HOUSING AND NEIGHBORHOOD

IMPORTANCE AND POLICIES OF

HOUSING

GROUP 14
VERNIKA
AGARWAL
SHUBHAM SONI
POOJA SHARMA
HEMANT PAWAR

BATCH 2017-22
IMPORTANCE OF HOUSING

Housing schemes in India by Development Authorities have played a major role in strategizing and executing a planned and organized
growth all over the county. Special functions like providing housing facilities to the residents, undertaking urban restructuring, and
executing urban development plans fall into the premise of development authorities. From time to time, the development authorities in
India keep coming up with housing schemes for all different segments of the society and also develop commercial, institutional, and
recreational facilities to ensure that the expansion of the city is done in a planned manner.
 The Role of Affordable Housing in Creating Jobs and Stimulating
Local Economic Development:

Evidence in Brief and its companion a Review of the Literature

highlights several ways affordable housing development fuels economic
growth. Among other impacts, building or significantly rehabilitating
affordable housing can
Create Jobs Investing in the development of affordable housing creates
a significant number of construction-related jobs, and new residents
support additional jobs in other sectors going forward.

Attract Both Employers and Employees Surveys and supporting

research show that both employers and workers understand the
importance of affordable housing in attracting and retaining a skilled
workforce.

Increase Consumer Spending Building affordable housing increases

the buying power of both those involved in its construction and those
who occupy it afterward.
Home Financing, a Major Obstacle

Increase Government Revenues The taxes and fees associated with the development of affordable housing – both during the
construction and after the homes are occupied – can represent significant revenue for state and local governments.

Lower The Risk of Foreclosure Affordable homeownership programs appear to produce a more sustainable path to homeownership,
eliminating a number of significant foreclosure-related costs that municipalities would otherwise have to absorb.
INTRODUCTION
This chapter deals with the public policy on rural housing in India and the plan wise allocation of funds towards rural
housing schemes. It also analyses housing policy in India since Independence. It explains the importance of the
National Housing Policy and critiques Policy and discusses the role of the rural housing finance agencies involved
catering to the need for housing finance.

The Indian constitution lays down that "the state shall strive to
promote the welfare of the people, protecting as effectively as it
may a social order in which justice, social, economic and political.
It is on these basic principles that India continues to strive to provide
its people basic socio-economic necessities such as food, clothing,
shelter and so on".
• Pradhan Mantri Awas Yojana (PMAY) is a mission started with an aim
‘Housing For All’ (HFA) scheme by the Ministry of Housing and Urban
Poverty Alleviation (MoHUPA) to be achieved by the year 2022, when
India will be completing its 75 years of Independence. The mission
started in 2015 and will be attained in seven years i.e., during 2015 –
2022.
• Housing for All (HFA) scheme is envisioned by our Honorable Prime
Minister Mr. Narendra Modi, “By the time the Nation completes 75
years of its Independence, PMAY will bring a ”Pucca house’ for every
family in urban cities with water
connection, toilet facilities, 24x7 electricity supply and
Complete access”
The Mission seeks to address the housing requirement of urban poor including slum
dwellers through following programme verticals:

• Slum rehabilitation of Slum Dwellers with participation of private developers using land as a resource.
• Promotion of Affordable Housing for weaker section.
• Affordable Housing in Partnership with Public & Private sectors.
• Subsidy for beneficiary-led individual house construction.
(provide individual support to families under EWS categories who could not take advantage from the mission)

Sub Mission
A Technology Sub-mission under the Mission would be set up to facilitate adoption of modern, innovative and green
technologies and building material for faster and quality construction of houses. Technology Sub-Mission will also
facilitate preparation and adoption of layout designs and building plans suitable for various geo-climatic zones. It will
also assist States/Cities in deploying disaster resistant and environment friendly technologies.

A comprehensive mission of PMAY Housing Scheme aims to create:

• Affordable homes with water connection, toilet facilities, 24x7 electricity supply and complete access.
• 2 crore houses to be built across nation’s length and breadth.
• Targeting the Lower Income Groups (LIG) and Economically Weaker Section of our society (EWS), basically the
urban poor by the year 2022.
• 2 million non-slum urban poor households are proposed to be covered under the Mission.
TARGATED GROUP
Preference under the scheme, subject to
beneficiaries being from EWS/LIG segments:
• Manual Scavengers
• Women(with overriding preference to
widows)
• Persons belonging to Scheduled
Castes and
Scheduled Tribes
• Other Backward Classes
• Minorities
• Persons with disabilities
• Transgender

•Housing and Urban Development Corporation (HUDCO) and National Housing

Bank(NHB) have been identified as Central Nodal Agencies (CNAs) to channelize this
subsidy to the lending institutions and for monitoring the progress of this component.
 FEATURES OF HOUSING FOR ALL
•2022
The government would provide an interest subsidy of 6.5% on housing loans availed by the
beneficiaries for a period of 15 years from the start of loan.
•The houses under this scheme would be allotted to preferably the female member of the
family. Along with this, preference would be given to the female applicants, in general. This
scheme could well be termed as a pro-women scheme.
• While allotting ground floors in any housing scheme under the PMAY, preference would
be given to differently-abled and older people.
•The construction of houses under PMAY would be carried out through technology that is eco-
friendly.

LOAN AMOUNT / MARGIN

Maximum Loan Limit as per guidelines of Priority Sector norms for Home Loans;
i. Centers with population above 10 Lakh: Loans to individuals up to Rs.28 Lacs (with
value of house not exceeding Rs.35 Lacs).
ii. Other Centers with population below 10 lakh: Loan to individuals up to Rs.20 lacs
(with value of house not exceeding Rs.25 lacs).
Margin
For loan up to Rs. 20 lacs-Margin 15%
For loan over Rs. 20 lacs up to Rs. 28 Lacs –Margin 20% Where the cost of house does
not exceed Rs. 10 lacs .
.
82,048 houses built under
PM Awas Yojana:
Government MAR 30,
2017

A total of 82,048 houses have been constructed under the

Pradhan Mantri Awas Yojana - Urban (PMAY Urban) as on
March 20, 2017 and of these 62,312 have been occupied,
the government said today.

During the Question Hour in the Rajya Sabha, several

opposition members raised concerns that at the present
pace the dream of 'Housing for All' may not be achieved by
2022.
According to the details provided by the government, under
PMAY Urban, a total of 16,42,685 have been sanctioned as on
March 2017. These include the subsumed projects under the
Rajiv Awas Yojana, it said.

Minister for Planning Rao Inderjit Singh said Uttar Pradesh

was one of the states relatively lagging behind in the
implementation of the scheme
Allocation for Housing
The rural housing problem has been neglected by the government in Five Year Plans. It was during the Second Five Year
Plan (1957) that the Village Housing Scheme was introduced for the first time. The Estimates Committee (1985-86) of the Lok
Sabha, in its 3rd report on Housing for Landless Rural Labour, noted that during the last three decades of planning, the
government had not given the problems of providing houses to the landless rural labour.

In earlier reports in 1967-68 and in 1972-73, the committee, had drawn attention to the unsatisfactory performance of the
Village Housing Scheme during the earlier Five Year Plan and the indifference of the government towards rural housing.

This neglect is reflected in the extremely low allocation of funds for rural housing
in the Five Year Plans as well as in the very poor utilization of funds during the
plans.
Housing Programmes under
Plans
The first housing programme for rural areas, namely the Village Housing Scheme was introduced in 1957 as a part of a total
reconstruction programme. This programme hardly touched the fringe of the problem during the Second and Third Five Year
Plans

Apart from spending a very low amount, the plan favoured only aided self-help programmes in which government assistance
would mainly be in the form of technical advice, demonstration of model houses and model villages, provision for improved
design and layouts, and so on.

Consequently, the expenditure on rural housing remained very low, and

during the 23 year period ending in March 1974, only about 60 thousand
houses were constructed by the village housing projects all over the
country.
Projected Housing Scenario, 1997-2021
The National Report has projected the housing scenario in terms of units and investment requirements for the
period 1997-2001., 2001-2021.

The estimates are presented, on the basis of work done by the Society for Development Studies (SDS) for
urban and rural India, and at the desegregated level, for new units as well as inadequate housing and
upgradation requirements.
It was assumed that the upgradation and inadequate housing requirements will be fully covered by 2001,
though this situation is not likely to materialize and the upgradation and inadequate housing development
activity might continue in the 5-10 years thereafter.

The estimates on the projected housing need for the period 1997-2001
An addition of 17.1 million unit would have to be brought into the housing market during 1997-2001, 32.3
million units during the period 2001 to 2011 and
90.7 million additional units during the period 2011 and 2021.

In effect, the SDS ( safety data sheets) estimates show that for the period 1997-2021 the housing
requirement in terms of new stock would be 140.1 million units, of which 63.1 million units or 45.0
percent will be in the rural areas.
-The investment requirement of new housing stock for the period 1997-2021 would be Rs.6579.7 billion at 1995
prices, of which Rs. 1490.5 billion will be for rural housing.
The past production track record suggests that the projected housing need in terms of new units can be met with
appropriate policy initiatives.
An annual production of 5.6 million units will be required as against the actual attainment of 3.4 million units
per annum during 1981-91, when the housing development environment and delivery system was not as
developed or conducive to housing activities as it is likely to be for the period 1997-2021.
 RAJIV GANDHI AWAS YOJNA
 Vision
 "Slum Free India" with inclusive and equitable cities in which every
citizen has access to basic civic infrastructure and social amenities
and decent shelter.

 Mission
 Encourage States/Union Territories (UTs) to tackle slums in a
definitive manner, by focusing on:
• Bringing all existing slums, notified or non-notified (including
recognised and identified) within the formal system and enabling
them to avail the basic amenities that is available for the rest of the
city/UA
• Redressing the failures of the formal system that lie behind the
creation of slums by planning for affordable housing stock for the
urban poor and initiating crucial policy changes required for
facilitating the same.
 2. Duration of RAY
The duration of Rajiv Awas Yojana will be in two phases: Phase-I, for a period of two years from the date of approval of
the scheme and Phase-II which will cover the remaining period of the Twelfth Five Year Plan 2013-17 RAY will be run in a
Mission Mode.

3. Commitments Precedent to Release of Funds under RAY

1. The commitment and willingness to assign property rights to slum dwellers, preferably in the name of the wife or
in the name of both wife and husband, is given; and enactment of legislation is done within one year of the first
project sanctioned.

2. Reservation of 20-25% of developed land for EWS/LIG housing in every new public/private residential development
and for a non- lapsable earmarking of 25% of the budget of all municipalities/ other bodies providing municipal basic
services to meet the revenue and capital expenditures of urban poor colonies and slums;

3. The requirements of the seven point charter of JNNURM.(i.e. land-tenure, affordable housing, water, sani- tation,
education, health and social security).

7
 Implementation Strategy: 2 step Implementation Strategy
 Preparation of Slum Free City Plan of Action (SFCPoA) on 'whole city'
basis
 Detailed Project Report (DPRs) for slum redevelopment/up
gradation/relocation on 'whole slum' basis.

 Preparation of SFCPoA
 Activities for preparation of SFCPoAs include:
 Slum Survey
 Data Entry into MIS
 GIS Mapping of Slums
 GIS-MIS integration

 SFCPoAs in two parts

 Curative Strategy for Slum Redevelopment of all existing slums, notified,
recognised or non, notified, on lands belonging to State/Central
Government, Urban Local Bodies, Public Undertakings of State/Central
Government any other public agency and private land;
 Preventive Strategy for Containment of growth of future Slums.
 Preparation of DPRs
 On the basis of prioritization of slums in SFCPoA, cities would
be required to prepare Detailed Project Reports (DPRs)
 Admissible Components:
 Provisioning of Housing and basic civic infrastructure and
amenities
in Slum development/improvement/up gradation
 Transit Housing for in situ redevelopment
 Rental Housing and Dormitories
 Social infrastructure including Community halls, Child care
centers,
Informal markets, Common workplaces/livelihoods centre
Monitoring & Evaluation
1. RAY will be monitored at three levels: City, State and Government of India. In particular,

1. Ministry of Housing and Urban Poverty Alleviation will periodically monitor the scheme.
2. State Nodal Agency would send Quarterly Progress Report(on-line) to the Minis- try of Housing and
Urban Poverty Alleviation.
3. Upon completion of a project, the State Nodal Agency, through the State Govern- ment, would submit
completion report to the Central Government.
4. Central Sanctioning-cum-Monitoring Committee will meet as often as required to sanction and
review/monitor the progress of projects sanctioned under the Mis- sion.
5. Monitoring of quality of projects executed by the implementing agencies in the States/Cities will be
facilitated through independent quality control/ assurance/ third party teams at various levels that may
be outsourced to specialized/technical agencies.
6. Monitoring of projects by States/Urban Local Bodies by conducting Social Audit in conformity with
guidelines to be prescribed, right from the stage of project prepa- ration.
7. The processes of implementation will be monitored by undertaking concurrent evaluation through
reputed independent institutions to ensure that corrections to distortions, oversights or shortcomings
can be made in time.

2. With a view to fine-tuning the scheme, evaluation of experience under RAY will be carried out before the
programme enters into its second phase.

3. Additional guidelines for clarification of the scheme will be issued by the Ministry of Housing & Urban Poverty
Alleviation as required.
NATIONAL HOUSING POLICY
1. Vision 2020
The population residing in urban and in urbanizing areas is envisioned to tremendously
increase over the coming years until 2020 and beyond.

The goal of the Vision 2020 goal is to achieve an urbanization rate of 35 % because
economic growth can be correlated to urban growth, if the necessary administrative and
development management framework is established and functional.

With the 35 % margin, the urban population would, depending on the growth rate of
the total population, reach a number in the area of 4.5 Mio people, which is an increase
of about 2.8 Mio people in the urban and urbanizing areas within the coming years up to
20203. Such development must by no means cause any wasteful land development
especially in the unbuilt peri-urban and rural areas, and simultaneously human
settlements shall be based on plans and equipped with basic infrastructure.

Besides a functional development management framework in place and sufficient staff

working especially at local governance level, an increase of 2.8 Mio additional people in the
urban areas does also require appropriate and proportional strategic investment and public
works to be able to provide urban services to those urban citizens. There is necessity to
appropriately plan for:
 economic development based on economic potential to provide opportunities to
urban dwellers to sustain themselves and their families;
 increased food production for the urban consumption;
 and the necessary land resources, for constructed development (housing, public
facilities, economic development) as well as increased food production beyond
subsistence production.
PROBLEM STATEMENT
2. Constraints to access housing

a. Low purchasing power based on low incomes and low rate of saving
b. Limited accessibility of financing models

APPROACH
A much wider approach to make housing affordable is needed, and should address the following:
 Cost-efficiency in design, construction, and construction management;
 Increase of available material resources;
 Decrease of unit sizes and floor area per person;
 Use of technologies which allow lower construction cost;
 Settling households closer to economic opportunity.
Implementation Matrix to be Jointly Implemented by the Government and the Private Sector

Pillar 1: Public Benefit

Programs Actions Outcomes Indicators Stakeholders Budget Time-
frame
Policy Statement # 1  Develop & operationalize a variety of housing Variety of housing Number of MININFRA, RHA, 145 Mio 6/15 – 6/17
Adequate housing shall be accessible to schemes (rental, rent-to-own, land pooling, schemes housing RSSB, BRD, RwF
all, through a variety of schemes. incremental housing, self-construction, collaborative develope schemes MINEDUC,
housing development, saving for a shelter, etc) d develope WDA, CoK,
d Districts, Private
Sector
Policy Statement # 2  Establish zoning regulation principles Integrated urban Percentage of COK, Districts, 35 Mio 6/15 –
The urban population with low income, neighborhoods new urban RHA RwF 12/15
being regular or irregular, shall be housing units
facilitated to reside in mixed use nodal located in
locations. mixed use
neighborhood
s (SSP)
Policy Statement # 3  Operationalize the concept of collaborative Well-coordinated Number of MININFRA, 450 Mio 6/15-6/18
Collaborative schemes based on the development among civil society and private urban development MINALOC, RwF
pooling of resources shall enable individuals neighborhoo projects on Districts, CSO’s,
individual small-holder of developable  Enforcement of implementing orders relating to land d planning pooled and re- RNRA,
land, or individual with limited financial subdivision plans, urban planning operations and real and plotted land MIGEPROF, RHA
resources willing to invest in housing estate development authorization management
and economic development.
Policy Statement # 4  Develop urban upgrading program framework, Integrated urban Number of MININFRA, 50 Bio RwF 6/15 – 6/20
Existing informal housing units shall be strategy and procedures neighborhoods informal MINALOC, CoK,
upgraded and integrated into the  Invest in upgrading urban informal neighborhood neighborhood Districts, RHA,
formal housing stock to the highest s upgraded Private Sector,
degree feasible. LODA
Pillar 2: Resource-Efficient Planning, Green Technology and Professionalism
Programs Actions Outcomes Indicators Stakeholder Budget Time-
s frame
Policy Statement # 5  Establish Urban Planning Code Integrated urban Percentage of MININFRA, 175 Mio 6/15-6/20
The efficient use of land needed to  Enforcing phased investment based on the Master and rural development MINIRENA, RwF
develop housing neighborhoods, and plans and utilization of urban land settlemen projects executed MINICOM,
the considerate selection of  Develop & enforce a guideline for managing ts in line with Districts,
development locations shall be the integrated local RNRA REMA,
unproductive urban land
underlying principle of physical development RDB, UR,
planning. plans (SSP) RHA, Private
Policy Statement # 6  Promote research and development for green Integrated urban Percentage of new MINEDUC, 350 Mio 6/15 – 6/20
Qualitative neighborhood, settlement, technology and efficient designs to support the and rural building permits MININFRA, RwF
building design and green technology development of a variety of modular architectural settlemen applying green & MINIRENA,
reflecting local conditions, user needs, designs based on principles of cost-efficiency and ts smart building MINICOM,
architectural and engineering design green building principles (SSP) Districts,
shall not be compromised.  Conduct macro-economic study to support program CoK, Private
design and macro-economic steering mechanism in Sector, UR,
the housing construction sub-sector Civil Society
 Establish Building Code
 Introduce neighborhood design award;
Policy Statement # 7  Develop energy efficient building standards Green & smart Percentage of new MINIRENA, 400 Mio 6/15 – 6/18
Building concepts shall adopt energy  Establish regulations for grey and rainwater building developed building permits MININFRA, RwF
efficiency building standards, grey and recovery, water treatment, and waste management applying green & MINALOC
rainwater recovery, and ICT facilitation  Establish ICT building facilitation smart building
principles (SSP)
Policy Statement # 8  Establish and empower professional programs for Improved Percentage of MINEDUC, 350 Mio 6/15 – 6/20
Any professional involved in housing physical planning & development, including module institutional and households MINALOC, RwF
neighborhood development shall on spatial and social planning human satisfied with their
demonstrate the impact of its project  Capacity building of practicing professionals in capacities neighborhood MININFRA,
on the built environment. support of livable environments setup MINIRENA,
Districts,
 Update university and TVET curricula for applied
CoK, Private
professionalism
Sector, UR,
 New skills development programs including RHA, RGB,
certification for quality services in the construction
Civil Society
sector
 Enforce the consideration of social cohesion, social
and physical behavior and livelihood in built
 environment project.
Policy Statement # 9  Attract investment in local building material Local production Volume of MINIRENA, 10 Bio RwF 6/15 – 6/20
There shall be a promotion of the local fabrication of building increased building MINICOM,
production of building materials and  Invest in local production of building materials and materials and material produced RDB, PSF,
elements. building elements elements locally MINECOFIN,
increased MININFRA,
RHA, NISR
Policy Statement # 10  Review of urban land, rental and property taxes in Compact urban Number of MINIRENA, 280 Mio 6/15 – 6/19
Compact, clustered and dense layouts favor of compact neighborhood and settlement, and development housing units per MININFRA, RwF
shall dominate all forms of housing efficient houses. hectare MINECOFIN,
development.  Update of the existing Master Plan to accommodate RRA, RNRA,
high density mixed use approach to ensure optimum CoK,
use of land. Districts,
 Audit the authorization process for building and real Private Sector
estate development.
Policy Statement # 11  Redefine rural grouped settlement to accommodate Integrated urban Percentage of MININFRA, 9 Bio RwF 6/15 – 6/20
The development of rural housing shall larger numbers of households than promoted so far; and rural households living MINALOC,
be undertaken responsibly with  Establish rural settlement code based green model settlemen in integrated & RHA, RNRA,
housing typologies clustered to suit village principles ts economically
lifestyle attached to a rural location,  Invest in clustered rural settlement viable rural
based on green model village settlements (SSP)
principles.
Pillar 3: Governance and Partnership
Programs Actions Outcomes Indicators Stakeholders Budget Timeframe
Policy Statement # 12  Establish and operationalize the framework for Gvt Increased private Number of MININFRA, 25 Bio RwF 6/15 – 6/20
The government will (financially) financial support in housing projects sector activity in private investors RDB, RHA,
support housing projects which  Develop & operationalize urban development fund housing in affordable CoK, Districts,
provide housing accessible to low  Establish infrastructure standards and unit costs of development housing
WDA
income and vulnerable households, government supported infrastructure for advance development
planning and budgeting purpose (SSP)

Policy Statement # 13  Establish collaborative housing finance framework Affordable Number of MININFRA, 50 Mio RwF 6/15 – 6/20
Efforts to work jointly shall be  Harmonize housing taxation systematics housing and housing units MINECOFIN,
increased between the Government  Establish framework for real estate management finance options affordable for Private Sector
and the private and banking sector, including interaction between landlords and tenants developed low income
to establish a variety of financing earners (SSP)
 Develop a guideline for governmental and non-
scenarios for housing, and ensure a
governmental actors in social housing supply;
supportive legal framework.
Policy Statement # 14  Establish a monitoring secretariat for effective Well-coordinated Number of MININFRA, 300 Mio 2/15-6/20
National programs shall be well implementation and monitoring of housing programs housing housing support MINICOM, RwF
interlinked across sectors to enable  Develop a long term “Saving for a shelter” program investme programs MINEDUC,
the framework for housing  Sensitize mindset for change towards development and nt developed MINECOFIN,
development pre-conditions, which demand of adequate houses with optimum size programs MINALOC,
enhances saving for a shelter, and MINIRENA,
 Establish high intensity labor program in infrastructure
promotion of efficient houses. MINAGRI,
construction and construction part manufacturing and RDB
assembly
 Develop and implement public communication strategy
and awareness campaigns on the newly promoted
policy principles, and related laws, regulations and
opportunities
Policy Statement # 15  Support staffing in line with newly established District Well-coordinated Compliance level MININFRA, , 150 Mio 6/15-6/20
The City of Kigali and all Districts administrative structure, and train new staff; urban and rural of neighborhood MINALOC, RwF
shall be capacitated in physical  Develop feasibility studies, business plans, and settlement setup with RNRA, UR,
planning and development preliminary designs for specific public investment development policy principles RHA,
projects and for identified possible PPP’s; planning and RGB,
management Districts,
 Revise / establish zoning regulations in urban planning
documents which reflect the need for compact mixed Private
use. sector
4. Policy Mission

To ensure adequate living conditions, to enable all residents to access housing, and to establish and anchor both objectives within national policies and programs. This shall
positively impact on the needs of a human, including shelter, income, food security, social inclusion, knowledge and personal productivity.

5. Policy Objectives

This policy has the following objectives:

1. To develop sufficient and accessible housing with the help of the private sector through addressing of management, affordability, efficiency, availability, financing
schemes, saving, neighborhood and settlement design and development, with the objective of adequate living conditions through well-managed physical development
including upgrading of informally grown settlements, and to meet the servicing needs;

2. To yield in individual income development and increased purchase power, through addressing of off-farm employment and SME’s creation, incentives for employers,
labor-intense programs, urban pull-factors and mixed use settlement, saving for housing, pooling of individual resources;

3. To maintain food security and support rural-urban interlinkage, through adderssing of efficient use of land, community planning and collaborative development,
suitability of housing typologies, urban agriculture for continued subsistence on transformed land, and protection of rural agricultural resources and the environment;

4. To enhance social inclusion, empowerment, dignity and wealth creation, through addressing of employment prospectives for youth, empowerment of women, inclusion
of lowest income segments and social cohesion;

5. To increase knowledge and productivity, through adderssing of regional competitiveness and in-country productivity, quality of locally produced materials and
construction, development of technology and research, the advancement of skills across the country;

6. To use resources responsibly toward the sustained welfare of future generations, through addressing of long-term environmental issues and resource-efficiency always
to be prioritised in development, and all efforts made to successfully protect the environment through the adoption of green growth and green building strategies and
principles.
THANK YOU