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Tuesday, September 12, 2017

TN Housing Policy to regulate private urban rental housing

Chennai:
Tamil Nadu is facing a shortage of 1.5 million homes in the urban areas and there is an urgent need to regulate and streamline private urban rental housing to enable access to urban poor, according to State Urban Housing and Habitat Policy (SUHHP) being drafted by German agency GIZ along with the state housing board.

It is learnt that through the new policy, the policy and government subsidies towards housing will undergo a significant change with focus being more on streamlining private urban rental housing.

The state will be looking at housing supply intervention in the state as an integrated market rather than sub-markets for different income groups as failure in any sub-market will have ramifications across the city.

It feels that housing supply intervention for urban poor is often usurped by the low income group and middle income categories in the city.

The policy will also focus on lack of access to credit for urban poor. In the absence of documented income proofs, irregular income and absence of collaterals, it is difficult for the poor to access funds, the draft policy observed.

It is learnt that the focus under SUHHP will be urban renewal strategies which allow densification of core city area and redevelopment of congested and dilapidated housing stock.

Another event of concern is the transaction cost imposed during conversion of land to built space through various land and housing regulations which constitute 10 to 25pc of urban dwelling price across India. The policy will try to implement reforms in land and housing that can reduce the transaction costs and lower housing prices

What the policy will look into:
1.   It will come out with frameworks to bridge affordability gaps
2.   It will look into rental housing demand and supply side intervention
3.   Tenure security and regularization
4.   Unlocking vacant housing
5.   Improving supply of serviced land
6.   Reforms in key land and housing regulations that affect supply

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