1

UNIT-1
INTRODUCTION TO HOUSING & HOUSING ISSUES IN INDIA
 2

What do you learn???

1. Housing and its importance in architecture, its relationship with

neighborhood and city planning.
2. Housing demand and supply.
3. National Housing Policy.
4. Housing agencies and their role in housing development.
5. Impact of life style. Rural Housing. Public and private sector housing.
What is a house?? 3

✓ A house is a single-unit residential building. It may range in complexity from a

rudimentary hut to a complex structure of wood, masonry, concrete or other
material, outfitted with plumbing, electrical, and heating, ventilation, and air
conditioning systems. Houses use a range of different roofing systems to keep
precipitation such as rain from getting into the dwelling space.

House derives directly from the Old English hus meaning …

"dwelling, shelter, home, house”

 HOUSING – Definition 4
✓ "Housing essentially is the process of providing houses to the houseless and is
related to many other processes necessary for improving the quality of life of the
people. It is a dynamic process with changes in social and physical pattern and
a system of various functions and component. Market commodity is an
important factor & the ideal goal should be need based housing to every
household".

✓ Housing refers to houses or buildings collectively; accommodation of people;

planning or provision of accommodation by an authority; and related meanings.
... Many governments have one or more housing authorities, sometimes also
called a housing ministry, or housing department.

✓ In India, we have 'The Ministry of Housing and Urban Affairs' - An agency of the
Government of India responsible for urban poverty, housing, and employment
programs.
5
 6
Housing is an interdisciplinary topic with a connection to the wide range of social
science, health, and environmental disciplines: sociology, geography, law, politics, public
health, economics, accountancy, architecture, and planning, engineering, and
environmental science. Due to the diversity of the topic housing classification is diverse.

>The housing terms and sub-terms distinguished by the individual and collective use.
HOUSING TERMINOLOGIES
Individual housing could be defined as one
building with one dwelling, having its private
entrance, mostly inhabited by one person or
his/her relatives without any sharing methods
with others.
Eg: Single Occupancy/ Single family housing
the Cohousing definition is: Cohousing is a
special type of housing with shared
characteristics. The shared characteristics must
show simultaneously all four following features
with a certain strength: sharing of spaces,
activities, creation, and tenure.
Eg: Apartments
Collective housing definition is: “Collective
housing is a housing that features spaces and
facilities for joint use by all residents who also
maintain their individual household.”
Eg: TNHB, TNSCB
7
Collaborative housing definition:
“Collaborative housing is a variety
of projects that establish high levels
of long-term participative
relationships, not only amongst their
residents but also between these
and a wide range of external
stakeholders.”
Eg: Titan Housing, TVH Housing
Collective living/Co-living
definition: “Collective living is a
residential structure that
accommodates three or more
biologically unrelated people”
usually in one apartment.
Eg: ZOLO in OMR
HOUSING TERMINOLOGIES
Commune definition: “Commune is a group of
Collective self-build housing: “Housing
families or individuals living together and
sharing possessions and responsibilities.”
8
arranged by groups for their own use;
individuals typically commission the
Community-led housing definition:
construction of a new house from a builder,
“Community-led housing is a housing project
contractor or package company or, in a
that are focused mostly on affordable homes
modest number of cases, physically build a
for the benefit of the local community, either
house for themselves.”
individually or in co-operation with a builder or
Eg: Incremental housing
other local housing provider… The community
group will take a long-term formal role in the
Collective self-help housing definition: “Bringing
ownership, stewardship or management of the
empty or derelict properties back into use
homes.”
through renovation by community projects,
Eg: Incremental/Affordable housing (Fishing
often involving property acquired by the local
Community)
authority from the private sector.”
Eg: TNSCB-Slum Rehabilitation
Condominium definition: “Condominium
means, where the owner owns his or her unit in
Communal housing definition: “Communal
fee simple absolute and shares and undivided
housing means housing for nonfamily groups
interest in the common elements (for example,
with a common kitchen and dining facilities
sidewalks, hallways, pools, clubhouse, storage
but without medical, psychiatric or other care.”
place) as a tenant in condominium owner.” Eg:
Eg: Elderly Housing – Old age homes
Luxury Housing(ECR)
HOUSING TERMINOLOGIES
Cooperative housing definition: “Cooperative Housing is
an association of people (co-operators), which
cooperatively owns and manages apartments and
common areas. Individual members own shares in the
cooperative and pay rent which entitles them to
occupy an apartment as if they were owners and to
have equal access to the common areas.”
Eg: TN Cooperative housing – TNHB, TNEB,etc
Eco-district definition: “Eco-district is an urban
development aiming to integrate the objectives of
sustainable development and focusing on energy, the
environment, and social life.”
Eg: Satellite Township, Smart City Concepts.
Eco-villages definition: “An ecovillage is an intentional,
traditional or urban community that is consciously
designed through locally owned participatory
processes in all four dimensions of sustainability (social,
culture, ecology, and economy) to regenerate social
and natural environments.”
Eg: Auroville, Mahindra World City
9
Gated communities: “Gated
communities are walled or fenced
housing developments, to which public
access is restricted, characterized by
legal agreements which tie the
residents to a common code of
conduct and (usually) collective
responsibility for management.”
Eg: Metrozone, Casagrand, Hiranandhini,etc.
Intentional community definition: “A
planned residential community,
designed to have a high degree of
social cohesion and teamwork;
members typically hold a common
social, political, religious, or spiritual
vision.”
Eg: Socially secluded communities
10
 11

>Potential social sharing methods in co-housing by the fields of sharing

 12

>Characteristic categories of social sharing in co-housing sub-terms – in the order of the sharing level
 13

1.HOUSING & ITS IMPORTANCE

IN ARCHITECTURE ITS
RELATIONSHIP WITH
NEIGHBORHOOD AND CITY
PLANNING.…..
1. Housing is an essential factor in determining the quality of lives, the stability
of communities and the health of national economics. 14

2. Housing is one of the basic human needs along with food, clothing and
education. Mankind has been evolving different kinds of shelter with the
changing civilizations and time.

3. Its importance to society is understood by the fact that in the United

States(US), housing accounts for roughly one-fourth of personal consumption
expenditures and about the same proportion of gross private domestic
investment.

4. The status of the housing sector is a leading indicator of economic activity

especially in the US where the health of the housing industry is extremely
sensitive to monetary and fiscal conditions and policies.
*FISCAL -relating to government revenue, especially taxes
 15
5. Issues involving housing, span numerous areas including architecture,
economics, health, law, finance and city planning.

6. In all these fields, the fundamental housing issue remains as it has been over
the past 50 years the provision of adequate shelter at affordable prices in
suitable locations for all sectors of the population.

7. The term urban area is often used to describe places where only a small
percentage of the people are engaged in rural occupations like farming or
forestry.
HOUSING - NEIGHBORHOOD AND CITY PLANNING 16
Housing development grounded in market-building strategies has turned out to be
one of the most powerful tools available to urban centers to spur reinvestment and
revitalization in their downtowns and older residential neighborhoods. Cities have
reinvented their downtowns by drawing upon home buyers and young professionals
to buy and rehabilitate the city's neighborhoods.
Identity, livability and accommodated projected growth are related to urban form
and neighborhood design.

What is a A neighborhood is an area where people live

and interact with one another. Neighborhoods
neighborhood? tend to have their own identity, or "feel" based
on the people who live there and the places
nearby. Residents may have similar types of
families, incomes, and education level.
A neighborhood is a section of a town or city.
 17
What is a
neighborhood?
Radburn Neighborhood concept
18
What is a A city is relatively a large, dense and permanent 19
city planning? settlement of socially heterogenous individuals.
A settlement can be defined as a city not in terms of
particular morphological features or even collection
of features, but in terms of a particular function – that
of organizing a region and creating effective space.
Criteria to define a city:
1. Large size and population for its time and places.
2. Permanency.
3. A minimum density for its time and place.
4. Urban structures and layout as indicated by recognizably urban streets and spaces.
5. A place where people live and work.
6. A minimum of specifically urban functions, which may include a market, an
administrative or political center, a military center, a religious center or a center of
intellectual activity with corresponding institutions.
7. A hierarchal heterogeneity and differentiation.
8. A center of urban economy for its time and place linking an agricultural hinterland and
processing raw materials for a large market.
9. A center of services for neighboring areas.
10. A center of diffusion, having an urban way of life for its time and place.
 HOUSING - NEIGHBORHOOD AND CITY PLANNING
20
Garden City By
Ebenezer Howard was a
most potent planning model in Western
urban planning. It was created in 1898 to
resolve the urban and rural problems.
Designed for all income groups.
(THE THREE MAGNETS – TOWN, COUNTRY,
TOWN-COUNTRY)

English Urban Planner

HOWARD’S SOLUTION TO THE PROBLEMS?… 21
Howard’s solution to the related problems of rural
depopulation and the runaway growth of great
towns and cities was the creation of a series of
small, planned cities that would combine the
amenities of urban life with the ready access to
nature typical of rural environments.

The main features of Howard’s scheme were:

(1) the purchase of a large area of agricultural land
within a ring fence;
(2) the planning of a compact town surrounded by
a wide rural belt;
(3) the accommodation of residents, industry, and
agriculture within the town;
(4) the limitation of the extent of the town and
prevention of encroachment upon the rural belt;
and
(5) the natural rise in land values to be used for the
town’s own general welfare.
HOWARD’S SLUMLESS, SMOKELESS CITIES…
22
At the centre of the city would lay a
garden ringed with the civic and cultural
complex including the city hall, a
concert hall, museum, theatre, library,
and hospital. Six broad main avenues
would radiate from this centre.
Concentric to this urban core would be
a park, a combination shopping
centre and conservatory, a residential
area, and then, at the outer edge,
industry. Traffic would move along
avenues extending along the radii and
concentric boulevards.

His emphasis on greenbelt areas and

controlled population densities has
become an integral part of suburban
and city planning as well.
HOWARD’S PLANNED CITY of Town-Country…
23
Patrick Geddes - Rural 24
development, Urban Planning and City
Design are not the same and adopting a
common planning process is disastrous.
'Concept of Conurbation' - waves of
population inflow to large cities and then
the wave of backflow resulting in
amorphous sprawl, waste and unnecessary Geddesian Triad/Methodology
obsolescence. Eg: Delhi-NCR.
(Encompasses the entire territory of Delhi and the
urban areas of states neighbors: Haryana, UP &
Rajasthan, thus Delhi-NCR(National Capital
Region).

Conurbation A term coined by Patrick Geddes in 1915 to

describe large-scale city regions such as Greater London, New
York/Boston, or the Ruhr.

Scottish biologist, sociologist, geographer, philanthropist and pioneering town planner

Patrick Geddes – CONCEPT OF CONURBATION – Work, Place, Folk….
25
Patrick Geddes is also known as “Father of Modern Town Planning”. Sir Patrick Geddes was a Scottish
biologist, sociologist, geographer, philanthropist and pioneering town planner. He is known for his
innovative thinking in the fields of urban planning and sociology.

He introduced the concept of "region" to architecture and planning and coined the term
"conurbation". Geddes developed a new approach to regional and town planning based on the
integration of people and their livelihood into the environmental givens of the particular place and
region they inhabit. Geddes illustrated the section using the locally available landscapes of Edinburgh
and its hinterland. The Geddes Plan for Tel Aviv was the first master city plan for Tel Aviv.

Inspired by the French sociologist Frederic Le Playʼs (1802–1886) triad of ʻLieu, Travail, Familleʼ — which
Geddes translated to “Work, Place, Folkʼ — Geddes developed a new approach to regional and town
planning based on the integration of people and their livelihood into the environmental givens of the
particular place and region they inhabit. He emphasized that sound planning decisions have to be
based on a detailed regional survey, which established an inventory of a regionʼs hydrology, geology,
flora, fauna, climate and natural topography, as well as its social and economic opportunities and
challenges. As such the Geddesian methodology pioneered the bioregional planning approach more
than 70 years before the emergence of bioregionalism.
Patrick Geddes – CONCEPT OF CONURBATION – Work, Place, Folk….
26
 27
Clarance Stein’s
Neighborhood Concept
(Radburn Unit) - with units of urban
planning, street system, infrastructure, Facilities,
Population, sector, size and density, etc.

“The house itself is of minor importance. Its relation

to the community is the thing that really counts.”
SUPERBLOCK
Neighbourhood idea - Clarence Stein and Henry Wright - plan
for Radburn.

The urban design principles of Stein and Wright included the idea of a
superblock of residential units grouped around a central green, the
separation of vehicles and pedestrians, and a road hierarchy with cul-
de-sac for local access roads. A cluster of superblocks was to form a
self-contained neighbourhood.
American Urban Planner
 Clarance Stein’s Neighborhood Concept (Radburn Unit)
28
Principles:
1. No grid iron pattern
2. Planning not in term of single block, sector,
etc. but overall planning of the whole
neighbourly are or superblock.
3. Pedestrian should be safe and segregated
from other vehicular traffic. Expressway or
parkway for high speed traffic.
4. House to be turned inside out. Usually the
roads and back of the houses are not kept
clean. For this reason the working areas like
store, kitchen, bath, etc should face front
roads. This is known as the RADBURN IDEA.
5. Community park spreading on whole of the
area instead of providing one big park.
6. Cul-de-sac streets. The idea is not to allow
through traffic to go to the house.
Clarance Stein’s Neighborhood Concept (Radburn Unit)
29
Clarance Stein’s Neighborhood Concept (Radburn Unit)
30
 31

C A Perry’s Neighborhood
concept
Neighbourhood idea - Clarence Arthur
Perry,1929

The neighbourhood unit was conceived of as a

comprehensive physical planning tool, to be
utilised for designing self- contained American
residential neighbourhoods which promoted a Urban
community centric lifestyle, away from the Planner
"noise of the trains, and out of sight of the
smoke and ugliness of industrial plants"
emblematic of an industrialising New York City
in the early 1900s.
 32

PERRY’S SCHEME FOR NEIGHBORHOOD UNITS

 33

2.HOUSING DEMAND & SUPPLY

“A home is where
your story begins”.
 34
HOUSING –
A BASIC NEED…

“the ideal goal should be need based

housing to every household".
Why there is a Need for Housing? 35

Housing is one of the basic needs of every individual as besides providing shelter and
security, it also enables easy access to the credit market by working as collateral
comfort / security.

The urban population of India has been growing at a rapid pace. As per the
Census 2021, 35.4% of the total population is in the urban areas. The shortage of
housing units for the urban areas for 2022 is estimated as 30 million units .
With time, there has been expansion and improvement in the housing finance market
by way of various financial reforms, however the housing loans as a percentage of
Gross Domestic Product (GDP) have remained at around 11%(as of yr 2021),
significantly lower than the levels achieved in most of the developed countries.

Mortgage lending has increased from 1% of India's gross domestic product (GDP) in
1990 to almost 11% now, worth approximately Rs27 trillion, said Rahul Bhave, executive
director, National Housing Bank.
NEED FOR HOUSING… 36

MORE POPULATION DENSITY = MORE NEED

Demand side factors/Supply side factors… 37
The major policy concern with respect to housing as well as housing
finance market is the mismatch between the demand and supply of
housing units and the financial solutions available for the same.

On the demand side factors like growing middle class, income levels of the
people, cyclical condition and urbanization, and on the supply side factors
like the lack of availability of land, finance at reasonable rate,
infrastructure, legal and regulatory framework and the limitations of the
private and other stakeholders to provide low income housing play a major
role.

Also “Affordable Housing” has serious implications for the country's housing sector as
the wide gap between the demand and availability of housing units can be
narrowed down only by way of affordable housing. The same requires appropriate
funding models within a regulatory framework and pro active participation of all
stake holders so as to improve the availability as well as the quality of housing in
India.
 38
Current India
Population in 2022 is
1,388,052,928 (138
crores) (1.38 billion)

With the growing

population, the MoHUA
(Ministry of Housing and
Urban Affairs) projected a
housing shortage of 30
million units by 2022. The
Central government has
identified 305 cities and
towns under the “Housing
for All by 2022” Mission as
areas of focus.
“MISMATCH BETWEEN DEMAND & SUPPLY”
HOW HOUSING NEED IS DEFINED?? 39

1. Defined as the extent to which housing conditions fall below the levels of
standards considered necessary for the health, privacy & development of a
normal family's living standards.
2. Main aim is to shelter the houseless & to replace make shift dwellings and
dilapidated structures, which are fit for demolition, with decent houses of
acceptable standards.
3. If a slum dweller cannot afford to pay for a decent house of minimum
standards - a case for housing need.
4. Broad determinants of housing need are:
o present number of households
o natural growth in the same household
o migration
o rise in the standard of living.
HOUSING SHORTAGE: Defined as a deficiency or lack in the number of houses needed to
accommodate the population of an area.
40
The Ministry for Housing and Urban Poverty Alleviation has been responsible for estimating housing shortage
for different Five Year Plans. Happily, it has adopted a vision and perspective wherein a norm based
approach has been designed in determining the shortage. This methodology is very different from that
based on effective demand and paying capacity of the households, followed by several agencies,
including a few Committees of the Planning Commission.

This norm based methodology considers four components of urban housing shortage:
(a)houseless population;
(b)households living in katcha non serviceable units;
(c)those living in dangerous and physically dilapidated units; and
(d)those living in ‘congestion’ - socially unacceptable conditions (such as married couple
sharing a room with an adult).
The methodology is similar to determining food shortage or poverty in the country, which is not by the
paying capacity of the households but based on biologically and socially determined norms. It actually
estimates housing poverty in urban India. Understandably, the estimated housing shortage of 30 million is
not the number of new houses to be constructed since this includes the households that need extra rooms
as well as those in the fourth category.
HOUSING DEMAND: 41
1. It is related to the will, ability and affordability of the households.
2. Demand for houses: Desire to own a house becomes "effective demand" when
supported by purchasing power. This is purely economic concept of demand for
houses.
3. The need for housing is directly proportional to the ever growing population.
4. Inadequately serviced and overcrowded urban housing have been recognized as the
undesirable aspect of urban cities.
5. One third of the world's population, according to a study, doesn't have access to
adequate housing.
6. The type of demand varies according to the different classes in society.

HOUSING SUPPLY:
1. It is the available housing stock, periodical addition, extensions, improvements,
upgradation, etc.
2. Dilapidation & destruction on account of the natural calamities will reduce the
availability of the housing stock.
How do you calculate housing demand for a 42
future date??
The Factors to be considered in Analyzing Demand are:

1. Household Growth
2. Units in Pipeline
3. Vacancy rates
4. Substandard Housing Conditions
5. Unit Replacement
6. Absorption levels
7. Market Balance
8. Market Segmentation
9. Number of Potential Income Qualified Households
10. Unit Distribution
11. Turnover
12. Affordability
13. Housing choice
14. Market saturation and
15. Location
 43
Distinguish between Housing Demand and supply.

S.No. Housing Demand Housing Supply

a Relates to the willingness and Relates to the agencies/firms who

ability to purchase a house. are offering houses for sale.

b Refers to the number of houses Refers to the number of houses

required to be owned. available to be sold at a time.
 44

3.NATIONAL HOUSING POLICY

History of Revisions Made:

The National Housing Policy (NHP)-1988

The National Housing Policy(NHP)-1994
The National Housing & Habitat Policy(NHHP)-1998
The National Urban Housing & Habitat Policy(NUHHP)-2007
 45
THE GOAL OF THE NATIONAL HOUSING POLICY

Provide adequate, comfortable, quality and

affordable housing to enhance the sustainability of
the quality of life of the people.

When was the first Housing Policy formulated by the Government of

India….????
Although housing is primarily a State subject, the Central govt. has been
formulating National Housing Policies to provide guidance to the State Govt. to
meet the growing housing shortage. This process started in 1986. This resulted in
the first ever Housing Policy which was announced in May, 1988.
How often have the Policies been updated….???? 46
In 1991, India adopted a more ‘inclusive’ view of economic development by emphasizing that it
must integrate with the global economy. In pursuance of this, it reduced custom duties and
welcomed Foreign Direct Investment (FDI) in several sectors of the economy.

The National Housing Policy(NHP), 1994 was a product of this economic point of view. The 1994
Policy sought to increase supply of land serviced by basic minimum services with a view to
promoting a healthy environment.

The National Housing & Habitat Policy(NHHP), 1998 laid greater emphasis on the aspect of
“Habitat” as a supplementary focus to housing. The emphasis on “providing” housing continued in
this Policy with emphasis on both quality and cost-effectiveness especially to vulnerable sections of
society.

The National Urban Housing & Habitat Policy (NUHHP), 2007 seeks to enhance the spotlight on
‘habitat’ with a ‘Regional Planning approach’ as well as further deepen the role of Government as a
‘facilitator’ and ‘regulator.’ Moreover, the new Policy lays emphasis on earmarking of land for the
EWS/LIG groups in new housing projects. The Policy lays emphasis on Government retaining its role in
social housing so that affordable housing is made available to EWS and LIG of the population.
 47
Which housing policy is presently in force…???

The National Urban Housing & Habitat Policy (NUHHP), 2007

seeks to enhance the spotlight on ‘habitat’ with a ‘Regional
Planning approach’ as well as further deepen the role of
Government as a ‘facilitator’ and ‘regulator.’

Moreover, the new Policy lays emphasis on earmarking of land

for the EWS/LIG groups in new housing projects. The Policy lays
emphasis on Government retaining its role in social housing so
that affordable housing is made available to EWS and LIG of
the population.
What are main features of NUHHP:2007..???
48
As the first urban focussed housing policy, it aims at promoting sustainable
development of habitat in the country with a view to ensuring equitable supply of
land shelter and services at affordable prices to all sections of the society. However,
given the magnitude of the housing shortage and the staggering requirement of
funds amounting to Rs.3.61 lakh crores to meet the cost of construction only for
overcoming the shortage, it is obvious that public sector efforts alone will not suffice in
fulfilling the requirement due to budgetary constraints of both Central and State
Governments. Involvement of multiple stakeholders namely; private sector, co-
operative sector, industrial sector for labour housing and the services, institutional
sector for employee housing has been emphasised in the NUHHP.

The policy aims at forging strong partnerships between the public private and
cooperative sectors for accelerated growth in the housing sector and sustainable
development of habitat. 10-15% of land in every new public/ private housing project
or 20-25% of FAR which is greater will be reserved for EWS/LIG housing through
appropriate legal stipulations and spatial incentives. The Policy seeks to augment
housing stock at an accelerated rate both on ownership and rental basis with a view
to overcoming shortage of EWS/LIG units.
 49
What is the difference between NUHHP:2007 and
NHHP:1998???
NUHHP:2007 addresses “Urban Housing” exclusively.
The focus is on Affordable Housing for All with special emphasis on
Scheduled Castes / Tribes, Backward Classes, Minorities, the urban
poor and Empowerment of Women.

The National Housing & Habitat Policy, 1998 laid greater emphasis
on the aspect of “Habitat” as a supplementary focus to housing.
The emphasis on “providing” housing continued in this Policy
with emphasis on both quality and cost-effectiveness especially to
vulnerable sections of society.
NUHHP:2007
50
NUHHP:2007 addresses “Urban Housing” exclusively. The focus is on Affordable
Housing for All with special emphasis on Scheduled Castes / Tribes,
Backward Classes, Minorities, the urban poor and Empowerment of
Women.

AIMS/NEW INITIATIVES/SALIENT FEATURES under NUHHP, 2007 are:-

10%-15% land or 20%-25% FSI (whichever is greater) to be reserved for EWS and LIG housing
Private sector to be permitted land assembly within Master Plan
A special action plan to be prepared for urban slum dwellers
A special package to be worked out for cooperative housing, labor housing & employee
housing.
States/UTs to be advised to develop 10 year perspective plans for housing for EWS and LIG
Special financial and spatial incentives for inner city areas
Central & State Govt. to develop special incentive plans for in situ slum upgradation
Plan funds & other assistance to be dovetailed according to Action Plan prepared under
State Habitat Policy prepared by states
Micro-finance Institutions (MFIs) to be promoted at state level to expedite the flow of
finances to urban poor
Model Guidelines to be developed by Central govt. for use by States/UTs for land supply
States/UTs to be encouraged to undertake reforms listed under JNNURM
 Prepare detailed city maps by GIS and satellite data etc.
Transfer of proven, cost-effective building materials and technologies to be 51
encouraged by transfer from Lab to Land
Development of Mass rapid Transit System (MRTS) at sub-regional level
All States to be encouraged to develop a “Habitat Infrastructure Action Plan” for all
cities with a population of over 1,00,000
Policy gives primacy to provision of shelter to the urban poor at their present location
or near their work place
Approach will be in – situ slum rehabilitation. Relocation will be considered only in
specific cases
Formation of Cooperative Housing Societies of urban poor and slum dwellers to be
encouraged

Specific addition of `Action Plan’ which seeks

1. Central govt. to encourage and support the states to prepare State Urban Housing
and Habitat Policy & a State Urban Housing and Habitat Action Plan
2. The State/UT Action Plans to focus on accelerated flow of funds for housing and
infrastructure, and promote balanced regional growth
3. The State/UT level policy/plan to provide a road map pertaining to institutional,
legal, regulatory and financial incentives
The National Urban Housing and Habitat Policy 52
intends to achieve the following:

1.Urban Planning

i) Encouraging State Governments, Urban Local Bodies, Development Authorities to

periodically
update their Master Plans and Zoning Plans which should, adequately provide for
housing and basic
services for the urban poor.

ii) Promoting balanced urban-rural planning by following the Regional Planning

Approach, take the
whole State/UT as a region, under the Town & Country Planning Acts in the States.

iii) Planning of Mass Rapid Transit Systems (MRTS) at the city Metropolitan Planning Area
and Sub
region levels.
 53
2.Affordable Housing

iv) Accelerating the pace of development of housing and related infrastructure.

v) Creating adequate housing stock both on rental and ownership basis with special emphasis on
improving the affordability of the vulnerable and economically weaker sections of society through
appropriate capital or interest subsidies.

vi) Using technology for modernizing the housing sector for enhancing energy and cost efficiency,
productivity and quality.

• Technology would be harnessed to meet the housing needs of the poor.

• The concept of ‘green’ and ‘intelligent’ buildings would be put in place on the ground.
• Technological advances would be disseminated for preventing and mitigating the effects of
natural disasters on buildings, e.g., in case of earthquakes, floods, cyclones, etc.
 54
3.Increase flow of Funds

vii) Promoting larger flow of funds from governmental and private sources for fulfilling housing and
infrastructure needs by designing innovative financial instruments.

viii) Designing suitable fiscal concessions in congruence with the Housing and Habitat Policy with
appropriate monitoring mechanism to ensure that the concessions are correctly targeted and
utilized.

ix) Removing legal, financial and administrative barriers for facilitating access to tenure, land,
finance and technology.

x) Shifting to a demand driven approach and from subsidy based housing schemes to cost
recovery cum-subsidy schemes for housing through a proactive financial policy including micro-
finance and related self-help group programmes.

4.Spatial Incentives
xi) Innovative spatial incentives like
• relaxation of Floor Area Ratio (FAR) for ensuring
that 20-25 % of the FAR are reserved for EWS /
LIG and
• issuance of Transferable Development
Rights(TDR) for clearance of transport
bottlenecks in the inner-city areas and
availability of additional FAR in Outer Zones will
be promoted with a view to meeting the
housing shortage amongst EWS/ LIG.
xii) Careful review of authorized Floor Area Ratio
(FAR) in line with international practices for allowing
more efficient use of scarce urban land by
construction of high rise buildings.
55
5.Increase Supply of Land
xiii) Facilitating accessibility to serviced
land and housing with focus on
economically weaker sections and low
income group categories.
xiv) Suitable restructuring
for enabling both institutions at the State
and Centre levels as well as the private
sector for increasing supply of land.
6.Special Provision for
SC/ST/OBC/Minorities/Disabled
xv) Special efforts for catering to the needs of Scheduled
Castes, Scheduled Tribes, Other Backward Classes,
Minorities, Disabled persons, slum dwellers, street vendors
other informal sector workers and other vulnerable sections
of the society in relation to housing and access to basic
services.
7.Special Provision for Women
xvi) Involving women at all levels of decision making for
ensuring their participation in formulation and
implementation of housing policies and programmes.
xvii) Addressing the special needs of women headed
households, single women, working women and women
in difficult circumstances in relation to housing serviced
by basic amenities.
8.Employment Generation
xviii) Upgradation of construction skills and accelerated
development of housing and infrastructure sectors for
giving an impetus to employment generation.
9.Public-Private Partnerships
xix) Forging strong partnerships between public, private
and cooperative sectors for accelerated growth in the
Housing Sector and sustainable development of habitat.
10.Management Information System
56
xx) Establishing a Management
Information System (MIS) in the Housing
Sector for strengthening monitoring of
building activities in the country.
11.Healthy Environment
xxi) Developing cities/towns in a manner
which promotes a healthy environment,
• Encouraging use of renewable energy
resources.
• Ensuring effective solid waste
management in collaboration with
persons involved in recycling activities.
xxii) Protecting our cultural heritage and
architecture as well as promoting
traditional skills with suitable adaptation to
modern technologies.
NHHP:1998
57
The National Housing & Habitat Policy, 1998 laid greater emphasis on the aspect of
“Habitat” as a supplementary focus to housing. The emphasis on “providing” housing
continued in this Policy with emphasis on both quality and cost-effectiveness
especially to vulnerable sections of society.

AIMS/NEW INITIATIVES/SALIENT FEATURES under NHHP, 1998 are:-

(i) Creation of surpluses in housing stock either on rental or ownership basis.
(ii) Providing quality and cost effective housing and shelter options to the citizens. Especially the
vulnerable group and the poor.
(iii) Housing and supporting services to be treated as priority and at par with the infrastructure
sector.
(iv) Guiding urban and rural settlements so that there is planned and balanced growth.
(v) Planning of urban transport to be an integral part of the urban Master Plan.
(vi) To generate more employment and achieve skill upgradation in housing and building
activity.
(vii) Ensuring that all dwelling units have easy accessibility to basic sanitation facilities and water.
(viii) Removing legal, financial and administrative barriers for facilitating access to land, finance
and technology.
 NATIONAL HOUSING POLICY (NHP)- 1998 AIMS
58

(ix) Using technology for modernizing the housing sector to increase efficiency,
productivity, energy efficiency and quality.
(x) Forging strong partnerships between private, public and cooperative sectors in
every sphere of housing and habitat.
(xi) Involving women at all levels of decision making and enabling them in
formulation and implementation of the housing policies and programs.
(xii) Addressing the special needs of women headed households/ single and
working women/women in difficult circumstances.
(xiii) Protecting and promoting our cultural heritage, architecture and traditional
skills.
(xiv) Establishing a Management Information System in the housing sector to
strengthen monitoring of building activity.
 59

3A.POLICIES & SCHEMES IN INDIA

Important Policies & Schemes:

JnNURM (Jawaharlal Nehru National Urban Renewal Mission),

NUHHP (National Urban Housing & Habitat Policy),
NULM (National Urban Livelihood Mission,
RAY (Rajiv Gandhi Awas Yojana),
PMAY (Pradhan Mantri Awas Yojana),
Rental Housing,
Affordable Housing
1.JAWAHARLAL NEHRU NATIONAL URBAN RENEWAL MISSION(JnNURM),
2005 60
JnNURM launched in Dec 2005, is a flagship programme of the government of India aimed
at creating economically productive, efficient, equitable, responsive and inclusive cities.
The Mission focuses on:
1. Improving and augmenting the economic and social infrastructure in cities.

2. Ensuring basic services to the urban poor including security of tenure at affordable prices.

3. Initiating wide range of urban sector reforms to eliminate legal, institutional and financial constraints
that impede investment in urban infrastructure and services.

4. Strengthening municipal governments and decentralised civic service delivery in accordance with
the provisions of the constitution Act, 1992.

The mission has four components: Urban Infrastructure & Governance(UIG), Basic Services to the urban
poor(BSUP), Urban Infrastructure development scheme for small and medium towns(UIDSSMT) and
Integrated Housing and Slum Development Program(IHSDP).

JnNURM contemplates that cities develop planned urban perspective frameworks for a period of 20-25
years indicating policies, programmes and strategies of meeting fund requirements. In this context, a city
development plan (CDP) needs to be prepared before a city can access Mission funds. Cities will be
required to prepare Detailed project report (DPR) for undertaking projects in identified areas.
2.NATIONAL URBAN HOUSING & HABITAT POLICY (NUHHP), 2007
61
The National Urban Housing & Habitat Policy 2007 (NUHHP-2007) has been formulated keeping in
view the changing socio-economic parameters of the urban areas and growing requirement of
shelter and related infrastructure. The Policy seeks to promote various types of public-private
partnerships for realizing the goal of “Affordable Housing for All” with special emphasis on
the urban poor. Given the magnitude of the housing shortage and budgetary constraints of
both the Central and State Governments, the NUHHP-2007 focuses the spotlight on multiple
stake-holders namely, the Private Sector, the Cooperative Sector, the Industrial Sector for labour
housing and the Services/ Institutional Sector for employee housing.
 62
3.NATIONAL POLICY ON URBAN STREET VENDORS, 2009
The policy gives due recognition to urban street vendors for their contribution to society. It seeks
to provide them with a descent working environment to pursue their activities.

1. Constitution of Town Vending Committees to regulate street vending and assist the street
vendors.

2. Photo-census and registration of street vendors, demarcation of vending zones including GIS
mapping of such zones and issuing identity cards to the street vendors.

3. Provision of space in Master, Zonal and Local Plans for 'Restriction-free Vending', 'Restricted
Vending' and 'No Vending' zones and Vendor markets.

4. Formulation of schemes for the benefit of street vendors including provision of credit, housing,
health insurance, and other facilities.

5. Mechanisms for dispute resolution arising between street vendors and public and private
parties.
4.NATIONAL URBAN LIVELIHOODS MISSION (NULM), 2013
National Urban Livelihoods Mission (NULM) was launched by the Ministry of Housing and Urban 63
Poverty Alleviation (MHUPA), Government of India in 23rd September, 2013 by replacing the
existing Swarna Jayanti Shahari Rozgar Yojana (SJSRY).The NULM will focus on organizing urban
poor in their strong grassroots level institutions, creating opportunities for skill development leading
to market-based employment and helping them to set up self-employment venture by ensuring
easy access to credit. The Mission is aimed at providing shelter equipped with essential services to
the urban homeless in a phased manner. In addition, the Mission would also address livelihood
concerns of the urban street vendors.

The Main Features of NULM are:

i. Coverage: In the 12th Five Year Plan, NULM will be implemented in all districts
headquarter towns(irrespective of population) and all other towns with population of 1 lakh or
more as per Census 2011. At present 790 cities are under NULM. However, other towns may be
allowed in exceptional cases on request of the States.

ii. Target Population: The primary target of NULM is the urban poor, including the urban homeless.

iii. Sharing of funding: Funding will be shared between the Centre and the States in the ratio of
75:25. For North Eastern and Special Category States (Arunachal Pradesh, Assam, Manipur,
Meghalaya, Mizoram, Nagaland, Sikkim, Tripura, Jammu & Kashmir, Himachal Pradesh and
Uttarakhand), this ratio will be 90:10.
NATIONAL URBAN LIVELIHOODS MISSION (NULM) 64
Guiding Principles:
The core belief of National Urban Livelihoods Mission (NULM) is that the poor are entrepreneurial
and have innate desire to come out of poverty. The challenge is to unleash their capabilities to
generate meaningful and sustainable livelihoods. The first step in this process is motivating the urban
poor to form their own institutions. They and their institutions need to be provided sufficient capacity
so that they can manage the external environment, access finance, expand their skills, enterprises
and assets. This requires continuous and carefully designed hand holding support. An external,
dedicated and sensitive support structure, from the national level to the city and community levels,
is required to induce social mobilisation, institution building and livelihood promotion.

Values:
The mission will espouse the following values:
1. Ownership and productive involvement of the urban poor and their institutions in all processes;
2. Transparency in programme design and implementation, including institution building and
capacity strengthening;
3. Accountability of government functionaries and the community;
4. Partnerships with industry and other stakeholders; and
5. Community self-reliance, self-dependence, self-help and mutual-help.
5.THE RAJIV AWAS YOJANA PROJECT (RAY), 2011
65
The RAY programme aims at creating a slum free India. It was launched in 2011
in two phases. The “preparatory phase” ended in 2013. The “implementation phase”
was sanctioned for action from 2013 to 2022.

The two major objectives of RAY can be summed up as follows:

• Legal recognition of slums and bringing them into the formal system.
• Redress the failures of the formal system The RAY comprises of a series of guidelines that govern
the many aspects of the program, right from the policy measures to be taken to the way in
which these measures must be implemented. For our study, we shall focus only on the policy
measures proposed by this scheme.

Rajiv Awas Yojana with the vision of a 'slum free India' that aims at encouraging States/Union
Territories to progress and tackle the problem of slums holistically. Bringing existing slums within
the formal system and enabling them to avail of the same level of basic amenities as the rest of
the town. Redressing the failures of the formal system that lie behind the creation of slums.
Tackling the shortages of urban land and housing that keep shelter out of reach of the urban
poor and force them to resort to extra-legal solutions in a bid to retain their sources of livelihood
and employment.
The ministry will provide support to State Governments/ Urban local bodies for slum
survey, GIS mapping of slums, and for capacity creation at city and state levels, etc.
RAY - SLUM FREE INDIA…
66
Write short notes on Rajiv Awas Yojana??? 16 Marks
Vision
67
"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 to tackle slums in a definitive manner, by focusing on: Bringing all
existing slums, notified or non-notified (including recognized and identified) within the formal
system and enabling them to avail the basic amenities that is available for the rest of city.
Readdressing 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.

Objectives:
1. Improving and provisioning of housing, basic civic infrastructure and social amenities in
intervened slums.
2. Enabling reforms to address some of the causes leading to creation of slums.
3. Facilitating a supportive environment for expanding institutional credit linkages for the urban
poor.
4. Institutionalizing mechanisms for prevention of slums including creation of affordable housing
stock.
5. Strengthening institutional and human resource capacities at the Municipal, City and State
levels through comprehensive capacity building and strengthening of resource networks.
6. Empowering community by ensuring their participation at every stage of decision making
through strengthening and nurturing Slum Dwellers’ Association/Federations.
RAY will also extend financial support States for creation of affordable housing stock through public-
private partnership (PPP) under the Affordable Housing in Partnership (AHP) component of the
scheme.
68
The scheme is applicable to all slums within a city, whether notified or non-notified (including
identified and recognized), whether on lands belonging to Central Government or its Undertakings,
Autonomous bodies created under the Act of Parliament, State Government or its Undertakings,
Urban Local Bodies or any other public agency and private sector. It is also applicable to
“urbanized villages” inside the planning area of the city, urban homeless and pavement dwellers.

Affordable Housing in Partnership (AHP)

The Government has also approved the scheme of Affordable Housing in Partnership (AHP) as part
of Rajiv Awas Yojana (RAY) on 03.9.2013 to increase affordable housing stock, as part of the
preventive strategy. Central support is provided at the rate of Rs. 75,000 per Economically Weaker
Sections (EWS)/Low Income Group (LIG) Dwelling Units (DUs) of size of 21 to 40 sqm. in affordable
housing projects taken up under various kinds of partnerships including private partnership. A
project size of minimum 250 dwelling units is eligible for funding under the scheme. The DUs in the
project can be a mix of EWS/LIG-A/LIG-B/Higher Categories/ Commercial of which at least 60
percent of the FAR/ FSI is used for dwelling units of carpet area of not more than 60 sq.m.

The Central assistance under RAY will be contingent upon implementation of reforms as per the
timelines agreed upon. The mandatory reforms include:
(i) Giving long term, mortgage able, renewable leasehold rights to slum dwellers
(ii) Reserving 15% of FAR/FSI or 35% of DU for EWS whichever is higher
(iii) Reserving 25% of municipal budget to provide basic services to the urban poor and
(iv) Establishment of municipal cadre to deal with issues of slums and urban poor.
 69

Two step implementation strategy would be adopted under RAY i.e. preparation of Slum-free
City Plans of Action (SFCPoAs) on ‘whole city’ basis and Detailed Project Reports (DPRs) on
‘whole slum’ basis. Selected cities will be assisted to draw up their SFCPoA which will be an
overall action plan of the ULB with investment requirements projected and prioritized for
improving/developing the existing slums and providing houses including basic civic
infrastructure and social amenities for the urban poor for the next 10-15 years. On the basis of
prioritization of slums in SFCPoAs, cities would be required to prepare Detailed Project Reports
(DPRs) following an integrated ‘whole slum’ approach with the provision of housing, basic civic
infrastructure and social amenities in each selected slum.
6.PRADHAN MANTRI AWAS YOJANA – 2015
70
Housing for All (urban)
At the slum decadal growth rate of 34%, the slum households
are projected to go upto 18 million. 2 million non-slum urban
poor households are proposed to be covered under the
Mission. Hence, total housing shortage envisaged to be
addressed through the new mission is 20 million.
“HOUSING FOR ALL
2022”
The Mission is being implemented during 2015-2022 and The policies which have been
provides central assistance to Urban Local Bodies (ULBs) and envisaged by the governments
over the years have been some
other implementing agencies through States/UTs for: modification of “Housing For All
2022” (HFA) policy (MoHUPA),
1. In-situ Rehabilitation of existing slum dwellers using land as a
2015 that has been introduced.
resource through private participation The HFA policy envisages
providing, according to the
2. Credit Linked Subsidy President’s Speech,
3. Affordable Housing in Partnership “every family with a
pucca house with water
4. Subsidy for beneficiary-led individual house connection, toilet
construction/enhancement. facilities, 24x7 electricity
supply and access”.
Components of PMAY-Urban 71

Benefits to eligible candidates are being provided through 4 different components of

Pradhan Mantri Awas Yojana as following:
1. In-situ Slum Redevelopment (ISSR) Scheme
2. Credit Linked Subsidy (CLSS) Scheme
3. Affordable Housing in Partnership (AHP) Scheme
4. Beneficiary-led Individual House Construction (BLCs) Scheme

Credit linked subsidy component is being implemented as a Central Sector Scheme

while other three components as Centrally Sponsored Scheme (CSS).
The Mission, in order to expand institutional credit flow to the housing needs of urban poor will
implement credit linked subsidy component as a demand side intervention.

Interest subsidy will be credited upfront to the loan account of beneficiaries through Primary
Lending Institutions resulting in reduced effective housing loan and Equated Monthly Instalment
(EMI). The Net Present Value (NPV) of the interest subsidy will be calculated at a discount rate of 9
%.
Credit Linked Subsidy Scheme for EWS/LIG
Beneficiaries of Economically Weaker section (EWS) and Low Income Group (LIG) seeking
housing loans from Banks, Housing Finance Companies and other such institutions would be
72
eligible for an interest subsidy at the rate of 6.5% for a tenure of 20* years or during tenure of loan
whichever is lower.

The credit linked subsidy will be available only for loan amounts upto Rs 6 lakhs and additional
loans beyond Rs. 6 lakhs, if any, will be at nonsubsidized rate. Credit linked subsidy would be
available for housing loans availed for new construction and addition of rooms, kitchen, toilet
etc. to existing dwellings as incremental housing. The carpet area of houses being constructed
under this component of the mission should be upto 30 square metres and 60 square metres for
EWS and LIG, respectively in order to avail of this credit linked subsidy. The beneficiary, at his/her
discretion, can build a house of larger area but interest subvention would be limited to first Rs. 6
lakh only.

Credit Linked Subsidy Scheme for MIG*

The newly launched CLSS for MIG covers two income segments in the MIG viz. Rs.6,00,001 to
Rs.12,00,000 (MIG-I) and Rs.12,00,001 to Rs.18,00,000 (MIG-II) per annum. In the MIG-I, an interest
subsidy of 4% has been provided for loan amounts up to Rs.9 lakh while in MIG-II, an interest
subsidy of 3% has been provided for loan amount of Rs.12 lakh. The interest subsidy will be
calculated at 9% NPV over a maximum loan tenure of 20 years or the actual tenure, whichever is
lesser. Housing loans above Rs. 9 lakh and Rs. 12 lakh will be at non-subsidized rates.

CLSS for MIG will support acquisition/ construction of house (including re-purchase) of 90 square
meters and 110 square meters carpet area as per income eligibility.
Housing and Urban Development Corporation (HUDCO) and National Housing Bank
73
(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. Ministry may notify other
institutions as CNA in future.
Under the Mission, beneficiaries can take advantage under one component only.
All statutory towns as per Census 2011 and towns notified subsequently would be eligible for
coverage under the Mission.

In the spirit of cooperative federalism, mission provides flexibility to the States for choosing the
best options amongst four verticals of mission to meet the demand of housing in their states.
Process of project formulation and approval in accordance with the mission Guidelines has
been left to the States so that projects can be formulated, approved and implemented faster

A Technology Sub-Mission under the Mission has been set up to facilitate adoption of modern,
innovative and green technologies and building material for faster and quality construction of
houses. Technology Sub-Mission also facilitates 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.
74
7.MODEL STATE AFFORDABLE HOUSING POLICY (2015) 75

The National Housing and Habitat Policy (NUHHP), 2007, with a mandate of providing “Affordable
Housing to All”, envisaged that the States would prepare a State Urban Housing and Habitat
Policy and also a State Urban Housing & Habitat Action Plan. The policy empowers the States to
include passing of specific Acts by the States to achieve the housing policy objectives through
institutional, legal & regulatory reforms, fiscal concessions, financial sector reforms and
innovations in the area of resource mobilization for housing and related infrastructure
development including promotion of cost effective building materials and technologies at the
State level.

HOUSING – Affordable or not???

8.DRAFT NATIONAL URBAN RENTAL HOUSING POLICY (2015) 76
Urban housing shortage in India, estimated to be 18.78 million during the 12th Plan period with
consequent increases resulting in increase in urbanization in future years, is an area of concern.
Historically housing policy/programmatic interventions have been oriented towards home
ownership, nevertheless, providing housing to all on ownership basis has proved challenging.
Growing family needs had resulted in overcrowding and slum like situations due to lack of
alternatives such as rental housing and absence of rental housing frameworks in the Country. In
order to address these issues, the Ministry of Housing and Urban Poverty Alleviation has come up
with the Draft National Urban Rental Housing Policy (NURHP), 2015. The vision of the Draft Policy is
‘to create a vibrant, sustainable and inclusive rental housing market in India’

Housing scenario of India..

9.AFFORDABLE HOUSING - 'Housing for All by 2022’ 77
The government is now collaborating with private builders and developers under a public-private
partnership (PPP) model to make ‘Housing for All by 2022’ a reality. It is no secret that affordable
housing promises a lot of growth for all concerned — the problem lay in the fact that the profit
margins in this segment are quite small, and the government had not provided developers with a
good incentive rationale to take the plunge. Today, they have this incentive. The government has
provided 39 per cent higher allocations for affordable housing development vis-à-vis FY17 under
the Pradhan Mantri Awas Yojana (PMAY). It has also extended the Credit Linked Subsidy Scheme to
loans of value up to Rs 12 lakh. And, while the government has also made a number of other
moves to meet the demand with supply and address the affordability issues for the middle- and
lower-income groups, the most important stimulus by far has been the fact that affordable housing
has now been granted infrastructure status.

Affordable housing supply in the right cities: The trend of nuclear families driven by young
professionals is increasing in the country, especially the metropolitan cities where IT and other
major corporate sectors hold sway. In cities like Bengaluru, Pune, Hyderabad, Chennai,
Thiruvananthapuram, Navi Mumbai, Gurugram, Noida and New Delhi, young professionals are
eager to own homes and settle down with their new families, so affordable housing is a major hit in
such cities. Indeed, it has never been a better time for affordable housing in India.

4.HOUSING AGENCIES AND THEIR
ROLE IN HOUSING DEVELOPMENT.…..
Central Level Organization For Housing
Housing and Urban Development
Corporation (HUDCO)
Housing Development Finance Corporation
(HDFC)
National Building Organisation (NBO)
Life Insurance Corporation (LIC)
National Housing Bank (NHB)
78
State Level Organization For Housing
1. Tamilnadu Housing Board [TNHB]
2. Tamilnadu Slum Clearance Board
[TNSCB]
3. Tamilnadu Police Housing Corporation
[TNPHC]
4. Co-opearive hosuing societies
5. Land development bank
6. Adidravidar housing development
scheme [TAHDCO]
7. Building Centre [Located at
collectorate of each districts]
8. Private housing finance
1.HOUSING & URBAN DEVELOPMENT CORPORATION (HUDCO)
79
The housing and urban development sector plays a significant role in the economic and
social development of a country. The access to and the quality of housing and urban
basic services directly influence the quality of life of people, their productivity levels and
growth potential.

Before the establishment of HUDCO,

• The Government of India was operating a number of subsidized housing schemes and
loan schemes.

• The subsidized housing schemes were meant for industrial workers, economically
weaker section of the society and slum dwellers, while the loan schemes were
targeted for the people in the low-income and middle-income groups as well as rental
housing schemes for State Government employees.

• All these schemes were under the direct control of the Ministry of Works and Housing.
Such a system of housing finance did not give the required thrust for promoting
housing development activities, which in many cases were considered of lower
priority.
The establishment of HUDCO in 1970 as a sectoral institution for comprehensively
dealing with the problems of growing housing shortages, rising number of slums and for 80
fulfilling the pressing needs of the economically weaker section of the society was one of
the significant steps in the series of initiatives taken by Government.

Thus the setting up of HUDCO was aimed at….

• Accelerating the pace of construction
• Elimination of housing shortages
• For orderly development of urban centres.

The Housing and Urban Development Corporation Ltd. (HUDCO) was incorporated on April
25, 1970 under the Companies Act 1956, as a fully owned enterprise of the Government of
India.
The principal mandate of HUDCO was to ameliorate the housing conditions of all groups
and with a thrust to meet the needs of the low income group(LIG) and economically
weaker sections(EWS).

Apart from the financing operations, HUDCO offers consultancy services, promotes
research and studies and help propagate use of local building materials, cost-effective
and innovative construction technologies.
OBJECTIVES

The Article of Memorandum of HUDCO stripulates the Major Objective of HUDCO as 81

under:

1. To provide long term finance for construction of houses for residential purposes or
finance or undertake housing and urban development programmes in the country.

2. To finance or undertake, wholly or partly, the setting up of new or satellite town.

3. To subscribe to the debentures and bonds to be issued by the State Housing (and or
Urban Development) Boards, Improvement Trusts, Development Authorities etc.,
specifically for the purpose of financing housing and urban development programmes.

4. To finance or undertake the setting up of industrial enterprises of building material.

5. To administer the moneys received, from time to time, from the Government of India
and other sources as grants or otherwise for the purposes of financing or undertaking
housing and urban development programmes in the country.

6. To promote, establish, assist, collaborate and provide consultancy services for the
projects of designing and planning of works relating to Housing and Urban
Development programmes in India and abroad.
 82
HUDCO divides the people into four categories
• Economically Weaker Section [EWS]
• Low Income Group [LIG]
• Middle Income Group [MIG]
• High Income Group [HIG]
HUDCO allocate the funds as EWS – 30% LIG – 25% MIG – 25% HIG – 20%

The various projects being funded by HUDCO under Housing include the following:-
• Land Acquisition and Development
• Urban/Rural Housing for EWS/ LIG/MIG/ HIG and Other Categories
• Staff Rental Housing
• Slum rehabilitation/ in-situ development
• Repairs and Renewal
 CENTRAL HOUSING AGENCIES…

83

HUDCO HOUSING PROJECTS

HUDCO HOUSING PROJECTS
84
2.NATIONAL BUILDINGS ORGANIZATION (NBO)
85
The National Buildings Organisation (NBO) was established in 1954 as an attached office
under the Ministry of Housing and Urban Poverty Alleviation (then Ministry of Works and
Housing) for technology transfer, experimentation, development and dissemination of
housing statistics.

In the context of formulation of Housing Policy and Programmes, study of socio-

economic aspects of housing issues and the increased need for housing statistics, NBO
was restructured in 1992.

NBO was further restructured in March, 2006 with the revised mandate keeping in view
the current requirements under the National Housing Policy, and various socio-economic
and statistical functions connected with housing and building activities.

Role of NBO in various major activities of MoHUPA:

Organizing and conducting Central Sanctioning & Monitoring Committee (CSMC),
Central Sanctioning Committee (CSC) and review meetings of Jawaharlal Nehru
National Urban Renewal Mission (JNNURM), Rajiv Awas Yojana (RAY) and Pradhan
Mantri Awas Yojana (PMAY) under Housing for All (Urban).
The NBO work closely with organizations like National Housing Bank (NHB), National
Information Centre (NIC) and other agencies.
The mandate of the NBO in its restructured form is as follows: - 86
• To collect, collate, validate, analyse, disseminate and publish the housing and building
construction statistics.

• To organize training programmes for the officers and staff of the State Government engaged in
collection and dissemination of housing and building construction statistics.

• To create and manage a documentation centre relating to housing, poverty, slums and
infrastructure related statistics.

• To coordinate with all the State Govts/Research Institutions/UNCHS/International Bodies etc. as

being a nodal agency in the field to cater to the statistical needs of the planners, policy makers
and research organization in the field of housing and related infrastructural facilities .

• To conduct regular short term sample surveys in various pockets of the country to study the
impact of the plan schemes, which are being run by the Ministry by utilizing the service of staff so
employed on contractual basis. At least two such studies will be conducted in a year.

• To undertake special socio-economic studies evaluating the impact of the plans, policies and
programmes in the field of housing and infrastructure, as and when required, by the Ministry for
which the additional funds will be provided by the Ministry.
NBO is primarily engaged in collection, collation, analysis and dissemination of 87
housing and construction statistics with a view to have an effective country-wide
system for this purpose.

In addition, the Organisation coordinates activities relating to the information emanating from
various sources, namely, the Office of the Registrar General and Census Commissioner, India,
National Sample Survey Organisation and other concerned organisations.

The NBO is the only organization in the Government of India, which is responsible for
developing an authentic and reliable database on housing and building statistics.

The statistics collected and disseminated by NBO is not only used in policy formulation but is also
used by various research organizations in the field of housing. The information disseminated by
NBO is also used and taken by international agencies as the authentic official statistics.

NBO being the nodal agency in respect of housing statistics at the central level not
only coordinates with state governments but also guides the State Government
authorities in collection of housing statistics through its training programmes.
 88
National Buildings Organisation collects data on

i) Current Housing and Building Construction Activity Statistics, both from public and
private sectors, in the urban areas on annual basis;

ii) quarterly Building Material Prices and Wages of Labour from Selected Centres
spread all over the country;

iii) Building Construction Cost Index for LIG houses constructed by PWD from various
centres spread all over the country on quarterly basis,

iv) Building Permits and Completion Certificates issued by the Municipalities having
population of 100,000 and more on annual basis. The data so collected is tabulated and
released through its various publications.
3. HOUSING DEVELOPMENT FINANCE CORPORATION [HDFC] 89
Incorporation
1. HDFC was incorporated in 1977 with the primary objective of meeting a social
need - that of promoting home ownership by providing long-term finance to
households for their housing needs.
2. HDFC was promoted with an initial share capital of Rs.100 million.

Objectives
1. To enhance residential housing stock in the country through the provision of housing finance
in a systematic and professional manner.
2. To promote home ownership.
3. To increase the flow of resources to the housing sector by integrating the housing finance
sector with the overall domestic financial markets.
4. A pioneer and leader in housing finance in India, since inception, HDFC has assisted more
than 3.8 million families to own a home of their own, through cumulative housing loan
approvals of over Rs.2.98 trillion and disbursements of over Rs. 2.42 trillion as at March 31,2010.
5. HDFC's wide product range includes loans for purchase and construction of a residential unit,
purchase of land, home improvement loans, home extension loans, non-residential premises
loans for Professionals and loan against property, while its flexible repayment options include
Step Up Repayment Facility (SURF) and Flexible Loan Installment Plan (FLIP).
90
 91

4. LIFE INSURANCE CORPORATION [LIC]

LIC provides financial assistance for housing. LIC started a
housing finance in the name “LIC House Finance Limited” in
the year 1989. These functions with 67 branches and 35% of
market share.
It has spent 5500 crores for 30 lakh houses. It simplifies the
method of getting a house. It grants loans for the LIC policy
holders to construct a new house, for extension of a house,
for repairing a house and from purchasing a flat or built – up
house or apartment.
5.NATIONAL HOUSING BANK (NHB) 92
National Housing Bank (NHB), a wholly owned subsidiary of Reserve Bank of India (RBI),
was set up on 9 July 1988 under the National Housing Bank Act, 1987. NHB is an apex
financial institution for housing. NHB has been established with an objective to operate
as a principal agency to promote housing finance institutions both at local and regional
levels and to provide financial and other support incidental to such institutions and for
matters connected therewith.

NHB registers, regulates and supervises Housing Finance Company (HFCs), keeps
surveillance through On-site & Off-site Mechanisms and co-ordinates with other
Regulators.

Vision: "Promoting inclusive expansion with stability in housing finance market“

Mission: "To harness and promote the market potentials to serve the housing needs of all
segments of the population with the focus on low and moderate income housing "
Objectives:
93
NHB has been established to achieve, inter-Alia, the following objectives –
1. To promote a sound, healthy, viable and cost effective housing finance system to
cater to all segments of the population and to integrate the housing finance system
with the overall financial system.
2. To promote a network of dedicated housing finance institutions to adequately serve
various regions and different income groups.
3. To augment resources for the sector and channelise them for housing.
4. To make housing credit more affordable.
5. To regulate the activities of housing finance companies based on regulatory and
supervisory authority derived under the Act.
6. To encourage augmentation of supply of buildable land and also building materials
for housing and to upgrade the housing stock in the country.
7. To encourage public agencies to emerge as facilitators and suppliers of serviced
land, for housing.
 94

State Level Organization For Housing

The following are the organization acting at state level for housing program
1. Tamilnadu Housing Board [TNHB]
2. Tamilnadu Slum Clearance Board [TNSCB]
3. Tamilnadu Police Housing Corporation [TNPHC]
4. Co-opearive hosuing societies
5. Land development bank
6. Adidravidar housing development scheme [TAHDCO]
7. Building Centre [Located atcollectorate of each districts]
8. Private housing finance
95
1.TAMILNADU HOUSING BOARD (THNB)
96
The Tamil Nadu Housing Board is a body, duly constituted by an act called “Tamil Nadu Housing
Board Act, 1961”. (Madras Act 17 of 1961). Originally it was called City Improvement Trust (CIT)
which later became the present Tamil Nadu Housing Board.

The Tamil Nadu Housing Board is catering the Housing needs of different categories of the society in
tune with their economic affordability.

The Board is managed by a Board of Directors with due representation from other state
organisations, conducting meetings periodically taking policy decision to guide the Board.

OBJECTIVES/FUNCTIONS:
i) Developing house sites (Plots) and
ii) Creating Satellite towns in the peripheral area of the city.
iii) Building houses and flats to cater to the needs of the people of all sections of the society with
necessary infrastructure like quality roads, public health preference such as sewerage disposal and
potable water supply, etc.
V) Cost effectiveness and affordability.
Vi) Services like tying up for loans with housing financial institutions and National Banks for Housing
Finance.
vii) Clean, clear and free from encumbrance marketable title.
viii) After sales service
TNHB has created self-sustaining townships in late
1970s and early 1980s like Anna Nagar, Besant 97
Nagar, KK Nagar, Ashok Nagar, Tambaram,
Thirumullaivoyal and Shastri Nagar.

Owing to the elevation in economic activity to the The following category wise reservation is followed for
south of Chennai, it has created self-sustaining allotment of development
township in Sholinganallur with wide roads,
residential plots, apartments, school and park Scheduled Caste including Adi Dravidas 18 %
zones. Scheduled Tribes 1%
State Government Servants 18%
It has also completed mid size neighborhood Central Govt.Servants including Employees of TNEB. 8%
developments in Velachery, Mogappair and Defense Personnel including Ex-serviceman 7%
Chitlapakkam. Other promotions are also seen as Dhobies & Barbers 4%
small and mid sized neighbourhoods in tier-II cities Working Journalists 3%
like Coimbatore and Madurai. Language Crusaders 1%
Employees of TNHB 2%
TNHB categorizes the developments based on General public 38%
Income levels of end users as

EWS Upto Rs. 2,100/- P.M.

LIG Rs.2,101/- to Rs. 4,500/-P.M.
MIG Rs.4,501/- to Rs. 7,500/-P.M.
HIG Rs.7,501/- and above P.M.
98
2.TAMILNADU SLUM CLEARANCE BOARD (TNSCB) 99
TAMIL NADU URBAN HABITAT DEVELOPMENT BOARD (Revised Name of
TNSCB,2022)

Tamil Nadu Slum Clearance Board a pioneer institution for development and rehabilitation of urban
slums was set up in 1970 with the motto 'God, we shall see, in the smile of the poor ' for the clearance
and improvement of urban slum areas in Tamil Nadu.

It has been implementing various Housing, Slum Improvement and Rehabilitation and Resettlement
schemes to ameliorate the living conditions of the slum dwellers in Tamil Nadu.

OBJECTIVES

1. To clear all the slums in Chennai & to provide self contained hygienic tenements.

2. To prevent the growth of slums & encroachments

3. To prevent the eviction of slum dwellers by private owners and to provide the slum families with
security of tenure.

4. To provide basic amenities like water supply, street lights, storm water drains, sewer line, etc to the
slum areas .
POLICIES / STRATEGY
100
The three pronged strategy for developing / clearing slums followed by Tamil Nadu Slum Clearance
Board are:

i) In-situ plotted development and infrastructure improvement Wherever in-situ development is

feasible, such slums are identified and taken up for in-situ improvement for provision of basic
facilities to make the areas habitable and for provision of tenurial rights to the occupiers after
getting the land transferred to the Tamil Nadu Slum Clearance Board.

ii) In-situ tenemental schemes The slums located in unobjectionable poramboke areas, wherein
equitable distribution of space to all is not feasible, are cleared and tenemental schemes put up.

iii) Rehabilitation and Resettlement scheme Wherever neither tenemental nor insitu development is
feasible, (as in the case of objectionable porambokes like water ways etc.,) Rehabilitation and
Resettlement in tenements in nearby locations with necessary infrastructure is taken up. The cleared
site is then restored to its original use.

Other Programmes
i) Tamil Nadu Slum Clearance Board has provided support to individual housing schemes under
different programmes like VAMBAY, Rajiv Gandhi Rehabilitation Package etc.,

ii) To ensure holistic development and economic upliftment of the poor, the Board has spear-headed
community development activities in the slums, under which it imparts vocational training and
livelihood support, specially for the youth and women
 101
What is the role of the TNSCB?
Slum dwellers usually face the brunt of natural calamities like floods, fire and other mishaps. The
TNSCB identifies such vulnerable households and builds tenements for them. Every tenement has
a multi-purpose room, a bedroom, a kitchen, an independent toilet and access to water supply
and arrangements. It is also ensured that the access to these tenements are paved with
adequate street lighting and facility to ensure proper drainage.

Cost of TNSCB tenements

Each of these tenements is heavily subsidized, such that the dwellers need to pay Rs 250 only
per month, for a period of 20 years. It is on a hire-purchase system and these tenements are
located in areas where equitable distribution of space is not possible. Hence, existing structures
are cleared, giving way to tenements.

Organisation chart of TNSCB

The TNSCB is headed by the chairman with the assistance of a managing director and a joint
managing director. Different departments work under them, to implement the schemes of the
authority.
102
 103
Private participation helps Perumbakkam
tenement dwellers

While the authorities bring out schemes for

the poor, private participation remains
crucial. In Perumbakkam, for example, the
TNSCB tenement residents have themselves
begun installing CCTVs, estimating the water
quality, fire escape plans and also raising
awareness on the segregation of waste in
their area. In Perumbakkam, there are 158
TNSCB buildings with 93 homes each and
most of them have resident welfare
associations, although these are not
registered. These associations have
undertaken many progressive steps to
ensure the safety and welfare of TNSCB
residents.
TNSCB- Perumbakkam
3. TAMIL NADU POLICE HOUSING CORPORATION (TNPHC)
104
Government of Tamilnadu with a view to raising the level of satisfaction in housing for police
personal decided to construct houses for the Policemen and Police Officers. Accordingly this
Company was registered under the Companies Act 1956, as a wholly owned Company of Tamil
Nadu Government and came into being with effect from 13.4.1981. While the Company was
gradually increasing its construction activities each year, the then Government based on the
recommendations of Ramanathan Committee constituted to study the viability and usefulness of
Public Sector Enterprises and other autonomous bodies. The activities of this Corporation were then
transferred to the Tamil Nadu Housing Board.

4. TAMIL NADU COOPERATIVE HOUSING FEDERATION (TNCHF)

Cooperative Housing Department has at its command a vast network Housing Cooperatives both in
Rural and Urban centres for providing housing finance for improving housing stock in Tamil Nadu. As
many as 196 Taluk Cooperative Housing Societies are catering to the demands of rural people,
while a network of 574 Urban Cooperative Housing Societies are meeting the housing needs in
urban areas, with all such societies affiliated to the Tamil Nadu Cooperative Housing Federation
Limited.
5. TAMIL NADU ADIDRAVIDAR HOUSING AND DEVELOPMENT CORPORATION
105
LIMITED (TAHDCO)
Housing Planning & Management Tamil Nadu Adi Dravidar Housing and Development
Corporation Limited (TAHDCO) were incorporated in 1974 under the Companies Act, 1956 with
a objective to improve socio economic status in Tamilnadu. TAHDCO has facilitated Self Help
Groups through financial assistance for employment ventures and to empower themselves by
taking up a wide variety of economic activities such as National Schemes.

TAHDCO acts as a State Channelising Agency in implementing the National Schemes of the
Ministry of Social Justice and Empowerment, Govt. of India

The Schemes are:

• National Scheduled Caste Finance and Development Corporation Scheme

• National Scheduled Tribes Finance and Development Corporation Scheme
• National Safai Karamacharis Finance and Development Corporation Scheme
• National Scheme for Liberation and rehabilitation of Scavengers and Dependents
National Scheduled Caste Finance and Development Corporation (NSFDC)
106
Project assistance up to Rs.5 Lacs per beneficiary is given. 30% of the Project cost subject to a maximum of Rs.25,000/- is given as
subsidy. Balance up to 90% is given as term loan from NSFDC.

Assistance is given for any viable income generating activity to scheduled Caste and beneficiaries. Margin Money assistance – 20%
of the Project Cost (or) Max. Rs.1.25 Lacs

National Scheduled Tribes Finance and Development Corporation (NSTFDC)

National Scheduled Tribes Finance and Development Corporation provide financial assistance for schemes/projects for the
economic development of scheduled Tribes. Project assistance up to Rs.5 Lacs per beneficiary is given. 30% of the Project cost
subject to a maximum of Rs.25,000/- is given as subsidy. Balance is given as term loan from NSTFDC.

Assistance is given for any viable income generating activity to Scheduled Tribe beneficiary.

National Safai Karamcharis Finance and Development Corporation (NSKFDC)

Project assistance up to Rs.5.00 Lacs per beneficiary is given. 30% of the project cost subject to a maximum of Rs.25,000/- is given as
subsidy. Balance is given as term loan from NSKFDC/Banks.

Assistance is given for any viable income generating activity to sanitary workers and their dependents.

National Scheme for Liberation and Rehabilitation of Scavengers (NSLRS)

Project assistance up to Rs.50,000/- per beneficiary is provided. 30% of the project cost subject to a maximum of Rs.10,000/- is given
as subsidy. Balance amount is arranged as loan from NSKFDC/Banks.

Assistance is given to scavengers and their dependents for any viable incoming generating activity as alternate source of livelihood.
 107

5.IMPACT OF LIFE STYLE. RURAL

HOUSING,PUBLIC & PRIVATE SECTOR
HOUSING.…
 IMPACT OF TRADITIONAL LIFESTYLE
108
Introduction:
The traditional patterns of housing in India is extremely varied. The housing design
depends on the purpose, the space serves. The spaces has to be designed for the
following three kinds:
i. Domestic: Building for living and spaces for various activities
ii. Agriculture: Poultry, farm, farming, cattle.
iii. Industrial: Industrial activities, commercial areas, etc.
The traditional patterns of housing also depended on the behavioural pattern of the
people.
 109

List any two impact of traditional lifestyle in housing????

a. Spatial Planning - Eg: Multiuse spaces, interactive spaces,
interaction with streets, etc.
b. Form of Housing - Eg: Courtyard houses, nalukettu houses, etc.
c. Roof forms - Eg: Sloped roofs, conical roofs, etc.
d. Climate responsive spaces - Eg: Plinths as thinnai, smaller
openings, etc.
(*There are many other impacts too.)
Examples of Traditional patterns of Housing:

Case-1: GUJARAT 110

Gujarat can be divided into Saurashtra, North Gujarat, South Gujarat.

North Gujarat

• The above plan reveals a typical urban house in North Gujarat.

• The house was linear and the successive place had a unique function.
• The Otta(entrance verandah) and khadkee(place for visitors)
• Chowk is a courtyard
• Raveshi is a simple passage
• Parsal is a place where dining takes place
• Ordo is the place for women , ie., Kitchen and private area.
South Gujarat
111

• The above plan reveals the typology in South Gujarat.

• Here the kitchen is pushed outside .
• There is a back room
• A new room in the front has been included and this room is equivalent t khadkee. Beyond this space is the
staircase which leads to the first floor.
• Behind the backroom, there is a kitchen, it is pushed out.
Saurashtra
112

• Due to the pattern of path, each unit resembles a separate entity, so ensures privacy.
• Settlement depends on the occupation ie., sociological aspects.
• Entrance to the houses through a single gateway called Delotype.
• All the dwelling units are composed in a enclosure so that the interaction is less.
• Concept of row housing is used.
 113
CASE-2: KERALA
Houses are planned according to Vasthu Vidya which is closely interlinked with astrology.
Traditional Kerala housing is known for the courtyard planning.
Court yard Planning:
• Depending on the size of the house, the courtyard size and number of courtyards are
decided.
• Courtyard is called as 'Nadumuttam'. It is a gathering place.
• Internal courtyard has a verandah around it. Four blocks surround the courtyard.
• The four sides of Nadumuttam are:
Eastern wing - kizhakkini for worship
Western wing - padnijatini for Granary
Northern wing - Vadakkini for Family
Southern wing - Thekkini for Guests
• Corner rooms for sleeping and studying.
Eg: Nambuthiri House
 114

It consists of:
1. Padipura - Entrance gate
2. Pumukham - roofed verandah with painted columns
3. Attukala - Kitchen
4. Agarsala- Nest to attukala for feeding the guests
5. Vatukkini- Dining area
6. Nadumuttam- Central courtyard.
7. Srikovilagam- Space for God within the house.
8. Kolam- Pond or tank for bathing purpose.
9. Ara- Room
 RURAL PUBLIC, PRIVATE SECTOR HOUSING
115
RURAL HOUSING

Context:

There are divergent views on what constitutes “rural areas”, where rural “ends” and
urban “begins”. There is no universally accepted definition and it may be useful to
adopt the approach of UN Habitat in viewing urban and rural as a continuum of
settlements and emphasize the linkages between urban areas and rural areas. Such
linkages often take the form of flows of capital, labor and goods between urban and
rural areas. E.g. urban areas are dependent on the import of food from rural areas
which are in turn dependent on the urban manufacturing base for goods and high
order services.
“Rural Areas” - Characteristics:
116
1. Rural areas are often referred to as those areas outside of the city or urban
boundary or periphery where populations are spatially dispersed.
2. Agriculture is the main economic activity that provides job opportunities. In these
areas opportunities for socio-economic development are often perceived as
limited, leading to the migration of able bodied individuals to the “bright city lights”
and leaving a residual of generally vulnerable, under educated, aged and very
young population.
3. These households are often largely dependent on social grants and remittances
from family members working in the cities. Their income is constrained as the rural
economy is not sufficiently vibrant to provide them with jobs or self – employment
opportunities.
4. Women form the majority of the rural population and female- headed households
are particularly disadvantaged.
5. Their cost of living is high because they spend relatively more on basic social
services such as food and water, shelter, energy, health and education, and
transport and communications services.
6. The poorest households also have low levels of literacy and education.
 117
“Rural – Urban” - Connections:

Rural housing has been marginalized both in wider policy discussions as well as
within the debate on rural issues because rural housing needs are generally
subordinated to urban housing needs in policy priority.
The important difference between rural and urban contexts is the level of income
needed to avoid poverty is the key difference.

In urban areas there is a very high proportion of income going toward non-food
items such as rent, public transport, payment to water vendors and for pay-as-
you use public toilets, keeping children at school, health care/medicines, and
informal payments to stop homes being demolished or to be allowed to sell
goods on the street.
118
 ROLE OF DIFFERENT SECTORS IN HOUSING DEVELOPMENT…
119
Role of State Government

a. Liberalize the legal and regulatory regime to give a boost to housing and supporting
infrastructure.
b. Promote private sector and cooperatives in undertaking housing construction.
c. Define the role of public and private agencies particularly in the infrastructure
sector.
d. Undertake appropriate reforms for easy access to land, Prepare long term programs
to tackle problems in housing and basic services, Facilitate training of construction
workers by converging other development programs through Building entries and
other agencies.
e. Promote decentralized production and availability of building material.
f. Empower the local bodies to discharge their responsibilities in regulatory and
development functions.
Role of Housing Boards/Corporations/Development Authorities and other public
120
agencies

a. Redefine their role for facilitating land assembly and development of infrastructure.
b. Facilitate availability of land, need to move away from direct construction activity.
c. Forge partnerships with the private sector.
d. Devise flexible schemes to meet the user's requirement, provide land at concessional
rates for housing for the poor.
e. They should be restructured to eliminate their dependence on budgetary support.

Role of Corporate, Private and Cooperative sectors

a. To take the lead role in terms of land assembly, construction and development of
amenities. Emphasis on creation of housing stock on ownership and rental basis.
b. Corporate sector to be encouraged to provide for housing for staff and to facilitate
their employees in acquiring their own houses.
c. Cooperative Sector to be given preference in allotment of land and house sites to
encourage group housing by this sector.
What is the difference between public and private housing?
121
S.No. Public Housing Private Housing

a Public housing is typically owned by a Private Housing are lands and buildings
Housing Authority. (Governmental – owned by individuals and corporations.
Central & State.

b Public housing is only a subset of Private Housing works in PPP approach(Public-

affordable housing. (Inclusive) Private partnership) to make it inclusive.

c Caters to all Income Groups. Does not cater to all Income Groups.
(EWS,LIG,MIG,HIG) Promotes MIG & HIG
Role of Public Sector 122

a. During the first five year plan(1951-56) government directed various programs such
as the subsidized Housing scheme for Industrial Workers (1952), Housing for Low
Income Group (1954) and Housing Scheme for Plantation workers (1956). The result
of this indicated that the poor benefited the least from this policy.
b. During the second five year plan (1956-61), the government began to pursue the
policy of slum clearance and rehabilitation of housing. The slum clearance scheme
was self-defeating in the sense that it did not take into consideration the situation of
acute shortage of housing stock. On the contrary, it sought to demolish existing
stock.
c. National Housing policy 1988
• To promote the interest of higher and middle income groups. Draft National Housing
Policy.
• To link shelter provision with economic improvement of the poor. National Housing
policy 1994.
• To provide affordable housing for all and strengthen the enabling strategies.
Role of private sector
123
a. The total public-sector contribution to the housing stock is no more than 16% for the country as a
whole, while the majority of the housing stock (84%) is provided through the efforts of the formal
and informal private sector.
b. The formal sector includes direct budgetary allocations and also net financial assistance through
financial agencies like the Housing Development and Finance Corporation (HDFC), the Life
Insurance Corporation (LIC), the Unit Trust of India (UTI), commercial banks, provident funds, etc.
c. The informal sector includes households themselves as well as public and private sector employers
who extend housing loans to their employees (Govt. Of India, 1992)
d. Another form of informal development is "farmers land subdivisions", where land in urban
development zones is owned and cultivated by farmers. The farmers themselves subdivide the
land without the intervention of middlemen.
e. A substantial proportion of the urban population in India is housed in the informal housing, ranging
from 33% in Delhi to over 52% in Mumbai.
f. The share of the formal private sector in this investment is only about 12%. Indeed, housing
provided by the formal private sector is beyond the reach of the poor. Most of the housing for the
poor is provided by the informal private sector.
g. However, for the poor, most of the housing is provided by the illegal informal private sector. The
illegal informal sector manages to bring the cost of housing within the affordable limits of the poor,
as land is either acquired free of cost or at low cost because of undesirable site conditions.
 124
Role of Housing Cooperatives

a. There are three type of cooperative societies in India:

Building Cooperative societies in India (BCS)
Housing Finance cooperative Societies, and
Tenure Cooperative Housing Societies.
a. In New Delhi, they are known as cooperative Group Housing Societies; they
undertake the planning construction and management of housing.
b. In Mumbai, there are Tenant ownership Housing societies (where land is held by
the cooperative and members lease the unit from the cooperative)
c. In Chennai, housing cooperatives are mainly housing finance cooperatives that
serve middle and to some extent low-income households.
Role of public and private financial institutions 125
a. From the 1950s onward, the Indian financial market was regulated by government
bodies, the Government of India did not consider housing as a priority sector;
housing was seen as a social welfare sector rather than an economic sector.
b. In the Seventh Five year plan, it was proposed that HUDCO should largely
concentrate on EWS and LIG housing and not on MIG and HIG housing.
c. In 1977, The Housing Development and Finance Corporation (HDFC) entered the
Indian finance, market. Its housing program caters mainly to middle and high-
income groups.
d. The guidelines for lending were liberalized by the commercial banks in 1988 and
the amounts of admissible loans were enhanced. The beneficiaries margin was
reduced and the interest rate was pushed down for small loans while the period of
repayment was increased from 10 years to 15 years.
e. In 1988 Govt. of India set up the National Housing Bank (NHB) to mobilize resources
for the housing sector, particularly to help the low income groups and promote
housing finance institutions at the regional and local level.
 126

UNIT-I
COMPLETED