HOUSING

UNIT-1 INTRODUCTION TO HOUSING AND

HOUSING ISSUES

Housing demand and need. Calculation of future need. National housing policy of 2007,
Housing agencies, housing resources, Role of banks in housing finance
Close of Second World War, rapid pace of industrialization after the attainment of
Independence resulted in rapid urbanization because of which population doubled
and trebled in major cities of India.

The increase in population has created a demand for additional accommodation, but
new housing has not kept pace with the demand created by urbanization.

There are several reasons why housing in requisite bulk has not been built.
Some of them are:
i) Rising cost of building materials and labour,
ii) Inflated land prices
iii) High rates of municipal taxation (which lessen the chances of a good return on
the capital invested)
iv) In addition, old buildings are collapsing every year due to lack of maintenance
and are creating a further demand for housing.
v) The upkeep of the existing buildings is neglected because the landlords are not in
a position to meet the cost of repairs and replacement from the rents they receive,
which are more or less at pre-war levels and cannot be increased due to the
existence of the Rent Restriction Act.
Bombay - In 1969, for a period of more than two decades private investors have not
built housing for middle and low income group families that suited their rent paying
capacity, and this has resulted in overcrowding and creation of slums.

In slum areas 8-10 persons are living in rooms having an area of not more than 100 sq
ft. Others who are not so lucky are living in garages, under stairs, in attics and on
terraces, while for some, footpaths are the only place for living.

This inhuman overcrowding and shortage of living accommodation has resulted in

creation of insanitary conditions, lowering of morals, juvenile delinquency and
increase in crime. It is a miracle that epidemics have been few and far between.

Standard of Accommodation Per Capita

The provisions of the Bombay Municipal Corporation Act under Section 379A
stipulate an area of 25 sq ft per person in a dwelling unit. This standard is obviously
low and all the evils of overcrowding will continue to exist.
It is necessary to provide atleast 50 sq feet per person in the case of housing for middle
and low income groups, to ensure a fairly decent standard of living and to mitigate the
problem of overcrowding in dwelling units.
Solution of Housing Problem is not the work of one Authority only
It’s beyond the financial capacity of any single authority to provide adequate housing
to all.

This work must be shared by all the authorities employing large numbers of labour
and other staff in the low and medium income group.

The private enterprise will not come forward to build dwelling units for those who
cannot afford to pay economic rents which are very high and beyond the means of
middle and low income group families.

The only solution of the housing problem is to undertake housing as a subsidized

enterprise.

Subsidized Housing
Looking to the present trend of prices of land and building materials, as well as the
position of their supply and the availability of finance, it is impossible for any local
authority, however resourceful, to build more than 5000 dwelling units per year even
with earnest effort. It will be necessary therefore, to take the help of other agencies to
share the subsidized housing programme.
Encouragement to Private Enterprise to Undertake housing
Which is happening nowadays

Clearance of Slums
Slum areas generally contain dilapidated housing that has to be removed in the process
of slum clearance, new housing to be made.

The Central and State Governments give subsidy to local authorities for the
construction of new housing.

The Central Government also gives loan to the extent of 50 % of the cost of housing
which includes the cost of land.

A tenant from a slum area cannot be asked to vacate his abode unless he is offered
alternative accommodation, at a rent which he can afford to pay.

The method of assessing the rent paying capacity of a slum dweller has not yet been
evolved, but it has to be based on the monthly income of the whole family.

In Western countries, 15 to 20 per cent of the monthly income is considered to be the

normal expenditure on rent.
 Housing policies - Introduction

 Shelter is a basic human need next only to food and clothing. At the end of the
10th Five Year Plan, the housing shortage is estimated to be 24.7 million.

 urban areas in our country are also characterized by severe shortage of basic
services like potable water, well laid out drainage system, sewerage network,
sanitation facilities, electricity, roads and appropriate solid waste disposal.

 It is these shortages that constitute the rationale for National Housing & Habitat
policy, focus on housing and basic services in urban areas.

 This policy intends to promote 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 society.

6
Housing Policies over the years
 First National Housing Policy in India formulated in 1988.
 With change of Government in 1990, a new National
Housing Policy announced in August, 1994.
 Further, new National Housing & Habitat Policy
announced in July, 1998. - emphasis on both quality and
cost-effectiveness especially to vulnerable sections of
society
 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.
 NUHHP 2007 -Need for Policy
Urbanization and Development:

 “Urban” in India is defined as a human settlement with a minimum population

of 5000 persons, with 75% of the male working population engaged in non-
agricultural activities and a population density of at least 400 persons per sq.
km.
 Further, all statutory towns having a Municipal Corporation, Municipal Council
or Nagar Panchayat as well as a Cantonment Board are classified as “urban.”
 India’s urban population in 2001 was 286.1 million, which was 27.8% of the
total population. Over the previous five decades, annual rates of growth of
urban population ranged between 2.7 to 3.8%.

8
 NUHHP 2007 -Need for Policy

 In 2001, 68.7% of the total urban population was living in Class I cities
(defined as cities having a population of over 100,000). The shares of medium and
small towns in the total population stood at 21.9% and 9.4% respectively.
 The spotlight is focused on the mismatch between demand and supply of
housing units. 99% of the housing shortage of 24.7 million at the end of the 10th
Plan pertains to the Economically Weaker Sections (EWS) and Low Income
Groups (LIG) sectors.
 It is, therefore, of vital importance that a new National Urban Housing and
Habitat Policy carefully analyses ways and means of providing the ‘Affordable
Housing to All’ with special emphasis on the EWS and LIG sectors.

9
 Housing Need

The magnitude of housing shortage was estimated by a Technical Group in

the context of formulation of the 11th Five Year Plan.
The Technical Group estimated the housing shortage at the end of the 10th
Plan to be around 24.7 million for 67.4 million households. The Group further
estimated that 99% of this shortage pertains to EWS & LIG sectors.
During the 11th Plan, the Group estimated that the total housing requirement
(including backlog) will be to the tune of 26.53 million units for 75.01 million
households.

10
 Housing Need

 Whereas more than 23% of the urban population resides in slum

(Census:2001), a much higher proportion of the urban population of
metropolitan cities lives in slums; it is estimated that 55% of the population of
Mumbai lives in slums.
 The total estimated investment for meeting the housing requirement upto
2012 was estimated to be of the order of Rs.3,61,318.10 crores consisting of
Rs.1,47,195 crores for mitigating housing shortage at the beginning of 11th Plan
and Rs.2,14,123.10 crores for new additions to be made during the 11th Plan
period (this includes construction of pucca houses & upgradation of semi-pucca
and kutcha housing units).
1
1
NUHHP – 2007

Aims of National Housing Policy

 Provide adequate, comfortable, quality and affordable housing to enhance the
quality of life of the people.

 Encouraging State Governments, Urban Local Bodies, Development

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

 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.

 Planning of Mass Rapid Transit Systems (MRTS) at the city Metropolitan

Planning Area and Sub-region levels.
12
NUHHP – 2007

Aims of National Housing Policy

 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.

 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.

 Facilitating accessibility to serviced land and housing with focus on

economically weaker sections and low income group categories.
13
NUHHP – 2007

Objectives of National Housing Policy

Objective 1: Providing adequate and quality housing with comprehensive

facilities and a conducive environment;
Objective 2: Enhancing the capability and accessibility of the people to own
or rent houses; and
Objective 3: Setting future direction to ensure the sustainability of the
housing sector

14
NUHHP – 2007

Thrusts and Policy Statement

15
 Thrust 1: Provision of Adequate Housing Based on the Specific Needs of
Target Groups.

The three policy statements:

 Enhancing the role of the State Government agencies, besides the
Federal Government agencies and the private sector in continuing the efforts of
providing affordable houses for rent or for sale.
 Providing housing for all especially low-cost houses for the low-income group
and encouraging the provision of medium-cost houses for the middle-income
group; and
 State Governments are given flexibility in determining the quota of low-cost
houses to be built in mixed-development areas based on the suitability of the
location and local demand.

16
NUHHP – 2007

Thrust 2: Improving the Quality and Productivity of Housing Development

The three policy statements:

 The use of skilled, trained and accredited workers for construction

works to raise the quality of construction through approved and

accredited systems;

 Setting the quality standards and minimum housing specifications; and

 Increasing the use of local building materials.

17
NUHHP – 2007
Thrust 3: Increasing the Effectiveness of Implementation and Ensuring
Compliance of the Housing Service Delivery System

The five policy statements:

 Formulating, improving and enforcing laws, regulations and guidelines pertaining to the housing
sector;
 Enhancing the Government’s service delivery system related to housing through policy
coordination and implementation involving various agencies;
 Encouraging the BTS concept in the housing provision system;
 Improving relations and collaboration among the public and private sector as well as professional
bodies in the housing sector; and
 Public housing programmers at the federal level are placed under the responsibility of a single
federal agency which plans, implements, sells/ rents and maintains them. State Governments are
still responsible for public housing programs at the state level through their subsidiary agencies.

18
NUHHP – 2007
Thrust 4: Improving the Ability of the People to Own and Rent Houses

The three policy statements:

 Setting prices for low-cost houses as well as controlling ownership and

sales to avoid speculation;

 Setting a realistic rental rate for low-cost houses; and

 Providing financial support for the low income group in order to own

houses.

19
NUHHP – 2007

Thrust 5: Sustainability of the Housing Sector

The three policy statements

 Increasing the use of new technologies, innovation and provision of

environmental-friendly housing;

 Improving research and development (R&D) efforts in the housing sector;

and

 Encouraging urban renewal and redevelopment of old buildings in line

with the Government’s objective for conservation and preservation

purposes.
20
NUHHP – 2007
Thrust 6: Enhancing the Level of Social Amenities, Basic Services and
Livable Environment

The three policy statements

 Providing housing and sustainable development complete with basic

amenities and facilities based on standards and current needs as well as other

social needs to create a conducive and liveable environment;

 Strengthening the management mechanism and maintenance of stratified

buildings and common properties; and

 Implementing the concept of Safe City in housing areas.

21
NUHHP – 2007
Role of Government, Urban Local Bodies
and Other Agencies:
 It will be the Endeavour of the Central Government in collaboration with
governments in States/UTs, Urban Local Bodies and other agencies to
implement the aims of the National Urban Housing and Habitat Policy, 2007
through action-oriented initiatives at all levels of Government. Towards this
end, Annual Action Plans will also be prepared at various levels.

The Central Government would create a Supportive Environment:

 Act as a ‘facilitator’ and ‘enabler’ with significant actionable steps being taken
by State Governments, Urban Local Bodies, Parastatals and Private & Co-
operative Sector and Non Government Organizations.

22
NUHHP – 2007

CENTRAL GOVERNMENT
Legal & Regulatory Framework: Encourage adoption of critical urban
reforms relating to municipal laws, building bye laws, simplification of legal
and procedural frameworks, property title verification system and allied areas.
Housing Finance
Develop suitable fiscal concessions in collaboration with the Ministry of
Finance for promotion of housing and urban infrastructure with special focus
on EWS/LIG beneficiaries combined with a monitoring mechanism for
effective targeting. Further, facilitate viability gap funding of integrated slum
development programmers with the consent of Planning Commission and
Ministry of Finance.
23
NUHHP – 2007

STATE GOVERNMENT
 Act as a facilitator and enabler in collaboration with ULBs/parastatals/ Private
Sector/Co operative Sector/NGOs with regard to Integrated Slum Development
Projects as well as Integrated Township Development Projects.
Legal & Regulatory Framework
Enable urban local bodies to take up regulatory and development functions.
Skill Upgradation
Facilitate training and skill upgradation of construction workers.
Management Information System
Develop appropriate Management Information System for different level of
governance.

24
NUHHP – 2007

STATE GOVERNMENT
Public-Private Partnerships
Encourage Cooperative Group Housing Societies, Employees Organizations,
labour housing promotion organization, Non-Government Organizations (NGO)
and Community Based Organizations (CBO) to have Partnerships with Urban
Local Bodies/Parastatals in relation to housing related microfinance and
housing development.
Research & Development (R&D)
Promote R&D activities in the field of building materials and technologies and
promote their use in housing and infrastructure projects.

25
NUHHP – 2007

Research and Development, Standardization and

Technology Transfer Organizations

 Undertake research to respond to different climatic conditions with a focus

on transition from conventional to innovative, cost effective and environment
friendly technologies.
 Develop and promote standards in building components, materials and
construction methods including disaster mitigation techniques.
 Intensify efforts for transfer of innovative technologies and materials from
lab to field.
 Accelerate watershed development to conserve water, stop soil erosion and
re-generate tree cover in order to improve habitat.

26
NUHHP – 2007
ACTION PLAN

 The Central Government will encourage and support the States to prepare a

State Urban Housing and Habitat Policy and also a State Urban Housing &

Habitat Action Plan.

 This may include passing of specific Acts by the States/UTs (with

legislature) for achieving the housing policy objectives through legal &

regulatory reforms, fiscal concessions, financial sector reforms and

innovations in the area of resource mobilization for housing and related

infrastructure development at the State/UT level.

27
NUHHP – 2007
THE ULTIMATE GOAL
 The ultimate goal of this Policy is to ensure sustainable development of all

urban human settlements, duly serviced by basic civic amenities for ensuring

better quality of life for all urban citizens.

 The Action Plan at the State/UT level in this regard must be prepared with

the active involvement of all stakeholders.

 The National Urban Housing and Habitat Policy, 2007 also lays special

emphasis on provision of social housing for the EWS/LIG categories so that

they are fully integrated into the mainstream of ecologically well-balanced

28
urban development.