COURSE TITLE: HOUSING L 2 T 0 P 0 Cr 2

COURSE CODE: ARC 429

POLICY AND PUBLIC INTERVENTION

COURSE INSTRUCTOR: Simran Kaur 23576

Issues and Concerns

1. Incremental Shortage

2. Multiple disparity

3. Land supply and management

4. Making Finance available

5. Old age technology – slow delivery

Issues and Concerns

1. Incremental Shortage
• Housing Shortage is ever increasing since 1960’s.

• The problem is that the supply and demand is not

BALANCING. We are short of the supply than the requirement.

2. Multiple Disparity
• Multiple disparity can be the mismatch:
• Among different income groups
• Supply demand mismatch
• Mismatch between the urban and rural.
• Mismatch between the requirement of non-family house
and less supply of it.
3. Land supply and management
4. Finance
• Availability of FINANCE:

• It is the Individual Finance of the people with which people

can buy a house or apartment

• Also it can be called as Institutional Finance with which a

developer can develop a housing project

Availability of LAND and FINANCE are the crucial issues in

terms of HOUSING NEED.
 Where to go ?? What to do ?? How to do ??

POLICY PLANNING STRATEGY

 Long term broad  Inclusive  Tactical method
principles  Mid and short term to achieve
 These principles (05 – 10 years) planning outcome.
are intangible but  Tangible benefits.  Specific
leads to tangible  Flexible / Time
outcomes.  It serves Cities /
Villages / Region dependent.
 A policy must be:  Contextual. (e.g.
 Prescriptive +
• Inclusive Specific (e.g. plan strategy taken for
• Long term for city of Mumbai a plain land
it should not be cannot be
• Intangible successful in the
applicable for any
• Large other country) strategy for hill
geographical areas.)
area
• Flexible -
Contextual
 From 1947 to
1990’s

PUBLIC
INTERVENTIONS
From 1990’s to
till date.
 PUBLIC INTERVENTION IN HOUSING (1947-TILL 90)
1952: Subsidized Housing Scheme for
Industrial Workers and Economically
Weaker Sections.
1954: Low Income Housing Scheme (for
the state and the city level)
1956: Subsidized Housing Scheme for
Plantation Workers
1956: Slum Clearance and Improvement
Scheme
1959: Middle Income Group (MIG)
Housing Scheme
1959: Rental Housing for State
Government Employees
1959: Village Housing Projects Scheme
1959: Land Acquisition and development
by State government
1961: Rent control Act
• After independence, the major situation was that due to the
division of the country, migration and various social problems
the shortage of housing was very severe.
• This policy was offered as a package.
• Various state government authorities came up with slum
clearance act and improvement schemes.
• The basic objective of this scheme was to clear the slum from
the congested city to the outskirts or where the land is available
and improve their condition.
• Government wanted to become more inclusive in terms of
housing provisions.
• Why only cities or urban areas
• Government thought, all the projects are suffering from delay,
unaffordability, unfulfillment of the project. The main reason for
this was the availability of the land.
• Some kind of legal reform in the acts that controls the housing
delivery and housing governance.
 PUBLIC INTERVENTION IN HOUSING (1947-TILL 90)
1970: Housing and Urban
Development Corporation
(HUDCO) established
1971: Provision of House Sites
of Houseless Workers in Rural
Areas
1972: Environmental
Improvement of Urban Slums
1977: Housing Development
Finance Corporation (HDFC)
established
• At the governance level they thought that we need an apex
organization in the country to develop various technical
innovative solutions in terms of technology, plans and
designs.
• Which can stir the knowledge, training and research in the
different states.
• There was another approach where other than housing
provisions, environment condition of that area is also
important. This was done by giving the basic services like,
water supply, accessibility, solid waste management in the
existing slums.
• The basic objective of this bank was to create an
environment where people get easy housing finance,
loans.
• Govt. tried some enabling env. in terms of land and
finance.
 PUBLIC INTERVENTION IN HOUSING (1947-TILL 90)
1980: Sites and Services
Scheme
1981 & 89: Scheme of Urban
Low-Cost Sanitation for
Liberation of Scavengers
1985: Indira Awas Yojana
1986: Urban Basic Services
Scheme (UBS)
1987: National Housing Bank
(NHB) established
1988: National Housing Policy
(NHP)
• Used to provide site and basic services so that they can
build their own house.
• Apex program for the rural housing
• The basic objective was to give affordable houses
(houses at cheaper rate) to the poor people living in the
rural area
• Objective was to provide basic services to the city
people.
• Objective was create another enabling environment to
create more no. of banks to leverage the facility of
housing finance.
• Up to this time govt experimented (only focusing on
providing housing to specific people.
• So there should be some comprehensive policy for the
whole country considering the diversity of geography,
community, religion and economic disparity
PERIOD INITIATIVE OUTCOME
1952 Subsidized Housing Scheme for
Industrial Workers and
Economically Weaker Sections. • Lack of funds, targets were not achieved.

• Existing housing stock was reduced in the

1954 Low Income Housing Scheme process of dismantling of depleted units.
(for the state and the city level)
1956 Subsidized Housing Scheme for • Public housing was out of reach both in terms
Plantation Workers of economic affordability and physical location
from the workplace. This resulted in the growth
1956 Slum Clearance and of informal illegal private housing, which was
Improvement Scheme affordable and well- connected, but of low
1959 Middle Income Group (MIG) quality built environment.
Housing Scheme
• State governments were failed to assemble
1959 Rental Housing for State land for housing for urban poor. Growth in
Government Employees HIG/MIG housing stock was appreciable in
1959 Village Housing Projects proportion to demand.
Scheme
1959 Land Acquisition and
development by State
government
1961 Rent control Act
PERIOD
INITIATIVE OUTCOME

1970 Housing and Urban Development

Corporation (HUDCO) established

• HIG/ MIG benefited most from

1971 Provision of House Sites of Houseless
housing finance organizations.
Workers in Rural Areas
1972 Environmental Improvement of Urban Slums • Government employees were the
main beneficiaries of public housing
schemes.
1977 Housing Development Finance Corporation
(HDFC) established • Despite efforts, there was slag in
1980 Sites and Services Scheme community participation and growth
was slow in weaker sections’
housing.
1981 & Scheme of Urban Low-Cost Sanitation for
89 Liberation of Scavengers
• Rapid changes to institutional
1985 Indira Awas Yojana frameworks of programs and their
structure slowed the process further.
1986 Urban Basic Services Scheme (UBS)

1987 National Housing Bank (NHB) established

1988 National Housing Policy (NHP)

 MAJOR BARRIERS (TILL 1990’s)

1. Housing affordability

2. Speedier technology and system

3. Availability of Land

4. Institutional and policy framework

5. Building materials

6. Skilled and unskilled labor

7. Lack of appropriate standards,

norms and schedules.
 PUBLIC INTERVENTION IN HOUSING (AFTER 1990’s)
PERIOD INITIATIVE
1990 Building Materials and Technology Promotion Council (BMTPC) replaces
NBO
1990 Night Shelter Scheme for Pavement Dwellers
1990 Nehru Rozgar Yojana's Scheme of Housing and Shelter Upgradation
(SHASHU)
1990 - 2001 Urban Basic Services for the Poor (UBSP)
1996 National Slum Development Program (NSDP)
1998 2 Million Housing Program
2001 Valmiki Ambedkar Aawas Yojana
2005 Jawaharlal Nehru National Urban Renewal Mission, JnNURM
2007 National Urban Housing and Habitat Policy (NUHHP)
2009 Rajiv Awas Yojana
2009 Affordable housing in partnership (AHP)
2012 Credit Risk Guarantee Fund Scheme
2013 Rajiv Rinn Yojana (RRY)
2015 PMAY – Housing for all
 PUBLIC INTERVENTION IN HOUSING (AFTER 1990’s)
PERIOD INITIATIVE OUTCOMES
1990 Building Materials and Technology
Promotion Council (BMTPC) replaces
NBO
1990 Night Shelter Scheme for Pavement
Dwellers • Shortage of housing continued in LIG/ EWS
sectors.
1990 Nehru Rozgar Yojana's Scheme of
Housing and Shelter Upgradation • Land assembling was still an issue.
(SHASHU)
1990 - 2001 Urban Basic Services for the Poor • UBLs seemed to lack in capacity to cope up
(UBSP) with the targets.
1996 National Slum Development Program
• Community participation and Policy
(NSDP)
approach under JNNURM had limitations
1998 2 Million Housing Program and thus resulted in inappropriate usages of
2001 Valmiki Ambedkar Aawas Yojana funds.

2005 Jawaharlal Nehru National Urban

Renewal Mission, JnNURM
2007 National Urban Housing and Habitat
Policy (NUHHP)
2009 Rajiv Awas Yojana • Private participation in affordable housing
2015 PMAY – Housing for all was encouraged under RAY

• Private sector Investment increased in AH,

as is considered as Infrastructure projects.
 PUBLIC INTERVENTION IN HOUSING (AFTER 1990’s)
FROM 1990 – 2000

Nehru Rozgar Yojana's Scheme of Housing and Shelter Upgradation (SHASHU)

• The govt of India understood at this point that housing is not just a house. It is the
essential part and is linked with the livelihood (ROZGAR).
• The govt integrated this NRY with the Shelter provision.
SJSRY: which is livelihood or the income generation
Nehru Swarna activity in the self help group in the urban areas which is
rozgar Jayanti Shahri linked with the basic services and housing
yojana rozgar yojna

UBSP: provides basic services for the poor without dismantling or resettling the slums

NHP: It has been revised because it wanted to have a comprehensive approach in

housing provision.
NSDP: It is the extension of the Basic services project (UBSP) + essential
amenities (community center, health facility, school)
2 Million Housing Program : Basic objective was to achieve housing for all. It was
not sufficient.
 PUBLIC INTERVENTION IN HOUSING (AFTER 1990’s)
AFTER 2000

VAMBAY: The objective of this yojana was to provide the house for the slum
population for slum area at min affordable price. (between 30000 – 40000)

JNNURM: Objective was to provide basic service for the poor and also urban
infrastructure.
• Comprehensive plan of the city (CITY DEVELOPMENT PLAN)
• Comprehensive plan is followed by various projects.
• It came up with REFORMS (organizational discipline)

RAJIV AWAS YOJANA (RAY): Completely focused on the SHELTER (the housing).
It took approach for :
• WHOLE CITY slum free
• ALL SLUMS city plan
• WHOLE SLUMS
To prepare slum free city plan. It is the plan showing all the detailed description of
the existing slums and the other housing typology.
First time in India it recognized to create a different type of housing to prevent the
future slum formation.
CURATIVE TECHNIQUES + PREVENTIVE TECHNIQUE
 PUBLIC INTERVENTION IN HOUSING (AFTER 1990’s)
AFTER 2000

RAJIV AWAS YOJANA (RAY): Another very imp strategy under RAY was to prepare
slum free city plan with all the existing situations
EXISITING SITUATION:
• On site – (upgradation / improvement / redevelopment)
• Off site – (Resettlement)

AFFORDABLE HOUSING IN PARTNERSHIP (AHP):

PUBLIC: Can provide LAND Total Delivery Of Housing Increased
PRIVATE: Can provide FINANCE Manifold

NATIONAL URBAN HOUSING AND HABITAT POLICY (NUHHP):

Major emphasis was on the TECHNOLOGY, DELIVERY and its SUSTAINABILITY
 PUBLIC INTERVENTION IN HOUSING (AFTER 2010)
2010 ONWARDS
CREDIT RISK GUARANTEE FUND SCHEME:
Govt take the risk for the individual borrower, so that the money flow, construction and
supply in the housing market is steady.

RAJIV RINN YOJANA:

Main objective was:
 if a poor person or a common man takes a housing finance from the bank,
sometimes they cannot repay the amount.
 So the govt gives INTEREST SUBSIDY (if the interest is 10%, govt will give 6% or
7%)
 It was the major intervention in the Housing Finance.

AFFORDABLE HOUSING IN PARTNERSHIP (AHP):

It got revised in 2013
 PUBLIC INTERVENTION IN HOUSING (AFTER 1990’s)
2014 - 2015
PRADHAN MANTRY AWAS YOJANA: (PMAY): 2015 – 2022
Main goal of this program was to achieve HOUSING FOR ALL by year 2022.
It has various aspects in terms of supply and demand

DEMAND SIDE:
• Mortgage guarantee
• Interest subsidy
• The regularization of housing finance market

SUPPLY SIDE:
• Technology submission:
• Main objective will be to create an ecosystem of new technology which can
deliver faster housing.
• (because current housing supply mechanism consists of the construction housing
technologies that take 4 to 5 years to complete the project. After that cost acceleration is
there and as a result the common man has to pay major chunk of the pay.)
• So if the construction time is reduced to 1/3rd or Half with the new technology
then the cost can also be reduced.

• BMTPC is coordinating these projects and has identified 16 new technologies.

 PUBLIC INTERVENTION IN HOUSING (AFTER 1990’s)

PRADHAN MANTRY AWAS YOJANA: (PMAY): 2015 – 2022

DRAFT POLICY IN RENTAL HOUSING:

• With the creation of Draft policy, will arrest the formation of the slum in a
PREVENTIVE manner.
• This policy tells us the details of the types of the MIGRATED people.
• The typology of housing they prefer or require.
• What could be the strategy for the city to make the housing for the TRANSITIONAL or
the MIGRATED people.