shanika, Simran Aggarwal, Tamanna Bhardwaj
MURP 2020-22
Faculty of Planning & Architecture
Pt. Lakhmi Chand State University of Performing and Visual Arts, Rohtak

2. AFFORDABLE HOUSING
• Affordable housing refers to housing units that are affordable by that section of society whose income is below the median household
income. (Households at or below 80% of the area median income.)
• As per census 2011, the country had a population of 1,210.98 million, out of which, 377.10 million (31.16%) lived in urban areas.
• According to ministry of housing and urban Poverty Alleviation (MHUPA), the urban housing shortage in the country at the end
of the 10th five-year plan was estimated to be 24.71 million for 66.30 million households
• According to KPMG Report on Affordable Housing – A key growth driver in the real estate sector; affordable housing is defined as in
terms of three main parameters, namely income level, size of dwelling unit and affordability.

3. CORELATION OF MARKET AND AFFORD HOUSING
• The reason for high (unaffordable) price of housing in the market
lies in
i. High land price
ii. cost of construction
iii. Transaction Cost
iv. Taxes and legal charges
v. Profit Margins of private operators
• Conversion of land from one use to another takes a long time due to
various sate regulation and procedures.
• The Cost of construction itself is hiked by taxes and duties levied
on construction materials and services rendered by various
professionals in the project.
• High price of land is a consequences of the inability of land market
to respond quickely to increased demand for land with growth of
Urbanization.
Issues in the development of
affordable housing
Lack of
availability
of urban
land
Excessive
control on
development of
land creates
Artificial
shortage
Lack of
Marketable
land
parcels
Tilting
issues and
lack of
information
s
Rising
Threshold
cost of
constructio
n

4. CONCEPT, FEATURES, LEGISLATION

5. AFFORDABLE HOUSING ININDIA
URBANISATION AND HOUSING SHORTAGE IN INDIA.
 As per 2011 census, the country had a population of 1,210.98 million,
out of which, 377.10 million (31.16%) lived in urban areas.
 During 2001-2011, the urban population of India grew at a CAGR of 2.8%,
resulting in the increase in level of urbanisation from 27.81% to 31.16%.
 This growing concentration of people in urban areas has led to problems of
land shortage, housing shortfall and congested transit and has also severely
stressed the existing basic amenities such as water, power and open spaces
of the towns and cities.
 According to the 2011 census, the housing stock in urban India stood at 78.48 million for 78.86 million urban households.
 Urbanization has resulted in people increasingly living in slums and
squatter settlements and has deteriorated the housing conditionsof the economically weaker sections of the society.
 According to estimates of the Technical Group constituted by the Ministry of Housing and Urban Poverty Alleviation (MHUPA), the
urban housing shortage in the country at the end of the 10th Five-Year Plan was estimated to be 24.71 million for 66.30 million
households.
 The group further estimated that 88% of this shortage pertains to houses for Economically Weaker Sections (EWS) and another 11% for
Lower- Income Groups (LIG).For Middle- and High-Income Groups (MIG and HIG), the estimated shortage is only 0.04million.

6. Source: Report of the Technical Group on Estimation Of Urban Housing Shortage.
INFERENCE: housing percentage shortage in EWS is 99.9 % which is double
than the estimated number of households. Where as in HIG and MIG it is so less
0.2% only
Definition of Affordable Housing – MHUPA (2011)
Source: Guidelines for affordable Housing in Partnership (Amended), MHUPA, 2011
 According to the KPMG Report on ‘Affordable Housing – A Key Growth Driver in the Real Estate Sector’, affordable
housing is defined in terms of three main parameters, namely income level, size of dwelling unit and affordability.

7. POLICY FRAMEWORK & REGULATIONS FOR AFFORDABLE HOUSING
CENTRAL
LEVEL
SCHEMES
NUHHP
National Urban Housing &
Habitat Policy
JNNURM
Jawaharlal Nehru National
Urban Renewal Mission,2005
BSUP
Basic Services for the Urban
Poor
IHSDP
Integrated Housing & Slum
Development Programme
Source: Pradhan Mantri Awas yojna – urban (PMAY-U), 2018, available at, Microsoft PowerPoint - haryana for CSMC 27.4.2018.pptx (pmay-urban.gov.in), accessed at 07-05-2021 on 11:45am
The ultimate goal of this Policy is to ensure sustainable development of all urban
human settlements, duly serviced by basic civic amenities for ensuring better
quality of life for all urban citizens. The Action Plan at the State/UT level in this
regard must be prepared with the active involvement of all stakeholders.
The NUHHP, 2007 also lays special emphasis on provision of social housing for the EWS/LIG categories so that
they are fully integrated into the mainstream of ecologically well-balanced urban development.
aimed at integrated development of slums
through projects for providing shelter,
basic services and other related civic
amenities with a view to providing
utilities to the urban poor.
3 key pro-poor reforms, namely
(a) earmarking of 25% of municipal budget for the urban poor for provision of basic services including affordable
housing to the urban poor;
(b) implementation of 7- Point Charter, namely provision of land tenure, affordable housing, water, sanitation,
education, health and social security to the poor in a time-bound manner ensuring convergence with other
programmes and
(c) reservation of 25% of developed land in all housing projects, public or private, critical for slum improvement.

8. STATE
LEVEL
SCHEMES
PMAY-U
Pradhan Mantri Awas Yojna-
Urban
ISSR
In-Situ Slum Re-
development
AHP
Affordable housing
in Partnership
IHSDP
Integrated Housing & Slum
Development Programme
Pradhan Mantri Awas Yojana (PMAY) is an initiative by the Government of
India in which affordable housing will be provided to the urban poor with a
target of building 2 crore (20 million) affordable houses by 31 March 2022.
A Centrally Sponsored Scheme (CSS)
• To provide financial assistance to EWS houses being built in various partnership models by States/UTs/Cities
including private sector and industries
• Central assistance @ Rs. 1.5 lakh per EWS house
• Projects under AHP to have a minimum of 250 houses with at least 35% houses of EWS category.
• Preference to physically handicapped persons, senior citizens, SC/ ST/ OBCs, minorities, single women,
transgender and other weaker and vulnerable sections of the society
Slum Redevelopment using land as a resource with private participation
Central Government land/State Government land/ULB land:
• Slum rehabilitation grant of Rs. 1 lakh per house on an average.
• Flexibility to States/Cities to deploy this central grant for other slums being redeveloped
• States/Cities to provide additional FSI/FAR or TDR to make projects financially viable
• Land cost not to be charged by Central Govt. agencies
Slums on Private Owned Land • States/Cities to provide additional FSI/FAR or TDR to
land owner as per its policy • No Central Assistance
to improve the conditions of urban slum dwellers who do not possess adequate shelter
and reside in dilapidated conditions.
is applicable to all cities and towns that are not covered under JNNURM and seeks to
enhance public and private investments in housing and infrastructural development in
urban areas.

9. AFFORDABL HOUSING VS LOW COST HOUSING

10. SUGGESTIVE
APPROACH

11. PUSH
FACTORS PULL FACTORS

12. AFFORDABLE HOUSING POLICY

13. AFFORDABLE HOUSING POLICY 2013
Haryana Affordable Housing Policy 2013 By Huda Government
It is intended to encourage the planning and completion of
Group Housing Projects
wherein apartments of pre-defined size
are made available at pre-defined rates
within a Targeted time-frame
as prescribed under the present policy
to ensure increased supply
of Affordable Housing
in the Urban Housing Market.

14. FEATURES
The policy strikes A fine balance:
• it gives incentives to builders
• has put in proper checks
• ensure timely delivery of projects.
If implemented in spirit the affordable housing policy will
benefit lower and lower-middle class population
of approximately six lakhs
in the urban centers of Haryana
in the next five years period.

15. INCENTIVES: for developers
The affordable housing policy looks to make use of the private
sector’s capital investment for the development of affordable homes.
The policy envisages to provide incentives to the private developers
which includes-
1. Exemption from licence fees and infrastructure development charges
2. Higher floor area ratio (FAR) of upto 225 against 175 which is
usually permitted in group housing projects
3. Higher ground coverage to the tune of 50 percent against 35 percent
that is normally allowed.

16. GRANT OF LICENSE
As per affordable housing policy, the projects would be allowed in
residential zones of notified development plans of various towns and
cities.
The license for such housing projects would be given on a first come
first serve basis.

17. ZONING REQUIREMENTS
The maximum area for which such projects can be allowed in a development
plan included:
300 acres for Gurgaon, Faridabad, Panchkula, Panchkula extension and
Pinjore-kalka,
150 acres for Sonipat, Panipat, Karnal, Dharuhera, Bahadurgarh and Sohna
75 acres for the rest of the development plans.
In any residential sector not more than five per cent of the net planned area
under residential zone can be allowed for projects under this policy.
However, if a residential sector has an area of less than 100 acres, one such
project would be allowed on five acres.
Further, in order to ensure that such projects are well distributed over
the development plan area, the maximum net planned area that can be
permitted under this policy in any residential sector would be restricted to 10
acres.

18. RATE OF FLAT
The Maximum Allotment Rate For The Apartment Units Approved Under Affordable Housing
Policy Would Be Rs 4,000 Per Sq Ft Of Carpet Area In The Development Plans Of Gurgaon,
Fairdabad, Panchkula And Pinjore-Kalka, Rs 3,600 Per Sq Ft In The Development Plans Of Other
High And Medium Potential Towns And Rs 3,000 Per Sq Ft In The Remaining Low Potential Towns.
Sr
No
Development Plan Maximum allotment rate on
per sqft carpet
area basis
Additional recovery against balcony of
min 5ft clear
projection ♯
a. Gurgaon, Faridabad,
Panchkula, Pinjore-Kalka
Rs.4,000/- per sq. ft. Rs 500 per sqft against all balcony area
in a flat adding upto and limited to 100
sqft, as permitted in the approved
building plans.
b. Other High and Medium Potential
Towns.
Rs.3,600/- per sq. ft.
c. Low Potential Towns Rs.3,000/- per sq. ft.
NOTE: ♯ : Such cantilevered balconies (unsupported on three sides) shall not be part of carpet area and shall
continue to be allowed free-of-FAR.

19. TIME PERIOD:
COMPLETION OF PROJECT
The affordable housing units will be
allotted through draw of lots which
will be handled by the deputy
commissioner of the district in which
the unit is located.
According to the new Affordable
Housing Policy of Haryana, anyone
who doesn’t own A plot or A house or
A flat in any colony of Haryana urban
development authority (HUDA), any
licenced colony of Chandīgarh or the
NCR, is considered to be eligible for
the scheme.
All affordable housing projects would
be required to be necessarily
completed within four years from the
approval of building plans or grant of
environmental clearance, whichever is
later.
This date would be referred to as the
date of commencement of the project
and licenses would not be renewed
beyond four years period from the date
of commencement of the project.
ALLOTMENT OF FLAT
and ELIGIBILITY CRITERIA

20. APARTMENT AREA OR FLAT SIZE
Under the policy, the size of apartments to be constructed will be in the
range of 28sqm to 60 sqm carpet area.
The carpet area would be the net usable covered floor area bound within the walls of
the apartment but excluding the area covered by the walls and any balcony which is
approved free-of-far, but including the area forming part of kitchen, toilet,
bathroom, store and built-in cupboard, almirah, shelf, which being usable covered
area would form part of the carpet area.
No separate EWS category apartments would be provided to eliminate
any cross subsidy component and thus to avoid any adverse impact on
the affordability of apartments made available under this policy.

21. PLANNING AND AREA PARAMETERS
a. Min. and Max. density permitted 850ppa (min) & 900ppa (max)
b. Maximum FAR allowed 225
c. Maximum Ground Coverage allowed 50%
d. Maximum area under Commercial Use 4% of the Net Planned Area at 175
FAR
e. Minimum Area under organized Open Space 15% of the Net Planned Area
f. Occupancy Norm (for density calculation) 5 persons per flat
Planning Parameters: The planning parameters for the projects allowed under this policy are as follows:
An additional component of population density, FAR and commercial area is provided beyond what is allowed
in group housing colonies to ensure the viability of such projects.

22. PARKING SPACE
• The parking space shall be provided at the rate of half Equivalent Car
Space (ECS) for each dwelling unit.
• Only one two-wheeler parking site shall be earmarked for each flat, which
shall be allotted only to the flat-owners. The parking bay of two-wheelers
shall be 0.8m x 2.5m unless otherwise specified in the zoning plan.
• No car parking shall be allotted to any apartment owner in such projects.
• The balance available parking space, if any, beyond the allocated two-
wheeler parking sites, can be earmarked as free-visitor-car-parking space.
• Additional parking norms and parameters, if any, can be specified in the
zoning plan.

23. COMMUNITY SITES
The coloniser shall be required to provide the following community sites in any
such project, which shall form part of the common areas and facilities as defined
under the Haryana Apartment Ownership Act.
• One built-up Community Hall of not less than 2000sqft.
• One built-up Anganwadi-cum Creche of not less than 2000 sqft area.
• No other community sites shall be required to be provided in such project.

24. CHECK ON BUILDERS
As a matter of security against any possible delinquencies in completion
of the project, the coloniser would be required to furnish bank
guarantee against the total realisation from the project at the rate of:
15% for areas falling in the development plans of Gurgaon, Faridabad,
Panchkula, Panchkula extension and Pinjore-kalka
10% for rest of the towns.

25. MAINTENANCE
A commercial component of 4% is being allowed in the project to
enable the coloniser to maintain the colony free-of-cost for a period of
five years
After which A resident association takes over.
It is a serious issue with affordable projects that needs to be defined in a
better way to get a clear solution.

26. SURRENDER
In case of surrender of flat by any successful applicant, an amount of Rs 25,000/- may be deducted by the
colonizer”, shall be substituted as under :- “On surrender of flat by any successful allottee, the amount that
can be forfeited by the colonizer in addition to Rs. 25,000/- shall not exceed the following
Note: The cost of the flat shall be the total cost as per the rate fixed by the Department in the policy as
amended from time to time

27. ISSUES, HUBS, CONCLUSION

28. ISSUES IN THE DEVELOPMENT
REGULATORY CONSTRAINTS
Lengthy Approval and Land Use Conversion Process
The process of real estate development is particularly affectedby the efficiency of urban local
bodies, which undertake city planning, deliver utility services and regulate controls on development
through approvals.
 India is ranked 177 out of 183 countries with respect to dealing with construction permits2, which
indicates the challenge developers face in India in development of real estate.
 Lack of Clarity in Building Bylaws and Guidelines.
 Continuation of Archaic Laws

29. Multitude of Statutory Approvals adds 2-2.5 Years to the Pre- Construction Process
INFERENCE:construction process of statutory approvals adds 2-2.5 years in india

30. MAJOR HUBS
 Location of Projects and Their Distance from City Centre
 Amongst the developers, Tata Housing (Shubh Griha) and VBHC are entirely focused on low-income
affordable housing and have already launched multiple projects across cities.
 Exemplary: Mahindra Lifespaces, TVS Housing
CITIES DISTANCE FROM CITY CENTRE
Mumbai, NCR 65-70km
Ahmedabad, Kolkata 15-20km
Bangalore, Pune, Chennai 25-30km
INFERENCE: distance from centre of the city plays an important role creating affordable housing hubs .

31. INCOME LEVELS ANDHOUSING AFFORDABILITY
Disposable Surplus for House Purchase in Various Income Groups
INFERENCE:percentage of surplus of income is high when compared with others.

32. DEMAND-SUPPLY DYNAMICS
INFERENCE:Share of demand is high for income group 2-3 lakhs per annum and supply is low when compared
to other income groups.

33. INSTITUTIONAL
APPROACH

34. CONCLUSION
The main reasons for rise in shortage in affordable housing on the supply side is:
• lack of availability of urban land,
• rising construction costs and
• regulatory issues
while lack of access to home finance for low income groups are constraints on the
demand side.

35. PUBLIC PRIVATE PARTNERSHIP

36. Public - Private partnership in affordable housing is a
method/process/technique to-
• combine the strength of Private Sector with Public Sector
• to overcome the challenges faced by affordable housing
• for achieving superior outcome of providing quality housing
in large number, at most affordable cost in minimum
timeframe
The success of PPP depends upon
1. Designing PPPstructure
2. Making appropriate allocation of risks/
responsibilities/rewards/penances
3. Creating incentives for Value creation

38. 38
Model 1: Mandatory Provisions
 Private developers to reserve 15% of units in each of their Townships/Group Housing schemes
Model 2: Private developers on private land
• Min. 40% of land set apart for EWS/LIG housing
• 12% of land for MIG-A category (G+3 flats)
• Free to use remaining land for HIG housing
• Several incentives like TDR Facility, waiver of EDC and other charges
Model 3: Private developers on acquired land
 Developers offered land under acquisition on payment of compensation for EWS/LIG flats.
 Incentives same as Model 2
Model 4: Private developers on government land
 Free government land for developers offering maximum number of free EWS/LIG flats (at least 50%)
 Open bidding process for developer selection
 Free to use remaining land with 10% for commercial
Model 5: Slum Housing
 Slum housing and redevelopment on a PPP model(policy in place, to be implemented)
FIVE MODELS OF PPP IN AFFORDABLE HOUSING

39. OPERATIONAL MODELS IN COUNTRY
 PPPmodels already operational in country;
◦ Gujarat Model
◦ Bengal Model
◦ Punjab Model
◦ Haryana Model
◦ Rajasthan Model
◦ Mumbai Model- Slum Redevelopment

40. HARYANA MODEL
Haryana Pioneer state in country to leverage private development.
Haryana state involved
• reputedbuilders
• to buy land from farmers
• planand develop it
• tocreate large housing stock
• through Plotted/flatted development
• by licensing of colonies/Group Housing
• Private developers required to provide;
• 20% of total plots for EWScategory,
• tobe disposed off
• to the eligible persons
• at a pricefixed by State government.

41. PUNJAB MODEL
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
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
• returningrest to landowner for selling plots
• no charges levied
• n o compensation paid for land up to 25%,
• with compensation upto35%
• Affordable Housing policy already in place
Private developers required to provide;
• 10% of total residential area
• for the EWSplots in case area of colony 40 Hectare
or more
• 10% apartments for EWScategory
in case number of apartment is 100
tobe disposed off
to the eligible persons
at a price fixed by State government.

42.  Incentive based PPP model
 Shortage of housing in EWS, LIG, and MIG categories
 Incentive based model where Private sector provides land,
construction, and internal infrastructure facilities
 Govt buybacks houses at low predetermined rates and
allottee pays for it
AFFORDABLE HOUSING Under PPP
42

43. CASE STUDIES

44. CASE
STUDY

45. CASE
STUDY

46. Project Brief
• Project Area – 6 acres
• Total Apartments – 980
• Rates on carpet area basis
• Allotment through Draw
• No maintenance charges for 5 years after possession
• No hidden charges
• Direct entry from 60 meter wide sector road
• Bank loan available
• Community Hall & Crèche in the society
PAYMENT SCHEDULE
ANDOUR HEIGHTS

47. 1 BHK
Flat Wise Details
Location Map
1 BHK (b)

48. 2 BHK 2 BHK (b)
Location Advantages
• Andour Heights” has a direct entry on 60 meter wide sector road
• Sector 71, due to the presence of ultra luxurious projects from brands like DLF
Alameda (Township), CHD, M3M, Vipul etc, is a gem location of Gurgaon
• 2 minutes drive from National Highway (NH-8)
• 26 minutes from IGI Airport
• Less than 400 mtr from Southern Peripheral Road (SPR) Gurgaon.
• Less than 4 Km from Sohna road (Omex City Centre) Gurgaon

49. THANK YOU
Kindly share the inputs, crits, queries or feedback at shanika.nishi@gmail.com