Affordable Housing

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AFFORDABLE HOUSING SCHEME:
The Scheme of Affordable Housing in Partnership aims at operationalising the
strategy envisaged in the National Urban Housing & Habitat Policy (NUHHP) 2007, of
promoting various types of public-private partnerships – of the government sector
with the private sector, the cooperative sector, the financial services sector, the
state parastatals, urban local bodies, etc. – for realizing the goal of affordable
housing for all.

The scheme is part of the Jawaharlal Nehru National Urban Renewal Mission
(JNNURM) and takes into account the experience of implementing Basic
Service to the Urban Poor(BSUP) and Integrated Housing and Slum
Development Programme (IHSDP) for three years, and the assessment that
shortfall in response from BSUP towns is a factor of the lack of urban land
availability for expansion of cities, and after consultation with States/UTs who
have agreed that the responsibility of making urban land available at
affordable rates must rest with them in order to reduce the acute shortage of
housing in urban areas.
The Scheme will apply mainly to the 65 BSUP cities, where shortage of land
for housing is driving unplanned growth and rising home prices and rentals to
unsustainable level.
MAIN FEATURES OF THE SCHEME:
The main features of affordable housing in partnership scheme are:










Project Prepared by urban local bodies/urban development
agencies/housing boards/improvement trusts/other agencies which
may be designated as implementing agencies accompanied by duly
approved layout plan and maps to scale would be posed for sanction to
the state level steering committee and then in Central Sanctioning and
Monitoring Committee set up for BSUP.
Land for affordable housing project could be identified within municipal
limit, or on the periphery of outskirts of the towns and cities within
jurisdiction of development or planning authorities.
Project with minimum of 200 affordable would be entertained.
Dwellings units are built under this scheme would be mixer of
EWS/LIG/MIG.
The layout and specification including design of affordable house to be
built would be approved by State/UT Government of its implementing
agency.
Dwelling units should be a mix of EWS/LIG/MIG categories with the maximum
size of a dwelling unit being at 1200 ft2 super area, with at least 25% of them





for EWS of about 300 ft2. In terms of carpet area, the minimum carpet area
for EWS category shall be 25 m2 and maximum carpet area for MIG category
shall be 80 m2.
The developers have successfully executed affordable housing project of
nearly 15-35 acres, having 1500-3500 units at locations beyond 20-25 km
from the city centre.
To reduce cost and improve affordability for the buyer , developers have
adopted following measures:
 Limited options-units offered are mostly 1 BHK with some 2BHK
 Reduced areas
 Low construction cost-structure is typically low rise with G+3 or G+4
floors, without lift.
 Shorter Period of construction

ISSUES IN THE DEVELOPMENT OF AFFORDABLE HOUSING:






Lack of Availability of Urban Land
Rising Costs of Construction
Lack of Access to Home finance for Low income group.
Regulatory Constraint
Lack of clarity of building bye laws and guidelines.

FINANCING OF PROJECT:

AFFORDABLE HOUSING DEVELOPMENT(UNITS PRICE <10 LAKHS) IN MAJOR
INDIAN CITIES:

WHAT WE CAN DO
 Project Management Technique
 Project Scheduling
 Project Budgeting
 Risk Management
 Periodic –actionable and consistent project stats reporting
 Highlighting achievements
 Bottlenecks faced in the implementation of the housing project
 Help Reduce the cost
 Reducing time overruns in the project
 Help effectively manage resources (labour, equipment etc.) enabling
their deployment across multi projects in a timely manner.
 DOS
 Detail Structural and Concrete Design
 MEP
Policy support for promoting mass housing construction technologies

Construction technique such as prefabricated and modular construction and
innovative construction materials can further help execute projects in lesser time
and with reduced resource.
Upcoming Affordable Housing Projects in India:




The Shapoorji Pallonji Group has partnered with Standard Chartered Private Equity, World
Bank Group member IFC and the Asian Development Bank. The purpose behind this
partnership is to construct affordable housing project across the nation. The entrepreneurs
would invest about Rs 1,250 ($200 million) in affordable housing.
5 Lakh Affordable Houses to be Constructed in Mumbai

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