Yojana September 2017 Comprehensive Summary / Gist: Housing for All (Download PDF)

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Housing for All by 2022. Urban areas have 1/3rd population & contribute to 3/5th GDP. Housing has interlinkage with 269 industries. Housing is at center of New Urban Agenda of Habitat, 2016. Sustainable and resilient housing – to meet commitment to Sendai Framework & Paris Agreement on Climate Change. Goal 11 of SDG – inclusive, safe, resilient and sustainable housing. Technical Group on Urban Housing Shortage (2012 - 17) by Ministry of Housing and Urban Poverty Alleviation – shortage of 18.78 million houses.

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Housing for All: Yojana September 2017 Summary (In English)

Dr. Manishika Jain presents the summary of Yojana September 2017. The highlights include - Housing For All.

  • Economically weaker section (EWS) – 56.2 % shortage
  • Low Income Group (LIG) – 39.4 % shortage
  • Middle & High Income Group – 4.4 % shortage
  • 10 states – 76 % shortage – UP, Maharashtra, W. Bengal, AP, Tamil Nadu, Bihar, Rajasthan, MP, Karnataka & Gujarat
  • But 11.07 million houses were vacant in 2011
  • Surplus housing for high income group
  • Urban population estimated to reach 814 million in 2050
  • High land price force poor to live in slums – haphazard planning

What to Address?

  • Inaccessibility to home loans by poor
  • Lack of private sector participation
  • Increased cost of construction
  • Scarcity of developed land
  • Regulatory constraints
  • Cumbersome clearance process

Government Initiatives

  • 1952: Integrated subsidized Housing Scheme – for industrialized workers and economically weaker section
  • 1956: Low Income Group Housing Scheme
  • 1956: Slum Improvement Scheme – discontinued in 1972
  • 1972: Environmental Improvement of Urban Slums
  • 1996: National Slum Development Program
  • 1989: Scheme for Housing & Shelter Upgradation – SHASHU –discontinued in 1997
  • 1988 - 89: Night Shelter
  • 2001 - 02: Two Million Housing Program, VAMBAY – Valmiki Ambedkar Awas Yojana
  • JnNURM – Jawaharlal Nehru National Urban Renewal Mission
  • RAY: Rajiv Awas Yojana
  • RRY: Rajiv Rinn Yojana
  • 2015: PMAY-U (Pradhan Mantri Awas Yojana – Urban) – so far 24 lakh houses are sanctioned & construction for 10 lakh houses started – highest projects considered are in Andhra Pradesh. Use of locally produced bricks, cement stabilized bricks or fly ash bricks. Has 4 verticals
  1. Credit Linked Subsidy Scheme – from LIG to MIG given subsidy on home loans – interest rate of 3 - 4%- EWS (upto 30 sq. m. ) & LIG (upto 60 sq. m) – interest subsidy of 6.5 % on loans for 15 years – subsidy channelized by HUDCO & National housing board
  2. In-situ rehabilitation of existing slum dwellers – private developers given land and incentive to monetize for LIG
  3. Affordable housing in partnership – financial assistance to EWS to build houses@Rs. 1.5 lakh/house
  4. Subsidy for beneficiary led individual house construction -@Rs. 1.5 lakh/house for construction of new houses or upgradation of existing houses
  • 1988: 1st National Housing Policy
  • 1994: Revised Housing Policy
  • 1998: New Housing and Habitat Policy – repeal of Urban Land Ceiling and Regulation Act and increased FDI in real estate
  • 2007: National Urban Housing and Habitat Policy – PPP for affordable housing – emphasized EWS & LIG
  • Policies drafted – National Public Private Partnership Policy, rental housing, National Urban Rental Housing Policy, Model Tenancy Act
  • 2017: Real Estate Regulation Act (RERA) – regulates unorganized real estate with fair and transparent transactions to protect consumers – GST would further ease this
  • Introduction of Marginal cost of funds based lending rate for speedy transmission of RBI rate cuts

Convergence of Schemes

  • AMRUT: Atal Mission for Rejuvenation and Urban Transformation – provide every household with water, sewerage, open space and basic infrastructure.
  • Swachh Bharat Mission (Urban) – focus on ODF, eradicate manual scavenging and modern municipal solid waste management system
  • DAY-NULM: Scheme for Shelter for Urban Homeless under Deen Dayal Upadhyay Antyoday Yojana – National Urban Livelihood Mission – make permanent shelters for urban homeless
  • National Urban Health Mission – Provide primary health care

LARR (Land Acquisition, Rehabilitation and Resettlement)

  • Provide affordable housing for new planned development in peri-urban and expanding city development
  • 56 % rural India is homeless
  • LIG defined on adequacy and affordability
  • Another important parameter is viability – create life in housing – it aims to create linkage with employment, connectivity and access to social and physical infrastructure
  • Idea is to redevelop affordable housing for all in urban areas and meet target under housing for all
  • Carry out eminent domain type land acquisition for affordable, adequate housing for all
  • Alternate route of land pooling ensures redeveloped plot of land has adequate provision for EWS/LIG/affordable housing
  • Renamed as Right to Fair Compensation and Transparency in LARR Bill, 2013 – replaces 120 year old law enacted in British rule in 1894
  • Consent of 80 % for land owners for private project & 70 % for PPP
  • Lays transparency for land acquisition for industrialization and development
  • Gives priority to landless laborer, farmer, dalits and tribals
  • Multi-crop irrigated land will not be acquired
  • Provide leasing of land to developers instead of sale
  • 13 central acts which are outside purview of new act must conform with provisions of compensation within 1 year of coming in force of legislation
  • Consent of Gram Sabha is must for acquisitions in Scheduled Areas under 5th Schedule of Constitution
  • Karnataka Affordable Housing Policy 7 models –
  • Beneficiary led house enhancement
  • Beneficiary led new house construction
  • In-situ upgradation
  • In-situ redevelopment
  • Plotted development with houses
  • Group housing and townships
  • Affordable group housing in partnership
  • Rajasthan – Kota & Jodhpur – model where private developer construct 75 % of land parcel which is vacant in turn for 25 % of land to be developed for free sale units
  • Ranchi Master plan 2037 – proportionate portion of land for affordable housing zones
  • MP – provides for housing guarantee law

Housing Finance

  • Outstanding housing finance – 8 % of GDP in India, 12 % in china, 29 % Malaysia & 80 % in USA
  • Expected to increase from 31 % in 2011 to 41 % in 2030
  • RBI regulates commercial banks and partially cooperative banks
  • NHB regulates housing finance companies
  • 1957: village housing program to provide loans to individual or cooperatives
  • 1970s: housing sites cum construction assistance introduced
  • 1985: Indira Awas Yojana
  • 2015: Housing for All by 2022
  • 1954: National Buildings Organization was established
  • 1970: Housing and Urban Development Corporation Ltd. (HUDCO)
  • 1988: National Housing Bank – promote housing finance institutions
  • 100 FDI in townships, infrastructure and construction projects
  • 2004: Mortgage Based Securities for flow of credit to housing
  • USA, Spain, Ireland & UK – unsustainable housing booms led to output loss and banking crisis – interest rate on housing are flexible with prepayment
  • Danish Mortgage system – 1975
  • German System – 1796
  • System is new to emerging markets
  • Covered Bonds: Czech, Hungary, Poland & Russia
  • Mortgage based Securities: Chile, Malaysia, and Mexico
  • Govt. Support housing finance market by subsidy – USA, Japan, S. Korea and Germany
  • Govt. sponsors saving scheme to finance affordable initiative – Singapore
  • Govt. Supports resettlement camps, Grameen Banks for housing – Bangladesh
  • Mandatory contribution from salary – used for housing – Mexico
  • Affordable housing for LIG incentivized by govt. – USA
  • Ownership of property is subsidized - Spain
  • Positive relation b/w LTV (loan to value) ratio and magnitude of housing price busts – high leverage can affect house price dynamics
  • UP & Maharashtra have maximum shortage of houses – availability of land for affordable housing would be assessed

Real Estate (Regulation & Development) Act, 2016 – RERA

  • Implemented from 1 May, 2017
  • Implemented across India except J & K
  • Includes Housing, Retail, Hospitality and Commercial
  • Urban housing expects to grow by 15 million units by 2019 end
  • Delhi NCR will be 1/4th of total 8 cities which will contribute to 3.4 million units
  • Real estate will become prime employment generator from 2013 - 2022
  • Currently the housing sector is fragmented and unorganized
  • It will protect home buyers from unscrupulous developers
  • Includes commercial and residential housing projects
  • Registration of real estate project and agents with authority mandatory
  • No pre-launch to be allowed without approvals from local authorities
  • Mandatory disclosure of details of registered projects
  • Compensation to customers in case of misleading advertisements
  • Covers all projects with more than 500 sq. m and 8 apartments
  • Developers to provide details of projects launched in last 5 years
  • Disclosure of carpet area is must as per new bill
  • 70 % amount taken from buyers must be deposited into scheduled banks within 15 days to cover construction cost
  • Promoters cannot change plan without consent of 2/3rd buyers
  • If property is not registered, promoter will have to pay 10 % of project cost as penalty
  • Buyers can now approach consumer court
  • Charge equal rate of interest for promoters and buyers in case of defaults
  • Set allottee association within 3 months of the allotment of major properties so that residents can manage common facilities
  • Will bring more transparency and accountability
  • 23 states have been notified so far
  • UK and Australia attract huge FDI in housing as there is transparency

Green Technologies

India’s residential sector contributes 23 % of electrical consumption

  • Expected to rise 8 times by 2050
  • 2001: Energy Conservation Act led to development of 1st generation Energy Conservation Building Code
  • BIS added Part 11 Approach to sustainability in National Building Code
  • Ministry of New and Renewable Energy – offered subsidy incentives for purchase & installation of solar water heating and solar lightning
  • Better housing – higher productivity and higher income generation capabilities
  • Good housing must look for – indoor air quality, thermal comfort, energy performance index, affordability and initial cost
  • Design can be based on perspective approach (specifies requirement for building components) or performance approach (detailed energy simulation of buildings)
  • Indians are comfortable at higher temperature and wider temperature bands than international standards
  • High reflectance roof (cool roof) – cost effective way to reject solar radiation
  • Walls and windows of high thermal resistance (R Value) to reduce heat gain within buildings
  • Air gaps must be sealed to reduce unwanted heat
  • Phase Change Material to increase comfortable hours inside well ventilated buildings
  • Fenestration (windows) allows visible light transmission and solar heat gain coefficient
  • External shading devices reduce direct solar radiation
  • Strategies for cross-ventilation to increase 15 - 20 % comfort
  • Evaporative cooling is cost effective technology to maintain space thermal comfort with low energy consumption

Housing Poor in Smart Cities

  • Smart City Plan includes Area based development (transform area within city by improving design) and pan city plan (improve city governance by smart technology solutions)
  • Ahmedabad: 40,000 affordable housing delivered in 2017 - 18 under Mukhymantri Gruh Awas Yojana, RAY, BSUP, Gujarat Slum Rehabilitation and Safai Kamdar Yojana
  • Bhubhaneswar – 6,000 houses constructed under “Mission Abaas” – transform 24 slums in 4 integrated housing societies
  • Dharamsala: 3,500 units proposed and 1250 will be for slum dwellers and urban homeless
  • Challenges: rehabilitation is least desirable strategy, sustainability of dwelling unit and maintenance, people’s participation, rental housing, financing and delays in project implementation
  • Opportunities: energy efficiency, vertical housing, use of innovative material like Glass Fiber Reinforced Gypsum Panels, recycled material and use of fly ash
  • Karimandom Colony designed by Cost ford (Laurie Baker Center for Habitat Studies), Thiruvananthapuram – open space on each floor for carrying economic activities

Infrastructure Requirements

  • Employs 35 million people directly or indirectly
  • Demand for urban transport is growing
  • 2/3rd of total population live in Class I towns (population > 1,00,000)
  • 1963: Zakaria Committee – set urban service norms
  • 1974: TCPO
  • 1989: Operations Research Group
  • 1991: Ministry of Urban development
  • 1999: Central Public Health and Environmental Engineering Organization
  • 2006: National Urban Transport Policy
  • 2011: Ishar Judge Ahluwalia Committee on India Urban Infrastructure and Services
  • 2007: 1st policy specific to urban housing was National Urban Housing and Habitat Policy
  • Rajiv Awas Yojana: Affordable housing to urban poor – rolled into HUA-2022
  • Affordable Housing in Partnership: Market solution approach by private players
  • JNNURM: construct 1.5 million houses for urban poor b/w 2005 - 2012 in 65 cities
  • PMAY – allocation of 15,000 to 23,000 crore
  1. PMAY Phase I (2015 - 17) -100 cities
  2. PMAY Phase II (2017 - 19) – 200 cities
  3. PMAY Phase III (2019 - 22) – rest all cities
  • 4861 cities of 5161 cities don’t have partial sewerage network
  • 50 % houses in Bangalore and Hyderabad don’t have sewerage connections
  • Lack of waste water treatment leads to $15 billion spent in treating water-borne diseases
  • 60 % of India’s waste is biodegradable and can be used as compost
  • India – public transport is only 22 % as compared to 49 % in lower and middle income group nations and 40 % in upper income nations

Durable Housing in India

  • Census house – house structure with roof – person if does not live in census house is homeless
  • Govt. targets to build 3 crore houses for rural poor in next seven years
  • National Technical Support Agency – to be built up to provide technical support in achieving target
  • Online monitoring by MIS AwaasSoft Scheme and mobile app AwaasApp for inspection and geo-tagging of houses
  • PMAY-G: Assistance of Rs. 1.2 lakh in plain area and Rs. 1.3 lakh in hilly states
  • Innovative Strategies – could be added later like adequate living space, rain water harvesting system and verandah
  • 4 crore rural households facing house deprivation according to Socio-Economic Caste Census, 2011
  • Provide support of 90 person days unskilled wage employment at current rate to PMAY-G beneficiary to construct house along with MGNREGA
  • PMAY-G aims to skill 5 lakh rural mason by 2019 and allows over 200 different housing designs
  • Revised Integrated Housing Scheme – in 2016 provides housing subsidy of Rs. 1,50,000 per worker for construction of house to be paid in 3 installments in bank account
  • Housing for Particularly Vulnerable Tribal Groups – Rs. 927.5 lakh for Tamil Nadu & Rs. 57 lakh for Andaman and Nicobar islands

National Cooperative Housing Federation of India (NCHF)

  • Apex organization for cooperative housing in India
  • Started in 1969
  • Promoted 20 apex cooperative housing federations
  • Membership is voluntary and control is democratic & members make equal contribution to capital required
  • It is association of 7 or more people registered under Societies Registration Act, 1860 for charitable or benevolent purpose
  • Neither public nor profit seeking organization
  • Opportunity for members to control designs at planning stage
  • Generates sense of responsibility
  • Project cost efficiency is demonstrated on account of efforts of members
  • Loans are arranged for cooperatives by members
  • Members have right to vote and participate

Do or Die

  • 1920: Non-Cooperation Movement
  • 9 August, 1942: Quit India Movement (Agast Kranti)
  • Slogan Quit India by Dr. Yusuf Meher Ali
  • 1939: Second World War and Linlithgow without consulting provincial govt. in India, declared India at war with Germany
  • Gandhiji was busy in campaign for untouchability since 1933
  • Gandhiji later launched Satyagarha – 1st offered by Acharya Vinoba Bhave in 1940 at Wardha & was sentenced for 3 months. Later followed by J. L. Nehru.
  • Churchill was forced to curtail invasions by Japan in SE Asia & sent Cripps to India
  • Gandhiji called Cripps Mission a “Postdated Cheque” and asked him to return back
  • Gandhiji said democracy means every men is his own master and invited everyone to join the movement. The fight is non-violent and for self-governance & people joined “Do or Die”
  • Most of the top leaders were put in jail
  • He went on fast for 21 days from 10 Feb 1943 to 3 March 1943 in Aga Khan Palace, Pune where he was jailed
  • His fasting message reached people
  • Second World War ended in 1945 with bombs on Hiroshima and Nagasaki. Allied forces emerged victorious
  • Public favor moved with Gandhiji
  • Finally Cabinet Mission was sent to India

India at 70

  • India’s tryst with destiny – democracy and secure justice
  • BR Ambedkar Drafting committee which was later as Constitution of India
  • India established popular sovereignty – rule by people through freely elected representatives
  • One person, one vote & one vote, one value
  • Elections ta regular interval in free and fair manner
  • Increased participation of common man in politics
  • Unification of nation under Sardar Vallabh Bhai Patel
  • Introduce economic content in polity - is self-sufficient in food production since 1947 & introduction of GST
  • Make India economic power in 21st century
  • Principle of equal opportunity for all and principle of redressal of educational and social deprivation
  • Improvement in distribution of opportunities to STs, SCs & OBCs
  • Provisions for socially and economically backward classes of citizens
  • Judiciary, Election Commission, Media and public bodies are strengthening system of democratic functions

Challenges Ahead

  • Security and Justice – Jihadi terrorism in J&K, insurgency in North East, expanding base of Naxalites, by end of 2016 there were 28 million pending cases in high courts
  • Removal of Poverty – 200 million out of 1.2 billion remain BPL – provide quality education and skills
  • Employment – India has 800 million people in age group 18 - 35 years – largest in world, there is jobless growth and technologically unemployable youth
  • Education and Health – quality issues, clinics in rural areas and streamline health IT systems
  • Corruption and Criminalization of Politics – nexus between politicians and civil servants – system to punish guilty with speed and protect reputation

Future Possibilities

  • All communities live in perfect harmony – no high and low class
  • Good governance
  • Participation of stakeholders
  • Inclusive society with patience and perseverance
  • Innovations in education, health, urban planning, waste management, transport and housing
  • Innovations in space, computers, communication and automobile
  • We have civilizational legacy of innovation in medicine, yoga, naturopathy, logic, sasthratha (dialogue) & sutras
  • Vision for New India
  • Sabka Saath Sabka Vikas
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Housing for All: Yojana September 2017 Summary (In Hindi)

Dr. Manishika Jain presents the summary of Yojana September 2017. The highlights include - Housing For All.

- Published/Last Modified on: November 22, 2017

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