SUSTAINABLE LOW-COST SUSTAINABLE URBAN HOUSING

KARNATAKA HOUSING AND HABITAT POLICY- 2009
HOUSING PROJECTS
INTRODUCTION
HOUSING OF THE POOR IN THE DEVELOPING COUNTRIES HAS BEEN IN
THE FOCUS OF THE INTERNATIONAL
DEVELOPMENT DEBATES FOR ALMOST HALF A CENTURY. UNTIL THE LATE
80'S MOST OF THE PROGRAMMES
AND PROJECTS WERE CENTRALISED PRESCRIPTIVE AND TOP-DOWN
ORIENTATED, BUT THIS HAS GRADUALLY
BEEN CHANGING IN THE LAST DECADE TOWARDS AN END USER,
BOTTOM-UP ORIENTATION, WHERE
GOVERNMENT AT ALL LEVELS TAKE THE ROLE OF FACILITATING AND
ENABLING THE MARKET TO WORK.
IN MOST DEVELOPING COUNTRIES SUSTAINABLE
DEVELOPMENT IS ONLY UNDERSTOOD AS SUSTAINABLE ECONOMICAL
GROWTH AND IN MANY NORTHERN
COUNTRIES THE FOCUS HAS BEEN ON THE ECOLOGICAL ISSUES.
WHAT IS AFFORDABLE HOUSING?
•AFFORDABLE HOUSING IS A TERM USED TO DESCRIBE DWELLING
UNITS WHOSE TOTAL HOUSING COSTS ARE DEEMED AFFORDABLE TO
A GROUP OF PEOPLE WITHIN A SPECIFIED INCOME RANGE.
INCOME LEVEL DWELLING SIZE
EWS INR 1.5 lacs per annum Upto 300 sq.ft
LIG INR 1.5 to 3 lacs per 300 to 600 sq.ft
annum
MIG INR 13 to 10 lacs per 600 to 1200
annum sq.ft
JAWAHAR LAL NEHRU NATIONAL URBAN RENEWAL MISSION
The primary objective of JNNURM is to create economically productive, efficient, equitable and
responsive cities. The mission focuses on:
•Integrated development of infrastructure services;
•Securing linkages between asset creation and maintenance for long run project sustainability;
•Accelerating the flow of investment into urban infra stucture services;
•Planned development of cities including the peri urban areas, outgrowths and urban corridors;
•Renewal and redevelopment of inner city areas;
•Universalisation of urban services so as to ensure their availability to the urban poor.
JNNURM is designed to support :
•Water supply including setting up of
desalination plants;
•Sewerage & sanitation;
•Solid waste management including hospital
waste management;
•Construction & improvement of drains;
•Road network;
•Urban transport;
•Construction development of bus and truck
terminals;
•Renewal & redevelopment of inner city
areas;
•Development of heritage areas;
•Preservation of water bodies;
•Provision of basic services to the urban
poor;
•Street lighting
MANDATORY REFORMS:MUNICIPAL LEVEL
To be undertaken at the level of municipalities, the reforms comprise :
•Adoption of a modern, accrual based, double entry system of accounting;
•Introduction of a system of e-governance using IT applications, GIS & MIS for various urban
services;
•Reform of property tax with GIS, and arrangements for its effective implementation so as to raise
collection efficiency to 85%;
•Levy reasonable user charges, with the objective that full cost of operation and maintenance is
collected within seven years;
•Internal earmarking of budgets for basic services to the urban poor;
•Provision of basic services to the urban poor, including security of tenure at affordable prices.
The interaction between sustainability and urban housing has only been discussed for the
last decade. There has been and still is being presented considerable literature on what
NEED FOR HOUSING POLICY might constitute sustainable urbanisation e.g. the provision of basic needs, appropriate
•NEED FOR KARNATAKA HOUSING AND HABITAT POLICY EMERGES FROM THE GROWING HOUSING PROGRAMMES IN KARNATAKA STATE.
technology, urban management and job creation, but seldom has these components been
REQUIREMENTS OF SHELTER AND RELATED INFRASTRUCTURE pulled together into an overall framework for sustainable urban housing.
•BOTH AT RURAL AND URBAN Norms for selection
CENTRES AS ALSO DUE TO THE CHANGE IN ECONOMIC AND SOCIAL ENVIRONMENT, ECONOMICAL SUSTAINABILITY
1. Government programmes for Housing are aimed at
GROWING URBANIZATION, MISMATCH IN DEMAND AND SUPPLY OF DEVELOPED LAND AND economically The definition of Low-cost (housing) depends on the economical capacity of the target group.
THEREFORE IT IS IMPORTANT TO ELABORATE
ON THE DEFINITION. MEETING THE NEEDS OF THE PRESENT
HOUSES AT AFFORDABLE RATES AND INABILITY OF POORER SECTIONS OF THE POPULATION TO weaker sections of the Society. A family with an If the house and services are too expensive, the poor cannot afford to live there and the
REFERS TO THE DEVELOPMENT COMPONENT OF HAVE ACCESS TO FORMAL LAND MARKETS AND FINANCES FROM FINANCIAL INSTITUTIONS income of less programme will fail. One concept may be affordable in one part of the world, but too
SUSTAINABLE DEVELOPMENT WHICH INCLUDE, AND THAT IS LEADING TO A NON-SUSTAINABLE SITUATION. than Rs.11800/- p.a. is considered eligible. expensive in another.
IMPORTANT; ECONOMICAL, SOCIAL, CULTURAL,
2. The Government of India: The economic
HEALTH AND POLITICAL ISSUES. THE SECOND PHRASE OF THE ENVIRONMENTAL SUSTAINABILITY
parameters of EWS and
DEFINITION...WITHOUT COMPROMISING THE
LIG are defined as households having an average Modern housing development has a major impact on the ecological system. The master plan
ABILITY TO MEET THOSE OF THE FUTURE...IS MOSTLY REFERRING
TO THE ENVIRONMENTAL ISSUES. monthly income of a specific housing project has to be adjusted to the surroundings. The damage to sensitive
SUSTAINABLE DEVELOPMENT IS THEREFORE MUCH MORE up to Rs. 3300 and households having an average landscapes, including scenic, cultural, historical, and architectural must be minimised.
COMPLEX THAN WHAT IS THE GENERAL monthly income
PERCEPTION.
between Rs.3301 and Rs.7300. This definition is TECHNOLOGICAL SUSTAINABILITY
followed for assistance under ISHUP. Appropriate technology is very important when discussing low-cost housing. The use of
technology has to be in accordance with the local conditions and at the same time be
3. Under IAY norms are different. Rural households
•Defining affordable housing having an durable, reliable and functionally constructed to a modern life.
in India is a annual income of upto Rs.32000/- are eligible.
difficult task given that at SOCIO-CULTURAL SUSTAINABILITY
4. Housing profile of Karnataka State as per 2001
every square The design of the housing and the use of the materials have to correspond to local building
AFFORDABILITY
kilometer of the country, the census
traditions and to the user group’s way of living. Religious and ceremonial traditions have a
EMI to monthly income dynamics of
30 to 40 % the market are different. great influence on this and have to be included in the planning process.
House price to annual •At KPMG and
income ratio CREDAI, we have therefore
TYPES OF HOUSING CO-OPERATIVES: FINANCING
< 5.1 broadly defined
O TENANT OWNERSHIP HOUSING SOCIETIES: THE LAND IS HELD EITHER ON LEASEHOLD OR
House price to annual affordable housing in India HOUSING CO-OPERATIVES ARE FINANCED BY MEMBERS’ SHARES AND SAVINGS
for Tier I, II and III FREEHOLD BY THE SOCIETIES; THE MEMBERS OWN THE HOUSES, AND ARE LEASEHOLDERS
income ratio AND ASSISTANCE FROM
< 5.1 cities based on three key OF THE LAND. THEY MUST STRICTLY COMPLY WITH REGULATIONS REGARDING SUBLETTING
THEIR FEDERATIONS OR OTHER FINANCIAL INSTITUTIONS.
parameters: AND TRANSFERRING OF HOUSES BUT THEY CAN BUILD THEIR HOUSES ACCORDING TO THEIR
THE FEDERATIONS OBTAIN FINANCING FROM:
OWN NEEDS AND TASTE.
• SHARES FROM THE HOUSING CO-OPERATIVES, THE STATES AND OTHER CO-
O TENANT CO-PARTNERSHIP HOUSING SOCIETIES: THE SOCIETIES HOLD BOTH LAND AND
OPERATIVE INSTITUTIONS;
5. 9 lakh houses were constructed with Government funds upto the BUILDING, EITHER ON LEASEHOLD OR FREEHOLD BASIS, AND MEMBERS HAVE AN
• LOANS FROM THE HOUSING AND URBAN DEVELOPMENT CORPORATION
year 2003. Starting from 2003-04, the State has been spending a OCCUPANCY RIGHT UPON PAYING AN INITIAL SHARE AND A MONTHLY RENT.
(HUDCO), THE
lot of its budgetary resources for housing.
NATIONAL HOUSING BANK (NHB), THE LIFE INSURANCE CORPORATION OF
6. There are different housing schemes for the rural and urban areas. TYPES OF SOCIETIES-SUPPORT SYSTEM FOR HOUSING CO-OPERATIVES
INDIA (LIC),
7. Housing Outlay has been increasing year by year. It was 4% in ninth O HOUSING MORTGAGE SOCIETIES: THESE ARE LIKE CREDIT SOCIETIES WHICH LEND MONEY
COMMERCIAL AND COOPERATIVE BANKS, DEPOSITS FROM MEMBERS;
plan and 5.9% in Tenth plan period, though the actual expenditure TO THEIR MEMBERS FOR THE CONSTRUCTION OF HOUSES. THOUGH, THE ARRANGEMENT FOR
• DEBENTURES GUARANTEED BY THE GOVERNMENT.
was 5.1% and 13% respectively. THE CONSTRUCTION IS THE MEMBER’S RESPONSIBILITY.
STATE FEDERATIONS BORROW LOANS FROM FUNDING AGENCIES AND MAKE
8. Under IAY, the State has increased the unit cost to Rs.40000/- to bring O HOUSE CONSTRUCTION SOCIETIES OR HOUSE BUILDING SOCIETIES: THEY BUILD THE
THEM AVAILABLE TO THEIR
about uniformity in all the housing schemes implemented by the State. HOUSES ON BEHALF OF MEMBERS, WHICH ARE THEN HANDED OVER TO THEM UPON
AFFILIATED PRIMARY HOUSING COOPERATIVES AS WELL AS INDIVIDUAL
State Government has increased its share from Rs.8750 to Rs.13750 COMPLETION AND THE MONEY SPENT IS RECOVERED THROUGH LOANS.
MEMBERS. THEY CHARGE
per unit. Government of India share remains at Rs.26250.
STRATEGY OF THE SCHEME INTEREST MARGIN OF AROUND 1% TO MEET THEIR ADMINISTRATIVE COSTS.
9. A Survey was conducted during May-June 2003 to ascertain the
The scheme for construction of affordable houses in
partnership visualizes number of site less and houseless families. The number as per the
that the cost of land and construction would be held survey was as under.
down to affordable levels: ROLE OF GOVERNMENT AND OTHER AGENCIES
• Land costs intermediated by States/UTs and CENTRAL GOVERNMENT STATE GOVERNMENT
Development
Authorities/Urban Local Bodies, by providing land at GOVERNMENT OF INDIA HAS INITIATED VARIOUS PROGRAMMES AS JOINT A. TO ADOPT KARNATAKA STATE HOUSING AND HABITAT POLICY 2009.
nominal INITIATIVES WITH THE B. TO PREPARE SHORT, MEDIUM AND LONG TERM PROGRAMMES AND STRATEGIES TO
rates (not including more than cost of STATE GOVERNMENTS FOR PROVIDING HOUSING AND IMPROVING THE BASIC ADDRESS THE HOUSING AND INFRASTRUCTURE REQUIREMENTS/ INCLUDING
acquisition and development costs of land) for
INFRASTRUCTURE IDENTIFICATION OF FINANCIAL RESOURCES.
specified housing or
integrated housing projects. REQUIREMENTS LIKE JNNNURM (ISHDP, BSUP), BHARAT NIRMAN, IAY ETC. C. TO BRING IN APPROPRIATE LEGAL AND REGULATORY ENVIRONMENT FOR INCREASED
• Costs of land can also be intermediated by ACCORDINGLY, IT IS THEREFORE, EXPECTED THAT THE CENTRAL GOVERNMENT WILL INVESTMENT IN HOUSING AND RELATED INFRASTRUCTURE.
attracting private developers to FURTHER D. TO BRING APPROPRIATE STRUCTURAL CHANGES IN THE STATE AGENCIES’ ROLE AND
build on their land, by granting zoning-related INITIATE THE FOLLOWING STEPS: RESPONSIBILITIES WITH FOCUS ON LOW INCOME SEGMENT HOUSING
incentives where ever infrastructure permits A. TO BRING IN APPROPRIATE REFORMS IN PLANNING, HOUSING, FINANCIAL AND CONSTRUCTION PROJECTS.
densification.
• Cost of construction can be held down by
LEGAL ASPECTS AS PER NHHP-98, NUHHP-2007 AND NRHHP (DRAFT E. TO BRING APPROPRIATE LEGAL AND ADMINISTRATIVE ENVIRONMENT FOR
REPORT). ENCOURAGING PARTICIPATION OF PRIVATE SECTOR INVESTMENT IN HOUSING
construction through no profit
B. TO BRING IN APPROPRIATE POLICY CHANGES AND FINANCIAL ARCHITECTURE FOCUSING ON LOW INCOME SEGMENT REQUIREMENTS.
no loss organizations or at reasonable profit.
Aims of the Policy STRATEGIES
• Cost of construction can also be driven down by ENABLING FLOW OF INSTITUTIONAL CREDIT AND PRIVATE SECTOR INVESTMENTS IN F. TO PROMOTE AND ENCOURAGE R&D IN HOUSING, BUILDING MATERIALS AND
planning layouts which THE MAIN AIM OF THE POLICY WILL BE: FOR ACHIEVING THE ABOVE AIMS AND OBJECTIVE, HOUSING AND INFRASTRUCTURE PARTICULARLY FOR LOW INCOME HOUSING AND IN TECHNOLOGIES THROUGH APPROPRIATE CAPACITY BUILDING IN COLLABORATION WITH
mix EWS/LIG/MIG with HIG houses and commercial A. TO SET UP SYSTEMS TO FACILITATE AND MAINTAIN A SUSTAINED GROWTH OF THE POLICY SEEKS TO ADOPT THE RURAL AREAS. INSTITUTIONS LIKE NHB, HUDCO, BMPTC AND LOCAL INSTITUTIONS INCLUDING
layouts, and cross THE
subsidizing through the premium earned on the sale FOLLOWING STRATEGIES: C. TO PROVIDE APPROPRIATE FISCAL CONCESSIONS TO INDIVIDUALS, INSTITUTIONS STATE ITIS/POLYTECHNIC/ ENGINEERING COLLEGES.
HOUSING STOCK TO ENSURE ADEQUATE AND AFFORDABLE HOUSING FOR ALL.
of HIG and INCLUDING THE CORPORATE FOR HOUSING, INFRASTRUCTURE, INNOVATIVE TO G. TO DEVELOP APPROPRIATE MIS AND COMPUTERIZED LAND RECORDS SYSTEM.
B. TO CREATE SURPLUSES IN HOUSING STOCK EITHER ON OWNERSHIP OR RENTAL
commercial spaces. A. BY ENSURING THAT HOUSING, ALONG WITH THE SUPPORTING SERVICES IS ENERGY
BASIS.
• States/UTs could reduce costs of housing further SAVING CONSTRUCTION MATERIALS AND TECHNOLOGIES ETC.
by charging a reduced C. TO FACILITATE ACCELERATION IN SUPPLY OF SERVICED LAND AND HOUSING WITH
TREATED SPECIFIC ACTION AREAS :
AS A PRIORITY AND AT PAR WITH THE INFRASTRUCTURE SECTOR. D. TO PROVIDE LIBERAL FUNDING UNDER ITS FLAGSHIP PROGRAMMES LIKE
stamp duty to a maximum of 2% for affordable PARTICULAR FOCUS ON EWS/ LIG AND MIG CATEGORIES.
B. PROVISION OF GROWTH OF URBAN AND RURAL SETTLEMENTS SO THAT JNNURM •LAND
houses (LIG) and nil (0%) D. TO DEVELOP SUPPORTING INFRASTRUCTURE AND BASIC SERVICES TO ALL
THERE IS A AND SCHEMES FOR IMPROVING HABITAT CONDITIONS IN RURAL AREAS, TO STATE AN ESSENTIAL PRE-REQUISITE TO ACCESSING SHELTER IS OWNERSHIP OF
for EWS under this scheme and/or charging reduced CATEGORIES.
PLANNED AND BALANCED GROWTH. ACTION PLANS/PROGRAMMES FOR PROVISION AND CREATION OF ADEQUATE HOUSE- SITE.
tax rates on inputs E. TO PROMOTE LARGER FLOW OF FUNDS FROM GOVERNMENTAL AND PRIVATE
for affordable housing C. PROGRESSIVE SHIFT FROM A SUBSIDY BASED HOUSING SCHEME TO COST INFRASTRUCTURE FACILITIES LIKE WATER RESOURCES, SANITATION, SEWERAGE, THE POOREST OF THE POOR ARE UNABLE TO AVAIL OPPORTUNITIES WITH
• Cost of construction can also be driven down by
SOURCES FOR FULFILLING HOUSING AND INFRASTRUCTURE NEEDS BY DESIGNING
SHARING OR COST RECOVERY CUM SUBSIDY SCHEME FOR RURAL HOUSING CONNECTIVITY AND POWER SUPPLY ETC. REGARD TO
adopting appropriate INNOVATIVE FINANCIAL PRODUCTS, CONCESSIONS AND INSTRUMENTS WHICH ARE
THROUGH E. TO BRING IN APPROPRIATE INDEXING FORMULA FOR PROVIDING CAPITAL SUBSIDY HOUSING DUE TO LACK OF HOUSE SITES. THEREFORE, LAND USE PLANNING
construction technologies. CORRECTLY TARGETED AND UTILIZED AND TO ALSO FACILITATE ACCESS TO SUCH
A PRO ACTIVE FINANCE POLICY INCLUDING MICRO FINANCING, SELF HELP UNDER GOVT. SPONSORED SCHEMES FOR BPL/POOR/EWS AND LINKING THE AND
FUNDS.
GROUP SAME TO INFLATION RATE. MANAGEMENT IS THE FIRST STEP FOR HABITAT DEVELOPMENT.
F. TO ADDRESS THE SPECIAL NEEDS OF MARGINAL AND WEAKER SECTIONS OF THE
PROGRAMMES. F. TO BRING IN APPROPRIATE SCHEME OF INTEREST SUBVENTION TO MAKE HOUSING •FINANCE
SOCIETY SUCH AS SCHEDULED CASTES, SCHEDULED TRIBES, OTHER BACKWARD
D. PROGRESSIVE SHIFT OF RURAL HOUSING STRATEGIES FROM TARGET LOAN AFFORDABLE TO LOW INCOME SEGMENT HOUSEHOLDS. A. FOR BPL, EWS/LIG HOUSING AND FOR SLUM DEVELOPMENT AND
CLASSES, MINORITIES, DISABLED, WOMEN-HEADED HOUSEHOLDS, SINGLE
ORIENTATION TO A G. TO BRING IN APPROPRIATE POLICIES AND REFORMS, IF REQUIRED FOR REHABILITATION SCHEMES, STATE GOVT. WILL BE AVAILING LOAN & SUBSIDIES
WOMEN, ELDERLY, STREET VENDORS ETC., IN RELATION TO HOUSING SERVICED BY
DEMAND DRIVEN APPROACH. DEVELOPING UNDER IAY, BSUP & IHSDP PROGRAM OF JNNURM.
BASIC AMENITIES.
E. EMPOWERING THE PANCHAYAT RAJ INSTITUTIONS/URBAN LOCAL BODIES CONVERGENCE AND INTEGRATION OF HOUSING FINANCE SYSTEM WITH THE B. TO ENCOURAGE INTRODUCTION OF CUSTOMIZED PRODUCTS E.G.
G. TO DEVELOP PLANNED HABITATS WITH AN ASSEMBLY OF BASIC SERVICES AND
AND FINANCIAL SECTOR REFORMS TO ACHIEVE THE OBJECTIVE OF “FINANCIAL COMPOSITE
LIVELIHOOD INFRASTRUCTURE THAT PROVIDE FOR DIGNIFIED LIVING AND THAT
VILLAGE COOPERATIVES TO MOBILIZE CREDIT FOR ADDING TO THE HOUSING INCLUSION”. LOAN FOR HOUSING AND INCOME GENERATING ACTIVITIES, TOP UP LOAN
PROMOTE HEALTHY ENVIRONMENT IN A SUSTAINABLE MANNER THROUGH
STOCK H. TO ALLOW MOBILIZATION OF RESOURCES FROM EXTERNAL SOURCES AS WELL AS SCHEME FOR BPL BENEFICIARIES.
APPROPRIATE PLANNING & ZONING AND INNOVATIVE PROGRAMMES.
AND ALSO ENSURE BASIC AMENITIES IN THE RURAL AREAS. BUILDING TECHNOLOGIES TO PROMOTE HOUSING AND INFRASTRUCTURE ESPECIALLY •LEGAL AND REGULATORY REFORMS
H. TO ENSURE DEVELOPMENT OF CITIES AND VILLAGES WITH HEALTHY
F. DEVELOPMENT OF CITIES TO PROVIDE FOR A HEALTHY ENVIRONMENT, FOR THE PROJECTS MEANT FOR LOW INCOME SEGMENT HOUSEHOLDS. A. TO SIMPLIFY THE PROCEDURES FOR SANCTIONING OF BUILDING PLANS TO
ENVIRONMENT,
INCREASED I. TO SET UP APPROPRIATE MONITORING MECHANISM ENSURING PUBLIC FUNDING ELIMINATE
AND POLLUTION FREE ATMOSPHERE WITH A CONCERN FOR SOLID WASTE DISPOSAL,
USE OF RENEWABLE ENERGY SOURCES, AND POLLUTION FREE ATMOSPHERE IS DELAYS BY SETTING UP SINGLE WINDOW. HOWEVER, PROFESSIONAL
DRAINAGE, SEWERAGE, TRAFFIC MANAGEMENT ETC.
WITH A PROPERLY TARGETED AND UTILIZED. RESPONSIBILITY AND BUILDING BYE-LAWS WOULD BE STRICTLY ENFORCED.
I. TO DEVELOP, PROMOTE AND TRANSFER USE OF APPROPRIATE, QUALITY & COST
CONCERN FOR SOLID WASTE DISPOSAL. J. TO STRENGTHEN STATE GOVERNMENTS IN BUILDING LAND RECORDS THROUGH B. TO PREPARE COMPREHENSIVE LAND POLICY TO FACILITATE ACQUIRING AND
EFFECTIVE, ENVIRONMENT-FRIENDLY, ENERGY-EFFICIENT AND DISASTER-RESISTANT
G. USING COST EFFECTIVE TECHNOLOGY FOR MODERNIZING THE HOUSING EGOVERNANCE. ASSEMBLING OF LAND FOR HOUSING MEETING THE REQUIREMENTS OF ALL
TECHNOLOGY.
SECTOR TO K. TO BRING AWARENESS ABOUT GOVERNMENT PROGRAMMES AS ALSO THE
INCREASE EFFICIENCY, PRODUCTIVITY, ENERGY EFFICIENCY AND QUALITY. FORECLOSURE LAWS FOR THE BENEFIT OF THE INDIVIDUALS AND THE INSTITUTIONS. GROUPS WITH SPECIAL FOCUS ON EWS/LIG/MIG SEGMENTS.