Housing for all – PMAY, etc.

Urbanisation is taking place at a faster rate in India. Population residing in urban areas in India, according to 1901 census, was 11.4%. This count increased to 28.53% according to 2001 census, and crossing 30% as per 2011 census, standing at 31.16%.

Housing for all – PMAY, etc.

[pib] Swamih Investment Fund

Note4Students

From UPSC perspective, the following things are important :

Prelims level : SWAMIH Investment Fund

Mains level : Not Much

In order to give relief to homebuyers of stalled projects, a Special Window for Completion of Affordable and Mid-Income Housing (SWAMIH investment fund) has been created for funding stalled projects.

Try this MCQ:

Q.The SWAMIH Fund recently seen in news is related to:

(a) Higher Education (b) MSMEs (c) Housing (d) Highways

SWAMIH Investment Fund

  • SWAMIH investment fund is an alternative investment fund which aims to provide last-mile funding to the stressed affordable and middle-income housing projects in the country.
  • It is expected to fund the projects which are net-worth positive, including those projects that have been declared as NPAs or are pending proceedings before the National Company Law Tribunal under the IBC.

Why need such funds?

  • Several real estate projects have suffered due to a combined effect of two changes in the real estate sector.
  • On one hand, incremental launches and slow sales have increased unsold inventory in each project.
  • While the effect has then got compounded by the fact that consumer preference is now towards completed projects rather than under-construction projects.
  • This preference has developed as consumers are largely avoiding taking project completion risk and instead are more inclined to completed projects.

Housing for all – PMAY, etc.

[pib] Special Window for Affordable and Mid Income Housing (SWAMIH)

Note4Students

From UPSC perspective, the following things are important :

Prelims level : SWAMIH Fund

Mains level : Housing for all

Union Minister for Finance has informed that so far Rs 8767 crore has been approved for 81 projects under Special Window for Affordable and Mid-Income Housing (SWAMIH) Investment Fund I.

Try this MCQ:

Q.The SWAMIH Fund recently seen in news is related to:

(a) Higher Education (b) MSMEs (c) Housing (d) Highways

SWAMIH Fund

  • In November 2019, the Finance Minister had cleared a proposal to set up a ‘Special Window’ called SWAMIH in to provide priority debt financing for the completion of stalled housing projects.
  • SWAMIH Investment Fund has been formed to complete the construction of stalled, brownfield, RERA registered residential developments that are in the affordable housing / mid-income category.
  • The Sponsor of the Fund is the Secretary, Department of Economic Affairs, Ministry of Finance, and Government of India on behalf of the Government of India.
  • The fund is set up as a Category-II AIF (Alternate Investment Fund) debt fund registered with SEBI and would be professionally run.

Why need such funds?

  • Several real estate projects have suffered due to a combined effect of two changes in the real estate sector.
  • On one hand, incremental launches and slow sales have increased unsold inventory in each project.
  • While the effect has then got compounded by the fact that consumer preference is now towards completed projects rather than under-construction projects.
  • This preference has developed as consumers are largely avoiding taking project completion risk and instead are more inclined to completed projects.

Housing for all – PMAY, etc.

[pib] Affordable Rental Housing Complexes (AHRCs) for Urban Migrants / Poor

Note4Students

From UPSC perspective, the following things are important :

Prelims level : Pradhan Mantri Awas Yojana (PMAY), AHRC

Mains level : Housing for all

The Union Cabinet has given its approval for developing of Affordable Rental Housing Complexes (AHRCs). for urban migrants  / poor.

Try this question from CSP 2015:

“Pradhan Mantri Jan-Dhan Yojna’ has been launched for

(a) Providing housing loan to poor people at cheaper interest rates

(b) Promoting women’s Self-Help Groups in backward areas

(c) Promoting financial inclusion in the country

(d) Providing financial help to the marginalized communities

AHRC

  • It is a sub-scheme under PM Awas Yojana – Urban.
  • Under the scheme, existing vacant government-funded housing complexes will be converted in ARHCs through Concession Agreements for 25 years.
  • The concessionaire will make the complexes livable by repair/retrofit and maintenance of rooms and filling up infrastructure gaps like water, sewer/ septage, sanitation, road etc.
  • States/UTs will select concessionaire through transparent bidding.
  • Complexes will revert to ULB after 25 years to restart next cycle like earlier or run on their own.

Beneficiaries of the scheme

  • A large part of the workforce in manufacturing industries, service providers in hospitality, health, domestic/commercial establishments, and construction or other sectors, labourers, students etc. who come from rural areas or small towns seeking better opportunities will be the target beneficiary under ARHCs.

Benefits of AHRCs

  • Usually, these migrants live in slums, informal/ unauthorized colonies or peri-urban areas to save rental charges.
  • They spend a lot of time on roads by walking/ cycling to workplaces, risking their lives to cut on the expenses.
  • ARHCs will create a new ecosystem in urban areas making housing available at affordable rent close to the place of work.
  • Investment under ARHCs is expected to create new job opportunities.
  • ARHCs will cut down unnecessary travel, congestion and pollution.

Back2Basics: Pradhan Mantri Awas Yojana (PMAY)

PMAY-Urban

The PMAY- Urban Programme launched by the Ministry of Housing and Urban Poverty Alleviation (MoHUPA), in Mission mode envisions provision of Housing for All by 2022. The Mission seeks to address the housing requirement of urban poor including slum dwellers through following programme verticals:

  • Slum rehabilitation of Slum Dwellers with participation of private developers using land as a resource
  • Promotion of Affordable Housing for weaker section through credit linked subsidy
  • Affordable Housing in Partnership with Public & Private sectors
  • Subsidy for beneficiary-led individual house construction /enhancement.

PMAY-Rural

  • In pursuance to the goal – Housing for all by 2022, the rural housing scheme Indira Awas Yojana has been revamped to Pradhan Mantri Awaas Yojana – Gramin and approved during March 2016.
  • Under the scheme, financial assistance is provided for construction of a pucca house to all houseless and households living in dilapidated houses.
  • It is proposed that one crore households would be provided assistance for construction of pucca house under the project during the period from 2016-17 to 2018-19.
  • The scheme would be implemented in rural areas throughout India except for Delhi and Chandigarh. The cost of houses would be shared between the Centre and States.

Housing for all – PMAY, etc.

[op-ed snap] Housing crisis, untouched

Note4Students

From UPSC perspective, the following things are important :

Prelims level : Nothing much

Mains level : Model Tenancy Act - analysis

Context

A draft of the Model Tenancy Act, 2019 was released by the Ministry of Housing and Urban Affairs. Finance Minister stated in the Budget 2019 speech that the rental laws in India are archaic and do not address “the relationship between the Lessor and the Lessee realistically and fairly”. 

Features of the act

    • It aims to promote rental housing and balance the interests of landowners and tenants. 
    • It covers residential and non-residential properties.
    • It is largely aimed at the urban residential sector.

Positive Impact

    • Constitution of Rent Courts and Tribunals – Thousands of rent cases clog the lower judiciary and the process is lengthy and time-consuming. 
    • Time-bound procedures – The Act provides for a time-bound process with dedicated courts for tenants and landlords. 

Limitations of the act

    • Limited scope – The Model Tenancy Act has a limited understanding of the tenant-owner relationship. It fails to take into account that a majority of tenancies in India are informal. These agreements are based on trust, word of mouth, and social kinship networks
    • Challenge in implementation – 
      • Either a majority of the rental agreements will continue to be unregistered
      • The Act might formalise existing arrangements -> an increase in rents. It will be the opposite of what it sought to achieve.
    • Jurisdiction 
      • The jurisdiction of these courts to hear cases is limited to the tenancy agreement submitted to the Rent Authority
      • All future tenancies that have been submitted to the Rent Authority shall be eligible to approach these courts.
      • Older tenancies and informal tenancies will still not fall under its jurisdiction. These problems will continue.

Way ahead

    • The Act needs to respond in a realistic manner to actual housing market practices in our cities. 
    • Focus on the upper end of the housing market
      • The vacancy is higher in the upper segments of the housing market. Across urban India, vacancy rates in urban areas is 10.1% while in slums it is 7.3%. 
      • Implementation of the Act in the upper segments of the housing market will allow some of these vacant houses to enter the rental market.
      • This will relieve the pressure and demand on the lower segments.
    • Commercial – Residential – 
      • Commercial tenancies attract a lot more institutional investment.
      • Residential tenancies are largely held between individuals and households
      • The two markets are very different from each other. 
      • The outcomes required of the two sectors are entirely different — while commercial real estate underpins economic development, residential arrangements in urban areas offer the security of tenure and access to livelihoods, health, and education.
    • More investments
      • Increase the supply of formal affordable rental housing.
      • This requires investment on the part of the Central and State governments. 
      • Publicly provided rental housing will need structured efforts in management, planning, and design to achieve its inclusive agenda. 
      • Central and State governments to develop schemes for the supply of formal affordable rental housing. 
      • This could be in the form of housing built to rent for migrants, low-wage informal and formal workers, and students; rent-to-own housing for unsteady low-wage households; and even rental housing allowances/vouchers for the most marginalised in the housing market. 
    • Wider ambit – The Act needs a wider ambit along with renewed efforts and investments.

Housing for all – PMAY, etc.

Model Tenancy Act

Note4Students

From UPSC perspective, the following things are important :

Prelims level : Features of act

CONTEXT

The Ministry of Housing and Urban Affairs has drafted a ‘Model Tenancy Act’, 2019 which envisages to balance the interest and rights of both the owner and tenant and to create an accountable and transparent ecosystem for renting the premises in disciplinedand efficient manner.

Benefits

  • It will enable creation of adequate rental housing stock for various income segmentsof society including migrants, formal and informal sector workers, professionals, students etc. and increase access to quality rented accommodation, enable gradual formalization of rental housing market.
  • It will help overhaul the legal framework vis-à-vis rental housing across the country.
  • It is also expected to give a fillip to private participation in rental housing for addressing the huge housing shortage across the country.
  •  The Draft MTA will also promote growth of rental housing and investment in the sector and promote entrepreneurial opportunities and innovative mechanism of sharing of space.

Features of Act

  •   MTA stipulates a robust grievance redressal mechanism comprising of Rent Authority, Rent Court and Rent Tribunal.
  •   It has been proposed to cap the security deposit equal to a maximum of two month’s rent in case of residential properties and, minimum of one month’s rent in case of non-residential property.
  •   After coming into force of this Act, no person shall let or take on rent any premises except by an agreement in writing.
  •    The Model Act provides for its applicability for the whole of the State i.e. urban as well as rural areas in the State.
  •    Within two months of executing rental agreement both landowner and tenant are required to intimate to the Rent Authority about the agreement and within seven days a unique identification number will be issued by the Rent Authority to the both the parties.
  •    A digital platform will be set up in the local vernacular language of the State for submitting tenancy agreement and other documents.
  •  Once finalized the Model Act will be shared with the States/Union Territory (UTs) for adoption.

 Need for such an act

  • As per Census 2011, nearly 1.1 crore houses were lying vacant in the country and making these houses available on rent will complement the vision of ‘Housing for All’ by 2022.
  • The existing rent control laws are restricting the growth of rental housing and discourage the owners from renting out their vacant houses due to fear of repossession.
  • One of the potential measures to unlock the vacant house is to bringing transparency and accountability in the existing system of renting of premises and to balance the interests of both the property owner and tenant in a judicious manner.

Housing for all – PMAY, etc.

Government launches Global Housing Technology Challenge to build houses in shorter time

Note4students

Mains Paper 1: Social Issues | Urbanization , their problems & remedies

From UPSC perspective, the following things are important:

Prelims level: GHTC

Mains level:  Housing for all


News

  • To make the construction of houses cost-effective and innovative, the Ministry of Housing and Urban Affairs launched the Global Housing Technology Challenge (GHTC).

Global Housing Technology Challenge (GHTC)

  1. The aim of the initiative — under the Pradhan Mantri Awas Yojana Urban (PMAY-U) — is to fast-track the construction of affordable housing and meet the target of constructing 1.2 crore houses by 2022.
  2. GHTC-India challenge is a well-conceptualized and designed programme to bring out the most innovative, simple, effective and appropriate solutions for making housing available and affordable to the common man.
  3. Under the challenge, a grand expo-cum-conference on GHTC will be organised in March which will be a unique platform not only for the stakeholders but also for the States/Union Territories and technical institutions.

Affordable Sustainable Housing Accelerators

  • GHTC-India challenge will also focus on identifying and mainstreaming proven demonstrable technologies for lighthouse projects and spotting potential future technologies for incubation and acceleration support through ASHA (Affordable Sustainable Housing Accelerators) — India.
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