ASSIGNMENT 6-HOUSING POLICY

INTRODUCTION

As per the Census 2001, Delhi has 24.5 lakh Census houses under the
category of residence and residence-cum-other uses, in which 25.5 lakh
households are residing. This reflects a net housing shortage of about 1.0
lakh houses / dwelling units. The households are accommodated in a variety
of housing types including different categories of planned built housing,
squatter settlements, unauthorized colonies, traditional areas and villages.
The Sub-group on Shelter noted that up to the year 1991, the contribution to
housing stock through institutional agencies was only 53% (excluding
squatter housing). Therefore, the component of housing through noninstitutional sources, viz., unauthorized colonies, squatter / JJ clusters, etc., is
quite significant. This trend has continued in the current decade as well and
has to be kept in view while determining the plan and strategy for housing.
Based on the projected population of 230 lakh by 2021, the estimated
additional housing stock required will be around 24 lakh dwelling units. This
includes an estimated housing requirement of 20 lakh dwelling units for
additional population and backlog of about 4 lakh units comprising of 1 lakh
net shortage and the rest by dilapidated and Kutcha structures requiring
replacement.
It has also been assessed that around 40% of housing need can potentially be
satisfied through redevelopment / up-gradation of existing areas of Delhi. This
may be met in the present urban limits of A to H zones and in the sub cities
of Dwarka, Rohini and Narela. This implies that the remaining 60% of the
requirement would have to be met through 14.4 lakh new housing units to be
provided in new areas. In order to ensure that housing need is
accommodated in the urban extension, the Zonal Plans for 2021 should be
prepared within 12 months.
Keeping in view the socio-economic composition of the population, it is
estimated that around 50-55% of the housing requirement would be for the
urban poor and the economically weaker sections in the form of houses of
two rooms or less. Based on past experience it is necessary to distinguish
between the urban poor comprising the inhabitants of squatter settlements /
pavement dwellers, etc. and other economically weaker sections of the
society, conventionally classified in the form of EWS, LIG, etc.
The role of the government would have to be both as a provider and
facilitator. The category of the urban poor is to be broadly catered in old and
new urban areas through up-gradation of old / traditional areas, employers
and industrial housing, group housing and also in unauthorised regularised
colony infills. A possible indicative scenario in terms of mode of housing

supply in different types of development for the next two decades emerges
as under:

Some of the basic objectives of the Housing policy are as follows:

(1) To motivate and help all people and in particular the houseless and the
inadequately housed, to secure for themselves affordable shelter through
access to land, materials, technology and finance.
(2) To improve the environment of human settlements with a view to raise the
quality of life through the provision of drinking water, sanitation and other
basic services.

(3) The policy envisages priority for promoting access to shelter for the
houseless and disadvantaged groups such as Scheduled Castes. Scheduled
Tribes and freed bonded labourers, rural landless labourers and economically
weaker sections.

National Housing Policy (1994) has the following features:

(1) Providing the necessary back up to support the construction of new and
additional units and upgradation of the existing ones:
(2) Ensuring availability of land and conferring homestead rights;
(3) Minimising displacement of rural households by developmental projects;
(4) Undertaking adequate rehabilitation measures for those affected by
natural calamities;
(5) Promoting the use of locally available materials and construction
practices;
(6) Providing basic infrastructure services including water, sanitation and
roads;
(7) Offering protective discrimination to the weaker sections of society.

HOUSING SHORTAGE
Growing concentration of people in urban areas has resulted in an increase in the
number of people living in slums and squatter settlements. Skyrocketing prices of
land and real estate in urban areas have induced the poor and the economically
weaker sections of the society to occupy the marginal lands typified by poor
housing stock, congestion and obsolescence. It is apparent that substantial housing
shortage looms in Urban India and a wide gap exists between the demand and
supply of housing, both in terms of quantity and quality.
As urban development takes place, a growing concern for India's urban planners is
the massive urban housing shortage plaguing the country. The shortage,
prominent within the EWS (economically weaker sections) and LIG (lower income
groups), is estimated at 18.78 million households in 20122.

Of the total urban housing shortage, nearly 62 percent houses are self-owned, while
38 percent families live in rented homes. The below table illustrates the break-up of
housing shortage in both these categories in urban India:

Shortage amplified for the EWS

Urban housing shortage is prominent across the economically weaker sections
(EWS) and low income groups (LIG) which together constitute over 95 percent of the
total housing shortage. The shortage amongst the middle income groups (MIG) and
above is estimated at 4.38 percent.

Indias urban housing shortage is being primarily driven by the EWS and LIG
categories. However, majority of the housing supply that has been built across
urban India is beyond the affordability of the EWS and LIG segment. Real estate
developers, private players in particular, have primarily targeted luxury, high-end
and upper-mid housing segment owing to the higher returns that can be gained
from such projects
Further, high land costs, archaic building bye laws, stringent licensing norms, delay
in project approval and unfavorable banking policies made low cost housing projects
uneconomical for private developers. Hence, traditionally, low cost housing has
been the domain of the government. In the past three decades, government has
adopted several policies assisting the delivery of affordable housing for the EWS,
LIG and lower MIG. These policy initiatives focused on transition of public sector role
as `facilitator, increased role of the private sector, decentralization, development of
fiscal incentives and concessions, accelerated flow of housing finance and
promotion of environmentfriendly, cost-effective and pro-poor technology.

LATEST HOUSING POLICY-National Urban Rental Housing Policy,

2015

Historical context of policy interventions towards Housing in

India:
2.1. The policies of urban development and housing in India have had a long journey
since independence. In early 1950s, the pressure of urban population and lack of
housing along with basic services was an issue of great concern to the Government
as well as to the civil society. It has generally been the responsibility of States to
intervene towards meeting the housing requirements of the vulnerable sections of
society and to create an enabling environment for provision of shelter to all on a
sustainable basis.
2.2. As part of the First Five Year Plan (1951-56), concrete governmental initiatives
began with a focus on institution-building and housing for weaker sections of
society. Government undertook construction of houses for Government employees
and industrial workers (through Industrial Housing Scheme). The urban land was
getting scarce for provision of housing especially for the middle and low income
DRAFT Page 9 of 41 groups, resulting in the government enacting the Urban Land
(Ceiling & Regulation) Act, 1976. Housing and Urban Development Corporation
(HUDCO) was set up in 1970 to provide affordable housing and provide specialized
attention to critical segments of infrastructure development in cities and towns.
2.3. In the late 80s and early 90s, Government envisaged a larger role for the
private sector in the construction of housing, whereas government focused on
mobilization of resources, provision for subsidized housing for the poor and
acquisition of land. The National Housing Bank (NHB) was set up as a wholly owned
subsidiary of Reserve Bank of India (RBI), in 1988 under the National Housing Bank
Act, 1987 to expand the base of housing finance. These were coupled with schemes
aimed at provision of housing and basic services for the urban poor.
2.4. The first National Housing Policy was announced in 1988 to eradicate
houselessness and improve the housing conditions. Thereafter a revised National
Housing Policy was announced in 1994 as a by-product of economic reforms process
initiated in 1991. The goal of this policy was to increase the supply of land and basic
minimum services with a view to promote a healthy environment. Subsequently, a
Housing and Habitat Policy was unveiled in 1998 with the vision of shelter for all
and better quality of life to all citizens by using the potential of public, private and
household sectors. The key objective of the policy was on creating strong Public
Private Partnership (PPP) for tackling the housing problem.
2.5. The National Urban Housing and Habitat Policy (NUHHP) 2007 was formulated
with the goal of `Affordable Housing for All with special emphasis on vulnerable
sections of society such as Scheduled Castes/Scheduled Tribes, Backward Classes,
Minorities and the Urban Poor. The spotlight was on habitat development with a
Regional Planning Approach with the role of Government as a facilitator and
regulator. The NUHHP-2007 lays emphasis on earmarking of land for EWS/LIG
groups in new housing projects while retaining Governments role in social housing

so that affordable housing is made available for EWS and LIG categories either on
ownership or on rental basis.

Policy Objectives:
The broad objectives of the NURHP, 2015 are:
7.2.1. To create adequate rental housing stock by promoting Social Rental Housing
(SRH) with direct or indirect support from Government (State) with special focus on
affordability of vulnerable groups and urban poor. 7.2.1.1. To promote Shelter
facilities for the most vulnerable groups within the homeless population such as
single women and their dependent minor children, aged, infirm, disabled, mentally
challenged etc. 7.2.1.2. To promote Social Rental Housing for urban poor (EWS and
LIG as defined by Government of India from time to time) as a viable alternative
housing option. 7.2.1.3. To promote Need Based Rental Housing (short/mid/long
term basis) for specific target groups such as migrant labour, single women, single
men, students (any other target group as defined by the State) who have the ability
to pay only up to a certain amount of monthly rent14 .
7.2.2. To promote Market Driven Rental Housing (MDRH may or may not be eligible
for direct benefits from government): 7.2.2.1. To promote Private Rental Housing
(PRH) as an interim measure towards aspirational home buyers. 7.2.2.2. To enable
Institutional Rental Housing (Hostels/PGs/dormitories) for working class with special
focus on low earning employees working with Government/PSUs/Corporate
houses/Industries/NGOs etc (any other category as defined by the State
Government from time to time).
7.2.3. To remove legal, financial and administrative barriers for facilitating access to
tenure, land, finance and technology.
7.2.4. To enable formalization/regularization of Rental Housing on pan India basis
through adoption of Model Tenancy Act, 2015 of Ministry of HUPA.
7.2.5. To facilitate fund flow from government and private sector through innovative
financial Instruments to incentivise rental housing.
7.2.6. To promoting Public-Private Partnership (PPP) to construct, manage, maintain
and operate rental housing stock (Cooperative societies, Neighbourhood
Associations, Resident Welfare Associations etc.). 14 As defined by Government of
India from time to