What is Affordable Housing?

• According to the RICS Report on Making Urban Housing Work in India, affordability in the context of urban housing means provision of ‘adequate shelter’ on a sustained basis, ensuring security of tenure within the means of the common urban household. RICS
Practice Standard Guidance Notes (GN 59 2010) states that ‘affordable housing is that provided to those whose needs are not met by the open market’.
• According to the KPMG Report on ‘Affordable Housing – A Key Growth Driver in the Real Estate Sector’, affordable housing is defined in terms of three main parameters, namely income level, size of dwelling unit and affordability. Whilst the first two parameters are independent of each other, the third is a dependent parameter that can be correlated to income and property prices (Figure 2).
• As per US Department of Housing and Urban Development, the generally accepted definition of housing affordability is ‘for a household to pay no more than 30% of its annual income on housing. Families who pay more than 30% of their income for
housing are considered cost burdened and may have difficulty affording necessities such as food, clothing, transportation and medical care’.
• According to the Task Force on Affordable Housing set up by the MHUPA in 2008, affordable housing for various segments is defined by size of the dwelling and housing affordability derived by the household income of the population (Figure 3).
• The JNNURM Mission Directorate of MHUPA has also defined affordable housing in its amended Guidelines for Affordable Housing in Partnership released in December 2011 (Figure 4).

What is affordable housing policy?

This policy is intended to encourage the planning and completion of „Group Housing Projects‟ wherein apartments of „pre-defined size‟ are made available at „pre-defined rates‟ within a „Targeted time-frame‟ as prescribed under the present policy to ensure increased supply of „Affordable Housing‟ in the urban housing market to the deserving beneficiaries.

What are planning and area parameters?

(i) Planning Parameters: The planning parameters for the projects allowed under this policy are as follows:
a. Min. and Max. density permitted: 850ppa (min) & 900ppa (max)
b. Maximum FAR allowed: 225
c. Maximum Ground Coverage allowed: 50%
d. Maximum area under Commercial Use: 4% of the Net Planned Area at 175 FAR.
e. Minimum Area under organized Open Space: 15% of the Net Planned Area
f. Occupancy Norm (for density calculations): 5 persons per flat
g. An additional component of population density, FAR and commercial area is provided beyond what is allowed in group housing colonies to ensure the viability of such projects.
(ii) Type of Apartment and Area under such Apartments:
a. The apartments of pre-defined size-range shall be allotted at a pre-defined rate to ensure provision of affordable housing under this policy.
b. The carpet area of the apartments shall range from 28sqm to 60sqm in size.
c. The term “carpet area” shall mean the net usable covered floor area bound within the walls of the apartment but excluding the area covered by the walls and any balcony which is approved free-of-FAR, but including the area forming part of kitchen, toilet, bathroom, store and built-in cupboard/ almirah/ shelf, which being usable covered area shall form part of the carpet area.
d. No separate EWS category apartments shall be provided to eliminate any cross subsidy component and thus to avoid any adverse impact on the affordability of apartments made available under this policy.
(iii) Parking Norms:
a. The parking space shall be provided at the rate of half Equivalent Car Space (ECS) for each dwelling unit.
b. Only one two-wheeler parking site shall be earmarked for each flat, which shall be allotted only to the flat-owners. The parking bay of two-wheelers shall be 0.8m x 2.5m unless otherwise specified in the zoning plan.
c. No car parking shall be allotted to any apartment owner in such projects.
d. The balance available parking space, if any, beyond the allocated two-wheeler parking sites, can be earmarked as free-visitor-car-parking space.
e. Additional parking norms and parameters, if any, can be specified in the zoning plan.
(iv) Community Sites: The coloniser shall be required to provide the following community sites in any such project, which shall form part of the common areas and facilities as defined under the Haryana Apartment Ownership Act:
a. One built-up Community Hall of not less than 2000sqft.
b. One built-up Anganwadi-cum Creche of not less than 2000 sqft area.
c. No other community sites shall be required to be provided in such project.
(v) Maintenance of colony after completion of project: A commercial component of 4% is being allowed in the project to enable the coloniser to maintain the colony free-of-cost for a period of five years from the date of grant of occupation certificate, after which the colony shall stand transferred to the “association of apartment owners” constituted under the Haryana Apartment Ownership Act 1983, for maintenance. The coloniser shall not be allowed to retain the maintenance of the colony either directly or indirectly (through any of its agencies) after the end of the said five years period. Engaging any agency for such maintenance works shall be at the sole discretion and terms and conditions finalised by the “association of apartment owners” constituted under the Apartment Ownership Act 1983.

What are allotment rates, allotment and eligibility criteria?

Allotment Rate: The allotment rate for the Apartment units approved under such projects shall be as follows:

Sr. No. Development plan Maximum allotment rate on per sqft carpet area basis Additional recovery against balcony of min 5ft clear projection
a Gurgaon, Faridabad, Panchkula, Pinjore-Kalka Rs.4,000/- per sq. ft. Rs 500 per sqft against all balcony area in a flat adding upto and limited to 100 sqft, as permitted in the approved building plans.
b Other High and Medium Potential Towns. Rs.3,600/- per sq. ft. Rs 500 per sqft against all balcony area in a flat adding upto and limited to 100 sqft, as permitted in the approved building plans.
c Low Potential Towns Rs.3,000/- per sq. ft. Rs 500 per sqft against all balcony area in a flat adding upto and limited to 100 sqft, as permitted in the approved building plans.

NOTE: ♯ : Such cantilevered balconies (unsupported on three sides) shall not be part of carpet area and shall continue to be allowed free-of-FAR.

(ii) Eligibility Criteria:
a. Any person can apply but person which includes his/her spouse or his/her dependent children who do not own any flat/plot in any HUDA developed colony/ sector or any licenced colony in any of the Urban Areas in Haryana, UT of Chandigarh and NCT Delhi shall be given first preference in allotment of flats. An applicant in a specific colony shall make only one application. Any successful applicant under this policy shall not be eligible for allotment of any other flat under this policy in any other colony. In case, he/she is successful in more than one colony, he/she will have choice of retain only one flat. All such applicants shall submit an affidavit to this effect.

What the application fees and hidden charges?

i) Keeping into account the fact that a limited number of projects shall be allowed under this policy and the sale is to be effected at a predetermined rate, the licence fees and IDC shall stand waived off. However, scrutiny fees and conversion charges at prescribed rates shall be levied.
(ii) Similarly, in order to minimize the impact of EDC rates on the viability of such a project, the rates and schedule of EDC applicable on plotted colonies shall be levied on such projects.In order to encourage early completion of projects, in case the colonizer completes the project in 3.5 years from the date of commencement of project and applies for grant of occupation certificate in such period, the payment of last instalment of EDC shall be considered for waiver after grant of occupation certificate.

What the pre defined sizes,pre defines rates,targeted time framer?

Pre defined sizes Pre defined rate Possession time
28 sqm to 60 sqm 4000/- SF 4 Years