Housing

MASS HOUSING PROGRAMMES

MASS HOUSING PROGRAMMES
Mass Housing is an independent public authority
that provides financing for the construction and
preservation of affordable rental housing, and for
affordable first and second mortgages for
homebuyers and homeowners.
1. Pradhan Mantri Awas Yojana (PMAY): 2015
2.
PMAY is an NDA government’s flagship Affordable housing scheme implementing in between 2015-2022,
aiming for ‘Housing For All’. This scheme is divided into 4 parts

(a) In-situ slum redevelopment (ISSR):

Under this scheme the government uses the land of the slum dweller to make a house for them. The
scheme has leveraged by the large number of slum area in India. With the private partnership with the
eligible slum dweller, the government can use to develop their slum land to make affordable houses.
(b) Credit-linked subsidy scheme (CLSS):
Under this scheme, Credit-linked subsidy will be provided to the EWS Economically Weaker Section (EWS)
and Low Income Group (LIG) on Home loans. The subsidy is provided on both for buying or constructing
of house to the urban poor

• EWS with the annual Household Income Up to Rs.3 lakh/annum and house sizes upto the carpet area
of 30 sq.m. Upto loan amount 6 lakh at 6.5 interest subsidy.
• LIG with the annual Household Income from 3 lakh to Rs. 6 lakh/annum and house size upto the carpet
area of 60 sq.m. Upto loan amount 6 lakh at 6.5 interest subsidy.

(c) Affordable housing in partnership (AHP):

Under this scheme, Affordable house are provided to the EWS groups with financial assistance from with
different partnerships by States/UTs/Cities with the private sector. Each EWS house gets Rs. 1.5 Lakh
Central Assistance when at least 35% of the total constructed houses are for EWS category.
(d) Subsidy for Beneficiary-led individual house construction/enhancement.
Under this scheme, a subsidy is provided to EWS category people to construct or renovate their existing
houses. Assistance of ₹ 1.5 lakh per family is provided for new construction.

2. Rajiv Awas Yojna: 2011

3.
With over 5.6% of Indian population residing in slums in urban cities, the deplorable quality of services
make them highly susceptible to health hazards. The definition of a slum has evolvedover a period of time.
A slums is a residential area where dwellings are unfit for human habitation. Reasons include
overcrowding, faulty arrangements, poor design narrowness of street, lack of ventilation, light and/or
sanitation facilities. The Rajiv Awas Yojana, a centrally sponsored scheme to be implemented between
2013 and 2022, envisions a slum free India by 2022. One million beneficiaries will be covered under the
scheme with Rs 32,230 crore earmarked for its implementation in the 12th plan.

Extent of the problem

• 68 million people, or one in six Indians, lived in slums, across 2543 Indian towns (Registrar
general of india- 2013).
• 81% of slum residents have inadequate access to sanitation (NSSO, 2008-09).

Objectives
The scheme seeks to cover all slums, notified or non-notified, provide basic housing, civic infrastructure
 and social amenities to the slum and create affordable housing stock to prevent the growth of slums.
Furthermore, the scheme involves the beneficiary by expecting them to contribute some portions of the
fund so that there is a sense of ownership. The scheme facilitates institutional credit for the urban poor.

Institutional Mechanism

• National steering committee (NSC) is setup under the Minister for housing and urban
poverty alleviation and will be the overarching policy making body
• Central sanctioning and monitoring committee (CSMC), under Secretary of Ministry for
National Level housing and urban poverty alleviation, will consider and approve city and slum level
projects.
• Mission directorate is headed by the Joint Secretary and will implement RAY as per
guidelines of NSC and CSMC.

• State level sanctioning and monitoring committee (SLSMC), under the Chief
Minister will recommend selected projects for consideration of the Ministry.
• Each state will identify a state level nodal agency (SLNA) for coordination of the
State Level scheme and reform related activities.
• State mission directorate will be supported by a State level technical cell (SLTC) that
will consist of experts from fields of town planning, engineering, social development,
etc.

City Level

• City level mission under the mayor or chairman of urban local body will be set up. It will be
supported by city level technical cell (CLTC) with experts on lines of the SLTC.
• CLTCs can be constituted on a cluster basis for various cities or a common city and
state technical cell that has a population of less than 5 lakh.

• RAY seeks to involve the community from the stage of survey and planning to
implementation and social audit. Therefore, Slum dwellers associations at slum level
Community Level
and Slum dwellers federation at city level must be created.
• Self-help groups and area level federations created under National urban livelihood
mission may be used for the purpose.

Project Appraisal
Two-step implementation strategy is adopted in the scheme.
• Preparation of Slum free city plans of action (SFCPoA) will be the overall action plan of the urban local body that will
include investment requirements for improving and developing slums andthe civic infrastructure and housing plans
that will be provided to the urban poor for the next 10-15 years.
• Preparation of Detailed project reports (DPRs) for specific slums- as preparation of slum free city plans of actionmay
take time States/UTs may prepare DPRs for specific prioritized slums. The detailed project reports will concern one
slum at a time, while slum free city plans of action will cover the entire city.

State/UT will submit proposals(SFCPoA or DPRs) to the central government with the approval of the
 state level sanctioning and monitoring committee. These would be appraised by the agencies appointed
by the ministry such as building material and technology promotion council (BMTPC) and subsequently
with their recommendations will be sent to the RAY mission directorate. The mission directorate will
appraise the proposals before submitting them to the central sanctioning and monitoring committee
(CSMC). The final sanctioning authority will vary with the project cost.
Project Costs Sanctioning Authority

> Rs 100 crore- Central sanctioning and monitoring committee(CSMC) will be the
sanctioning authority

Rs 100- 300 crore Minister of urban housing and poverty alleviation will be
sanctioning on recommendation of CSMC

Rs 300- 500 crore Minister of urban housing and poverty alleviation and Minister of
finance will be sanctioning on recommendation of CSMC

>Rs 500 crore-. Competent authorities as determined by Ministry of finance will

be sanctioning

Funding Mechanism
RAY provides flexibility in the manner of construction and arrangement of funds. There are two models:
• Beneficiary led execution where the beneficiaries are involved in the construction of housing. This results in better
monitoring and also gives a sense of ownership to the beneficiaries. Funds to the beneficiary are released in not more
than 4 installments- 10% on commencement on construction, 30% once construction is up to plinth level, 40% once
construction is up to roof level and final 20% after completion.
• Executing agencies where execution of housing projects may be taken up by urban local bodies, or agencies like the
housing boards, development authorities, etc.

Funding pattern would vary with population of a city as per 2011 census.
Type of City Component Centre State Urban Benefi
Local ciary
Body
Housing 50% 25% - 25%
Population 5 Lakhs and above Infrastructure 50% 25% 25% -
Housing 75% 15% - 10%
Population less than 5 lakhs
Infrastructure 75% 15% 10% -
States in N.E Region & special Housing 80% 10% - 10%
category states(J&K,H.P and Infrastructure 80% 10% 10% -
Uttrakhand)

In Vijayawada(Population>5 lakhs), Andhra Pradesh the dhall mill slum area with 280 households was
taken up for redevelopment under Rajiv AwasYojana. The total project cost wasRs 1797.7 lakhs, with
1127.84 lakhs for housing and 669.86 lakhs for infrastructure. The costs were divided for housing were
divided with Centre: 563.92 lakhs, State:
225.57 lakhs, ULB: 0, Beneficiary: 338.35 lakhs. The costsfor infrastructure were divided with Centre:
334.93 lakhs, State: 200.96 lakhs, ULB: 133.97 lakhs, Beneficiary: 0.
The ULB share can also be borne by the State/UT. MPLAD/MLALAD funds may also be used as a substitute for ULB share.

There are provisions for institutional credit to beneficiaries –

• Rajiv RinnYojana will provide interest subsidy of 5% on long tenure loans of 15-20 years, with an upper limit of Rs 5
lakh for economically weaker sections(EWS- with annual income uptoRs 1 lakh) and upper limit of Rs 8 lakh for lower
income groups(LIG- with annual income between Rs 1-2 lakh).
 • Credit Risk Guarantee Fund, operated by the National housing bank, guarantees lending institutions a coverage of
85% for loans from Rs 2- 5 lakh and 90% in case of loans uptoRs 2 lakh.

Governance and Monitoring

The web based MIS, called Integrated Poverty
Monitoring System(IPoMS), developed by
ministry of urban housing and poverty
alleviation under JNNURM will be used to
track projects under RAY. There would also
be a third party inspection & monitoring
agency(TPIMA) at central and state level.
Furthermore, the State/UT should also
conduct social audits of the projects under
implementation. The IPoMS will also have a
pre-approval tracking system for online
submission of detailed project reports,
physical and record various sanctions and
release orders. There will also be provision for
uploading pictures of on site

Rajiv Awas Yojana (RAY) is an affordable housing scheme announced in 2009 aiming for a “Slum Free
India”.This affordable housing scheme includes:
a. The slum properties are used to make apartments for the slum land owner.

b. Encourages the state and union territories (UT) to bring all illegal constructions within a formal system.

c. Affordable housing in partnership (AHP) with the States & UTs. Each EWS house gets Rs. 75,000 Central
Assistance for house sizes upto the carpet area of 21 to 40 sq.m when at least 250 dwelling units of the
total construction project.

Rajiv Awas Yojana (RAY) for the slum dwellers and the urban poor envisages a ‗Slum-free India by
encouraging states and union territories to tackle the problem of slums in definitive manner.

RAY will provide the support to enable states to redevelop all existing slums in a holistic and integrated
way and create new affordable housing stock. The existing schemes of Affordable Housing in Partnership
and Interest Subsidy for Housing the Urban Poor(ISHUP) would be dovetailed into this scheme. No new
projects under the BSUP and IHSDP scheme of the Jawaharlal Nehru National Urban Renewal Mission
(JNNURM) will be sanctioned once implementation of RAY scheme is taken up except to consume existing
11th Five Year Plan allocations that may be left uncommitted.

The scope of RAY envisaged is as follows:

Integrated development of all existing slums, notified or non notified, i.e development of infrastructure
and housing in the slums or rehabilitation colonies for the slum dwellers or urban poor, including water
supply, sewerage, drainage, solid waste management, approach and internal roads, street lighting,
community facilities such as community toilets and baths, informal sector markets and livelihoods
centeres. Other community facilities like preschools, child care centres, schools, health centres to be
undertaken in convergence with programmes of respective ministries.
 3. Interest Subsidy for Housing the Urban Poor (ISHUP): 2009
4.
This scheme mandates subsidy of 5% p.a in interest on housing loans upto Rs. 1.00 lakh loan amount to
the EWS and LIG as part of credit.
Under this affordable housing scheme, the Minister for Housing and Urban Poverty included the Regional
Rural Banks (RRBs), Private & public sector Banks and Self Help Groups (SHGs) for expanding credit flow
to the housing sector.
This scheme also encourages the poor sections (EWS & LIG) to avail for housing loan facilities.
•Modification in the guidelines of JNNURM (BSUP) to facilitate and incentivize land assembly for affordable
housing.
•Central assistance of 25% for the cost of the provision of civic services at an approximate cost of INR 5,000
crore.
•Support the construction of 1 million affordable dwelling units in phase I, with a minimum of .25 million
EWS dwelling units
•Disbursement of funds linked to the actual provision of amenities. A normative cap per EWS/LIG dwelling
unit is fixed in consultation with the states for the purpose.

4. National Urban Housing & Habitat Policy: 2007

The core focus of this Policy is supply of “Affordable Housing For All” with special emphasis on low income
sections of society such the urban poor, SC/ST, BC and Minorities.
It promotes and accelerates the development of cost-effective & quality approved building by the use of
modern technologies. And special Provision given to Women to own a house.

About Policy

• 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 Policy intends to promote sustainable development of habitat in the country with a view to ensuring equitable
supply of land, shelter and services at affordable prices to all sections of society. Given the
magnitude of the housing shortage and budgetary constraints of both the Central and State Governments, the
National Urban Housing and Habitat Policy, 2007 focuses the spotlight on multiple stake-holders namely, the
Private Sector, the Cooperative Sector, the Industrial Sector for labour housing and the Services/ Institutional
Sector for employee housing. In this manner, the Policy will seek to promote various types of public-
private partnerships for realizing the goal of "Affordable Housing for All".
• the formulation of the National Housing Policy is an ongoing process which started in 1986. Last time policy was
revised in 1998. Since then there have been major changes in Habitat and Human Settlement issues. Particularly,
the urban housing sector has been facing emerging challenges with regard to availability of affordable shelter, growth
of slums, and gaps in provision of basic services to the urban poor.

Salient features
The salient features of the National Urban Housing & Habitat Policy 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, labour 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.

Action Plan
The Action Plan stated in the Policy is as follows:
• Encouragement and support to be provided to State Governments by the Central Government for preparation of State
Urban Housing and Habitat Policy and Action Plan.
• State/UT Action plans to focus on accelerated flow of funds.
• State / UT level policy to provide road map for institutional, legal and financial incentives.
• State / UT plans to indicate concrete steps for encouraging a participatory approach.
• Periodic review of implementation of Policy and Action Plan at State level to be carried out.
• Preparation of 15-20 years perspective plans in the form of City Development Plans (CDPs) based on spatial planning
at the city level.
• Setting up of a High Level Monitoring Committee for periodic review and implementation of the Policy and for making
amendments, modifications wherever considered necessary.
5. Jawaharlal Nehru National Urban Renewal Mission (JNNURM): 2005

JNNURM was launched in December 2005 with an aim to encourage and expedite urban reforms in India.
For the housing sector in particular, its main aim was construction of 1.5 million houses for the urban poor
during the mission period (2005-2012) in 65 mission cities. Table 2.8
Financing of Projects under JNNURM

Grant Central State/ULB /

Category of cities
Share Parastatal Share
Cities with above 4 million population as per 2001 50% 50%
census
Cities with above 1 million population but less than 4 50% 50%
million population as per 2001 census
Cities / towns in north-eastern states and Jammu and 90% 10%
Kashmir
Other cities 80% 20%

JNNURM is a city modernisation scheme has two components

1. Basic Services for Urban poor (BSUP)

2. Integrated Housing and Slum Development Programme (IHSDP): development of slums by providing
affordable houses with basic amenities

There are many real estate company making affordable apartments in Chennai for encouraging the
middle class group to buy their own house.
The Central government is coming up with so many affordable housing schemes to balance the demand
and supply of the houses. Apart from that, many State Governments like Tamil Nadu, Andhra Pradesh, and
Gujarat etc are also encouraging EWS, low and middle income groups to afford houses either by loan
subsidy, rental benefits or by constructing affordable houses.
awaharlal Nehru National Urban Renewal Mission (JNNURM) was a massive city-modernisation scheme
launched by the Government of India under Ministry of Urban Development. It envisaged a total
investment of over $20 billion over seven years. It is named after Pt. Jawaharlal Nehru, the first Prime
Minister of India .

The scheme was officially inaugurated by Prime Minister Manmohan singh on 3 December 2005[1] as a
programme meant to improve the quality of life and infrastructure in the cities. It was launched in 2005
for a seven-year period (up to March 2012) to encourage cities to initiate steps for bringing phased
improvements in their civic service levels. The government had extended the tenure of the mission
foranother two years, i.emfrom April 2012 to March 31, 2014.

JNNURM was a huge mission which relates primarily to development in the context of urban
conglomerates focusing to the Indian cities. JnNURM aims at creating ‘economically productive, efficient,
equitable and responsive Cities’ by a strategy of upgrading the social and economic infrastructure in cities,
provision of Basic Services to Urban Poor (BSUP)[2] and wide-ranging urban sector reforms to strengthen
municipal governance in accordance with the 74th Constitutional Amendment Act, 1992.
Structure
Sub-missions
JNNURM primarily incorporates two sub-missions into its program:
The Sub-Mission for Urban Infrastructure and Governance administered by the Ministry of Urban
Development, with a focus on water supply and sanitation, solid waste management, road network, urban
transport and redevelopment of old city areas.
The Sub-Mission for Basic Services to the Urban Poor (BSUP) administered by the Ministry of Housing and
Urban Poverty Alleviation with a focus on integrated development of slums.

In addition to this, it has two further components:

The Sub-Mission for Urban Infrastructure Development Scheme for Small & Medium Towns (UIDSSMT)
administered by the Ministry of Urban Development, with a focus on subsuming the schemes of Integrated
Development of Small and Medium Towns (IDSMT) and Accelerated Urban Water Supply Programme
(AUWSP) which aim at planned urban infrastructural improvement in towns and cities under its purview.
The Sub-Mission for Integrated Housing and Slum Development Programme (IHSDP) administered by
Ministry of Housing and Urban Poverty Alleviation (MHUPA) was envisaged and brought into effect in
1993–94 in accordance with providing the entire population with safe and adequate water supply
facilities. The program is mainly implemented in towns with populations less than 20,000 as per the 1991
census.

Objectives
• Focused attention relating to infrastructural services in the context of integrated development is
to be covered under the mission.
• Make efficient and increase self-sustaining capabilities of cities as per the sector proving
infrastructural services by securing the linkages between asset creation and asset management.
• Ensure adequate investment of funds to fulfill deficiencies in the urban infrastructural services.
• Planned development of identified cities including peri-urban areas, out growths, urban corridors,
so that urbanization takes place in a dispersed manner.
• Scale up delivery of civic amenities and provision of utilities with emphasis on universal access to
urban poor.
• To take up urban renewal programme, i.e., re-development of inner (old) cities area to reduce
congestion.
• Provision of basic services to the urban poor including security of tenure at affordable prices,
improved housing, water supply and sanitation, and ensuring delivery of other existing universal
services of the government for education, health and social security.
•

Duration
The duration of the mission is seven years beginning from December 2005. During this period, the mission
sought to ensure sustainable development of participating cities. An evaluation of the experience of
implementation of the mission would be undertaken before the end of the Eleventh Five Year Plan in 2012.
The duration of the mission was extended by two more years: until 31 March 2014.[citation needed]

Implementation mechanism
The funds are channeled through state-level agencies, where grants from the central and state
governments are pooled and passed on as grants or soft loans to cities provided that they have prepared
development strategies and that the investments identified fit within these strategies. The mission
emphasizes transparency and accountability. It supports public-private partnerships and cost recovery to
make service providers financially self-sustaining.[3] The share of grant funding by the central government
can vary from 35% in the largest cities to up to 90% in cities in the Northeast. Most cities receive grants
covering 50% or 80% of costs depending on size.[8] Capacity building is also included in the mission to
assist urban local bodies to prepare strategies and projects.

Currently, ten projects are covered by JNNURM funds pertaining to road network, storm water drains, bus
rapid transit system, water supply, solid waste management, sewage treatment, river and lake
improvement, slum improvement and rehabilitation, all fall under its scope.
Coverage
As per the JNNURM guidelines, only select cities/Urban Agglomerations (UAs) as per 2001 Census have
been chosen for the implementation of the programme as per norms/criteria mentioned below:[7]

A Cities/UAs with 4 million plus population as per 2001 census 07

B Cities/UAs with 1 million plus but less than 4 million population as per 2001 census 28

C Selected cities/UAs (state capitals and other cities/UAs of religious/historic and touristic importance) 28