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INTRODUCTION HOUSING OF THE POOR IN THE DEVELOPING COUNTRIES HAS BEEN IN
THE FOCUS OF THE INTERNATIONAL DEVELOPMENT DEBATES FOR ALMOST HALF A CENTURY. UNTIL THE LATE
KARNATAKA HOUSING AND HABITAT POLICY- 2009
NEED FOR HOUSING POLICY •NEED FOR KARNATAKA HOUSING AND HABITAT POLICY EMERGES FROM THE GROWING
REQUIREMENTS OF SHELTER AND RELATED INFRASTRUCTURE •BOTH AT RURAL AND URBAN CENTRES AS ALSO DUE TO THE CHANGE IN ECONOMIC AND SOCIAL ENVIRONMENT, GROWING URBANIZATION, MISMATCH IN DEMAND AND SUPPLY OF DEVELOPED LAND AND HOUSES AT AFFORDABLE RATES AND INABILITY OF POORER SECTIONS OF THE POPULATION TO HAVE ACCESS TO FORMAL LAND MARKETS AND FINANCES FROM FINANCIAL INSTITUTIONS LEADING TO A NON-SUSTAINABLE SITUATION.
HOUSING PROGRAMMES IN KARNATAKA STATE. Norms for selection 1. Government programmes for Housing are aimed at economically weaker sections of the Society. A family with an income of less than Rs.11800/- p.a. is considered eligible. 2. The Government of India: The economic parameters of EWS and LIG are defined as households having an average monthly income up to Rs. 3300 and households having an average monthly income between Rs.3301 and Rs.7300. This definition is followed for assistance under ISHUP. 3. Under IAY norms are different. Rural households having an annual income of upto Rs.32000/- are eligible. 4. Housing profile of Karnataka State as per 2001 census
SUSTAINABLE URBAN HOUSING The interaction between sustainability and urban housing has only been discussed for the last decade. There has been and still is being presented considerable literature on what might constitute sustainable urbanisation e.g. the provision of basic needs, appropriate technology, urban management and job creation, but seldom has these components been pulled together into an overall framework for sustainable urban housing. ECONOMICAL SUSTAINABILITY The definition of Low-cost (housing) depends on the economical capacity of the target group. If the house and services are too expensive, the poor cannot afford to live there and the programme will fail. One concept may be affordable in one part of the world, but too expensive in another. ENVIRONMENTAL SUSTAINABILITY Modern housing development has a major impact on the ecological system. The master plan of a specific housing project has to be adjusted to the surroundings. The damage to sensitive landscapes, including scenic, cultural, historical, and architectural must be minimised. TECHNOLOGICAL SUSTAINABILITY Appropriate technology is very important when discussing low-cost housing. The use of technology has to be in accordance with the local conditions and at the same time be durable, reliable and functionally constructed to a modern life. SOCIO-CULTURAL SUSTAINABILITY The design of the housing and the use of the materials have to correspond to local building traditions and to the user group’s way of living. Religious and ceremonial traditions have a great influence on this and have to be included in the planning process. TYPES OF HOUSING CO-OPERATIVES: O TENANT OWNERSHIP HOUSING SOCIETIES: THE LAND IS HELD EITHER ON LEASEHOLD OR FREEHOLD BY THE SOCIETIES; THE MEMBERS OWN THE HOUSES, AND ARE LEASEHOLDERS OF THE LAND. THEY MUST STRICTLY COMPLY WITH REGULATIONS REGARDING SUBLETTING
AND TRANSFERRING OF HOUSES BUT THEY CAN BUILD THEIR HOUSES ACCORDING TO THEIR OWN NEEDS AND TASTE. O TENANT CO-PARTNERSHIP HOUSING SOCIETIES: THE SOCIETIES HOLD BOTH LAND AND BUILDING, EITHER ON LEASEHOLD OR FREEHOLD BASIS, AND MEMBERS HAVE AN OCCUPANCY RIGHT UPON PAYING AN INITIAL SHARE AND A MONTHLY RENT.
80'S MOST OF THE PROGRAMMES
AND PROJECTS WERE CENTRALISED PRESCRIPTIVE AND TOP-DOWN ORIENTATED, BUT THIS HAS GRADUALLY BEEN CHANGING IN THE LAST DECADE TOWARDS AN END USER, BOTTOM-UP ORIENTATION, WHERE GOVERNMENT AT ALL LEVELS TAKE THE ROLE OF FACILITATING AND ENABLING THE MARKET TO WORK. IN MOST DEVELOPING COUNTRIES SUSTAINABLE DEVELOPMENT IS ONLY UNDERSTOOD AS SUSTAINABLE ECONOMICAL GROWTH AND IN MANY NORTHERN COUNTRIES THE FOCUS HAS BEEN ON THE ECOLOGICAL ISSUES.
THEREFORE IT IS IMPORTANT TO ELABORATE ON THE DEFINITION. MEETING THE NEEDS OF THE PRESENT
REFERS TO THE DEVELOPMENT COMPONENT OF SUSTAINABLE DEVELOPMENT WHICH INCLUDE, AND THAT IS IMPORTANT; ECONOMICAL, SOCIAL, CULTURAL, HEALTH AND POLITICAL ISSUES. THE SECOND PHRASE OF THE DEFINITION...WITHOUT COMPROMISING THE ABILITY TO MEET THOSE OF THE FUTURE...IS MOSTLY REFERRING TO THE ENVIRONMENTAL ISSUES.
SUSTAINABLE DEVELOPMENT IS THEREFORE MUCH MORE
COMPLEX THAN WHAT IS THE GENERAL PERCEPTION.
WHAT IS AFFORDABLE HOUSING?
•AFFORDABLE HOUSING IS A TERM USED TO DESCRIBE DWELLING
UNITS WHOSE TOTAL HOUSING COSTS ARE DEEMED AFFORDABLE TO A GROUP OF PEOPLE WITHIN A SPECIFIED INCOME RANGE.
INCOME LEVEL EWS LIG INR 1.5 lacs per annum INR 1.5 to 3 lacs per annum INR 13 to 10 lacs per annum
DWELLING SIZE Upto 300 sq.ft 300 to 600 sq.ft
AFFORDABILITY EMI to monthly income 30 to 40 % House price to annual income ratio < 5.1 House price to annual income ratio < 5.1
600 to 1200 sq.ft
•Defining affordable housing in India is a difficult task given that at every square kilometer of the country, the dynamics of the market are different. •At KPMG and CREDAI, we have therefore broadly defined affordable housing in India for Tier I, II and III cities based on three key parameters:
FINANCING HOUSING CO-OPERATIVES ARE FINANCED BY MEMBERS’ SHARES AND SAVINGS
AND ASSISTANCE FROM THEIR FEDERATIONS OR OTHER FINANCIAL INSTITUTIONS. THE FEDERATIONS OBTAIN FINANCING FROM: • SHARES FROM THE HOUSING CO-OPERATIVES, THE STATES AND OTHER COOPERATIVE INSTITUTIONS; • LOANS FROM THE HOUSING AND URBAN DEVELOPMENT CORPORATION (HUDCO), THE NATIONAL HOUSING BANK (NHB), THE LIFE INSURANCE CORPORATION OF INDIA (LIC), COMMERCIAL AND COOPERATIVE BANKS, DEPOSITS FROM MEMBERS; • DEBENTURES GUARANTEED BY THE GOVERNMENT. STATE FEDERATIONS BORROW LOANS FROM FUNDING AGENCIES AND MAKE THEM AVAILABLE TO THEIR AFFILIATED PRIMARY HOUSING COOPERATIVES AS WELL AS INDIVIDUAL MEMBERS. THEY CHARGE INTEREST MARGIN OF AROUND 1% TO MEET THEIR ADMINISTRATIVE COSTS.
JAWAHAR LAL NEHRU NATIONAL URBAN RENEWAL MISSION
The primary objective of JNNURM is to create economically productive, efficient, equitable and responsive cities. The mission focuses on: •Integrated development of infrastructure services; •Securing linkages between asset creation and maintenance for long run project sustainability; •Accelerating the flow of investment into urban infra stucture services; •Planned development of cities including the peri urban areas, outgrowths and urban corridors; •Renewal and redevelopment of inner city areas; •Universalisation of urban services so as to ensure their availability to the urban poor.
STRATEGY OF THE SCHEME The scheme for construction of affordable houses in partnership visualizes that the cost of land and construction would be held down to affordable levels: • Land costs intermediated by States/UTs and Development Authorities/Urban Local Bodies, by providing land at nominal rates (not including more than cost of acquisition and development costs of land) for specified housing or integrated housing projects. • Costs of land can also be intermediated by attracting private developers to build on their land, by granting zoning-related incentives where ever infrastructure permits densification. • Cost of construction can be held down by construction through no profit no loss organizations or at reasonable profit. • Cost of construction can also be driven down by planning layouts which mix EWS/LIG/MIG with HIG houses and commercial layouts, and cross subsidizing through the premium earned on the sale of HIG and commercial spaces. • States/UTs could reduce costs of housing further by charging a reduced stamp duty to a maximum of 2% for affordable houses (LIG) and nil (0%) for EWS under this scheme and/or charging reduced tax rates on inputs for affordable housing • Cost of construction can also be driven down by adopting appropriate construction technologies.
5. 9 lakh houses were constructed with Government funds upto the year 2003. Starting from 2003-04, the State has been spending a lot of its budgetary resources for housing. 6. There are different housing schemes for the rural and urban areas. 7. Housing Outlay has been increasing year by year. It was 4% in ninth plan and 5.9% in Tenth plan period, though the actual expenditure was 5.1% and 13% respectively. 8. Under IAY, the State has increased the unit cost to Rs.40000/- to bring about uniformity in all the housing schemes implemented by the State. State Government has increased its share from Rs.8750 to Rs.13750 per unit. Government of India share remains at Rs.26250. 9. A Survey was conducted during May-June 2003 to ascertain the number of site less and houseless families. The number as per the survey was as under.
TYPES OF SOCIETIES-SUPPORT SYSTEM FOR HOUSING CO-OPERATIVES O HOUSING MORTGAGE SOCIETIES: THESE ARE LIKE CREDIT SOCIETIES WHICH LEND MONEY TO THEIR MEMBERS FOR THE CONSTRUCTION OF HOUSES. THOUGH, THE ARRANGEMENT FOR THE CONSTRUCTION IS THE MEMBER’S RESPONSIBILITY. O HOUSE CONSTRUCTION SOCIETIES OR HOUSE BUILDING SOCIETIES: THEY BUILD THE HOUSES ON BEHALF OF MEMBERS, WHICH ARE THEN HANDED OVER TO THEM UPON COMPLETION AND THE MONEY SPENT IS RECOVERED THROUGH LOANS.
ROLE OF GOVERNMENT AND OTHER AGENCIES
GOVERNMENT OF INDIA HAS INITIATED VARIOUS PROGRAMMES AS JOINT
INITIATIVES WITH THE STATE GOVERNMENTS FOR PROVIDING HOUSING AND IMPROVING THE BASIC INFRASTRUCTURE REQUIREMENTS LIKE JNNNURM (ISHDP, BSUP), BHARAT NIRMAN, IAY ETC. ACCORDINGLY, IT IS THEREFORE, EXPECTED THAT THE CENTRAL GOVERNMENT WILL FURTHER INITIATE THE FOLLOWING STEPS: A. TO BRING IN APPROPRIATE REFORMS IN PLANNING, HOUSING, FINANCIAL AND LEGAL ASPECTS AS PER NHHP-98, NUHHP-2007 AND NRHHP (DRAFT REPORT). B. TO BRING IN APPROPRIATE POLICY CHANGES AND FINANCIAL ARCHITECTURE ENABLING FLOW OF INSTITUTIONAL CREDIT AND PRIVATE SECTOR INVESTMENTS IN HOUSING AND INFRASTRUCTURE PARTICULARLY FOR LOW INCOME HOUSING AND IN RURAL AREAS. C. TO PROVIDE APPROPRIATE FISCAL CONCESSIONS TO INDIVIDUALS, INSTITUTIONS INCLUDING THE CORPORATE FOR HOUSING, INFRASTRUCTURE, INNOVATIVE TO ENERGY SAVING CONSTRUCTION MATERIALS AND TECHNOLOGIES ETC. D. TO PROVIDE LIBERAL FUNDING UNDER ITS FLAGSHIP PROGRAMMES LIKE
A. TO ADOPT KARNATAKA STATE HOUSING AND HABITAT POLICY 2009. B. TO PREPARE SHORT, MEDIUM AND LONG TERM PROGRAMMES AND STRATEGIES TO ADDRESS THE HOUSING AND INFRASTRUCTURE REQUIREMENTS/ INCLUDING IDENTIFICATION OF FINANCIAL RESOURCES. C. TO BRING IN APPROPRIATE LEGAL AND REGULATORY ENVIRONMENT FOR INCREASED INVESTMENT IN HOUSING AND RELATED INFRASTRUCTURE. D. TO BRING APPROPRIATE STRUCTURAL CHANGES IN THE STATE AGENCIES’ ROLE AND RESPONSIBILITIES WITH FOCUS ON LOW INCOME SEGMENT HOUSING CONSTRUCTION PROJECTS. E. TO BRING APPROPRIATE LEGAL AND ADMINISTRATIVE ENVIRONMENT FOR ENCOURAGING PARTICIPATION OF PRIVATE SECTOR INVESTMENT IN HOUSING FOCUSING ON LOW INCOME SEGMENT REQUIREMENTS. F. TO PROMOTE AND ENCOURAGE R&D IN HOUSING, BUILDING MATERIALS AND TECHNOLOGIES THROUGH APPROPRIATE CAPACITY BUILDING IN COLLABORATION WITH INSTITUTIONS LIKE NHB, HUDCO, BMPTC AND LOCAL INSTITUTIONS INCLUDING STATE ITIS/POLYTECHNIC/ ENGINEERING COLLEGES. G. TO DEVELOP APPROPRIATE MIS AND COMPUTERIZED LAND RECORDS SYSTEM.
JNNURM is designed to support : •Water supply including setting up of desalination plants; •Sewerage & sanitation; •Solid waste management including hospital waste management; •Construction & improvement of drains; •Road network; •Urban transport; •Construction development of bus and truck terminals; •Renewal & redevelopment of inner city areas; •Development of heritage areas; •Preservation of water bodies; •Provision of basic services to the urban poor; •Street lighting
Aims of the Policy
THE MAIN AIM OF THE POLICY WILL BE: A. TO SET UP SYSTEMS TO FACILITATE AND MAINTAIN A SUSTAINED GROWTH OF
THE HOUSING STOCK TO ENSURE ADEQUATE AND AFFORDABLE HOUSING FOR ALL. B. TO CREATE SURPLUSES IN HOUSING STOCK EITHER ON OWNERSHIP OR RENTAL BASIS. C. TO FACILITATE ACCELERATION IN SUPPLY OF SERVICED LAND AND HOUSING WITH PARTICULAR FOCUS ON EWS/ LIG AND MIG CATEGORIES. D. TO DEVELOP SUPPORTING INFRASTRUCTURE AND BASIC SERVICES TO ALL CATEGORIES. E. TO PROMOTE LARGER FLOW OF FUNDS FROM GOVERNMENTAL AND PRIVATE SOURCES FOR FULFILLING HOUSING AND INFRASTRUCTURE NEEDS BY DESIGNING INNOVATIVE FINANCIAL PRODUCTS, CONCESSIONS AND INSTRUMENTS WHICH ARE CORRECTLY TARGETED AND UTILIZED AND TO ALSO FACILITATE ACCESS TO SUCH FUNDS. F. TO ADDRESS THE SPECIAL NEEDS OF MARGINAL AND WEAKER SECTIONS OF THE SOCIETY SUCH AS SCHEDULED CASTES, SCHEDULED TRIBES, OTHER BACKWARD CLASSES, MINORITIES, DISABLED, WOMEN-HEADED HOUSEHOLDS, SINGLE WOMEN, ELDERLY, STREET VENDORS ETC., IN RELATION TO HOUSING SERVICED BY BASIC AMENITIES. G. TO DEVELOP PLANNED HABITATS WITH AN ASSEMBLY OF BASIC SERVICES AND LIVELIHOOD INFRASTRUCTURE THAT PROVIDE FOR DIGNIFIED LIVING AND THAT PROMOTE HEALTHY ENVIRONMENT IN A SUSTAINABLE MANNER THROUGH APPROPRIATE PLANNING & ZONING AND INNOVATIVE PROGRAMMES. H. TO ENSURE DEVELOPMENT OF CITIES AND VILLAGES WITH HEALTHY ENVIRONMENT, AND POLLUTION FREE ATMOSPHERE WITH A CONCERN FOR SOLID WASTE DISPOSAL, DRAINAGE, SEWERAGE, TRAFFIC MANAGEMENT ETC. I. TO DEVELOP, PROMOTE AND TRANSFER USE OF APPROPRIATE, QUALITY & COST EFFECTIVE, ENVIRONMENT-FRIENDLY, ENERGY-EFFICIENT AND DISASTER-RESISTANT TECHNOLOGY.
STRATEGIES FOR ACHIEVING THE ABOVE AIMS AND OBJECTIVE, THE POLICY SEEKS TO ADOPT THE FOLLOWING STRATEGIES:
A. BY ENSURING THAT HOUSING, ALONG WITH THE SUPPORTING SERVICES IS TREATED AS A PRIORITY AND AT PAR WITH THE INFRASTRUCTURE SECTOR. B. PROVISION OF GROWTH OF URBAN AND RURAL SETTLEMENTS SO THAT THERE IS A PLANNED AND BALANCED GROWTH. C. PROGRESSIVE SHIFT FROM A SUBSIDY BASED HOUSING SCHEME TO COST SHARING OR COST RECOVERY CUM SUBSIDY SCHEME FOR RURAL HOUSING THROUGH A PRO ACTIVE FINANCE POLICY INCLUDING MICRO FINANCING, SELF HELP GROUP PROGRAMMES. D. PROGRESSIVE SHIFT OF RURAL HOUSING STRATEGIES FROM TARGET ORIENTATION TO A DEMAND DRIVEN APPROACH. E. EMPOWERING THE PANCHAYAT RAJ INSTITUTIONS/URBAN LOCAL BODIES AND VILLAGE COOPERATIVES TO MOBILIZE CREDIT FOR ADDING TO THE HOUSING STOCK AND ALSO ENSURE BASIC AMENITIES IN THE RURAL AREAS. F. DEVELOPMENT OF CITIES TO PROVIDE FOR A HEALTHY ENVIRONMENT, INCREASED USE OF RENEWABLE ENERGY SOURCES, AND POLLUTION FREE ATMOSPHERE WITH A CONCERN FOR SOLID WASTE DISPOSAL. G. USING COST EFFECTIVE TECHNOLOGY FOR MODERNIZING THE HOUSING SECTOR TO INCREASE EFFICIENCY, PRODUCTIVITY, ENERGY EFFICIENCY AND QUALITY.
SPECIFIC ACTION AREAS :
•LAND AN ESSENTIAL PRE-REQUISITE TO ACCESSING SHELTER IS OWNERSHIP OF HOUSE- SITE. THE POOREST OF THE POOR ARE UNABLE TO AVAIL OPPORTUNITIES WITH
REGARD TO HOUSING DUE TO LACK OF HOUSE SITES. THEREFORE, LAND USE PLANNING AND MANAGEMENT IS THE FIRST STEP FOR HABITAT DEVELOPMENT. •FINANCE A. FOR BPL, EWS/LIG HOUSING AND FOR SLUM DEVELOPMENT AND REHABILITATION SCHEMES, STATE GOVT. WILL BE AVAILING LOAN & SUBSIDIES UNDER IAY, BSUP & IHSDP PROGRAM OF JNNURM. B. TO ENCOURAGE INTRODUCTION OF CUSTOMIZED PRODUCTS E.G. COMPOSITE LOAN FOR HOUSING AND INCOME GENERATING ACTIVITIES, TOP UP LOAN SCHEME FOR BPL BENEFICIARIES. •LEGAL AND REGULATORY REFORMS A. TO SIMPLIFY THE PROCEDURES FOR SANCTIONING OF BUILDING PLANS TO ELIMINATE DELAYS BY SETTING UP SINGLE WINDOW. HOWEVER, PROFESSIONAL RESPONSIBILITY AND BUILDING BYE-LAWS WOULD BE STRICTLY ENFORCED. B. TO PREPARE COMPREHENSIVE LAND POLICY TO FACILITATE ACQUIRING AND ASSEMBLING OF LAND FOR HOUSING MEETING THE REQUIREMENTS OF ALL THE GROUPS WITH SPECIAL FOCUS ON EWS/LIG/MIG SEGMENTS.
MANDATORY REFORMS:MUNICIPAL LEVEL To be undertaken at the level of municipalities, the reforms comprise : •Adoption of a modern, accrual based, double entry system of accounting; •Introduction of a system of e-governance using IT applications, GIS & MIS for various urban services; •Reform of property tax with GIS, and arrangements for its effective implementation so as to raise collection efficiency to 85%; •Levy reasonable user charges, with the objective that full cost of operation and maintenance is collected within seven years; •Internal earmarking of budgets for basic services to the urban poor; •Provision of basic services to the urban poor, including security of tenure at affordable prices.
JNNURM AND SCHEMES FOR IMPROVING HABITAT CONDITIONS IN RURAL AREAS, TO STATE ACTION PLANS/PROGRAMMES FOR PROVISION AND CREATION OF ADEQUATE INFRASTRUCTURE FACILITIES LIKE WATER RESOURCES, SANITATION, SEWERAGE, CONNECTIVITY AND POWER SUPPLY ETC. E. TO BRING IN APPROPRIATE INDEXING FORMULA FOR PROVIDING CAPITAL SUBSIDY UNDER GOVT. SPONSORED SCHEMES FOR BPL/POOR/EWS AND LINKING THE SAME TO INFLATION RATE. F. TO BRING IN APPROPRIATE SCHEME OF INTEREST SUBVENTION TO MAKE HOUSING LOAN AFFORDABLE TO LOW INCOME SEGMENT HOUSEHOLDS. G. TO BRING IN APPROPRIATE POLICIES AND REFORMS, IF REQUIRED FOR
DEVELOPING CONVERGENCE AND INTEGRATION OF HOUSING FINANCE SYSTEM WITH THE FINANCIAL SECTOR REFORMS TO ACHIEVE THE OBJECTIVE OF “FINANCIAL INCLUSION”. H. TO ALLOW MOBILIZATION OF RESOURCES FROM EXTERNAL SOURCES AS WELL AS BUILDING TECHNOLOGIES TO PROMOTE HOUSING AND INFRASTRUCTURE ESPECIALLY FOR THE PROJECTS MEANT FOR LOW INCOME SEGMENT HOUSEHOLDS. I. TO SET UP APPROPRIATE MONITORING MECHANISM ENSURING PUBLIC FUNDING IS PROPERLY TARGETED AND UTILIZED. J. TO STRENGTHEN STATE GOVERNMENTS IN BUILDING LAND RECORDS THROUGH EGOVERNANCE. K. TO BRING AWARENESS ABOUT GOVERNMENT PROGRAMMES AS ALSO FORECLOSURE LAWS FOR THE BENEFIT OF THE INDIVIDUALS AND THE INSTITUTIONS.