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Housing Co-operatives

There is a acute shortage of cheap & good houses.

Growth in urban area is 4.2% as against is 1.5 to
1.6% in Europe. Also in Bombay around 62%
people live in slums or without shelter. The rate of
construction of new houses is around 1 house per
1000 people, while the Ideal is 10 houses.
Therefore there is a chronic shortage of houses in
India. Therefore “co-operative activity is the best
means of providing decent houses at reasonable
cost to persons, particularly of low & middle
income groups.
According to Maharashtra Co-op Societies
Act, 1960, a housing society is defined as
“a society, the object of which is to
provide its members with open plots for
housing, dwelling houses or flats, or if on
open plots the dwelling houses or flats are
already acquired, to provide its members
common amenities and services.”
To provide or arrange for shelter to its
members at minimal cost.
To encourage living a social life.
To inculcate habit of regular savings.
Types of Co-operative Housing
 Tenant Ownership in this land is
owned by the society, flats or owned
by the members, subletting or
transfer of flats are not allowed.
 Tenant co-partnership – Land & flats
are owned by the society and
members pay rent.
 Flat Ownership co-ops – Flat owners
jointly own the land.
Initiatives For Providing more
Housing Finance
1. Action plan for providing 7 lac additional dwelling in urban
areas, wherein Govt. will provide fiscal & technological support
with the active involvement of all the sectors – private, co-
operatives & NGO/CBO’s (Community based organisations).
2. Setting up of NHB in 1988 as a subsidiary of RBI, to supervise &
control various housing Finance corporations
3. Action Plan for night shelter to foot-path dwellers. 101
schemes have been sanctioned by HUDCO.
4. Increased allocation by LIC/GIC for housing finance.
5. Various innovative schemes have been initiated by HUDCO.
6. Rural housing has been included under priority sector.
Integrated Development of
Small & Medium Towns
Objective : To enable small & medium towns to
emerge as centres of economic growth &
employment opportunities and arrest migration
from rural areas & small towns to large &
metropolitan cities.
Guidelines :
1.IDSMT to cover all towns upto 5 lac population.
2.Easing financing pattern.
3.Dev. Projects in selected cities & towns.
4.Initiating municipal reforms & creation of
revolving fund at the municipal level to promote
development of infrastructure.
5.Grant-in-Aid to State Govt./municipalities on
60(Central)/ 40(State) basis for preparation of
town dev. plan.
Mega City Scheme
 Centrally sponsored scheme of
infrastructure development in 5
Mega cities of Mumbai, Chennai,
Kolkata, Hyderabad & Bangalore.
 Financing pattern : Central 25%,
State:25%, Institution:50%.
Institutions could be overseas also.
 Projects under the scheme should be
remunerative, user charges based
and of basic services.
Problems of Housing Co-
• Inadequate finance, Scarcity of land,
difficulties in getting building
materials at reasonable cost,
difficulties in getting expert workers
and unskilled labours, public not
interested &
Remedial Measures
1. Building materials to be supplied on
priority basis.
2. Allocate land on priority
3. Byelaws adoption by co-op societies.
4. Financial assistance
5. Tax concessions
6. Membership to houseless people