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Affordable housing in Karnataka: Concerns and Difficulties

Author & affiliation:

Ar. PRATIMA INGLESHWAR (1CF19AHD11)
M.Arch III semester, BMS College Architecture,
Bull Temple Road, Bangalore 560 019
Email: pratima.140594@gmail.com, Ph: +91 9620622555

Abstract
Urbanization is causing an enormous housing shortfall, thanks to which there's the expansion of slums
in Urban Areas. This concentration of growing individuals has led to the issues of housing shortages,
land shortage, and congestion in urban areas and has also stressed the amenities like open spaces,
water, and power of the world. Prim increasing the costs of land and land in urban areas. In today's
urban areas there's a greater necessity for the event of large-scale affordable housing. The target of
creating affordable housing is to provide adequate Affordable Housing shelter to all or any. The
thought of affordable housing appears to be an easy solution to the present housing problem. Thanks
to the uncertain regulatory process, its application remains difficult. To make affordable housing add
India, it'd require, "will" from all the stakeholders by slightly adjusting their interests towards a wider
social cause. It’d require the interests of all stakeholders towards an outsized social cause for
affordable housing in Karnataka.

Content
Introduction (housing, population growth, etc.)
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Housing scenario in Karnataka

Urban Housing Shortage in Karnataka
Affordable Housing
Current Challenges of Affordable Housing
Brief on Rajiv Awas Yojana
Example: Multi-storey G+2 Model under RAY: Tumkuru
Conclusion

Introduction
Economic, social, and civic development is that the input of housing. On the economic side, housing
investment is that the major growth. And on the social side, housing comes after food and medical
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aid. Thanks to rapid urbanization in India, and particularly in Karnataka, the fulfilment of this right to
adequate housing for those belonging to urban deprived areas has become unequal.

As per the 2011 census, the population of India was 121098 million, therein 377.10 million i.e.
31.16% were in urban areas. During the amount 2001-2011, the urban population grew from 27.81%
to 31.16% in India. In Karnataka, during 2001-2011, the share of the population went from 34% to
38.67% in urban areas as decennial census recorded. This growing concentration of the population in
urban areas has led to problems like lack of housing, congestion, and land shortage and has also
stressed amenities like power, open spaces, and water. The urbanization has led to a rise within the
living of individuals in squatter settlements and slums where the housing conditions have deteriorated
of economically weaker sections. This primarily thanks to the rapid climb within the price of land and
land thanks to which economically weaker sections and poor are forces to occupy the land which has
poor housing condition, congested and obsolescence. With these factors, there's an enormous gap
between demand and provide within the current context both in quality and quantity of housing in
urban areas of Karnataka.

Housing scenario in Karnataka

A significant role played in providing shelter to the needy and poor, both in urban and rural areas by
the Housing Department, as per policies issued by the Govt. of India and therefore the Government of
Karnataka. Governed by the organization of the Housing Department, Karnataka Slum Development
Board, Karnataka Housing Board, and Rajiv Gandhi Housing Corporation Limited in urban and rural
areas are implementing various housing schemes. Within the implementation of the housing schemes,
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the first stakeholders are Nirmithi Kendra, Gram Panchayats, Karnataka State Habitat Centre, Urban
Development Authorities, Urban Local Bodies (ULBs). (Manoj Kumar Meena, 2020)

Urban Housing Shortage in Karnataka

Per the estimates by a Technical Group constituted by the Ministry of Housing & Urban Poverty
Alleviation, the Estimated Urban Housing Shortage in 2012, in Karnataka is 1.02 million, India- 18.78
million. (STATE OF HOUSING IN INDIA STATISTICAL COMPENDIUM, 2013)
Sr No. Category Urban Housing Shortage
in Million as on 2012
1 EWS 0.574
2 LIG 0.402
3 HIG + MIG 0.044
4 Total 1.02

Private developers in Karnataka are mainly targeting the posh, high-end, and upper-mid housing
markets, as they receive a premium over low-income housing. This adds to endless supply for this
segment, rising developers' market competition. Housing for the needy and EWS, on the opposite
hand, is usually given for welfare purposes by the govt. However, relative to the present shortage
within the market, it's ineffective. Thus, nit is grossly ignored by the housing requirements of the
lower-middle-class and lower-income classes, and there's an incredible dearth within the availability
of affordable houses mainly demanded in Karnataka by this income community.
Affordable Housing
PMAY (Urban) — EWS/LIG categories
Details EWS LIG
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Household Annual Income (Rs.)

Min. 0 3,00,001
Max. 3,00,000 6,00,000
Income Proof for Claiming Subsidy Self-declaration
Property Carpet Area (sq.m.)* 30 60
Affordable housing are often described by 3 key parameters are the Income, dwelling unit sizes, and
affordability. While independent parameters are the income level and size of the dwelling unit, the
dependent parameter is that the affordability because it correlated to property price and income.
Interest Subsidy Eligibility
6,00,000 6,00,000
Loan Tenure (Years)* Max. 20 20
Interest Subsidy (% p.a.) 6.5 6.5
NPV Discount Rate (%) 9 9
Max. Interest Subsidy Amount (Rs.) 2,67,280 2,67,280
(Sunil Dhawan | November 4, 2019)

Current Challenges of Affordable Housing

• Land related- Availability, Titles, Laws, Cost, Using land as resources & Land Monetization
• Governance Related- Too many approvals/ clearances, Delay, Corruption, Lack of clarity,
Rent Control Act deterrent for rental housing
• Finance related- High cost of capital for builders, Formal Sector not very comfortable in
lending to non-public sector, High NPA and credit risk, Availability of Home Loans for
EWS/LIG
• Developer & Construction related- Lack of transparency and credibility of the builder, cost
overruns, lack of skilled manpower, Technology Suitability, Standardization of building
components or materials, and delays
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Timeline of National and Karnataka State Policies regarding Housing for Urban Deprived

Evolution of Housing Policies

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Rajiv Awas Yojana

Launched in June 2011 in two phases,
• The preparatory phase is for 2 years ending in June 2013, and
• The subsequent implementation phase, which aims for creating cities ‘slum-free’.
The scheme sought to realize this objective by upgrading the prevailing slums and preventing further
creation of slums. within the preparatory phase, each State was required to organize a State Slum-free
Plan of Action (SSFPoA) comprising two parts:
• Part-1 regarding the prevailing slums up-gradation and
• Part-2 regarding the new slums prevention action plan.
These SfCPoAs were to incorporate
• Existing slums survey (non-notified and notified)
• Geospatial mapping of the slums and therefore the amenities
• Integration of spatial and socio-economic data and
• For every slum the redevelopment model was identified through mapping
Preparation of the Slum Redevelopment Plan in consultation with community members residing
within the slum. The SfCPoA was to spell out policy and methods actions to make adequate housing
stock to stop the creation of latest slums within the city. supported the plans of the preparatory phase,
within the implementation phase, preparation of DPRs by the implementing agencies and before
submitting to the Central Sanctioning and Monitoring Committee, The State Level Sanctioning and
Monitoring Committee approved them. The value of the project was to be shared as per the pattern
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shown within the table below.

By 2015, across 10 cities in Karnataka, 20 RAY projects were approved.

Total 22,133 housing units sanctioned across the 20 projects, therein on June 5th, 2018, 63.53% of
housing units had been completed, while construction of 32.23% was ongoing of sanctioned houses.
Example: Multi-storey G+2 Model under RAY: Tumkuru
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Tumkuru city has 37 slums as per Asha Kirana Mahiti data:

 26 declared slums &
 11 are undeclared slums
In that 7 slums have been taken under the SfCPoA for Tumkuru city
RAY project
• involving G+2 construction
• at Dibbur
• total of 1200 dwelling units was proposed
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• for the relocation of 508 families from these seven slums as shown in

Table
The project was expected to complete in 2 years’ time, but the houses were ready in 2017.
The relocated families stayed in temporary structures during this period without any facilities.

Conclusion
Affordable housing, objectives are to supply adequate Affordable Housing shelter to all or any.
Affordable housing should encompass both that's it enables people to shop for and to rent, that there's
a requirement to place an institutional structure in situ. The prevailing models on which affordable
housing is made concentrates on the power of individuals to shop for. Public and personal sectors got
to work together for the event of affordable housing. The private sector develops affordable housing
projects and sells them within the open market. Government agencies like Urban Development
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Departments (UDDs) and concrete Local Bodies (ULBs) are liable for laying down bylaws and
guidelines for affordable housing. By Ministry of Environment and Forests limit in urban areas the
utilization of land for housing purposes, leading to less land for supply and better pricing, thus certain
restrictions should be imposed.

References
RAY-I (Vol.II)/FTS-12554 dated 19.05.2015, M. o. (2015, 05 19). RAY-I (Vol.II)/FTS-12554 .

Independent Researcher, B. N. (2018, 11 30). Review of the Policy and Schemes related to Housing
for Urban Deprived in Karnataka 2007-2017.

Manoj Kumar Meena, S. S. (2020, february 14). Karnataka Housing Department: Providing a Roof
over Every Head. (S. B. Network, Interviewer)

Ministry of Housing and Urban Poverty Alleviation, G. o. (2011). Rajiv Awas Yojana: Guidelines for
Slum-free City Planning. New Delhi.

(2013). STATE OF HOUSING IN INDIA STATISTICAL COMPENDIUM. India: Ministry of Housing and
Urban Poverty Alleviation.

Sunil Dhawan | November 4, 2. 1. (2019, November 4). PMAY EWS/LIG Eligibility: Know the
eligibility, documentation, subsidy calculation and how to apply for the PMAY (Urban)
scheme for EWS/LIG home buyers. Financial Express .