Housing Requirement

• While cities are regarded as challenges. Increasing urbanization has led to

tremendous pressure on land, civic infrastructure, transport, open spaces etc.
However, despite significant growth in housing stock, the slum and squatter
settlements are on the increase.
• To meet the existing housing shortage, whi (EWS) and Lower Income Group
(LIG), more than 26 million housing units in urban areas were required by the
end of financial year 2012.
(ii) Housing requirement during the 11th
Plan Period (2007-2012)5
The housing requirement during the 11th Plan
period has been worked out by utilizing the rate
of growths on various parameters as has been
applied for arriving at the housing shortage as
on 2007 assuming that the rates will not change
drastically during the 5 year period of the plan.
Therefore, the estimates of households, housing
stock etc., as on 31.3.2012 were as under:
Planning proposals for residential neighborhood
Housing as an element
 Affordable housing
• Affordable housing is: ‘Affordable housing includes social rented and intermediate housing,
provided to specified eligible households whose needs are not met by the market.
Affordable housing should: – Meet the needs of eligible households including availability at a
cost low enough for them to afford, determined with regard to local incomes and local
house prices. – Include provision for the home to remain at an affordable price for future
eligible households or, if these restrictions are lifted, for the subsidy to be recycled for
alternative affordable housing provision’.
Social rented housing is: ‘Rented housing owned and Intermediate affordable housing
managed by local authorities and registered social is: ‘Housing at prices and rents
landlords, for which guideline target rents are above those of social rent, but
determined through the national rent regime. The below market price or rents, and
proposals set out in the Three Year Review of Rent which meet the criteria set out
Restructuring (July 2004) were implemented as policy in above. These can include shared
April 2006. It may also include rented housing owned or equity products (eg HomeBuy),
managed by other persons and provided under other low cost homes for sale and
equivalent rental arrangements to the above, as agreed intermediate rent.
with the local authority or with the Housing Corporation
as a condition of grant.’
‘Affordability’ is a measure of whether housing may be afforded by certain groups of
households. ‘Affordable housing’ refers to particular products outside the main housing market.
Market housing Private housing for rent or for sale, where the price is set in the open
market.
Net dwelling density Net dwelling density is calculated by including only those site areas
which will be developed for housing and directly associated uses, including access roads
within the site, private garden space, car parking areas, incidental open space and
landscaping and children’s play areas, where these are provided.
Housing demand The quantity of housing that households are willing and able to buy or
rent.
Housing need The quantity of housing required for households who are unable to access
suitable housing without financial assistance.
Key worker The Government’s definition of key workers includes those groups eligible
for the Housing Corporation funded Key Worker Living programme and others employed
within the public sector (ie outside of this programme) identified by the Regional
Housing Board for assistance.
Housing market areas Geographical areas defined by household demand and
preferences for housing. They reflect the key functional linkages between places where
people live and work. See the Identifying Sub-Regional Housing Market Areas Advice
Note for further details.
Design code A design code is a set of illustrated design rules and requirements which
instruct and may advise on the physical development of a site or area. The graphic and
written components of the code are detailed and precise, and build upon a design vision
such as a masterplan or other design framework for a site or area.
Need for Affordable Housing The need for affordable housing in India can hardly be over
emphasized. “Affordable Housing” has to be addressed through the provision of
affordable housing finance, affordable technology/building designs and affordable land &
infrastructure.
The provision of all these factor inputs, as a measure to improve affordability would
require appropriate Policy support and conscious participation from various market
stakeholders.
 The issue of “Affordable Housing for All”: is a challenge both in respect of credit flow
and scale as well as pricing. Issues pertaining to land, legislation, urbanization, finance,
risk assessment and mitigation tools etc are some of the key issues in the development
and promotion of Affordable Housing Market.
 New initiatives towards building an appropriate market infrastructure would support
the growth and development of an efficient and transparent demand-driven housing
market in the country, particularly for the low and moderate income households.
Financial penetration in these market segments is still low.
The need to develop the right business model is clearly recognized by the policymakers,
regulators and the industry.
This will address various aspects of affordability such as efficient financing, risk
mitigation, credit enhancement and specialist approach that can result in more innovative
products. Parallel intervention on the supply side by way of better landgovernance,
infrastructure management, new innovative technologies in construction etc., are already
engaging the attention of the planners and the policy institutions.
3. Housing Micro-Finance The concept of ‘Microfinance’12 was introduced to ensure
improved access to finance for poor and weaker sections, particularly in the rural areas.
Microfinance Institutions (MFI’s) have developed special skills and capacities to serve this
market segment to meet their credit needs for asset creation and income generation.
 As the lending experience and capacity of the MFIs has grown over the years, they are
now also venturing into housing credit to provide long term and higher volume loans to the
borrowers.
The demand for such loans comes from their member borrowers for home
improvement/repairs, construction and other related activities.

The key challenge lies in scaling up the scope of housing microfinance through policy
reforms and enabling regulatory support.
 While the future growth outlook of the housing market looks reasonably good, with the
sector becoming more demand driven, the challenge lies in its inclusiveness.
By 2030,13 it is estimated that 600 million of the country’s population will be living in
cities.
There are already huge infrastructure gaps in cities in respect of sanitation, sewage,
water supply etc., with very limited supply-side intervention.
Factors such as rapid increase in land prices, inadequate infrastructure, absence of long
term debt market and long-term loans for borrowers at reasonable fixed rates, limited
developer finance and lack of access to housing finance for low-income, rural and
informal groups are some of the constraints for affordable housing on the demand side.
Policy Environment for Housing and Housing Finance: Policy Measures and the
operating environment are some of the key factors for ensuring inclusive growth of the
sector on sound and sustainable lines. In order to reduce the gap between the demand
and supply of housing and housing finance in the country, the Government has from
time to time announced various Policy/Program14 measures to boost the country’s
housing and housing finance sectors and promote inclusive housing, particularly for the
poor/weaker sections in urban as well as rural areas. A number of announcements
were made in the Union Budget of the Government of India for the year 2011-12.
Besides, the Government continues to support various schemes which have been
launched to address housing related issues in the country.

(i) Policy Developments Some of the notable announcements made in the

Union Budget 2011-12 specific to the housing and housing finance sector
were as under:-
Highlights of
Union Budget
2012-13
relevant to
Housing/
Housing Finance
Sector15
Highlights of Union Budget 2013-14 relevant to Housing/ Housing Finance Sector16 Union
Budget proposals (2013-14) relating to Housing
A. Provisions under Rural Housing Fund have been enhanced from 4000 crore to 6000 crore
B. Proposal of setting up of Urban Housing Fund by National Housing Bank and a provision of
2000 crores for the same
C. The list of eligible securities in which Pension Funds and Provident Funds may invest will be
enlarged to include exchange traded funds, debt mutual funds and asset backed securities.
D. A person taking a loan for his first home from a Bank or a Housing Finance Corporation upto
25,00,000 during the period 1.4.2013 to 31.3.2014 will be entitled to an additional
deduction of interest of upto 100,000 for the Assessment Year 2014-15. If the limit is not
exhausted, the balance may be claimed in AY 2015-16.
E. Securitisation Trust will be exempt from income tax. Tax shall be levied only at the time of
distribution of income by the Securitisation Trust at the rate of 30 percent in the case of
companies and at the rate of 25 percent in the case of an individual or HUF. No further tax
will be levied on the income received by the investors from the Securitisation Trust.
F. TDS at the rate of one percent will be applied on the value of the transfer of immovable
property where the consideration exceeds 50 lakhs. Agricultural land will be exempt.
G. The rate of abatement for Homes and flats with a carpet area of 2,000 sq.ft. or more or of a
value of 1 crore or more is reduced from 75 percent to 70 percent. Existing exemptions from
service tax for low cost housing and single residential units will continue.
(ii) Government Initiatives in Housing To tackle the problem of housing shortage
and lack of affordability in housing finance, various policy interventions have been
initiated by authorities at the Central, State and regulatory levels17.
The focus of such interventions has been to increase affordability, particularly for
the poor/weaker sections of the population. Policies under the National Urban
Housing & Habitat Policy, 2007 have sought to earmark land for EWS/LIG groups in
new housing projects for provision of affordable housing for this segment of the
population.

To prevent frauds in loan cases involving multiple lending from different banks/HFCs
on the same immovable property, the Government has facilitated setting up of Central
Electronic Registry under the Securitization and Reconstruction of Financial assets and
Enforcement of Security Interest (SARFAESI) Act, 2002. This Registry has become
operational with effect from March 31, 2011. The Central Registry of Securitization
Asset Reconstruction and Security Interest of India (CERSAI), a Government Company
licensed under section 25 of the Companies Act, 1956 has been incorporated for the
purpose of operating and maintaining the Central Registry under the provisions of the
SARFAESI Act, 2002. All transactions made on or after March 31, 2011 need to be
registered with CERSAI. Information furnished to CERSAI include particulars of the
property, nature of encumbrance, institution with which property is mortgaged etc.

http://shodhganga.inflibnet.ac.in/bitstream/10603/31643/9/09_chapter%201.pdf