URBAN HOUSING

INTRODUCTION TO HOUSING AND HOUSING ISSUES- INDIAN CONTEXT

•The basic needs of mankind are food, cloth and shelter.

•Of this, Housing / Shelter is not only a basic need but is also providing a
sustainable base for the up-gradation of the economic status and the quality
of life of people.

•Comfort means a state of physical well-being and comfortable means to

have an adequate standard of living free from discomfort (Oxford Dictionary).

•The purpose of a home is to provide shelter and security from harsh

external elements of nature. One of the main functions of a home is also to
provide comfort.
Housing Scenario in India
• Rise in population in last 15 years is
more than 75 millions

• More than 50% of India's population

is likely to be urbanized by 2020.

• The rise from 2001 to 2010 as per

census is from 286.1 millions to 360
millions.

Problems in housing
• Lack of equitable supply of land,
shelter and services at affordable
price.

• The depletion of resources and their

effect towards next generations are
unfortunately neglected.
Architectural importance in neighbourhood unit
and city planning
Neighbourhood unit is based on the simple principle that one is planning for society and not for
aggregate of houses.

In case of big towns, it sometimes becomes difficult to develop a sense of neighbourliness, mainly for two
reasons. They are:

The neighbours are not dependent on one another’s company and aid because city life gives a wide field of
acquaintance and entertainment.

The neighbours may not have common modes and habits of living.
Principles of Neighbourhood Planning
1. Size
2. Boundaries
3. Protective Strips
4. Internal Streets
5. Layout of buildings
6. Shopping Centres
7. Community Centres
8. Facilities
GARDEN CITY MOVEMENT – SIR EBENEZER HOWARD
CLARENCE PERRY – NEIGHBOURHOOD UNIT & RADBURN
City Beautiful movement, American urban-planning movement led by architects,
landscape architects, and reformers that flourished between the 1890s and the 1920s.
The idea of organized comprehensive urban planning arose in the United States from
the City Beautiful movement, which claimed that design could not be separated from
social issues and should encourage civic pride and engagement. Its influence was
most prominent in cities such as Cleveland ,Chicago and Washington, D.C.
BROADACRE CITY – F.L.WRIGHT
CHANDIGARH – LE CORBUSIER
HAUSSMAN PARIS
BARCELONA SPAIN
DEMAND AND SUPPLY

1. India is undergoing transition from rural to urban society.

2. Increasing migration from rural to urban areas.
3. Mismatch between demand and supply of sites and services.
4. Disparity between high land costs of construction and lower incomes leading to
non sustainable situation.
5. Lack of equitable supply of land, shelter and services at affordable prices.
6. Depletion of resources in construction and negligence of ecology in design.
7. Lack of application of cost effectiveness and energy efficiency in construction.
• Rapid urbanization and industrialization has lead to excess migration, all these together
have led to deficiency in housing stock.
• Though the government is trying its best, still not able to cope up because of huge
backlogs.
• After the independence more focus was on industrialization through five year plans,
housing receives least importance. Its was only very late that the government recognized
the need for housing stock, due to increasing blighted areas.

• The demand for housing exceeds supply because of increasing population growth and
excess migration. Hence there is a greater scope for housing production.

• Housing production in India is contributed by various avenues, the private sector plays a
major role. But Its efficiency is hindered by legal aspects, as it is profit oriented, public
sector do not have sufficient resources to over come the same

• Hence, it is the public private partnership which will bring balance between the demand
and supply for housing
HOUSING NEED

Housing shortage at the beginning of 12th Five Year Plan(1.4.2012)24.71 million

dwelling units
Additional Housing Requirement for the 12th Plan (2012-2019)1.82 million dwelling
units
Total housing requirement during 12th Plan Period including the carried over
housing shortage 26.53 million dwelling units.

More than 99% shortage is for EWS/ LIG segments

Total : 24.71 m
EWS : 21.78 m
LIG : 2.89 m

MIG/HIG : 0.04 m
( Source-Technical Committee set up by Ministry of Housing & Urban Poverty
Alleviation)
The National Urban Housing & Habitat Policy 2007 seeks to promote various types of public-private
partnerships for realizing the goal of “ Affordable Housing For All’ with special emphasis on the urban poor.

The salient features of the National Urban Housing & Habitat Policy, 2007 are:

 Focus of the Policy is on affordable urban housing with special emphasis on the urban poor.
 Role of Housing and provision of basic services to the urban poor has been integrated into the objectives of the
Jawaharlal Nehru Urban Renewal Mission (JNNURM).
 Special emphasis has been laid on Scheduled Castes / Tribes / Backward Classes / Minorities, empowerment of Women
within the ambit of the urban poor.
 The Policy focuses on a symbiotic development of rural and urban areas in line with the objectives of the 74th
Constitution Amendment Act.
 Within the overarching goal of "Affordable Housing for All," emphasis has been laid on urban planning, increase supply
of land, use of spatial incentives like additional Floor Area Ratio (FAR), Transferable Development Rights, etc., increased
flow of funds, healthy environment, effective solid waste management and use of renewal sources of energy.
 Encouraging Integrated townships and Special Economic Zones.
 10-15% of land in every new public/private housing projects or or 20-25% FAR
whichever is greater to be reserved for EWS/LIG Housing through appropriate spatial
incentives.
 Private Sector to be permitted land assembly within the purview of Master Plans.
Action Plans for urban slum dwellers and special package for cooperative housing, labor
housing and employees housing is to be prepared.
 States to be advised to develop 10 years perspective plan for housing of EWS/LIG.
 Policy gives primacy to provision of shelter to urban poor at their present location or
near their work place.
 Approach will be in-situ slum rehabilitation. Relocation will be considered only in
specific cases.

Micro finance institutions to be promoted at state level to expedite flow of finances to urban
poor.
Model municipal laws to be prepared by the Central Government.
Detailed city maps to be prepared based on GIS, aerial survey and ground verification.
Use of proven cost effective technology and building materials to be encouraged.
Development of mass rapid transit system at sub-regional level envisaged.
Green cover for cities to be encouraged for balanced ecological development.
All States to be encouraged to develop a "Habitat Infrastructure Action Plan" for all cities with a
population of over one lakh.
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 :
1.Basic Services for the Urban Poor (BSUP) seeks to
provide seven entitlements/services - security of
tenure, affordable housing, water, sanitation,
health, education and social security in low income
segments in the 65 Mission Cities.
2.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 availed for
acquisition/construction of house
 Encourages poor sections to avail of loan facilities through Banks/HFCs
 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 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 Plan Rs.1100 crore.

Affordable Housing in Partnership :

Modification in JNNURM
 Modification in the guidelines of JNNURM 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.
RAY Features of the RAY program
 Large scale financial support from the Centre to States for planning, upgrading and redeveloping existing
slums in cities, 100% for upgrading and up to 50% for housing.
 Support to cover whole city requirement to ensure that no slum/ no-slum dweller is left out
 States expected to assign property rights for slum dwellers

 State funding to be used to massively

upgrade infrastructure and services in slums
to same level as the rest of the city
 Concurrently, Central Government working
with banks to enable large – scale credit for
EWS/ LIG housing, both in-situ and fresh
stock
 Credit Guarantee Fund
 Mandatory earmarking of land for the poor
as part of preventive strategy
Rajiv Awas Yojana
 Pursuance to the announcement made in the address of the President of India to the Joint Session of Parliament on
4.6.2009 considerable exercise is going on in the Ministry in consultation with Planning Commission for launching
Rajiv Awas Yojna aimed at Slum Free India based on ‘whole city approach’.
Jnnurm RAY
Pradhan Mantri Awas Yojana(PMAY)- Prime Minister’s Housing Scheme
 Launched on 25th June 2015 by Hon’ble Prime Minister of India
 Aims to provide ‘Housing for All’ by 2022 – 20 million units
 Coverage - All 4041 statutory towns in 3 phases
 Beneficiaries - EWS and LIG categories
 EWS: family with income upto Rs. 3 lakh;
 LIG: family with income from Rs. 3-6 lakh;
PMAY- Mission components

 Credit Linked subsidy component is

Central Sector Scheme while other 3 to
be implemented as Centrally Sponsored
Scheme.
 Beneficiary can take advantage under
one component only
Housing & Urban Development Corporation (HUDCO)
•Incorporated on 25th April 1970
•The principal mandate of HUDCO was to ameliorate the housing conditions of all groups and with a thrust to
meet the needs of the low-income group (LIG) and economically weaker sections (EWS)
•Formed to assist agencies and authorities in upgrading the housing conditions in the country, aims to provide
financing for housing developments
•HUDCO Niwas Yojana for the lower income group (LIG), HUDCO Niwas - HUDCO home loans by HUDCO Bank
•Motto: “Profitability with social justice”
•The activity areas of HUDCO include:
–Urban housing
–Rural housing
–Repairs and renewal
–Working women ownership housing
–Land acquisition
•Special Loan Scheme for rebuilding Tsunami affected villages
•Promotes use of alternative building material and appropriate technologies – cost effective & environment
friendly
HUDCO’s Role http://www.hudco.org

• HUDCO started a window for financing the development of on-site and off-site infrastructure while
developing the new areas in integrated manner call as 'Urban Infrastructure Finance Wing' in 1989-90
• The core or priority sector infrastructure facilities include projects in the sectors of water supply, sewerage,
drainage, solid waste management, roads and electricity in the urban areas.
• Later on development of social infrastructure facilities essential in the neighborhood areas but not essential
viable on stand alone basis undertaken by the government agencies were also included.
• The social infrastructure component like primary schools, working women hostels, health centre, play
grounds, police stations, courts, jails, crematorium etc. which are not financial viable received benefit of
funding at lower rate of interest.
• The funding of infrastructure projects in the year 1990 was relatively new concept as they required high
capital and had long gestation period while return was not-guaranteed as the political will to charge basic
services was not there.
• HUDCO entered in the area and provided long term loans (up to 20 years) to the ULBs for meeting the capital
requirement and moratorium during the construction period on cash flow basis.
• HUDCO intervention created awareness to charge the improved services so that enough return on the
investment is available to service the loan and maintain the services.
HUDCO-Objectives
The objectives of HUDCO include

• To provide long-term finance for construction of houses for residential purposes

• To finance or undertake, wholly or partly, the setting up of the new or satellite towns.
• To subscribe to the debentures and bonds issued
• To finance or undertake the setting up of industrial enterprise for building material.
• To administer the money received, from time to time, from the Government of India
• To promote, establish, assist, collaborate and provide consultancy services for the
projects
HUDCO- Implementing Agencies http://www.hudco.org

Implementing Agencies :

• State Level Financing Institutions/Corporations

• Water Supply and Sewerage Boards
• Development Authorities
• State Functional Agencies for Housing & Urban Development
• New town Development Agencies
• Regional Planning Boards
• Improvement Trusts
• Municipal Corporations/councils
• Joint Sector Companies
• Co-operative Societies/Trusts
• NGOs
• Private Companies/Agencies including BOT Operators, Concessionaires
 HUDCO- Approach
• HUDCO has always been consistently working towards the betterment of the living conditions of
the people with prime focus on the low income & economically weaker sections.
• HUDCO promotes environmentally appropriate settlements through intense & sensitive planning,
it encourages simple, inexpensive & aesthetically pleasing housing designs which make use of
locally available building material & indigenous construction technique, thereby reducing costs &
bringing housing within the affordability of the people.
• HUDCO has taken number of steps to see that the houses built for all families remain well within
their repaying capacity as given below:

• The Economically Weaker Section (EWS) with household income* of Rs. 2,500 per month or
less.
• The Low Income Group (LIG) with household income not more than Rs. 5,500 per month.
• The Middle Income Group (MIG) with household income not more than Rs. 10,000 per month
• The High Income Group (HIG) with household income more than Rs. 10,001 per month.
HUDCO- POLICY HUDCO- Major Activities
Emphasis on Poor Housing
•Urban Housing
• 55% of the housing finance to low income Group and weaker sections •Rural Housing
• Lower interest rates to low income groups •Vambay
•Slum Housing
• lower the unit cost, higher is HUDCO's loan component
•Staff Rental Housing
•NGO's & CBO's
•Pvt. sector Housing
•Land Acquisition
Urban Infrastructure
•- Roads / Bridges
•- Watersupply/
• Sanitation
•- Rehabilitation
•- Commercial / Office
•- Information Tech.
•- Education
•- Health Sector
•- Airport
•- Others
HUDCO- Housing Programmes and Financial allocation
for various types of Housing Projects at National level.
URBAN HOUSING
•Loans for urban housing schemes are provided to housing boards,
development authorities, city improvement trusts, municipal
corporations, public sector undertakings, state governments and other
such organizations for the construction of houses/flats and
development serviced plots including site and services.
• HUDCO encourages the development of serviced plots and part of
loan to be given to general public for construction by
themselves. These houses/flats/plots are made available to the
general public or on outright sale by the agencies concerned
depending upon actual demand. Rural Housing at Anantapur District
RURAL HOUSING
•Loans for rural schemes are given to the agencies nominated by the
state governments for implementing rural housing projects.
•Such schemes include construction of houses on plots allotted by the
state agencies to the landless labourers, & other Scheduled
Castes/Scheduled Tribes in the rural areas.
 HUDCO- Housing Programmes and Financial allocation
for various types of Housing Projects at National level.
COOPERATIVE HOUSING:-
•Cooperative housing is one aspect of the housing sector which has claimed a fair share of HUDCO assistance &
support. HUDCO has earmarked certain percentage of its annual loan sanction for cooperative, which it is expected to
progressively increase in the coming year.
Under such schemes, HUDCO lends money to the primary house building cooperative societies, state level housing
finance societies & the housing boards for undertaking housing projects for members of cooperative societies
according to norms available of Urban Housing Schemes.

CONSTRUCTION LOAN :-
•Another aspect of shelter for which HUDCO provides financing is the construction of houses on owned plots.
Beneficiaries who own plots are assisted in the construction of houses on them through loans provided to state
government housing agencies.

STAFF RENTAL HOUSING :-

•Loans under staff housing schemes are provided to corporate employers, both in the public & private sectors & to
statutory bodies for the construction of houses for sale or on a hire-purchase basis for their employees.
•Besides these, employees covered by the Central Govt. Insurance Schemes, Local agencies, Employees Co-operative
Societies etc. are also eligible for HUDCO loans.
•Further loans under this scheme are made available to non profit organisations at concessional rate of interest.
HUDCO- Housing Programmes and Financial allocation
for various types of Housing Projects at National level.
HOUSING THROUGH PRIVATE SECTOR
•Private builders are eligible for project linked loan assistance from HUDCO for undertaking housing &
commercial projects including land development & construction, for the benefit of the general public on
excess land allowed to be retained by the Competent Authority in terms of Section 20 & 21 of the Urban Land
(Ceiling & Regulation) Act 1976 & also on any other land.
•HUDCO finance upto 50% of the total estimated cost of the project including the cost land, land development
& building construction including internal services, but excluding the capitalised interest on investment,
supervision charges etc.

REPAIRS, RENEWALS & UPGRADATIONS

•HUDCO financial assistance is available to housing boards, slum clearance boards, development authorities,
improvement trusts, local bodies and any other agency authorised by state govt. for repairs & renewal mainly
consisting of structural repairs to old & dilapidated building such as :
•strengthening of the structures,
•replacement or repairs of roof,
•replacement or repairs of fittings i.e. Sanitary and Water Supply installation etc. and
•any other item necessary for maintaining the building in sound condition as per municipal byelaws & for
provision of essential amenities to the residents.
HUDCO- Housing Programmes and Financial allocation
for various types of Housing Projects at National level.
HOUSING SCHEMES THROUGH NGOs/CBOs
•HUDCO provides loan assistance for house construction/upgradation of economically weaker sections, for
schemes taken up through NGO's on a pilot basis.
•Schemes proposal envisaging construction of houses or upgradation/repairs/additions to the existing houses
for the benefit of the urban poor can be taken up with HUDCO's financial assistance through NGO's.
•HUDCO would also consider to extend a line of credit to the NGO's for the purpose of implementation of
schemes mentioned above. In addition technical assistance can also be made available to NGO's for
organisational capacity building programmes for implementation of such schemes.
•HUDCO also receive & consider application for loans for such schemes through Voluntary Agencies or Non-
Governmental Organisations (NGO's) who have the experience of undertaking integrated community
development programmes for the minimum period of 3 to 5 years with actual loan recovery performance
during the last 3 years of at least 75%.
•The NGO's seeking HUDCO's loan assistance should preferably have some experience in shelter sector
programmes.
WORKING WOMEN CONDOMINIUM
•HUDCO few years back evolved a new concept the Working Women Ownership Condominium through which
relief can be provided for single working women's needs, with grant from the government.
HUDCO- Housing Programmes and Financial allocation
for various types of Housing Projects at National level.
VALMIKI AMBEDKAR AWAS YOJNA (VAMBAY)
•Valmiki Ambedkar Awas Yojna (VAMBAY) was launched by Govt. Of India in 2001-02 to provide shelter or
upgrade the existing shelter for people living below poverty line in urban slums which will help in making
cities slum free.
•This scheme has an objective to provide shelter and upgrade the existing shelter for below poverty line
families in urban slums. The scheme is shared on 50:50 basis with states.
•Preference is given to women headed households. The govt. will release subsidy on a 1:1 basis with loan.
Also a National City Sanitation project under one title of "Nirmal Bharat Abhiyan" is an integral sub
component of VAMBAY in with 20% of total allocation under VAMBAY wil be used.
TWO MILLION HOUSING PROGRAMME
•Govt. of India has been implementing two million housing programme since 1998 which envisages
construction of 20 lacs additional houses every year.
•Out of the 20 lakh houses, 13 lacs are to be constructed in rural areas and 7 lac in urban area. Under this
programme, every year HUDCO has been entrusted with the task of providing loan assistance to facilitate the
construction of 6 lac houses in rural houses & 4 lac in urban areas.
HUDCO- Housing Programmes and Financial allocation
for various types of Housing Projects at National level.
NIGHT SHELTER
• The Government of India and HUDCO have introduced a scheme of providing Night Shelters for pavement dwellers and
thereby improving the living conditions of the pavement dwellers.
• It envisages a minimum level of basic infrastructure facilities such as community toilets and bathing units, drinking water
facilities in addition to dormitory sleeping accomodation and locker facilities for which a nominal amount is charged
from the beneficiaries.

SLUM UPGRADATION & ENVIRON- MENTAL IMPROVEMENT SCHEMES

•The loans under such schemes are given to the housing boards, slum clearance board, development authorities,
improvement trusts, local bodies etc. to help the urban poor for upgradation/improvment of slum as well as housing in
inner city areas which are predominantly inhabited by low income groups.

Work Area-cum-Housing
•Weavers Housing.
Housing linked with Pit Loom, Bench Loom.
•Coir Reelers housing.
Housing in Clusters with Coir Reeling activity in central area as a group activity.
•Beedi Workers Housing.
Housing with provision for Beedi Rolling platform and storage for raw material and finished products.
HUDCO NIWAS

HUDCO offers financial assistance to individuals to enable them to acquire a home of

their own through its “HUDCO NIWAS” Individual Housing Loan Scheme.

“HUDCO NIWAS” offers Home loan for:-

a) Construction of a house;
b) Purchase of House or Flat;
c) Purchase of a plot from Public Agencies/Co-Operative Societies of Government
employees/Reputed Developers;
d) Extend or improve the existing House or Flat;
e) Refinancing of existing housing loans from other financing
Institutions/Banks/Employers.
HUDCO Sanjha Swachhata Abhiyan
• HUDCO, as a part of its social responsibility, is determined to fulfill its commitment
towards ensuring a clean habitat for the country.
• Recently, Government has taken initiatives for providing better basic sanitation
facilities to the general mass of the country by launching Community Toilet and
Sanitation Programme - "Sanjha Swachhata Abhiyan (SSA)".
• This programme was launched on 30th January, 2006 at Jhajjar, Haryana.
• The main emphasis to initiate the SSA is to ensure clean habitat by way of housing
and non-conventional locally available building materials, etc.
• HUDCO would be providing subsidy for the WC seats/bath complexes @ Rs. 20,000
per seat. The subsidy component of HUDCO for SSA is available to the nominated
Government Agencies, Corporate State Agencies, NGOs, CBOs and Charitable
trusts/Institutions
• HUDCO would also be providing soft loan assistance to such agencies, who are
undertaking the construction work for the said project
1.Slum Clearance Board
Tamil Nadu Slum Clearance Board a pioneer institution for development and rehabilitation of urban slums
was set up in 1970 with the motto 'God, we shall see, in the smile of the poor ' for the clearance and
improvement of urban slum areas in Tamil Nadu. It has been implementing various Housing, Slum
Improvement and Rehabilitation and Resettlement schemes to ameliorate the living conditions of the slum
dwellers in Tamil Nadu.

OBJECTIVES
•To clear all the slums in Chennai & to provide self contained hygienic tenements.
• To prevent the growth of slums & encroachments
•To prevent the eviction of slum dwellers by private owners and to provide the slum families with security of
tenure.
•To provide basic amenities like water supply, street lights, storm water drains, sewer line, etc to the slum
areas
HOUSING FOR ALL MISSION
The “Vision 2023” a strategic long term plan for infrastructure development to high growth for
the first time in Tamil Nadu for rapid economic growth. This envisages the provision of houses
for all urban slum families in Tamil Nadu and making the cities / towns slum free before 2023.
Under this programme housing and infrastructure would be provided to all urban
slum families in Tamil Nadu at a cost Rs.65,000 Crore
POLICIES / STRATEGY
The three pronged strategy for developing / clearing slums followed by Tamil Nadu Slum Clearance Board are:
• In-situ plotted development and infrastructure improvement
• Wherever in-situ development is feasible, such slums are identified and taken up for in-situ improvement for provision
of basic facilities to make the areas habitable and for provision of tenurial rights to the occupiers after getting the land
transferred to the Tamil Nadu Slum Clearance Board.
In-situ tenemental schemes
• The slums located in unobjectionable poramboke areas, wherein equitable distribution of space to all is not feasible,
are cleared and tenemental schemes put up.
Rehabilitation and Resettlement scheme
• Wherever neither tenemental nor insitu development is feasible, (as in the case of objectionable porambokes like
water ways etc.,) Rehabilitation and Resettlement in tenements in nearby locations with necessary infrastructure is
taken up. The cleared site is then restored to its original use.
Other Programmes
• Tamil Nadu Slum Clearance Board has provided support to individual housing schemes under different programmes
like
• VAMBAY,
• Rajiv Gandhi Rehabilitation Package etc.,
• To ensure holistic development and economic upliftment of the poor, the Board has spear-headed community
development activities in the slums, under which it imparts vocational training and livelihood support, especially for
the youth and women.
RURAL HOUSING RURAL HOUSING CONTEXT
• Rural areas are often referred to as those areas outside of the city or urban
boundary or periphery where populations are spatially dispersed.
• Main economic activity providing job opportunities – Agriculture.
• House holds largely depend on social grants and remittances from family
members working in the city.
RURAL HOUSEHOLD CHARACTERISTICS
• Income is constrained – as the rural economy is not sufficiently vibrant to provide
them with jobs or self employment opportunities.
• Women form the majority of the rural population
• Low levels of literacy and education
Rural-Urban connections
RURAL
• Live hoods drawn from
agriculture, livestock, forestry
or fishing.
• Easy access to land for housing
and building materials.
• More distinct from govt.
• Limited access to
infrastructure and services(
due to distances)
• Less methods for earning cash.
• More for self provisioning.
• Urban characteristics in rural
locations(mining..etc.)
Urban
• Live hoods drawn from non
agricultural productions and
services.
• Difficult access to land for housing
(high land value)
• More vulnerable to bad governance.
• Access to infrastructure and services
is difficult because of high prices,
illegal status and poor govt.
• Greater reliance on houses as an
economic resources (asset).
• Greater reliance on cash for food,
water..etc.
• Rural characteristics in urban
locations (urban agriculture).
DEMOGRAPHIC TRENDS AND HOUSING NEEDS
• Estimated population in India in 2001 was 1029 million, a growth of 18.1% from 1991.
• Nearly 72% of Indian population lives in rural areas. Total number of houses in rural India
is 143 million(Census, 2001)
• 2 factors impacting rural housing
1. Declining fertility
2. Increasing urbanization
HOUSING SUPPLY AND ACCESS
During 1991-2001:
HOUSING CONDITIONS:
• 34.56 million new housing were
added.
• In rural areas, the mismatch
• 25.612 million new households were
formed. between required and
During 1971-81 available housing stock is not
• 3.66 houses were completed per 1000 as clear as the urban areas.;
persons • Two housing quality
During 1991-2001 measures:
• 4.65 houses were completed per 1000
persons 1. Type of structure
The number of houses completed is 2. Number of rooms per
quite low compared with that urban
areas where new completion is 7 house.
housing per 1000 persons.
HOUSING CONDITIONS:
• Type of structure:
• Pucca
materials are brick and mortar.
• Semi-pucca
materials are mud or thatch
• Kutcha
materials are mud or thatch
HOUSING CONDITIONS:
Number of rooms per house:
• In 2001, 39.8% of rural lived in one-room and 68.5% of rural lived one
or two room houses.
HOUSING CONDITIONS:
• Though there has been progress, the average size of rural homes is
disproportionately small compared to the average size of households.
• Overcrowding in existing homes is the main cause of new household
formation and this is driving the demand for new houses in the rural
areas.
• Urban and rural
Supply gap:
APPROPRIATE RURAL HOUSING TECNOLOGIES
Technologies for walling:
• Precast stone masonry black walling scheme
• Solid concrete block masonry scheme
• Concrete block making machine
• Solid hollow concrete blocks
• Concrete block shaker machine
• Rat trap bond masonry
• An improves hand molding for building bricks
• Thin precast RCC lintels in brick walls
• Non- erodible mud plaster for mud walls
• C brick technology
• Stabilized mud blocks
APPROPRIATE RURAL HOUSING TECNOLOGIES
Technologies for roofing
• Precast RC plank flooring / roofing scheme
• Precast channels units
• Preccast RC coed units
• L-pan roofing schemes
• Prefab brick panel system for flooring/roof
• Unreinforced pyramidal brick roofs
• Precast RC waffle units for floors and roofs
• Micro concrete roofing titles
• Country roofing tiles
• Improves method of making durable and fire retardant thatch roof
GOVERNMENT HOUSING INITIATIVES

• The government has formulated various initiatives targeted towards rural housing
but a comprehensive rural housing policy.

• Ministry of rural development has formulated an action plan for rural housing
that consists of the following programs.
1. Provision for upgrading unserviceable kutcha houses under the Indira Awaas
Yojana (IAY) in addition to new construction.
2. Credit cum subsidy scheme for rural housing
3. Innovative scheme for rural housing and habitat development.
4. Setting up of rural building centres
5. Samagra awas jojana
6. Enhancement of equity contribution by the Ministry of rural development to
HUDCO.
7. National mission for rural housing and habitat
8. Two million housing programmes
 INDIRA AWAS YOJANA(IAY)
• Implemented since 1985-86.
• Focus- provide assistance to rural households of BPL or sc/st . Also extended to ex-
servicemen families killed in action. 3% of total houses being reserved for physically and
mentally challenged persons below poverty line.
• Rs 13,840 crore has been spent for 10.34 million units upto 2003-4

CREDIT CUM SUBSIDY SCHEME

• Initiated in 1999 targeting households with annual income of less than Rs.32000.
• Assistance was in the form of loan and subsidy. Subsidy component less than Rs 10,000 and
maximum permissible loan amount was Rs.40000.
• DRDA responsible for loan arrangements from commercial banks, RRBs and housing finance
institutions.
• Subsidy funded through shared allocation from centre and state contributing in the ratio of 75:25.
• Scheme funded 85,564 households on an expense of Rs.77.79 crore. From 2002-3 it was merged with
IAY.
 INNOVATION SCHEME FOR RURAL HOUSING AND HABITAT
DEVELOPMENT
• Launched in 1999-2000 , objective of promoting cost effective, environmentally sound
construction technologies.
• Potential beneficiaries – recognised educational/technical institutions, corporate bodies,
government autonomous societies, development institutions and credible non-
governmental organisations with proven record in the field of rural housing.
• Maximum limit for assistance of ngo is Rs20,00,000 and for the government institutions
its Rs 50 lakh.
• 125 projects have been approved for funding

NATIONAL MISSION FOR RURAL HOUSING AND HABITAT

• To facilitate the induction of science and technology inputs on a
continuous basis to provide affordable shelter for all in rural areas
within specified timeframe through community participation.
2 MILLION HOUSING PROGRAMME
• Primary lending institutions are expected to finance an additional 2 million houses
annually with a focus on economically weaker and low income group housing. Of the 2
million housing 1.3 million are to be financed annually in rural areas.
• During 1998-2004, HUDCO has sanctioned loans for 3.3 million houses in rural areas.
• During 2000-3 primary lending institutions financed around 5.44 lakh houses.
PUBLIC SECTOR IN HOUSING
INVOLVEMENT OF PUBLIC SECTOR IN HOUSING
The public sector involvement is to be restricted to technological assistance. Subsidies are given mainly for the poor
and weaker sections of the society. Government policy will primarily be to facilitate housing by procuring and
developing build able land with basic services, manufacture and supply of improved building materials and
propagation of cost reduction technique of proven efficiency and easy availability.

ROLE OF PUBLIC SECTOR IN HOUSING

•Low income group and long term unemployed people are not able to gain access to private housing market, due to
high land value, increasing cost of building materials , etc. hence the public sectors cater to these needs to an extent.
•Housing provided by the public sector are at subsidized rate.
•Allocation is base on some criteria

HOUSING SCHEMES
•Subsidized industrial housing scheme
•Subsidized rental housing scheme
•Plantation labor housing scheme
•Low income group housing scheme
•Middle income group housing scheme
PUBLIC SECTOR IN HOUSING
VAROIUS PUBLIC HOUSING AGENCIES
Bangalore development authority
Karnataka housing board
TAMILNADU SLUM CLEARENCE BOARD
Tamilnadu housing board
HUDCO

SOURCES OF FUNDS
•Government grants
•Public agencies
•Financial institutions like L.I.C, HUDCO.

MERITS AND DEMERITS OF PUBLIC HOUSING AGENCIES

GOVERNMENT ACTS AS A PROVIDER
•many houses are left unoccupied due to poor quality of construction
•People do not know the value of things got in free

GOVERNMENT ACTS AS A FACILITATOR

•enables people to achieve housing stock, rather than providing it at free.
PRIVATE SECTOR IN HOUSING
INVOLVEMENT OF PRIVATE SECTOR IN HOUSING
It is very important to note whether the housing shortage should be tackled by the efforts and inputs of the
public sector or the private sector or both. As a matter of fact, financing by the private sector is still an
unexplored and unexploited field. Difficulties of liquidity, commonly connected with all real estate mortgages
may be on reason. According to the draft National Housing Policy and the Policy pronouncements of the
Planning Commission, the thrust in the housing sector activity is mainly on the private sector.
ROLE OF PRIVATE SECTOR IN HOUSING
•private sector participation is the backbone of the economic liberalization process and has enormous potential
in housing delivery efforts
•It is only interested in commercial housing projects where margin of profit is high
•It caters to high and upper middle income group only
 NEED OF THE PRIVATE SECTOR IN
PROVIDING HOUSING INFRASTRUCTURE
• The availability of adequate infrastructure facilities is critical to stimulate economic growth, improve
competitiveness and internationalization of the economy, and reduce poverty. However, infrastructure
projects generally require large financial outlays and long gestation periods.
• Moreover, as India relied almost completely on public sector provision of infrastructure, the continued
pressure on the public finances has underscored the need to review and redefine the role of the public
sector and to evolve appropriate policy, legal, and regulatory frameworks for private sector participation in
infrastructure development.
• For activities that are to remain in the public sector, service delivery will need to be improved and
increasingly oriented towards commercial principles. The Government recognizes that removal of
infrastructure constraints and increased investment will play a critical role in enabling the country to achieve
higher and sustainable growth, improvement in income levels, and reduction of poverty.

• As a reflection of this, the Ninth Plan strongly emphasizes the need for a more commercial approach to the
provision of infrastructure by PSUs and the importance of significantly boosting private sector participation.
• Private sector investment for provisions of urban housing infrastructure can not
take place unless a proper legal and regulatory framework for such investment is
created and developed which ensures a full cost plus recovery of such
investment.
• This calls for innovative reforms in municipal tax structure and user charges,
taking into account poor paying capacity of a sizeable section of urban
population.
• Various modes of Private-Public-Partnership (PPP) are being experimented by
different urban local bodies in the country.
• Some of the new techniques that are being applied by the city authorities:
Municipal Bond, Transferable Development Rights (TDR),
Urban Shelter and Infrastructure Fund,
Use of Land as a Resource
THE OPPORTUNITIES FOR PRIVATE SECTOR
• Private sector participation in water supply:
• Development of water supply sources for bulk supply to local
bodies and industries, and water mains networks;
• Water distribution, billing, sewerage reclamation and reuse and
management of unaccounted for water and manufacturing of
water supply equipment; and
• Service and management contracts in water supply, sewerage/
sanitation and solid waste management sectors.
• Privatization of solid waste management systems in several Indian
cities - especially improvements in reusability of recycled waste.
• Private investment in Mass Rapid Transit System (MRTS) and Light Rail
Transit System (LRTS) is being encouraged. Cities planning to
introduce MRTS systems include New Delhi, Bangalore and
Hyderabad.
THE OPPORTUNITIES FOR PRIVATE SECTOR
• Development of bypasses to large cities, bridges, construction and
maintenance of ring roads, arterial, sub arterial roads, flyovers and
other similar facilities in large Indian cities. Investment options
include arrangements such as Build-Own-Operate (BOO) and Build-
Own-Operate -Transfer (BOOT).
• Housing has been declared a priority area with a target of
constructing 2 million additional dwellings annually. Of this 0.7 million
are planned to be constructed in the urban areas and the rest in rural
areas. The Government has repealed the Urban Land (Ceiling and
Regulation) Act, 1976. The Repeal Act has already come in force in the
states of Haryana, Punjab, UP and the Union territories. This would
release substantial land for housing development