Presentation looks at the intent, content and scope of National Housing Policy 2007; Housing Finance Institutions, PMAY(U), in the context of housing for all in urban India
2. National Housing Policy in Retrospect
• Framing Policies -- part of government –
• to focus on critical issue facing country and approach to solve them
Providing Housing remains important for any national and community
GOI has framed so far in all 4 such policies- 3 for India as a nation& 1 exclusively for urban India
--All policies mandated Housing For All- As the objective- only approach changed
• First National Housing Policy in India formulated in 1988.
• With change of Government in 1990-- a Second National Housing Policy announced in August, 1994.
• Further– Third National Housing & Habitat Policy announced in July, 1998 with some landmark initiatives ;
• -- involvement of multi-stakeholders,
• --repeal of Urban Land Ceiling Act,
• -- permitting Foreign Direct Investment in housing and real estate sector, etc.
• However, all these policies were generic / applicable to both rural and urban areas.
• --Considering challenges of shelter / growth of slums,
• --first urban specific National Urban Housing and Habitat Policy, 2007-- announced in December 2007.
3. National Housing Policy-2007
Considering Housing shortage/ budgetary constraints of both central / state governments &
Large deficit between demand and supply;
• -- National Housing Policy-2007– highlighted need for;
• -- promotion of public-private partnerships
• -- to reach goal of Affordable Housing for All–
• -- by encouraging involvement of multiple stake-holders
• -- private sector/ cooperative sector/industrial/services/institutional sector
National Housing Policy-2007- -Document divided into 7 different chapters highlighting
• --Need for policy
• --Aims of policy
• --Role of government/urban local bodies/ other agencies
• --Role of research /development/ standardization /technology transfer by organizations
• --Specific areas of action
• --Action plan
• --Ultimate goal of policy
4. Major Government Initiatives and Programs
• Major Government Initiatives and Programs for Affordable Housing - carried out;
• Jawaharlal Nehru National Urban Renewal Mission.
• Interest Subsidy Scheme for Housing the Urban Poor.
• Affordable Housing in Partnership :
• Setting up of a High Power Task Force on Affordable Housing
• . Launch of the Rajiv Awas Yojana
5. National Urban Housing and Habitat Policy- Salient Features
• Goal of the Policy is
• --Affordable Housing for All --with special emphasis on urban poor.
• Strategy framework is –
• --multiple partnership of States
• -- with various stakeholders, cooperatives, employee welfare housing
organisations, private sector, state parastatals.
• Special emphasis has been laid on
• --SC/ST/BC/Minorities,
• -- empowerment of women -- within urban poor
• -- with emphasis on security of tenure.
7. THE NEED FOR POLICY
• Shelter -- a basic human need next only to food and clothing.
• -- 10th Five Year Plan,-- housing shortage-- 24.7 million.
• -- Reasons for framing policy--
• Rapid Increase in Population
• Rapid Urbanization
• Rapid Migration –Rural to Urban--Shift of Labour
• Concentration of Poverty in urban areas
• Large growth of slums- acute congestion
• Acute shortage of Housing – 244.7/261mdu
• Large resources needed-3.61 lakh crs- 1.47crs+2.14 for new houses-year 2012
• Role of Housing in employment- 1/6 workforce- 35m
• Promoting Industrialization -290 industries
• Sourcing land, Materials, Technologies – for making housing cost effective/ efficient
• Involving all stakeholders
• Involving private sector
• Promoting public- private partnership
• Need for balanced Regional Development
• Creating New Integrated Townships/ Greenfield Development
• --Development of Sustainable Cities
9. National Housing Policy- Aims
• Promote Urban Planning – Planned development of human settlements
• Creating Affordable Housing for all
• Ensuring adequate Increase flow of Funds at affordable rates
• Providing Spatial Incentives - 20-25 % of FAR are reserved for EWS / LIG /TDR) to
create more dwelling units on same land – considering land cost
• Ensuring Increase Supply of serviced Land for housing
• Providing Special Provision for housing of SC/ST/OBC/Minorities/Disabled
• Making Special Provision for housing of Women
• Ensuring Employment Generation as part of housing program
• Promoting Public-Private Partnerships for affordable housing
• Creating Management Information System for creating data base of housing
• Creating Healthy Environment in the designing and construction of shelter
10. National Housing Policy-2007- Aims
• -cost-effective, quality building materials / efficient technologies
• - reducing cost of EWS/LIG houses.
• - Synergizing poverty alleviation& employment generation Programmes
• -- detailing roles of various stakeholders
• -- specific action required -- Land, Finance, Legal and Regulatory
Reforms , Technology Support and Transfer.
• Policy aims at accelerating development of small & medium towns
• -- to serve as a generators of economic momentum
• -- for reducing migration to large cities.
Policy emphasizes on development of North-Eastern States
• -- due to fragile ecology of North-Eastern Region
• - for accelerating socio-economic progress &
• -- improving accessibility to North-Eastern Region.
11. • ROLE OF
• CENTRAL GOVERNMENT,
• STATE GOVERNMENT,
• URBAN LOCAL BODIES AND
•OTHER AGENCIES
12. ROLE OF CENTRAL GOVERNMENT
• Central Government --in consultation with State Governments
will focus on ;
• Creating a Supportive Environment
• Supporting Amendments in Legal & Regulatory Framework –
creating Model Acts- TP/ RENT/Municipalities
• Sourcing Housing Finance
• Ensuring Supply & Management of Land
• Promoting Environment and Ecology
• Creating Management Information Systems
• Promoting Research & Development
13. ROLE OF STATE GOVERNMENT
• State Government in consultation with Urban Local Bodies
would focus on ;
• Creating a Supportive Environment
• Rationalising Legal & Regulatory Framework
• Promoting Public –Private Partnerships
• Help in Skill Upgradation
• Creating a Management Information Systems
• Promoting Research & Development
• Ensuring Optimum Utilization of Land
• Promoting Integrated Townships, Urban Extensions & SEZs
14. ROLE OF Urban Local Bodies/ Development Authorities/
Housing Boards
• Urban Local Bodies/ Development Authorities/Housing Boards--in
consultation with all stakeholders will focus on--
• Creating a Supportive Environment
• Promoting Urban Planning
• Creating Partnerships
• Launching Special Programs for Disadvantaged Sections
• Protecting and Preserving Environment and Ecology
• Ensuring Security & Safety of poor
• Banks and Housing Finance Institutions (HFIs) would focus on ;
• Increase Outreach
• Provide Housing Finance
• Launch Special Programs for Vulnerable Sections
15. STANDARDISATION
AND TECHNOLOGY TRANSFER ORGANISATION
• Research & Development, Standardization and Technology Transfer
Organizations would;
• i) Undertake research for different climatic conditions- for innovative,
cost effective/ environment friendly technologies.
• ii) Develop and promote standards in building components, materials and
construction methods including disaster mitigation techniques.
• iii) Make efforts for transfer of innovative technologies and materials
from lab to field.
• iv) Accelerate development to conserve water, stop soil erosion and re-
generate tree cover in order to improve habitat.
17. SPECIFIC AREAS OF ACTION
• Policy emphasizes on following areas for creating large stock of affordable housing;
• Land - promoting Land assembly, development, disposal -- both in public / private sectors.
• ii) Assembly of land –as per Master Plan .
• iii) Private Sector allowed to assemble land-- as per Master Plan/Development Plan
• iv) 10 -- 15 %of land -- in all new housing project/ 20--25 % FAR which is greater - reserved for
EWS/LIG housing through legal /spatial incentives.
• v) Action Plan prepared for urban slum dwellers focusing on SC/ST/OBCs/Minorities/EWS
• vi) land allotted at institutional rates to -- Cooperative Group Housing Societies/, Employee Welfare
Organizations/ labour housing -- operating on a no-profit no-loss basis
• Finance
• Legal and Regulatory Reforms
• Technology support and its transfer
• Infrastructure
• Sustainability Concerns
• Employment issues relating to the Housing Sector
• Slum improvement and upgradation
19. Action Plan
• Central Government provide support to States for ;
• - Preparing a State Urban Housing and Habitat Policy /State Urban Housing & Habitat Action Plan
• -- Passing Acts for achieving housing policy objectives -- legal & regulatory reforms, fiscal concessions,
resource mobilization
• -- Accelerated flow of funds for housing , infrastructure,
• - Promoting planned, balanced regional growth,-- sustainable employment, protection of weaker sections/
vulnerable groups, preferably in their present residential location, conservation of urban environment and
promotion of public private partnerships.
• -- Taking up institutional, legal, regulatory and financial initiatives relation to
• -- (i) supply of land
• (ii) modification of Acts/Bye-laws
• (iii) promotion of cost effective building materials and technologies
• (iv) infrastructure development
• (v) in situ slum development,
• vi). use of IT
• vii. involving all stakeholders like CBOs, NGOs, State parastatals, ULBs,- for success of projects and
involving beneficiaries
viii. Involving Cooperative Sector /Private Sector-- synergizing with community,
• Ix -- Involving Cooperative/ private resources/ Government resources.
• .
20. Action Plan
• vi) preparing 15-20 years perspective plans--City Development
Plans taking into account
• --deficiencies in housing / urban infrastructure
• -- with special emphasis on urban poor
• --indicate a vision based on spatial plan – Master Plan and Zonal
Plans, Metropolitan Plan, District Plan and State/UT based Regional
Plan
• – along with investment plan for their implementation.
• vii) Setting up of -High Level Monitoring Committee at Central
Government level
• -- to periodically review implementation of National Urban Housing &
Habitat Policy 2007
• --make amendments/ modifications considered necessary
22. National Housing Policy Goals- 2007
• Goals of policy are are to;
• -- 1 Ensure sustainable development of all urban human
settlements -- duly serviced by basic civic amenities
-- for ensuring better quality of life for all urban citizens.
2. Preparing Action Plan at State/UT level -- with
involvement of all stakeholders.
3. Making provision of social housing for EWS/LIG
Categories --for fully integrating them / making them
part of urban development.
24. Housing Finance in India
• Availability of adequate finance essential -for creating adequate housing a distinct
reality
• Due to scarcity of Finance; -- Housing remains -- a dream for many people.
• For boosting investment in housing industry,-- Government took number of steps;
• --established Financial Institutions- NHB, Banks, HUDCO
• -- provided Numerous tax concessions --interest /repayment of borrowed capital and
capital gains tax rebates
• -- Till 1990s-housing a seller’s market- Buyers had little choice
• --Entry of commercial banks/private sector banks,
• -- marketing began to play an important role
• .-- HFCs marketed their schemes
25. Housing Finance in India
• Housing finance in India-- traditionally receiving low priority in policy formulation
compared to other sectors.
• • By international standards-- housing finances constitute a small portion of GDP
• --Over the years -Number of finance companies--public / private increased
• -- rate Of housing construction, sale/purchase has also increased.
• 5 broad categories of Major financing companies-- involved in housing-
including ;
• National Housing Bank- NHB
• Micro housing finance corporation,
• Housing development finance corporation,
• LIC ,
• HUDCO
• Banks and private companies.
28. NATIONAL HOUSING BANK
National Housing Bank (NHB)
-- established on 9th July1988
-- under Act of Parliament
--Wholly owned by Reserve Bank of India
-- to function as a principal agency
• --to promote Housing Finance Institutions and
• -- provide financial and other support to such institutions.
• ----- for giving impetus for creation of 'Secondary
Mortgage Market
29. NATIONAL HOUSING BANK- Objectives
• To promote a sound, healthy, viable , efficient housing finance
system-- to cater to all segments of population.
• To support housing finance institutions-- through financing
/capacity building measures.
• To catalyze-- flow of funds to all regions/incomes groups.
• To develop market infrastructure-- for sound growth of
housing finance system.
• To ensure expansion / stability in housing finance market
30. NATIONAL HOUSING BANK-Vision/Mission
• VISION
• Promoting inclusive expansion with stability in housing finance market.
• NHB, --as Apex level financial institution for housing sector -- performs
following roles:
• 1. Promotion and Development of housing finance institutions
• 2. Regulation and Supervision of housing finance and financial
institutions
• 3. Raising Finance for housing
• 4. Promoting Rural Housing
• MISSION
• To harness and promote the market potentials to serve the housing
needs of all segments of the population with focus on low/moderate income
housing.
31. NATIONAL HOUSING BANK-Role
• Augmenting Resources for housing sector
Leveraging liquidity
Support specialized institutions to serve as
dedicated centers for housing credit
Fill credit gaps suffered by low income households
by strengthening linkages between formal and informal
sector.
Strengthening linkages between formal and
informal sector institutions - Financing MFIs
33. MICRO HOUSING FINANCE CORPORATION
• Micro Housing Finance Corporation (MHFC) –
• -- focused on providing micro-mortgages to urban poor,
• -- specifically those employed in informal sector.
• -- MHFC enable easy access to housing finance services-- to under-served and un-served segments
of population.
• -- Micro Housing Finance Corporation Limited (“MHFC”) was incorporated on May 16, 2008 with
objective;
• -- to provide housing finance for lower income households (mostly in the informal sector) in urban
India.
• – Major issues stalling development of low income housing were;
• lack of finance available to lower income households (especially those without documentation to
prove incomes) to buy such homes.
• MHFC was set up to specifically address this gap.
• • company received necessary regulatory clearance from National Housing Bank ("NHB") as
• --Certificate of Registration ("COR") in Feb 2009 and sanctioned its first loan in June 2009.
34. VISION
• To help financially excluded (especially EWS, informal sector) families own an
independent home
• Also to help urban low income- LIG - and financially excluded families to own a
house
Social Need arising out of ;
• 90 % of workforce employed in informal sector
• with Monthly earnings: Rs. 5,000 to 30,000
• Excluded from mainstream housing finance
• MHFC seeks to bridge this gap
36. HOUSING DEVELOPMENT FINANCE CORPORATION LIMITED(HDFC)
• - HDFC is a financial company based in Mumbai.
• --Major provider of finance for housing in India.
• - has presence in banking, life and general insurance, asset
management, venture capital and educational loans.
• • Founded in 1977 --as first specialized mortgage company in India.
• HDFC promoted by- Industrial Credit and Investment Corporation
of India.
• FEATURES OF PERSONAL HOUSING LOANS
• • Fast and Easy Processing
• • Simple Documents
• • Doorstep Services
• • Attractive Interest rates
• • Multiple Repayment Options
• • Post Disbursement Services
37. HOUSING DEVELOPMENT FINANCE CORPORATION LIMITED(HDFC)
. HOME EXTENSION LOAN
• HDFC offers home extension loans –
- making it convenient for applicants to extend or add space to
their homes,
- -- “ be it an additional room, larger bathroom or, even an
enclosing an open balcony. ”
• Maximum loan amount --at 85% of cost of extension.
• Maximum term of 20 years-- subject to retirement age of
applicant.
• Home extension loans can be applied for-- individually / jointly.
--Proposed owners of property-- have to be co-applicants.
--co-applicants of the loan need not be co-owners.
39. HOUSING AND URBAN DEVELOPMENT CORPORATION
. HUDCO— -- government owned corporation /public sector undertaking,
- incorporated on April 25, 1970
-- works under Ministry of Housing and Urban Development
mandated with;
---building affordable housing
- -- carrying out planned and state of art urban development
-- with special emphasis on low cost housing.
-- Developing new townships /their infrastructural needs.
-- Developing buildings material technology industries
--Providing Consultancy services within/outside India
VISION;
-- "TO BE AMONG WORLD'S LEADING KNOWLEDGE HUBS AND
-- TECHNO- FINANCIAL ORGANIZATION
-- FOR CLEAN, GREEN AND SUSTAINABLE HABITAT DEVELOPMENT.“
MISSION;
-- "TO PROMOTE SUSTAINABLE HABITAT DEVELOPMENT TO ENHANCE THE QUALITY OF LIFE“
.
40. HOUSING AND URBAN DEVELOPMENT CORPORATION
. OBJECTIVES;
Providing long term finance for construction of houses /urban development in country .
Finance / undertake, wholly or partly, setting up of new satellite towns.
Subscribe to debentures / bonds issued by State Housing Urban Development Boards,
Improvement Trusts, Development Authorities etc.-- specifically financing housing / urban
development programs.
Finance /undertake setting up of industrial enterprises of building material.
Administer money - for financing / undertaking housing and urban development
-- promote, establish, assist, collaborate and provide consultancy services for designing/planning
of Housing and Urban Development programs in India/ abroad
Set up Mutual Fund for Housing and Urban Development programs/ invest in Mutual Funds--
promoted by the Government/Government Agencies for above purpose.
-- give attention to infrastructure development in cities and towns– with priority given to water
supply, sewerage and drainage schemes especially in small and medium towns.
41. HOUSING AND URBAN DEVELOPMENT CORPORATION
DESIGN AND CONSULTANCY
HUDCO’s-- offers technical consultancy in --
-- Architecture, Urban Planning, Urban Design, Landscape Planning , Heritage Planning,
Management & Conservation.
• HUDCO actively involved in ;
• -- development of Cultural Heritage and
• -- provision of regional infrastructure for growth / development.
• -- weaker section housing/ cost effective housing
• -- planning, design , delivery of mass housing.
• Major Projects carried out;
• Leh Rehabilitation Project for Victims of Cloud Burst .
• -- Gas Victim Housing project at Bhopal
• -- New Town development at Pimpri-Chinchwad (
• -- New Jammu Township
• -- Latur Earthquake Rehabilitation Project –
• Rehabilitation project for Basket Weavers at Coimbatore
• --• National Games Village
• •.
42. HOUSING AND URBAN DEVELOPMENT CORPORATION
HUDCO sanctioned 655 (577 urban & 78 rural) building centres all
over country to introduce;
-- alternative /cost effective building technology to people.
-- Premier research /development institutes in country
-- needed these building centres with innovative options,
-- which are cost saving,-- durable,-- functional, -aesthetically pleasing
- Extends Financial assistance to the building materials industry
- -- to encourage innovative /alternative methods
- -- employing agricultural and industrial waste
- - Ensuring skill upgradation
- - Giving impetus to local technologies and local products
- - Promotes the use of pre-fabricated building components
44. PMAY- Mission Scope& Coverage
Scope---Housing for All” Mission for urban area
implemented during 2015-2022
providing assistance for houses to eligible families by 2022
implemented as Centrally Sponsored Scheme (CSS)
For families not owning a pucca house in any part of India
States/UTs, to decide a cut-off date on which beneficiaries for being eligible under
scheme.
Mission effective from 17.06.2015 up to 31.03.2022.
2. Coverage and Duration
All 4041 statutory towns as per Census 2011 with focus on 500 Class I cities covered in
three phases as follows:
• Phase I (April 2015 - March 2017) to cover 100 Cities selected from States/UTs
• Phase II (April 2017 - March 2019) to cover additional 200 Cities
• Phase III (April 2019 - March 2022) to cover all other remaining Cities
Flexibility regarding inclusion of additional cities in earlier phases in case there is a
resource backed demand from States/UTs.
46. In-Situ Slum Redevelopment
Private partner for redevelopment-- selected thru’ transparent bidding process
Incentives for additional density/FAR/TDR to be given if required to make
project viable
Grant of Rs. 1 lakh/house on an average for eligible slum dwellers on public land
Eligibility, cut off dates, beneficiary contribution, system of allotment, etc. to be
decided by State
All tenable slums to be identified
A viable project to be prepared with REHAB component and FREE SALE
component
Consultations to be held
Transit accommodation to be provided
FREE SALE component to be linked to project completion
Govt. agency to make allotments
Single project account
Approval process to be streamlined
47. Credit Linked Subsidy
• Credit linked subsidy on home loans taken by EWS/LIG
• Interest rate of 6.5 percent, repayment upto 15 years, loan amount upto Rs.6
lakhs.
• EWS 30 sq.m. and LIG 60 sq.m. carpet area
• Subsidy channelised thru’ HUDCO/NHB
• PLIs to register with HUDCO/NHB
• Beneficiary identification thru’Aadhar/Voter ID etc.
• Self certification/Affidavit as proof of income
48. Affordable Housing in Partnership
• Financial assistance for EWS housing projects
• Central assistance @ Rs.1.5 lakhs / EWS house
• Sale price to be decided by local agencies based on affordability, viability, etc.
• Other concessions can also be given by states.
• Project can be a mix of various income groups but at least 35 percent EWS
houses.
• Projects can be by public sector alone or in partnership with private sector.
49. Beneficiary Led Individual House
Construction / Enhancement
•To assist individual EWS families
•Central assistance of Rs.1.5 lakhs
•New house or improvement
•Based on integrated city wide
housing project for such individual
beneficiaries
•Progress tracking with geo-tagging
50. Technology Sub-Mission
• This sub-mission will work on
• design and planning
• Innovative technologies and materials
• Green buildings and
• Earthquake and other disaster resistant
technologies
• States can partner with willing IITs/NITs/SPAs for the above
51. Convergence
• Industries -- to provide housing for industrial workers ( thru’ DIPP )
• Railways --- to undertake redevelopment of slums on railway lands
• MoUD -- to converge infrastructure augmentation
• Min. of Labour -- to ask States to create rental housing for workers as a
welfare measure
• States-- to converge Missions on Livelihood, Health, Siksha, etc.
