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Housing for the Urban Poor: The Case of Chandigarh Model

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 Housing for the Urban Poor: The Case
of Chandigarh Model
RAMAKRISHNA NALLATHIGA*

ABSTRACT

Cities rarely plan for the in-migrant population ahead of the

time and that too for the low-income class population. It often
results into the lack of housing and living space for such poor
household/ population, thereby resulting in the manifestation of
slum settlements in cities. Much of the in-coming population
to the cities is socially and economically poor people and their
housing needs are not taken care of at city formation/ planning
stage. The issue of slum settlements can be effectively addressed
through well-targeted housing schemes for urban poor. Re-
developing slum settlements and rehabilitating them with that
spirit is an important means of addressing slums in cities under
the Rajiv Awas Yojana (RAY). This article showcases how the
Chandigarh city has set a model through its housing scheme for
urban poor, which has several features worth replication by other
cities and states.

Keywords: Housing, Urban Poor, Slum settlements, Chandigarh

and Critical Success Factors (CSFs)

Background

U rban housing has been a major issue faced by the Indian cities, when
India is undergoing a demographic transformation in the form of
rapid urbanisation. It is much more acute problem for the low income
and economically weaker sections of population, who primarily migrate
to the cities in search of employment opportunities. Cities in India
have traditionally not been planning for accommodating this section of
population. The private sector is not keen to provide for this section of
population and would like to supply housing at market prices. As the
house prices in cities are very high due to land scarcity and restrictive
planning and development control regulations (Nallathiga 2005), they

*Associate Professor, School of Projects, Real estate and Infrastructure

Management, National Institute of Construction Management and Research, Pune
e-mail: nramakrishna@nicmar.ac.in
143 / NAGARLOK
VOL. LI, Part 2, April-June 2019

are kept outside the formal housing market. The lack of housing options
forces many of them to confine to slums and squatted settlements, mostly
on public land. Public housing becomes necessary to accommodate this
section of population, which contribute to unskilled and semi-skilled
workforce for households and business firms in the city.
Although urban housing has been gaining more importance for the
last two decades, when India was in the process of becoming increasingly
urbanised (more than one-third of the population is urban now), not
enough measures were taken. Urban housing also underwent policy
changes and it was neglected in the early stages of economic planning.
The National Urban Housing and Policy in India, which came to the fore
in 2007, emphasised on multi-pronged approach towards urban housing
in India. Apart from private house building, it emphasised on house
building with partnerships between Central and state governments
through public-funded programmes and also leveraging private sector
participation in planning, execution and finance (GoI 2007).
For a long time, urban housing has been catered to by the state
housing agencies, which have been criticised being very slow in
planning and implementation. They were also criticised for inadequate
focus on low income and economically weaker sections housing and
also for not being able to translate plans into quick ground level results
through housing development. They were also known for political
patronage and corruption. That is why there has been a new line
of argument to engage private sector through PPP in slum housing
projects for achieving faster results and greater efficiency (Nallathiga
2012). There is also a suggestion to revive rental markets for housing,
which can cater to the housing needs of the urban poor very well and
there are few projects taken up by urban development authorities for
the same (Nallathiga 2016).
Yet, there have been few attempts to achieve housing through
comprehensive rehabilitation and resettlement of the urban poor (mostly
migrants) living in slum settlements. Chandigarh is one of them.
INTRODUCTION
Chandigarh city was planned as first new town of India for a
population of half a million, which was supposed to be realised in two
phases. Although the city was a well-planned initiative, with planners
having envisaged huge and well-laid buildings for official, commercial
and residential purposes requiring the services of a substantial labour
force, little provision was made in the development plan to provide
shelter to this labour force. The continuity of construction activity in
 HOUSING FOR THE URBAN POOR: THE CASE OF CHANDIGARH MODEL /144
RAMAKRISHNA NALLATHIGA

the city further lured labour force from all over the country to migrate
to the city. Over years, the temporary huts around construction sites
developed into clusters of habitats and the number of huts began to
grow. This led to new labour market entrants to eventually occupy
vacant public land.
A tremendous growth of the population of the city during the
decade 1961-71 (almost 115% growth rate) and 1981-91 (130%) saw the
opening up of vast job opportunities in the economic category relating
to the services sector. This led to the in-migration of another stream of
labour followed in the form of carpenters, masons, washer men, tailors,
domestic helps, painters, furniture makers, polishers, cobblers, vendors
and scavengers. These poorer sections of the society took recourse to
settling themselves on vacant areas, giving rise to the growth of slums
along the periphery of the city.
It was estimated in a survey in 2010 that there were about 24,000
slum families comprising a population of about 1 lakh in Chandigarh,
which accounts to about 10 % of the total population. The slums
in Chandigarh have had sporadic and haphazard growth rates of
population and migration has led to a situation of urban sprawl in these
areas. A survey conducted during 1970s, placed the extent of jhuggies
(slums) at 4,454. This number increased to 8,003 in 1974. In 1975, for the
first time, the Chandigarh city administration announced a scheme—
Licensing of Tenement and Transit Sites in Chandigarh Scheme—to
rehabilitate these slum dwellers by offering them alternative sites and
tenements. One room tenements were constructed to rehabilitate these
slum dwellers.

Chandigarh Housing Board

The Chandigarh Housing Board (CHB), a Chandigarh
Administration undertaking, was established in 1976 by extending the
Haryana Housing Board Act, 1971 to the Union Territory of Chandigarh.
The primary objective of the Board is to provide reasonably priced, good
quality housing for the persons without house residing in the Union
Territory of Chandigarh. The Board has focused upon the construction
and allotment of houses for the less affluent sections of society on hire-
purchase basis. Till March 2008, the Chandigarh Housing Board (CHB)
has constructed a total of 45,971 houses of various categories. It has been
estimated that about 25% of the population of Chandigarh city lives in
the CHB houses.
Over a period of time, the CHB has maintained a reputation for
providing well-designed houses with a good quality of construction
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at prices much lower than the market. This is probably why the CHB
schemes are much awaited and obtain an excellent response from the
public. Some of the past schemes include:
• Licensing of Tenement and Transit Sites in Chandigarh
Scheme,1975
• Licensing of Tenement and Sites & services in Chandigarh
Scheme,1979
• Licensing of Tenement and Sites & services in Chandigarh
Scheme,1996
Chandigarh Small Flats Scheme
However, the learning from the past experiences such as flaws in
the design and administration of the scheme, violations in construction
and land allotments, and non-payment of dues, has made the authorities
to realise the need to design a better housing scheme that reaches out
to the urban poor. Importantly, the lack of slums and settlement data
base and the lack of fool proof mechanism of identification of the urban
poor living in slums were major constraints to be overcome. This is
what proposed to be brought out by the CHB through the Chandigarh
Small Flats Scheme, 2006.
The seeds for it were sown by the Estate Officer of Chandigarh
Administration, who conducted a survey in March 2006 to identify
the extent/ number of slum dwellers existing in the city. To rule out
the possibility of duplicity, it was decided to develop a Biometric
Identification System. This system helped to build a permanent database
of all existing slum families in the city. From this survey, the slum
population of Chandigarh was found to consist of 23,841 families spread
over 18 different colonies in the city.
The Chandigarh Administration then floated the above scheme
in 2006 with the Chandigarh Housing Board as a nodal agency for
the implementation of scheme. CHB shall provide the flats to the
beneficiaries on a license fee basis, and they will get the ownership
rights at the end of 20 years, on the payment of balance amount. The
Administration has identified nine different locations for construction of
these dwelling units. As a part of the project, a detailed socio-economic
survey was carried out by the Infrastructure Development Finance
Corporation (IDFC) to assist the CHB in developing the framework and
restructuring operations for rehabilitation of slums in the city. Figure 1
shows the residential housing developed under CSFS.
 HOUSING FOR THE URBAN POOR: THE CASE OF CHANDIGARH MODEL /146
RAMAKRISHNA NALLATHIGA

Fig. 1: Residential Complex under Chandigarh Small Flats Scheme

Source: Field Survay.

Key Features of Chandigarh Small Flats Scheme

Mode of Allotment
The mode of allotment of tenements in all earlier rehabilitation
programmes was on hire-purchase basis. With increasing cost of land,
infrastructure and construction, the houses are becoming costlier and
unaffordable. The houses constructed under earlier rehabilitation
programmes were provided to the slum dwellers at a highly subsidised
price, which command a large premium in the market. For providing
decent housing at affordable cost and to avoid pitfalls of earlier
rehabilitation programmes, it was decided to provide accommodation
(in the form of one-room flats) on license fee basis to the slum dwellers.
Based on the socio-economic survey conducted by the IDFC, the paying
capacity was fixed at Rs 1000 per month. In order to ensure that there
is no future encroachment on government land, it was decided that a
family not included in the biometric survey would not become eligible
to get a housing unit under this programme.

Security of Tenure
As a part of Chandigarh Small Flats Scheme-(CSFS) 2006, the
possession of flat/ tenement will continue to remain with the beneficiary
for twenty (20) years. The allotment is done jointly in the name of both
147 / NAGARLOK
VOL. LI, Part 2, April-June 2019

husband and wife, i.e., joint ownership. Eviction of tenant/allottee

is done only in case of allotment based on false information or non-
payment of license fee. There is an option of conferring ownership
rights after 20 years to those who have been in continuous and lawful
occupation of the flat. There is also a provision of Appellate Authority
against any orders of the Competent Authority.

Promoting excellence through IT

In the CSFS 2006, following information technology applications
were utilised:
(a) Biometric Survey
In March 2006, to identify the extent as well as the number of slum
dwellers in the city, a biometric survey was carried out. The biometric
survey helped to prevent any duplicity in the identification of the slum
dwellers. This system also helped to build a permanent database of all
existing slum families in the city. From this survey, the slum population
of Chandigarh was found to be 23,841 families, spread over 18 different
colonies in the city.
(b) Smart Cards
Each eligible family under this scheme was provided with a
Smart Card. The Smart Card has all the family details along with the
photograph of the family printed on to it. It also has the data on details
of the license fee installments already paid by the beneficiary. This Smart
Card may also be used as an identity document when the beneficiary
deposits his/ her fee installments. The license fee is accepted only after
the beneficiary has been biometrically identified. This helps to ascertain
that the possession of the property under question continues to be with
the original beneficiary, and has not been transferred.
(c) Slum Rehabilitation for Improvement, Security and Hygiene of Inhabitants
(SRISHTI)
A unique application based on the workflow system has been
developed by the CHB for computerising the entire allotment process
starting from submission of application to handing over of physical
possession. This software was successfully tested during the shifting
of about 700 families during a camp specially setup for this purpose
on November 16, 2006. This application has certain unique features
which greatly facilitate the entire process of allotment and at the same
time helps to filter out any ineligible occupants. The databases of voter
list and biometric survey have been digitised and the search time
has been greatly reduced. Digital photography and biometric finger
 HOUSING FOR THE URBAN POOR: THE CASE OF CHANDIGARH MODEL /148
RAMAKRISHNA NALLATHIGA

prints recording of all the applicants is done on the spot and a colour
photo taken is printed on the allotment letter and the possession slip.
This helps to prevent sub-letting and transfer of the possession of the
flats. The entire process is carried out in real time and comprehensive
Management Information System (MIS) report generation module has
been developed, which resulted in very effective monitoring. It is also
developed to take care of the identity of the person at any point in time
and to track payment history record of the allottee so that the default
notices can be served or adjusted in later payments.

Simplification of Procedures
The allotment of flat is conducted at a camp organised by the CHB,
wherein the officials from all relevant departments e.g., Estate Office,
Municipal Corporation, Engineering Department, Commercial Bank and
Notary, are present. This ensures on the spot completion of procedures
and, therefore, reduces cost and time overruns for beneficiaries. As a
result of these innovations, the total processing time for an application
has been brought down to a few hours as compared to several months
that it used to take for such an allotment in the earlier schemes.

Simplification of Forms
The process of filing an application is also simplified and it is
achieved by having:
• A simple one page application form
• No enclosure, attachment or proof required
• Affidavits done away with, self-attestation to suffice
• Single page allotment letter, possession slip and license deed
• License deed not handed over to the allottee
• Elimination of middlemen
Innovations in Flat Design
In the CSFS, special consideration has been given to design and
orientation aspects that keep in mind the requirements of beneficiaries
under this scheme. Some of them are the following:
Recognising the community oriented living, the layout adopts the
street interface approach with a common front court.
Development of dwelling units is planned in such a manner
that there are no incidental spaces, leaving no space or possibility of
violations and/ or unauthorised occupation of the government land.
149 / NAGARLOK
VOL. LI, Part 2, April-June 2019

Development includes large chunks of open areas and parks

along with support infrastructure—health care, education, shopping,
community centre, etc.
The units have a single – multiple-purpose room, which can be
converted into two rooms, as per the requirement of allottee.

Relocation Plan in Place

While designing the relocation plan for the allottees, efforts were
made such that each colony is relocated at a minimum distance from its
original location. The main guiding principle behind the relocation plan
was minimising the dislocation that the slum families are subjected to
as a result of the rehabilitation project. It has also been considered that
one colony to be relocated completely in one go and maximum families
of one colony be adjusted at one place. Transit tenements were built in
advance so as to make sure that the slum dwellers would have shelter
during the construction period of flat and the period after construction
to the possession. Figure 2 shows transit tenement block in Chandigarh.

Development finance
As per the CSFS 2006, the CHB shall construct one- room tenements/

Fig. 2: Transit Tenements of the Targeted Slum Households

provided by CHB

Source: Field Surey.

 HOUSING FOR THE URBAN POOR: THE CASE OF CHANDIGARH MODEL /150
RAMAKRISHNA NALLATHIGA

flats along with the development of all supporting infrastructure. The

cost of land is to be borne by the CHB. The flats are allotted to the
beneficiaries as tenement units on license basis, with each allottee to pay
license fee. As the allottees are given flat on predetermined licensee fee
to make it affordable for them, the CHB gets compensated by allowing
the exploitation of all commercial areas within the project sites; revenues
are received by the CHB from the shopping areas. As per the scheme, a
license deed would be signed with the licensee (allottee), in which the
terms and conditions are well defined. It therefore introduced financially
efficient licensing model.

Incentivising ownership
The CHB shall take advance security equivalent to rent for three
months to cover the component of unpaid rent, water and electricity
bills, repair of damage to the property, etc. in case of eviction. The
licensee (allottee) would be given the option of getting the title of the
housing unit/flat (freehold right) after 20 years, upon the payment of
full cost, which will range from Rs. 4.2 lakhs to Rs 14 lakhs (depending
on location) based on historical value. Through this modification in
the terms of alienation, it ensured that the financial sustainability of the
scheme is taken care and the beneficiary would have incentive to both
contribute to the dwelling and save for the possession of it towards
the end of tenure. It therefore paved way for minimising the scope for
illegal transfer/ sale of tenement but at the same time incentivised the
home ownership.

Conclusion
Chandigarh Housing Board has showcased how effectively
slum redevelopment scheme can be planned and executed in the
manner and spirit of inclusiveness towards the people living in slum
settlements. It has several good practices and adopted modern methods.
It demonstrated some best features like utilising the information
technology, minimising procedures, streamlining processes, packaging
ownership and finance, and showed a strong will to implement it. Such
housing schemes for urban poor can translate into the right kind of
beneficial outputs for the low income community in cities and, thereby,
help in raising their status and contribution to the society.
REFERENCES
1. CHB (2005), ‘Slum Rehabilitation Project of Chandigarh Housing Board: Making
of a Slum Free City’, Chandigarh Housing Board (CHB), Chandigarh.
2. Garg, Ankur (2006), ‘Slum Rehabilitation Project of Chandigarh Housing Board
– Innovations and Good Practices’, A presentation made to CHB.
 151 / NAGARLOK
VOL. LI, Part 2, April-June 2019

3. GoI (2007), National Urban Habitat and Housing Policy 2007, Ministry of Housing
and Urban Poverty Alleviation, Government of India (GoI), New Delhi.
4. Nallathiga, R. (2005), ‘Regulatory impacts on land and housing markets in
Mumbai’, Nagarlok XXXVII (3): 50-65.
5. Nallathiga, R (2006), ‘Housing in India: Status, Policy and Interventions’, In P S
N Rao (ed): Urban Governance: Indian Initiatives (Section IV: Shelter and Services),
Kanishka Publishers, Delhi, pp 166-188.
6. Nallathiga, R. (2012), ‘Slum redevelopment: Current approaches and alternate
models’, Institute o Town Planners India (ITPI) Journal 9 (2): 15-25.
7. Nallathiga, R and G Dharmasi (2016), ‘MMRDA Rental Housing Scheme: A
Case of Affordable Housing’, Shelter 17 (1): 10-16.

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