Housing & Community Planning

8/2/2019 Housing & Community Planning

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ASSIGNMENT - 1

SUBMITTED TO

Prof. S . Kumar

SUBMITTED BYT . Srinivasulu 10011PA010

G. Yagna Priyanka 10011PA014


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INTRODUCTION

Source : Housing Financing in India

India is home to over 1.1 billion people. With about one in every sixth

person in the world living in India, therefore housing perforce assumes

significant importance.

Successive Indian governments have regarded housing as a primary need

of the people. The need to provide affordable housing has been the reason

behind State interventions in the sector.

Economy stability and the housing sector are linked. It is estimated that

for every Indian rupee (INR) invested in housing, INR 0.78 is added to the

countrys GDP gross domestic product of the country.


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FIVE YEAR PLANS

For the smooth functioning of any economy, The Planning Commission

has been entrusted with the responsibility of the creation, development and

execution of India's five year plans. India's five year plans are also

supervised by the Planning commission

A perspective on the evolution of housing policies in India appears in the

successive Five-Year Plans, which reflected a centrally planned mode of

development. Development activities in India have been structured on the

basis of Five-Year Plans since 1951.


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Indias 1st Five-Year Plan (1951-56) introduced housing in the national

policy framework.

Affordability was emphasised as the key issue, and government support

through subsidies and loans was deemed necessary.

A separate Ministry of Works and Housing was established and the

National Buildings Organisation (NBO) was created. This plan in fact

became the benchmark for Five-Year Plans over the next two decades.

An industrial housing Scheme was also initiated.

The center subsidized scheme to the extent of 50% Towards of land

construction

FIVE YEAR PLANS


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The 2nd Five year Plan (1956-61) strengthened the schemes laid out in its

predecessor through expanded coverage.

A policy shift was initiated as the central government decided to provide

assistance to State governments to develop low-income housing, instead

of directly providing loans to low-income groups. This gave rise to State

Housing Boards that are stillin existence today.

three new schemes were introduced , namely , rural Housing, slum

clearance and sweepers hosing.

Town and country planning legislations were enacted in many states

and necessary organizations were set up for preparation of master plans.

FIVE YEAR PLANS


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3rd Five-Year Plan (1961-66), followed by a triennial plan (1966-69),

together placed emphasis on planned development and land acquisition,

particularly for urban areas.

Both plans added a focus on the need to target low-income groups. State

Housing Boards resources were increased and they were expected to

address the housing shortfall in their respective States.

A scheme was introduced In 1959 to give loans to state govt ., for a

period of ten years for acquisition and development of land

Master plans for major cities were prepared and the state capitals of

Gandhinagar and Bhubaneswar was developed.

FIVE YEAR PLANS


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4th Five-Year Plan (1969- 74) the government was faced with the dual

problem of a rapidly growing population and a slow-growing housing

stock.

The government decided to encourage private and co-operative housing

schemes by providing financial assistance

The government also recognised the need to provide housing finance to

low-income groups and accordingly set up the Housing and Urban

Development Corporation (HUDCO) in 1970.

HUDCOs mandate was to provide loans below peak interest rates and

with longer repayment periods.

FIVE YEAR PLANS


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HUDCO also sought to finance urban development activities to help

decongest cities.

HUDCO actively bought bonds floated by various State Housing Boards

and sought to provide other forms of financial assistance.

A scheme for environmental improvement of urban slum was under

taken in the central sector from 1972-73, to provide minimum level of

services like water supply, sewerage drainage, street pavements in 11

cities with a population of 8 lakhs and above. The scheme was later

extended to 9 more cities.

FIVE YEAR PLANS


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It was during the 5th Five Year Plan (1974-79) that the Urban Land (Ceiling and

Regulation) Act (ULCRA) was adopted.

ULCRA sought to prevent concentration of land holdings in urban areas and to

make more land available for equitable disbursal. the legislation failed to achieve

its goals and the repercussions are still being felt today.

Indias first retail housing finance company, known as the Housing Development

Finance Corporation (HDFC) was set up in 1977).

HDFC sought to provide financial assistance to individuals, groups and

cooperative societies, as well as to companies for staff housing.

A task force was set up for development of small and medium towns.

FIVE YEAR PLANS


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To cope with increasing urbanisation, the thrust of 6th Five Year Plan (1980-85)

was on providing more housing in small and medium-size towns.

Efforts were made towards improving living conditions in the slums while

emphasising the need for more support to private groups.

provision of roads, pavement, minor civic works ,bus stands, markets, shopping

complex etc. positive inducements were proposed for setting up new industries

and commercial and professional establishments in small, medium, and

intermediate towns

The integrated development of small and medium towns (IDSMT)was launched in

towns with population below one lakh

During this period, other housing finance companies also entered the market.

FIVE YEAR PLANS


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7th Five Year Plan Stressed on the need to entrust major responsibility

of housing construction on the private sector.

A three-fold role was assigned to the public sector, namely, mobilization

for resources for Housing, provision for subsidized housing for the poor

and acquisition and development of land.

National Housing Bank was set up to expand the base of housing

finance. NBO was reconstituted and a new organization called Building

Material Technology

Promotion Council (BMTPC) was set up for promoting commercial

production of innovative building materials.

FIVE YEAR PLANS


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A network of building centers was also setup during this plan period.

The seventh plan explicitly recognized the problems of the urban poor and

for the fist time

An Urban Poverty Alleviation Scheme known As Urban Basic Services For

The Poor (UBSO) was launched.

National Housing Policy(NHP) was announced in 1988.

The long term goal of the NHP was to eradicate houselessness, improve the

housing conditions of the inadequately housed and provide a minimum level

of basic services and amenities to all.

FIVE YEAR PLANS


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The 8th Five year Plan understood the role and importance of urban

sector for the national economy.

The growth rate of employment in the urban areas averaged around

3.8% per annum, It dropped to above 1.6% in the rural areas. therefore,

the urban areas have to be enabled to absorb large increments to the

labor force.

The plan identified the key issues in the emerging urban scenario:

The widened gap between demand and supply of infrastructure services

badly hitting the poor whose access to the basic services like drinking

water, sanitation education and basic health services is shrinking.

FIVE YEAR PLANS


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Un divagated growth of urban population aggravating the accumulated

backlog of housing shortages, resulting in proliferation of slums and

squatter settlement and decay of city environment

High incidence of marginal employment and urban poverty as reflected

in NSS 43rd round those 41.8 million urban people lived below the

poverty line .

The response of the plan to this scenario was the launching of urban

poverty and Alleviation program of Nehru yojana (NRY).

FIVE YEAR PLANS


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9th Five Year Plan India runs through the period from 1997 to 2002 with the

main aim of attaining objectives like speedy industrialization, human development,

full-scale employment, poverty reduction, and self-reliance on domestic resources.

The 10th Five Year Plan India( 2002-2007) aims to transform the country into the

fastest growing economy of the world and targets an annual economic growth of

10%. This was decided after India registered a 7% GDP growth consistently over the

last decade.

Both the 9th and 10th Plans recommended reforms to enable the government to

play its role as facilitator and encourage development of the mortgage market.

Particular emphasis was laid on market-friendly reforms in both taxation an

infrastructure in a bid to increase capital spending in housing.

FIVE YEAR PLANS


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Objectives OF 11th Five Year Plan ( 20072012)

Working Groups Urban Development (excluding Urban Transport),

Urban Water Supply and Sanitation (including low cost sanitation),

sewerage and sold waste management) and Urban Environment

Urban Transport including Mass Rapid Transport Systems

Urban Housing and Urban Poverty with focus on Slums

Housing for Police Personnel and Judicial Officers

Steering Committees Urban Development, Urban Housing and Urban

Poverty

FIVE YEAR PLANS


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FACTS & FIGURESTable : Capital Expenditure on Housing under Five-Year Plans (IRN billion)

Plan Period Public Investment Investment Total Private Investment

1st (1951-56) 2.50 9.00 11.50

2nd (1956-61) 3.00 10.00 13.00

3rd (1961-66) 4.25 11.25 15.50

4th (1969-74) 6.25 21.75 28.00

5th (1974-79) 7.96 36.40 44.36

6th (1980-85) 14.91 1 180.00 194.91

7th (1985-90) 24.58 290.00 314.58

8th (1992-97) 315.00 660.00 975.00

9th (1997-02) 520.00 990.00 1,510.00

10th(2003-07)* 4,150.00 3,113.00 7,263.00

Source: NHB Trend & Progress Report, 2003

*Estimated fi ures as er Plan documents.


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Table : Percentage Distribution of Households with Dwelling Units

by Type of Structure (%)

Area Type Pucca Semi-Pucca Katcha

Rural 36 43 21

Urban incl. Slum &

Squatter areas)

77 20 3

Source: NSSO, 2004

Table : Tenure Status in Urban and Rural Areas ( %)

1961 1971 1981 1991 2001

Rural

Owned 93.6 93.8 93.0 94.5 95.4

Rented 6.4 6.2 7.0 5.5 4.6

Urban

Owned 46.2 47.1 53.5 65.9 71.5

Rented 53.8 52.9 46.5 34.1 28.5Source: NHB Trend & Progress Report, 2004, Census 2001


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HUDCO - Housing And Urban Development Corporation Ltd was

incorporated on 25th April 1970. HUDCO India was formed to assist

various agencies and authorities in upgrading the housing conditions in

the country.

Special emphasis was laid on the development of housing facilities or

HUDCO Niwas Yojana for the lower income group (LIG) and the

economically weaker sections (EWS) of the society.

Starting with an initial equity base of Rs. 2 crores, HUDCO India has a net

worth of Rs. 3977 crores today.

HUDCO Inc primarily aims to provide financing for housing developments.

HUDCO


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HUDCO Financial Services are the task of HUDCO Bank that has

mobilized finances from:

- Financing institutions like LIC, GIC and other banking institutions

- International assistance from KFW, JBIC, ADB, USAID etc.

- Market borrowings through debentures, taxable and tax-free bonds

- Public deposits

HUDCO


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The activity areas of HUDCO :

Urban housing

Rural housing

Staff rental housing

Repairs and renewal

Shelter and sanitation facilities for footpath dwellers

Workingwomen ownership condominium housing

Housing through private builders/ joint sector

Individual HUDCO housing loans and HUDCO home loan for construction

and renovation through 'HUDCO Niwas'

Land acquisition

Valmiki Ambedkar Awas Yojana (VAMBAY)

Jawahar Lal Nehru National Urban Renewal Mission (JLNNURM)

HUDCO


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The National Housing Bank has been set up under the National

Housing Bank Act of 1987, which was passed on 9th July, 1988. It

is wholly owned by the Reserve bank of India and was established to

encourage housing- finance institutions and provide them with

financial support.

The National Housing Bank also provides several other channels of

support for housing-finance institutions, by dint of the authority

invested by the National Housing Bank Act.

The National Housing Bank also makes advances and gives loans to

scheduled banks and formulates schemes that lead to the proper

use of resources for housing projects.

NATIONAL HOUSING BANK


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The various objectives of the National housing bank are:

To encourage healthy system for housing finance and which meets the

needs of all the segments of the society

To encourage housing finance institutions

To gather resources and distribute them for housing projects

To make affordable the credit taken for housing

The National Bank for Housing gives registration certification to

companies so that they can carry out the business of financing houses.

The National Housing Bank also has a training division, besides its

lending operations.

NATIONAL HOUSING BANK


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NATIONAL HOUSING POLICY

.

The National Urban Housing & Habitat Policy 2007 (NUHHP-2007) has

been formulated keeping in view the changing socio-economic parameters of

the urban areas and growing requirement of shelter and related

infrastructure.

The Policy seeks to promote various types of public-private partnerships

for realizing the goal of Affordable Housing for All with special emphasis on

the urban poor.

The housing shortage and budgetary constraints of both the Central and

State Governments, the NUHHP-2007 focuses on multiple stake-holders

namely, the Private Sector, the Cooperative Sector, the Industrial Sector for

labour housing and the Services/ Institutional Sector for employee housing.


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The action plan of the NUHHP-2007 states that the Central Government

will encourage and support the States to prepare a State Urban Housing

and a concomitant State Urban Housing and Habitat Action Plan, which

may include passing of specific Acts the States/UTs for realizing the

policy objectives through legal and regulatory reforms, fiscal concessions,

financial sector reforms and introduction of innovative instruments, for

mobilizing recourses for housing and related infrastructure development

at the State/UT level.

NATIONAL HOUSING POLICY


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A.P. HOUSING BOARD

The A.P. Housing Board has come into existence with effect from

01.07.1960 under the A.P. Housing Board Act, 1956.

The Ex-City Improvement Board was formed in 1911 as a result a large

scale devastations which the City of Hyderabad suffered due to the Moosi

Floods in 1908. Its main function was to attend to general improvement of

city, opening out congested areas and forming of roads, construction of

houses by removing slums and improvement of general sanitary conditions

to safeguard public health.

The Town Improvement Trust of Secunderabad was formed in the year

1931 with more or less similar objectives with emphasis on development of

lands.


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The main objective of the Housing Board is to provide housing

accommodation to the needy citizens at an affordable price.

The Andhra Pradesh Housing Board is engaged in the following activities :

- Construction of houses under integrated / Composite Housing Schemes

and allotment of houses under Lower Income Group, Middle Income Group

and Higher Income Group categories.

- Self-Financing Scheme for Higher Income Group and Middle Income

Group Sites and Services

- Construction of shops, Commercial Complexes and Multi-storied

Buildings to be let out on rent to augment financial resources of the Board

A.P. HOUSING BOARD

Housing & Community Planning

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