KARNATAKA HOUSING AND HABITAT POLICY (DRAFT)

Transcription

1 GOVERNMENT OF KARNATAKA KARNATAKA HOUSING AND HABITAT POLICY (DRAFT) HOUSING DEPARTMENT, BANGALORE

2 2 C O N T E N T S 1 PREAMBLE INTRODUCTION NEED FOR HOUSING POLICY BACKGROUND TO THE POLICY HOUSING PROFILE IN KARNATAKA POLICIES AND PROGRAMMES IMPLEMENTING AGENCIES FOR HOUSING PROGRAMMES FOCUS AREAS AIMS OF THE POLICY STRATEGIES 23 4 ROLE OF GOVERNMENT AND OTHER AGENCIES CENTRAL GOVERNMENT STATE GOVERNMENT 26 5 SPECIFIC ACTION AREAS LAND FINANCE LEGAL AND REGULATORY REFORMS SLUM RE-DEVELOPMENT RENTAL HOUSING SPECIAL NEEDS OF HOUSING FOR ALL WORKING GROUPS 5.7 SPECIAL NEEDS OF SINGLE WORKING WOMEN, DISABLED AND SENIOR CITIZENS. 5.8 INFRASTRUCTURE DEVELOPMENT OF SATELLITE TOWNSHIPS TECHNOLOGY SUPPORT & ITS TRANSFER HOUSING DELIVERY SYSTEM TO ENCOURAGE PARTICIPATORY APPROACH 38 6 ACTION PLAN/FOLLOW UP

3 3 DRAFT KARNATAKA HOUSING AND HABITAT POLICY (KHHP-09) 1. PREMBLE 1.1 INTRODUCTION Housing has been recognized as a basic human need. Several Initiatives at the centre and state levels have focused on housing as an integral part of the growth process. Housing is known to have multiple linkages with the rest of the economy and investments in housing have orchestrated impact in the region and on the broader economy. Housing initiatives must be viewed in the background of the overall economic development and the needs of the people. An assessment of the magnitude and nature of housing shortage in the state will determine the nature of policy prescriptions and policy interventions. Good and timely policy prescriptions help in establishing a well functioning and sustainable housing market. The proposed State Housing Policy for the state of Karnataka is expected to serve the larger overarching goal of Affordable Housing for All. Providing housing for all and better living conditions for people across all market segments is a challenge before the policy makers and the institutions responsible for serving the sector. In this context, urban planning and governance structures are also critical components of any policy framework, needing to be made more effective, functional and responsive to the ground realities. The draft policy will seek to recommend policy measures that would result in better funds position for the sector, with higher levels of investments and credits from different stakeholding institutions. The core issue of adequate and affordable housing has to be addressed through a multipronged strategy and programme keeping in view, the market development, the institutional depth of the sector, the legislative and the legal environment in which the market operates, the trends in the housing and credit demand and supply, and the profile of the market segments most affected by the effects of houselessness. 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 publicprivate partnerships for realizing the goal of Affordable Housing for All with special emphasis on the urban poor. Policy seeks to promote sustainable development of habitat in the country with a view to ensuring adequate supply of land, shelter and services at affordable prices to all sections of society. An efficient and easy to implement state housing policy will enhance the

4 4 confidence of all stakeholders, including the financing and construction agencies. Need for Karnataka Housing and Habitat Policy emerges from the growing requirements of shelter and related infrastructure both at rural and urban centres as also the continues the changing economic and social environment, growing urbanization, mismatch in demand and supply of developed land and houses at affordable prices and inability of poorer sections of the population to have access to formal land markets and finances from financial institutions. Karnataka is the eighth largest state in India both in area and population. While nearly 69% of the population lives in rural areas, urbanization is rapidly increasing. Bangaluru, the state capital, is one of the fastest growing cities in the world today, with a population of over 6.5 million as per 2001 census, up from 4.8 million as per 1991 census. The fast growing urbanization has also witnessed significant shift and changes in the occupational profile of the people, including changes in the income and spending patterns, the capacity for contracting debts and resulting changes in housing demands. At the macro level, there is growing state wide demand for housing, housing finance, land availability and supporting infrastructure. Karnataka Government therefore, has adopted a definite and implementable Habitat Agenda offering a vision to achieve sustainable development of both rural and urban areas with a healthy and safe environment. In this direction, Government of Karnataka will create an enabling political and administrative environment to ensure people s participation in achieving this holistic agenda. Affordable Housing for All will be the underlying theme of the Policy consistent with the overarching objective of the National Urban Housing and Habitat Policy adopted by the Government of India in December NEED FOR HOUSING POLICY Need for Karnataka Housing and Habitat Policy emerges from the growing requirements of shelter and related infrastructure both at rural and urban centres as also due to the change in economic and social environment, growing urbanization, mismatch in demand and supply of developed land and houses at affordable rates and inability of poorer sections of the population to have access to formal land markets and finances from financial institutions leading to a non-sustainable situation. Adequate housing is not just the mere provision of four walls and a roof but implies, inter alia, access to basic services such as water, sanitation, clean fuel, electricity, healthcare, education and livelihood all of which are essential for dignified living, personal growth and social well-being in a

5 5 productive society. Making these services available as part of habitat development needs to be ensured through convergence of schemes and joint efforts of all the stakeholders. Therefore, an integrated Habitat approach to housing is needed so as to take into account the issues of spatial planning including aspects like water supply, sanitation and waste disposal to effectively address the issues of ecology and to avoid disasters. Besides, it is essential to promote the creation of sustainable and inclusive habitats to ensure balanced utilization of available resources for all sections of the society including vulnerable sections. In view of the distinctive social, geographic and climatic conditions, it is necessary to adopt efficient land planning for its optimal use keeping in view the alternative requirements, particularly for meeting the demand of land/housing for the lower income. Moreover, the concerns of affordability, quality and sustainability need to be addressed by harnessing appropriate technology. 1.3 Background to the 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 publicprivate partnerships for realizing the goal of Affordable Housing for All with special emphasis on the urban poor. Given the magnitude of the housing shortage and budgetary constraints of both the Central and State Governments, the NUHHP-2007 focuses the spotlight on multiple stakeholders namely, the Private Sector, the Cooperative Sector, the Industrial Sector for labour housing and the Services/ Institutional Sector for employee housing. The action plan, of the NUHHP-2007, states that the Central Government will encourage and support the States to prepare their respective State Urban Housing and a concomitant State Urban Housing and Habitat Action Plan. NUHHP-2007 envisages specific roles for the Central Government, State Governments, local bodies, banks & housing finance companies and public/parastatal agencies. The need for a State Housing and Habitat Policy emerges from the growing requirements of shelter and related infrastructure in the urban areas. The problems of housing in rural areas relate to high input costs of construction as well as affordability. 2.1 Housing Profile in Karnataka As per 2001 Census there were lakh household in Karnataka consisting of lakh rural households and lakh urban households. Further, the number of census houses in the State was lakh, of which

6 6 there were lakh rural houses and lakh urban houses. As per the latest figure there were lakh houseless and lakhs site-less families in the State. The house-less and site-less figure in rural areas was lakh families and lakh families respectively. The houseless and siteless figures in urban areas were 0.81 lakh families and 2.82 lakh families respectively. Karnataka is the eighth largest state to face housing problem with 4.38 per cent share in the total housing shortage of the country. The present order of shortage of 6.62 lakh units in Karnataka is well above the average short fall of 4.73 lakh units for all states (Census, 2001). More than 7 per cent of the total families in the state were facing housing shortage by 2001 against 7.54 per cent in the entire country. The total number of families in the State was lakh as against the total residential housing stock of lakh. There was a core housing shortage of 1.63 lakh (1.04 lakh units in rural areas and 0.59 lakh units in urban areas) in the state. The housing deprivation was more prominent among SC/ST families, about 14 per cent of the SC/ST families were houseless, i.e lakh families, accounting for more than 51 per cent of the overall housing shortage in the State. Like other parts of the country, Karnataka also experiences both quantitative and qualitative housing shortage. Out of total housing stock in the state, 4.99 lakh units (5.0 per cent) were dilapidated; this incidence was 5.8 per cent in rural areas. As per the estimate of the National Building Organisation, the housing shortage in the state was 1.14 million units in 2001, consisting of 0.48 million units in rural areas and 0.66 million units in urban areas. HOUSING PROGRAMMES IN KARNATAKA STATE. Norms for selection 1. Government programmes for Housing are aimed at economically weaker sections of the Society. A family with an income of less than Rs.11800/- p.a. is considered eligible. 2. The Government of India: The economic parameters of EWS and LIG are defined as households having an average monthly income up to Rs and households having an average monthly income between Rs.3301 and Rs This definition is followed for

7 7 assistance under ISHUP.What about IHSDP and BSUP?What are the eligibility norms? 3. Under IAY norms are different. Rural households having an annual income of upto Rs.32000/- are eligible. 4. (1) Housing profile of Karnataka State as per 2001 census is as under, Total % Rural % Urban % a. Permanent Houses b. Semi Permanent Houses c. Temporary Houses d. Unclassifiable Total 1,02,32, ,75, ,56, (2) Tenure Status Total % Rural % Urban % a. Total 1,02,32, ,75, ,56, b. Owned 80,28, ,85, ,42, c. Rented 19,08, ,15, ,93, d. Any other 2,94, ,74, ,20, Around 45% of the households live in semi-permanent and temporary accommodation. Figures for rural area and urban area are 57% and 22% respectively. 78% of households in Urban area live in permanent houses.

8 8 43% of households in Rural areas live in permanent houses. Ownership of houses is 91.2% in Rural areas and 54.6% in Urban areas. Only 6.2% households live in rented accommodation in rural areas and the figure is 42% for Urban areas lakh houses were constructed with Government funds upto the year Starting from , the State has been spending a lot of its budgetary resources for housing. Year No. of houses constructed There are different housing schemes for the rural and urban areas. Rural Ashraya Housing - Rs.40000/- unit cost Rural Ambedkar Housing Urban Ashraya Housing - Rs.40000/- unit cost Rs.40000/- unit cost (Recently revised) Indira Awas Yojana - Rs.40000/- unit cost (with Rs State support) (Recently revised) 7. Housing Outlay has been increasing year by year. It was 4% in ninth plan and 5.9% in Tenth plan period, though the actual expenditure was 5.1% and 13% respectively.

9 9 8. Under IAY, the State has increased the unit cost to Rs.40000/- to bring about uniformity in all the housing schemes implemented by the State. State Government has increased its share from Rs.8750 to Rs per unit. Government of India share remains at Rs A Survey was conducted during May-June 2003 to ascertain the number of site less and houseless families. The number as per the survey was as under. Houseless Siteless Total Urban Rural Total 12,99,789 12,98,713 25,98,502 1 Since , around lakh houses are constructed. Since , only house sites are distributed. If we consider the number of sites distributed since , it comes to 11,13,950.

10 10 The number of siteless is increasing by the year due to natural splitting up of families and increase in population. Non-availability of Government lands and exorbitant land prices have disabled the poor from acquiring sites on their own. This is what the Governments, both Central and State have done so far in the housing sector to meet the growing demand from EWS/LIG. III. Urban Vs Rural 1. Karnataka is the eighth largest state in India in terms of geographical size. 5.31% was the State s share in the nation s population in In 2008 its share is reduced to 5%.

11 11 The percentage of urban population to the State s population was 22.3 in 1961 and it has risen to as per the 2001 census. State s population rose from lakhs in 1961 to lakhs in 2001, whereas for urban areas covering 270 towns and cities the increase was from lakhs in 1961 to lakhs in Trends indicate large scale migration from rural to urban areas. As per estimates, the population of India would be almost equal in urban and rural areas by the year India s urban population as per 2001 census was 2861 lakhs i.e. 27.8% of the total population of the country against just 6% of the nation s land occupied by urban India. Considering that Karnataka s urban population was 34 % in 2001, it is likely that the urban and rural population equalize even before 2050 in case of Karnataka. Urban poverty ratio of 32.6% in Karnataka is much more than the all India Urban Poverty ratio of 25.7%. The growing urban population throws a big challenge for provision of housing and basic services in urban areas. Trend of urbanization is likely to continue until an ideal Urban:Rural balance of 70:30 is achieved as was achieved in first World Economics. According to Prof. Ribeiro, this is expected to happen in India only towards the end of the 21 st century. 2. According to the Ministry of Housing & Urban Poverty Alleviation, Government of India around 2001, the housing stock in India stood at

12 million for 55.8 million urban households and million persons or 23.1% of the urban population resided in slums, where the quality of housing stock is extremely poor. There are several programmes funded by both Central and State Governments to improve the housing stock and infrastructure in slums. They are given in para IV In Karnataka lakh people lived in 2601 slums, which was 22.50% of the State s urban population. In order to improve the quality of life in urban areas, the need for improving the housing stock was of utmost importance. Several programmes were launched for the urban renewal, in situ slum improvement, development of housing stock in existing cities as well as new townships. The need for providing high quality basic services was also addressed. The Technical group constituted by the Ministry of HUPA for assessment of Urban Housing shortage at the end of 10 th plan has estimated the housing shortage to be million. The category-wise housing shortage is as follows. EWS million LIG 2.89 million Middle income group & 0.04 million HIG Total million This shortage is expected to go up to million during the 11 th Five Year Plan i.e

13 13 Shortage at the Beginning of 11 th five year Plan Addition to households Up gradation of Kuccha houses Total Additional Housing stock created deducted Total million 8.71 million 0.38 million 33.8 million 7.27 million million Financial Requirements. For millions dwelling units For 7.27 additional housing Total Rs crores Rs crores Rs crores Total requirement including basic infrastructure is Rs crores. IV. Major Initiatives by Governments for improving the Housing Stock and Infrastructure in slum areas. 1. National Slum Development Scheme (NSDP). 2. Valmiki Ambedkar Awas Yojana(VAMBAY). Both these programmes were subsumed in BSUP and IHSDP. 1. Basic Services for the Urban Poor. 2. Integrated Housing and Slum Development Programme.

14 14 Nirmal Jyothi Programme: In the Ist Phase it was programmed to provide basic infrastructure in the slum areas of 21 Class-I cities at an estimated cost of Rs.68 crores. This was fully funded by the State. In the Second phase 265 slums in 17 Class-I cities were taken up. Estimated to cost Rs.73 crores, funded by the State. Tenural Rights. The State Government has amended the provisions of Karnataka Slum areas (Improvement and Clearance) Act 1973 for giving title deed to the slum dwellers to improve their economic condition. Under VAMBAY, houses are constructed and 791 community toilets under Nirmal Bharath Abhiyan Yojana were completed houses were constructed under HUDCO. Assisted Housing Scheme and another 2080 under SCP Housing Scheme. Basis Services to Urban Poor It is programmed to construct houses in several slums of both Mysore and Bangalore cities at an estimated cost of Rs crores. This includes the provision for basic infrastructure. Under IHSDP, houses in slums of 33 towns are programmed to be constructed at an estimated cost of Rs crores. This includes provision for basic infrastructure.

15 15 V. Need for Public Private Partnership in Housing The magnitude of the housing shortage and budgetary constraints of both the Central and State Governments, make it clear that the Public sector efforts will not be sufficient to meet the housing demand. NUHHP, 2007 focuses on multiple stakeholders namely the Private Sector, the Co-operative sector, the Industrial sector for Labour housing and the Institutional sector for employee housing and other models of public private partnership. Karnataka is in the process of finalizing the State Housing policy, which will focus on the action points under NUHHP The Karnataka Housing Board is entertaining Joint Venture with private entrepreneurs as per the Joint Venture Guidelines approved by the State Government. The terms and conditions are formalised by a Memorandum of Agreement. In such projects a minimum 25% of the houses/sites are earmarked for LIG/EWS to be allotted by the KHB. The cost of these units are determined by KHB and the Joint Venture Partners jointly at no loss/no profit basis. The remaining 75% of the sites/houses will be disposed of by Joint Venture Partner using the brand name of KHB. In this model, sites and houses are made available for the poor at cost price. It has also the effect of increasing the overall housing Stock ensuring in the process, planned and orderly development as per the Town Planning norms.

16 16 Other Joint Venture model approved by the Government of Karnataka is as under: Joint Venture in Private Lands (with the land owners) developed jointly by Karnataka Housing Board and the land owners. In this model, developed residential sites are shared in the ratio of 25: 75(25 land owner,75 KHB). The advantage of this model is that the public bodies notifying large extents of lands under compulsory acquisition has the effect of curtailing supply of lands to the market. Acquisition proceedings drag on for years because of compulsory nature of acquisition and low compensation. The pooling of lands through consent or direct purchase is also not easy, as the land owners demand market value. In order to avoid delay in land acquisition for housing schemes the land owners/farmers may be involved in the development on sharing basis by parting away with mutually agreed share of developed residential sites. Urban land being scarce, there is a need to use the available space in such a way as to benefit maximum number of households. Slums have no pattern of development. They are chaotic and irregular. Any investment to develop them to improve the quality of housing stock and the infrastructure require heavy

17 17 investments. This could be a great burden on the budgetary resources of the Government. Therefore, there is an urgent need to involve the private entrepreneurs who are willing to invest in the development of slums in an orderly manner. The models for participation can be worked out depending upon the individual cases. The other models of PPP in Urban Housing could be housing Societies not just by individuals, but also by institutions and the professional associations, reputed Non Governmental organizations etc. Government support can come from provision of higher FAR in congested areas to allow vertical developments as also TDRs. 2.2 Policies and Programmes Given the relatively low percentage of house ownership in the State, Karnataka had long recognized the significance of housing as an important component of the Minimum Needs Programme. Indeed, Karnataka had launched a state-funded housing programme for the poor through the Ashraya and Ambedkar housing programmes in , long before the National Habitat Policy was formulated. The state has one of the best housing programmes in the country. The prominent housing programmes of the state government are as under: Rural Ashraya Housing Scheme including including Navagrama Housing Scheme and the Pilot scheme of GPHP. Urban Ashraya Housing Scheme. Rural and Urban Ashraya Sites Schemes Dr.Ambedkar Housing Scheme Neralina Bhagya Housing for Special occupational groups. Hundred Housing Projects

18 18 Chief Minister's Model Town Housing Programme (CMTHP) The purpose of rural Ashraya and urban Ashraya programmes are to provide housing to the economically weaker sections with financial assistance and loan. The Dr. Ambedkar housing scheme is taken up for housing the socially and economically weaker Schedule Caste and the Schedule Tribes beneficiaries, to whom the houses are given free without any loan component. Under the special occupational groups housing programme assistance is given to various categories of economically weaker sections persons in different occupations for construction of houses, in convergence with various housing programmes of the central government. Under the Ashraya sites programme sites are given free in rural and urban areas to economically weaker sections beneficiaries. Neralina Bhagya is a scheme for upgradation of thatched roofs to a tiled roofs, for which a subsidy of Rs is provided per house. Gram Panchayat Housing Scheme is being implemented as an experimental Scheme of housing for EWS in Gram Panchayat areas. Under this scheme financial assistance up to Rs. 20,000/- including loan and subsidy) is provided; the subsidy for general category beneficiaries is Rs.10,000/- and Rs. 20,000/-. for SC / ST beneficiaries. The beneficiaries are selected only out of lists siteless/house-less persons prepared by Gram Panchayaths. Navagrama Housing Scheme seeks to change the lives of the poor by facilitating them to move into new habitations or village extensions developed through community action, funded through convergence of schemes with construction labour paid for through the SGRY Programme. The Nava Grama Ashraya Yojana, thus provides a framework for convergence of Ashraya housing scheme and SGRY, utilizing funds and food grains under SGRY to provide for infrastructure for houses under Ashraya. Nava Grama Ashraya Yojana is demand driven and Grama Panchayats have been encouraged to utilize the SGRY funds and food-grains under the component of providing village infrastructure to undertake the layout part of the Nava Gramas wherever Ashraya houses are constructed. "100 Housing Schemes was initially launched to provide 15,000 Sites and 13,500 Houses, at an approximate Cost of Rs. 850 Crores, with the Government's revolving Guarantee of Rs 100 Crores. The Implementation period was 21 months from the date of commencement. The key infrastructure features in the layout are as per the Town Planning norms. Chief Minister's Model Town Housing Programme (CMTHP) envisages housing schemes for checking population congestion in towns and cities. As per this initiative, the Chief Minister's Model Town Planning Housing Programme was taken up for housing in hobli head quarters and other small

19 19 towns with a population of 10,000-20,000 in association with the local bodies. The state launched the ambitious One Million Housing Programme in October 2000, which envisaged the construction of one million dwelling units in rural and urban areas during the period , i.e. 2,00,000 houses each year. Rural housing has been given primacy with an annual target of about 1,70,000-2,20,000 houses. The annual target for the urban programme was 30, Implementing Agencies of for Housing Programmes Karnataka is one of the lead examples to have created institutional infrastructure in the co-operative, public and in private sectors to promote housing developments. The state is the first in the country to give birth to cooperative housing movement in the first decade of the 20 th century. Similarly, a number of public institutions of came into existence to meet the housing need from the early sixties and finally housing finance Institutions since late eighties. The government agencies operating in Karnataka are Karnataka Housing Board (KHB), Rajiv Gandhi Rural Housing Corporation (RGRHC), Bangalore Development Authority, Karnataka Slum Clearance Board (KSCB), Bangalore Metropolitan Regional Development Authority, Karnataka Rajya Nirmana Kendra (KRNK) and Karnataka Urban Infrastructure Development & Finance Corporation. Karnataka Rural Infrastructure Development Corporation (KRIDC), Urban Local Bodies, Departmental Agencies and Government Departments. KHB was formed in 1962 under the Karnataka Housing Board Act. The primary objective of KHB is to make such schemes and to carry out such works as are necessary for the purpose of dealing with and satisfying the need of housing accommodation. KHB undertakes housing projects to provide decent and affordable shelter to the inhabitants of Karnataka complete with all the basic infrastructural amenities, under the LIG, MIG, and HIG categories. RGRHC is a government company established by the Government of Karnataka to cater to the housing needs of the economically and socially weaker sections of the society. The Corporation implements housing programmes through self-help for the economically and socially weaker sections, ensures smooth flow of funds through JUST IN TIME fund

20 20 releases. It has been organising manufacture or bulk procurement of cost effective building materials. It is working in partnership with Grama Panchayats and NGOs. The Company promotes Self-Help housing and supports the initiative of the beneficiaries. KSCB was constituted during July 1975 under the Provisions of the Karnataka Slum Areas (Improvement and Clearance) Act 1973, for providing basic amenities namely drinking water, street light, community latrines, community bathroom, drains, roads, storm water drain to the declared slums. The Karnataka Slum Clearance Board intends to cover all the declared slums areas existing in the jurisdiction of city corporation/ city municipalities/ town municipalities and town panchayats in the State for the slum improvement/clearance/ rehabilitation of the slum dwellers. Government of Karnataka took a leading initiative in order to promote, monitor, oversee, guide the Nirmithi Kendras and Rural Building Centres in the State and established an apex centre called Karnataka Rajya Nirmana Kendra (KARNIK). It has the network of Nirmithi Kendras at the district level to promote cost-effective building technologies through its main activities of training, production, construction and consultancy on Lab to Land basis in government, private and public buildings. The main functions of the KARNIK are - developing and promoting alternative cost effective environment friendly building materials and technologies; developing replicable housing infrastructure models; organising manufacture of cost effective bulk procurement building materials; networking with local bodies involved in developing and promoting cost effective construction materials and technologies; promoting quality in the implementation of the programs through continuous improvement in the systems and service. In addition, Urban Development Authorities (UDAs) have been setup for all the district headquarters in the state. The UDAs, inter alia construct housed for EWS, LIG, MIG and HIG along with development of major infrastructure facilities. 3.1 Focus Areas Creation of integrated rural and urban habitat is the key to sustainable development. The policy takes into consideration the existing shelter condition, access to basic amenities, opportunities for income and employment generation, growing investment opportunities, magnitude of slums and sub-standard housing and therefore, focuses on sustainable rural and urban housing structures which will be able to absorb growing rural and urban housing requirements including the availability of basic amenities and employment opportunities.

21 21 With the changing economic environment, there is a need for gradual change in the policies and programmes of the Government to act as a Facilitator rather than Builder and Provider to achieve the objective of Housing for All in the State. Keeping in view the resource requirement for the sector, there is a definite need to involve the private sector in partnership with the government in realizing this goal, as also envisaged in the NUHHP. However, the housing needs of the lower income segments demand special interventions as their affordability is very precariously exposed to the market forces. This segment can be easily priced out of the market. Though the private sector s contribution and their potential needs to be tapped and harnessed; the government should continue to play an active role in provision of housing for this segment. Thus, the policy will need to address the funding needs of this segment by way of individual loans facility, availability and affordability of credit, and supply of housing at affordable prices. It will be, therefore the endeavour of the State Government to create suitable administrative, legal and legislative environment for catalyzing increased investment in housing and related amenities by public, private cooperative sector agencies. Such models as Public-Private-Partnership, together with people s partnership and the role of NGOs and microfinance institutions should be increasingly relied upon. The Policy will also seek to identify the role of financing institutions and financing mechanisms with suitable instruments, both market oriented as well as government supported. The national programmes such as the JNNURM and Bharat Nirman will need suitable supplementing at the State level through matching initiatives. The Policy will explore areas of such initiatives and cooperation. In this context, there will however, be a need to redefine and restructure the role of the public agencies to continue to remain engaged in the area of specifically meeting the needs of low income segment households to a large extent and have oversight of such projects to ensure optimum utilization of resources including subsidies, and their transparent targeting. Inadequacy of housing is directly linked to magnitude of Poverty. Poor housing, lack in terms of tenure, structure and access to services. Therefore, main focus area of KHHP-09 would be building new housing stock and upgradation of existing EWS houses/replacement of temporary houses & semi permanent houses, including housing for slum and squatter dwellers. The Policy will also focus on upliftment of poor/ews both in rural and urban areas including slum dwellers. Slums and squatters settlements living on govt. land would be transferred to PRIs/Municipal Bodies and would be regularized and/or shifted elsewhere under a special programme ensuring security of tenure and through people s/community participation. The Policy will envisage drawing of action oriented and implementable plans in convergence with the programmes of the Central government - like

22 22 JNNURM, IAY and Credit cum Subsidy Schemes etc. - with focus on Adequate and Affordable Shelter for All for achieving the objective of promoting Sustainable Housing Development. The approach and thrust of this Policy will be Inclusive in terms of social and financial inclusion of poor, marginalized and vulnerable groups in both rural and urban areas. The housing development strategy will have twin objective to both supply of new housing units as well as replacement or redevelopment of the existing challenging stock especially in rural areas, with overriding priority being accorded to redevelopment of dilapidated stock. The Policy will seek to create a favourable environment including fiscal incentives to ensure direct and indirect by housing finance institutions for the redevelopment purposes. It will be insured that there is a regular and adequate public funding for existing housing development institution along with enhanced capacity to mobilized resources from the market with the guarantee of the state to take up housing activities on a mass scale. 3.2 Aims of the Policy The main aim of the policy will be: a. To set up systems to facilitate and maintain a sustained growth of the housing stock to ensure adequate and affordable housing for all. b. To create surpluses in housing stock either on ownership or rental basis. c. To facilitate acceleration in supply of serviced land and housing with particular focus on EWS/ LIG and MIG categories. d. To develop supporting infrastructure and basic services to all categories. e. To promote larger flow of funds from Governmental and private sources for fulfilling housing and infrastructure needs by designing innovative financial products, concessions and instruments which are correctly targeted and utilized and to also facilitate access to such funds. f. To address the special needs of marginal and weaker sections of the society such as Scheduled Castes, Scheduled Tribes, other backward classes, minorities, disabled, women-headed households, single women, elderly, street vendors etc., in relation to housing serviced by basic amenities.

23 23 g. To develop planned habitats with an assembly of basic services and livelihood infrastructure that provide for dignified living and that promote healthy environment in a sustainable manner through appropriate planning & zoning and innovative programmes. h. To ensure development of cities and villages with healthy environment, and pollution free atmosphere with a concern for solid waste disposal, drainage, sewerage, traffic management etc. i. To develop, promote and transfer use of appropriate, quality & cost effective, environment-friendly, energy-efficient and disaster-resistant technology. j. To removing legal, financial and administrative barriers for facilitating access to land, finance and technology. k. To develop required technical and managerial capacity of delivery agents including upgradation of construction skills. l. To strengthen the functioning of Urban Local Bodies (ULBs) and Panchayati Raj Institutions (PRIs) and encourage strong partnership among civil society, public and private sectors to ensure that aims of the policy are achieved in a well coordinated manner. m. To encourage progressive shift from target orientation to a demand driven approach as also from a subsidy based housing scheme to cost sharing or cost recovery-cum-subsidy schemes. n. To empower PRIs and ULBs to mobilize land and credit for undertaking housing and infrastructure projects. o. To encourage NGOs/CBOs/MFIs/SHGs to undertake housing micro credit activities at larger scale for increased outreach. p. To encourage strong partnerships between private, public and cooperative sectors to enhance public private people s partnership in every sphere of housing and habitat. q. To suggest alternative measures for increasing the supply of land for affordable housing and effectively use the land as the source of financing the EWS/LIG housing. r. To bring in appropriate rules governing the use of land for housing by the private sector builders and corporates and facilitate their

24 24 involvement in construction and delivery of houses for the lower income households. s. To rationalize the Conversion charges in case of the housing projects meant for low income segments only. t. To provide for mandatory construction of EWS/LIG housing by the private sector in the government-provided land or government facilitated site. u. The policy will orient towards setting up of a land bank to ensure smooth supply of land for projects specifically meant for construction of houses to low income segment households. However, appropriate measures will be put in place to ensure that the land bank does not restrict the supply of land in the market and resulting in increase in land prices. v. Using housing & urban infrastructure sector to generate employment through effective convergence with on-going Government social and employment generation schemes. w. To ensure a balanced regional growth along with suitable supply of land, shelter and employment opportunities with the overall focus to contain increasing migration to the various urban centers. x. To ensure involvement of women and weaker sections at all levels of decision making. y. To protect and promote cultural heritage, architecture and traditional skills. z. To establish Management Information System to strengthen monitoring of building activity in the State. aa. Prevention of slums in URBAN - Urban fringe/bmr Region with zoning and planning polices. Prevention of fresh encroachments using GIS to map slum prone areas. 3.3 Strategies For achieving the above aims and objective, the Policy seeks to adopt the following strategies:

25 25 a. By ensuring that housing, along with the supporting services is treated as a priority and at par with the infrastructure sector. b. Provision of growth of urban and rural settlements so that there is a planned and balanced growth. c. Progressive shift from a subsidy based housing Scheme to cost sharing or cost recovery cum subsidy scheme for rural housing through a pro active finance policy including micro financing, self help group programmes. d. Progressive shift of rural housing strategies from target orientation to a demand driven approach. e. Empowering the panchayat Raj Institutions/urban local bodies and village cooperatives to mobilize credit for adding to the housing stock and also ensure basic amenities in the rural areas. f. Development of cities to provide for a healthy environment, increased use of renewable energy sources, and pollution free atmosphere with a concern for solid waste disposal. g. Using cost effective technology for modernizing the housing sector to increase efficiency, productivity, energy efficiency and quality. h. Facilitating, restructuring and empowering the institutions at states and Local Government to mobilize land and planning and financing for housing and basic amenities. i. Forging strong partnerships between private, public and cooperative sectors to enhance the capacity of the construction industry. j. Meeting the special needs of SC/ST/ disabled freed bonded labourers/slum dwellers. k. Involving women at all levels of decision making and enabling them in formulation and implementation of the housing policies and programmes. l. Addressing the special needs of woman headed households/ single and working woman/woman in difficult circumstances. The specific requirements of women in terms of providing necessary facilities in homes to lessen their drudgery would be given sufficient attention. m. Strengthening of the Karnataka Housing Board, BLBs, PRIs to effectively deal with housing needs, especially the poorer sections. n. Establishing a management information system in the housing sector to strengthen monitoring of building activity in the state. o. Strengthening initiatives for creation of specific and periodic data base on socio economy and technological aspects or Housing sector in State.

26 26 p. Remaking bottlenecks and impediments related to legal, regulatory frame work and revamping the existed laws and regulations to provide facilitating environment for housing in initiatives. q. Protecting and promoting the States cultural heritage, architecture and traditional skills. r. Houses for poor to have at least two bedrooms with kitchen and toilet, Availability gap of space for rich & poor to be reduced and quality of construction also to be less different. 4. Role of Government and Other Agencies 4.1 Central Government Government of India has initiated various programmes as joint initiatives with the State Governments for providing housing and improving the basic infrastructure requirements like JNNNURM (ISHDP, BSUP), Bharat Nirman, IAY etc. Accordingly, it is therefore, expected that the Central Government will further initiate the following steps: a. To bring in appropriate reforms in Planning, Housing, Financial and Legal aspects as per NHHP-98, NUHHP-2007 and NRHHP (draft report). b. To bring in appropriate policy changes and financial architecture enabling flow of institutional credit and private sector investments in housing and infrastructure particularly for low income housing and in rural areas. c. To provide appropriate fiscal concessions to individuals, institutions including the corporate for housing, infrastructure, innovative to energy saving construction materials and technologies etc. d. To provide liberal funding under its flagship programmes like JNNURM and Schemes for improving habitat conditions in rural areas, to State Action Plans/Programmes for provision and creation of adequate infrastructure facilities like water resources, sanitation, sewerage, connectivity and power supply etc.

27 27 e. To bring in appropriate indexing formula for providing capital subsidy under Govt. sponsored schemes for BPL/poor/EWS and linking the same to inflation rate. f. To bring in appropriate scheme of interest subvention to make housing loan affordable to low income segment households. g. To bring in appropriate policies and reforms, if required for developing convergence and integration of housing finance system with the financial sector reforms to achieve the objective of Financial Inclusion. h. To allow mobilization of resources from external sources as well as building technologies to promote housing and infrastructure especially for the projects meant for low income segment households. i. To set up appropriate monitoring mechanism ensuring public funding is properly targeted and utilized. j. To strengthen state governments in building land records through e- governance. k. To bring awareness about government programmes as also foreclosure laws for the benefit of the individuals and the institutions. 4.2 State Government a. To adopt Karnataka State Housing and Habitat Policy b. To prepare short, medium and long term programmes and strategies to address the housing and infrastructure requirements/ including identification of financial resources. c. To bring in appropriate legal and regulatory environment for increased investment in housing and related infrastructure. d. To bring appropriate structural changes in the State agencies role and responsibilities with focus on low income segment housing construction projects. e. To bring appropriate legal and administrative environment for encouraging participation of private sector investment in housing focusing on low income segment requirements.

28 28 f. To promote and encourage R&D in housing, building materials and technologies through appropriate capacity building in collaboration with institutions like NHB, HUDCO, BMPTC and local institutions including State ITIs/polytechnic/ Engineering Colleges. g. To develop appropriate MIS and computerized land records system. 5. Specific Action areas: 5.1 Land An essential pre-requisite to accessing shelter is ownership of house- site. The poorest of the poor are unable to avail opportunities with regard to housing due to lack of house sites. Therefore, land use planning and management is the first step for habitat development. Accordingly, following actions are purposed formatting the requirement of land for affordable housing: a. To encourage land assembly, development and disposal both in the public and private sectors. b. To observe the best norms of Regional Planning for assembly of land for specified use as per Master Plan, in compliance with the stipulations of the 74th Constitutional Amendment Act. District Plans and Metropolitan Plans will function as sub set of the Regional Plan. c. In all Master Plans specific sectors may be fixed in Land Use for EWS and LIG houses which should be at least 10% of the residential zone. In such areas, there will be Zero CLU, EDC and License Fee on residential and institutional pockets and 50% concession in respect of commercial pocket. d. To reserve 10 to 15 percent of land in every new public/private housing project or 20 to 25 percent of FAR / Floor Space Index (FSI), which is greater, for EWS/LIG housing through appropriate legal stipulations and spatial incentives. e. To ensure that Development Plans/Master Plans as well as Zonal Plans and Local Area Plans are made and updated regularly so that adequate provision is made for the homeless as well as slum dwellers. f. To prepare a Special Action Plan for urban slum dwellers with special emphasis on persons belonging to

29 29 SC/ST/OBCs/Minorities/Economically weaker Sections /physically handicapped and Minorities. g. To encourage beneficiary-led housing development, by providing a suitable percentage of land developed by the Public Sector institutional rates to organizations like Cooperative Group Housing Societies and Employee Welfare Organizations for providing housing to their members on a no-profit no-loss basis. h. To bring in appropriate supportive laws for increasing the supply of developed land/houses/flats specifically and its accessibility at affordable rates for poor/bpl/ews and LIG segments. In support of this, necessary changes needs to be made for Karnataka Land Revenue Act of i. Government public agencies would continue to undertake acquisition of land for construction of houses for low income housing projects. j. While identifying the land, it will be ensured that houses are constructed near the habitations preferably in panchayat Land or government Land. If the panchayat/government land near the habitations is not available, the same may be obtained by exchanging the land with the Panchayat land. Where there is no land belonging to panchayat/ government, the land for EWS houses may be purchased / acquired. It shall be ensured that the selected site is acceptable to the allottees. k. There will be no stamp duty /registration fee/cess on purchase of land for EWS housing in any part of the State and/or in earmarked Zones. Similarly, there will no stamp duty /registration fee/cess on transfer of houses to the poor people. These relaxations are however, subject to the condition that the promoter/builders will have to construct all EWS housesing units within 3 (three) years from the date of grant of license or exemptions. l. In case a private agency/builder constructs say 1,00,000 sq. ft. of EWS housing in rural areas, there will not be any CLU or License Fee on 1,00,000 sq. ft. of residential area to be constructed by such agency any where in the State. This exemption will however, be subject to construction of minimum of 100 units in rural areas as also in commensuration with the actual amount spent by the builder agency on EWS housing. m. For rationalized and optimum density use of urban land, policies will be oriented towards vertical growth e.g. low rise high density & in very costly area high rise high density.

30 30 n. Government to act as facilitators in acquisition of land by private agencies/builders provided a certain minimum number of the developed plots and/or houses/flats are earmarked for low income segment households. o. Private sector agencies/builders will be encouraged to undertake housing projects in alignment with High Volume Low Margin to ensure development of plots/construction of houses/flats for low income segment households. p. Government will rationalize the external development charges and the license/ permission fee in case of projects undertaken by private sector agencies/builders/corporate for low income segment households. For reducing the cost of EWS houses, there will be no external development charges (EDC) and License Fee /permission charges, etc. on the part of earmarked for EWS houses. There will also be no VAT on the construction materials used for EWS housing. q. Development Plans/master Plans as well as Zonal Plan, Metropolitan Plans, District Plans and the State Level District Plan shall be made updated regularly indicating the provision of land for EWS/LIG houses. In the formulation of Master Plan the fact that housing problems more in large cities/metropolitans as compared to small towns, shall be adequately taken care of. r. In urban areas, ownership of the houses will continue to remain with the Government. These houses will only be leased out to the beneficiaries (EWS/LIG) by bio-metric method as being adopted in the State of Gujarat or with similar mechanism. s. To encourage 25-A status Companies for undertaking in-situ development of slums. t. Introduction of Property Title Certification System in ULBs. Govt. of Punjab will adopt within 5 yrs. u. The entire construction of EWS and LIG houses in urban areas shall be multi-storey as ground+ 3 storey or ground floor + 4 storey whichever is permissible as per national norms, without installation of lift. v. Special efforts will be made for promotion of planning and development of industrial estates along with appropriate labour housing colonies serviced by necessary basic services.