Affordable Housing for Low Income Group..!

Affordable Housing for Low Income Group..!

By Mr. KR Tooyavan, Hon. Editor, Our Building & Construction

An article from Our Building & Construction / December 2017

Government of India, since independence try to solve the Housing problem by evolving policies, programmes and by innovating techniques. But is still it goes on and le! a large portion of people are with no roof over their head and devoid of quality environment for safe living.

Thre PradhanMantriAwasYojana (PMAY) – Housing for all is one such measure aims to addressing the shortage of 20 million slum and non-slum urban households, by 2022. Four main verticals are

• In-situ rehabilitation of existing slum dwellers using land as a resource through private participation

• Credit linked subsidy scheme (CLSS)

• Affordable housing in partnership (AHP)

• Subsidy for survey-led individual house construction or enhancement (BLC)

*  Given the projected growth of urbanization in India and the consequent housing demands, Ministry of Housing and Urban Poverty Alleviation introduced an interest subsidy scheme for acquisition / construction of house (including re-purchase) and incremental housing to cater to the Economically weaker sections (EWS), Low income group (LIG) and Middle income group (MIG) called “Credit Linked Subsidy Scheme (CLSS).

The carpet area of houses being constructed under this component should be up to 30 for EWS category and up to 60 sq. for LIG category.

For MIG I its 90 sq. and MIG II 110 Preference under the Scheme will be given to Manual Scavengers, Women (with overriding preference to widows) PradhanMantriAwasYojana (PMAY) has been
designed envisaging a bigger role for private sector, but it’s cause of worry for the government since very few private sector participations has been enlisted.

By a quick survey with the stake holders in Chennai, the following views have emerged.

* Developers are interested in developing affordable housing provided government aids to remove the bottlenecks.

*  Private developers choose constructing houses for MIG and LIG as houses for EWS get them poor profit margin.

*  Among the subsidies provided by government CLSS is widely acceptable, as its Financially viable

*  Reasons for no active contributions from developers is that, more subsidies are required by them.

Important lessons that are noteworthy from the Singapore model of housing are reforming Housing’s contribution to economic development, home ownership affordability, urban governments, housing subsidies, monetizing housing assets, and market transparency.

In Singapore “Public Housing” has been implemented successfully. The following are the lessons learnt from the experiences of Singapore in providing housing for all. Public housing is managed by Housing and Development Board (HDB). HDB builds % ats primarily to provide for the poor and their purchase are " nancially aided
by the Central Provident Fund.

It is also to be noted that buying an apartment built by private developers whose projects cater primarily to the richest Singaporeans cost three times as much as of HDB.

By many measures the system is a success. Singapore has virtually no homelessness.

Housing Development Board’s (HDB) towers are somewhat drab to look at, by they are clean and safe and their apartments spacious enough. HDB housing is more affordable than comparable accommodation in Hong Kong, London and some other rich cities.

The tactics on which Singapore relies on compulsory savings, state land ownership and state provision of housing which can easily spawn widespread eficiency and eliminate corruption in other sociopolitical contexts.

Our attention must be bestowed with the following for achieving the goals and objectives of housing for low income group

* Proper Formulation of Scheme

* Increase in loan subsidies

* Special monitoring program of the schemes periodically

* Demand – Supply Gap to be narrowed down by subsidies to be provided under GST, land and approval

* Problems with land acquisition can be tackled through a system of cross subsidization

* Alternate arrangement for people who do not have proper title deeds

* Encouragement in implementing Public – Private Partnership to be done

* Better co-ordinating civic and municipal authority responsible for providing basic facilities to the houses built

The case study on Singapore affordable housing is appreciated and how our government policies and rules have to be revisited so as to make affordable housing successful.

Affordable housing will be the top runner in next  five years and favourable provisions are made to EWS and a LIG groups, provided due subsidies and reformation in policies with stringent implementation are made.

Other articles in Our Building & Construction / December 2017

Bungalows Versus Flats

Quality and Nothing
But Quality - Cover Story

Alternatives for Wooden Doors & Windows
Giant Falcon Statue Adorns

Unsold Inventory

Osh India 2017

Kanavu Illam 2017 Chennai Ambattur

Credai Clean City Movement (CCCM)

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