Affordable Housing.docx

School of Architecture

Affordable housing – its need and necessity

December 6 2018

With high rise in a population density, there is a rapid growth in urbanization which led to a huge demand for urban land in India. Thus bridging the gap between the housing need and the availability of satisfactory dwellings.

JAGRUTHI .A. BAFNA 01FA15BAT014 VII SEM

Under the guidanceAr. Deepa Mane K.L.E TECH University Huballi, Karnataka

ABSTRACT This paper gives a synopsis of housing affordability. Due to the constant rising or doubling of population from 1980 to 2018, where the major population of our country is below income group, affordable living is the major concern for the government of India, which led to the affordable housing scheme, collaborating with public and private partnership. HOME, a basic necessity to every human that exists on earth, a shelter where one lives, grows, nourishes and builds their dreams. It not only provides shelter but also gives the sense of security, a feeling of place which is more comforting and required by everyone. And keeping this situation, MICRO HOUSING MOVEMENT, as a solution to a rising population started, a small house includes all the essentials, which are the basics to be given, which occupies less area, sustainable and achieves higher level energy efficiency and cost effective for a growing population. The aim of the paper is to understand an affordable housing, its types, need and necessity in India.

AIM The aim of the paper is to understand the reason and issues behind the fall of housing shortage and defining the gap between the housing need and the availability of satisfactory dwellings.

1. INTRODUCTION In rural – urban development, India being one of the largest and populated countries in the world, where the economic condition is lagging behind when compared to other countries. India is a developing country having 30% population of high income group and other 70% are middle income group and low income group. Housing affordability is a major issue affecting both, the regional level and the users. The main reason behind the factors contributing the issues related to housing affordability in and around the world is the progressive and rapid increase in population, as the cities were not designed according to the population. The growing population has led to the shortage of land, housing shortfall which severely stressed on the existing basic amenities such as water, open spaces, etc. Despite of decreasing the family size the size of homes grew. An expertise began to recognise micro housing movement as a solution to a rising population.

The Tiny house and Social Movement advocating for a simple living in a small homes. A tiny house is a residential structure that falls around 500 square feet. People look forward for the homes that provide them an easier and simpler life. The main aim of the design is to develop micro housing community that provides shelter to every user. Though micro apartments are smaller in size, but a good design through accurate measures of architecture, selection of furniture and material selection can make an ideal space for living. The paper will show the aim of research through various case studies and this will allow for analysis of the material that are used and the sustainable design measures taken. The successful project of a designer is based on his ability to design a small space that feels larger.

2. KEYWORD Affordable housing need, issues in development of housing

CONTENTS 1. 2. 3. 4.

5.

6. 7. 8.

Introduction Key words Methodology Affordable housing 4.1 Why affordable housing? 4.1.1 Urbanisation and housing shortage in India 4.2 Issues in the development of the housing 4.2.1 Availability of land 4.2.2 Home finances 4.2.3 Conclusions Need and necessity of affordable housing 5.1 Policy framework by government 5.2 housing need and necessity 5.3 Approach to affordable housing Conclusions Bibliography Appendices

3. METHODOLOGY The methodology of this report is to understand affordable housing, its various types and why in today’s era we need an affordable housing for the people of low income group who cannot afford a house which provides shelter and fulfils basic amenities and for the low class people, due to the fail in equal citizen right. Through analysing case studies and various research paper on housing affordability, the paper concludes on the issues that why there is so much of gap between the total demand and the total stock of houses.

4. AFFORDABLE HOUSING Affordable housing is a fundamental right, as it fulfils basic human need for shelter, as well as it contributes to the well being of both parents and children. There is no clear-cut definition of the term “affordable”, as it is a correlative concept and has several meanings in different context. In the context of urban housing, affordability means a provision of an “adequate shelter”, ensuring security within the means of common households on a sustained basis. It also states, affordable housing is provided to those whose needs are not met by the open market. According to the task force on affordable housing set up by the MHUPA on 2008, affordable housing for various segments is divided by the size of dwelling units and housing affordability is derived by the income of the household population. For living in decent affordable housing, the stress is reduced due to lessening of concern that high housing cost leads to eviction and foreclosure, this in turn leads to the fewer physical and mental health.

4.1 WHY AFFORDABLE HOUSING? Developing affordable housing projects are eminent today for India's developers as there is so much of real requirement in this segment.

The reasons why affordable housing never took off was the issue of the applicant not having enough money to give the margin for taking a housing loan. Thus, the government of India has done three things to make it affordable. First, by giving a subsidy of the 6.5 per cent at the lowest rung of the ladder. Secondly, it is crediting the entire subsidy of a 20-year loan to the loan account of an applicant, which reduces EMI, which further makes it more affordable to the applicant and Thirdly, they have allowed withdrawals from the EPFO to the extent of 90 per cent of the amount for housing in case there is a group of eight other people who are doing so for a house in the same society.

4.1.1 URBANISATION AND HOUSING SHORTAGE IN INDIA As per 2011 census, the country had a population of 1,238 millions, out of which 31% live in urban areas. From 2001-11, the increase in level of urbanisation from 27.81% to 31.16%. Thus resulting in growing population in urban areas which led to the problems of land shortage, housing shortfall and congested transit which severely affected the basic amenities such as water, power and open spaces of town and cities. Urbanisation has increasingly led people live in slums and squatters settlements and deteriorated housing conditions of economically weaker sections of the society. Currently there exists a wide gap between the demand and supply of housing both in terms of quantity and quality. The technical group constituted by Ministry of Housing and Urban Poverty Alleviation (MHUPA), estimated 24.71 million for 66.30 million households for 10th Five – year plan in the country of urban housing shortage. In the current time of 26.53 million dwelling units for 75.01 million households and due to the backlog of housing, a minimum of 30 million additional houses will be required by 2020. However, the total dwelling in the segment is insufficient when compared to existing units. Thus, the housing requirements for lower income group and middle income group are neglected and that led to the huge dearth in the supply of affordable houses demanded by income group in India.

4.2 ISSUES IN DEVELPOMENT OF THE HOUSING The demand for housing in the affordable segment has increased in cities due to a large migrant population. The main reasons for rise in shortage of affordable housing is lack of availability of urban land, rising construction costs and regulatory issues while lack of access to home finance for low-income groups are constraints on the demand side.

4.2.1 LACK OF URBAN LAND AVAILABILITY With high rise in a population density, there is a rapid growth in urbanisation which led to a huge demand for urban land in India. The housing shortage has been further worsening artificially by conceived central, state and municipal regulations. As a result, the land price in India is much at higher level. Strict regulations initiated by government, where not implemented correctly, which led to a rampant corruption as there are multiple stakeholders having large stakes in real estate development. India is facing a housing shortage, which is comprised by families of the weaker and low income groups, whose actual income makes it impossible for them to own the cheapest available housing unit.

4.2.2 HOME FINANCE Despite of having an extensive network of financial institutions, banks, and low income groups still lack access to the home finances. Housing projects requires a lot of finance, which is not easy to arrange and can be rather expensive. Therefore, a proper financing mechanism is the backbone of any affordable housing. Without developing adequate financing mechanisms or making available special financial packages to both the developers as well as to the house purchasers, housing projects cannot aim to succeed. To subdue the cost of finances, the period of construction should be reduced to the bare minimum, with the help of modern technology.

4.2.3 CONCLUSIONS Undoubtedly, shelter is one of the basic needs of every human being. In any civilised society, each and every citizen should be provided with a reasonably decent and liveable shelter or housing/dwelling unit. The today government has to work relentlessly to achieve this goal. It is good that the present government has bound itself with a mandate of achieving this goal. If all the issues are carefully put to practice, by government of India, this goal, which appears utopian at the moment, may definitely become feasible. It would be ideal if all of us, that is, architects, town planners and engineers, could find ourselves with the mandate of the government and ensure that each and every citizen of India has a shelter over his head by 2022.

5. NEED AND NECESSITY OF AFFORDABLE HOUSING 5.1 POLICY FRAMEWORK BY GOVERNMENT There are several policies adopted by the government and initiated in the delivery of affordable housing for the EWS, LIG and local MIG. The first ever national level housing policy was formulated in 1988. It was followed by intervention of public sectors and related developments of human settlements in India. With the formulation of National housing policy, National housing and habitat policy in 1998. The initiatives of this policy focused on the transition of public sector role as ‘facilitator’, increase in role of the private sectors, decentralisation, development of tax and concessions, accelerated flow of housing finance, cost effective, and pro-poor technology. However, all these policies were encompassing and applicable to both the rural and urban areas.

Taking into account the challenges of required shelters and growth of slum area, the policy specific to urban areas, the central initiated National Urban Housing and Habitat policy in 2007. In Karnataka, the board of industrial area development, it first acquires land and then allots to the industries. Similarly, if the government could set the clear guidelines of what affordable housing should be and make the land availability possible, then its developer’s responsibility in developing the housing affordability.

5.2 HOUSING NEED AND NECESSITY The rapid growth of urbanization in India today has made a necessity of the development of Affordable Housing. Most of the metropolis has shortfall in them, which resulted in escalation of informal settlements. The escalation of these settlements has led to the deterioration of the landscape. This also caused the destructive effects on the planned city growth. Thus, the troublesome of the government authorities is the development of the large scale Affordable Housing projects. The factors contributing to these failures are shortfall in land parcel, high construction price, regulatory approach, inadequate finance, corruption and identification of beneficiaries. Therefore, an inclusive framework is crucial to achieve an Affordable Housing in India. Housing incompetence in India has both quantitative and qualitative aspects. The housing issues have been worsening over the years due to (i) rapid growth of population, (ii) urbanisation and (iii) inadequate housing. There is qualitative housing problem in between urban and rural areas, where as the problem of urban areas is, by the congestion, slums and squatter settlements, and the rural area are characterised by the absence of essential services and poor environmental conditions. In 19th Century, the housing problems where physical problems, such as bad housing conditions, lack of ventilation, lack of running water, inadequate drainage systems, etc. The economic implication of such housing were not faced, but the problems of providing physically adequate housing, the working people could afford as rent was faced,

As a society changes, so its need and expectations change, in housing as in everything else. The concept behind housing desires is based on the household’s preferences and aspirations. In some circumstances housing desires merge with both need and demand of housing. The main problem of housing arises, when the gap between housing ‘need’ and availability of dwelling units (satisfactory) exists. This gap explains numerical shortage in dwelling units to accommodate all the households in need. The critical problems rose in India such as, overcrowding, homelessness, shared accommodation and lack of amenities are the important factors to be known as it is absolutely necessary to diagnose which factor is responsible, since the remedies are different for each factors. The provision of housing will ensure weather all the needs are met, an allocation is as important as building. Is the social aim of housing policy is that of giving everyone? The core of housing policy is to ensure that ‘need’ is no regardless of the level of effective demand. The approaches to the solution of housing demand in India is characterised in private and public sectors. In private sector, relief on tax mortgage interest, rent control, etc. reduces the actual cost of renting a house or owning. Whereas, in public sectors, the dwellings are let out to tenants because if their housing needs, rent rebates are also available due to their inadequate to meet the rents. Both the approaches meet the necessity of housing demand. Housing shortage leads to a gap between the total demand and number of dwelling units. There are many reasons for arise in housing shortage ; rapid growth in population, internal and external movement of population, change in families and household structures, lack of sufficient supply of residential units due to the financial and material resources, etc.

The normative housing standards should not only reflect the socio-economic conditions but also the climate and cultural differences that are characterised according to the regions and classes of the households. The analysis say that estimate of housing shortage depends on a minimum acceptable housing to adopted for and thus, keeping these consideration, the National Building Organisation has been estimating the housing shortage from time to time.

5.3 APPROACHES TO AFFORDABLE HOUSING The aim of creating affordable housing is to provide shelter which is basic fundamental right to all. Providing of affordable housing should encompass both – enabling people to buy and to rent. The present strategies on which affordable housing is being concentrated on the ability of the people to buy, these strategies requires a myriad of agencies from public and private sectors to work together for the development of the housing. A private sector comprises residential developers, who develop housing projects and sell them in the open market. A government sector comprises Urban Local Bodies and Urban Development Department, which are responsible for laying down the guidelines and bylaws for Affordable Housing. The Ministry of Environment and Forest have imposed certain restrictions of limit in land use in urban areas for housing project development, resulting in lack of urban land and thus increases in land cost, which regulates the policies of RBI that affects the interest rates, thus has a major impact on the ability of the home buyers. A people requirement differentiates the approaches towards Affordable Housing. The groups which are required to work in sync to make a housing Affordable are – Providers: government departments, urban local bodies and research institute which needs to provide the target groups with approval, technical and financial supports. Enablers: NGO’s, self help groups and registered societies which helps to identify the users groups, who initiates the common interest and establish channels of communication.

Executors: private developers, public private partnership, public sectors firms which requires to be hold and maintain rental accommodations with adequate support from the first two groups. A common thread of Housing Development is required to bind these groups together such that they work in a unified manner and reach the actual target of a Housing Affordability.

6. CONCLUSION Development of large scale affordable housing is today’s greatest necessity of urban India. Today the cities lack in lowincome housing, which has resulted in escalation in slums, squatters and unorganised estates across. Today, where the slum dwellers and low income class people are deprived of basic amenities and failed to be an equal citizen, it is prejudicial to the planned growth of cities. The large scale urban development on daily basis is increasingly and difficult due to lack of urban land availability, congested transit routes, lack of finance and regulatory hurdles. However, in today it is very important to recognise and address these issues so that a framework can be established in ensuring the development of affordable housing.

7. BIBLIOGRAPHY BUILDING TYPE BASICS FOR HOUSING – Stephen A. Kliment, Series Founder and Editor Robert Chandler, John Clancy, David Dixon, Joan Goody, Geoffrey Wooding, with Jean Lawrence

PUBLIC HOUSING – Prof. M. A. MUTTALIS, Dr. MOHO, AKBAR ALLI KHAN (Editors) Published by S.K. Ghai, Managing Director, Sterling Publishers Pvt.

8. APPENDICES 

http: //www.centralbedfordshire.gov.uk/housing/strategic/types.aspx

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//economictimes.indiatimes.com/articleshow/62066464.cms?utm_source=conte ntofinterest&utm_medium=text&utm_campaign=cppst

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https://www.researchgate.net/publication/321937252_A_CASE_STUDY__AFFORDABLE_HOUSING http://www.isocarp.net/Data/case_studies/2397.pdf

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/ISSNP_adopted%2011.2_201511041335060419.

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http://iihs.co.in/knowledge-gateway/wpcontent/uploads/2015/08/iihs_rf_housing_reduced.pdf https://www.weforum.org/agenda/2016/05/how-to-tackle-india-s-affordable-housing-challenge https://www.ijser.org/researchpaper/The-Challenges-in-Affordable-Housing-for-Urban-Poor-inIndia-Deciphering-the-Housing-for-All-by-2022-A-Comprehensive-Approach-to-DecrementHousing-Shortage-A-Case-Study-of-Delhi.pdf

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 LiveabilityStandards.pdf  Shelter-apr16.pdf  tangible parameters for affordable low cost housing in India – CoA https://www.coa.gov.in/show_img.php?fid=182  12RFAffordableHousingFinance.pdf  1.3-Apartment-Design-BCA-Class-2-Construction.pdf  Affordable_Housing_in_India_2012.