The Hindu 12.11.2010
Chennai faces acute deficit of affordable housing
A. Srivathsan
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Government initiatives fall short of targets
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There is a need to generate about 4.2 lakh units for low income groups by 2016
Apart from poor response, the limited units built so far are not affordable in terms of price
Chennai: Government initiatives to bridge the affordable housing deficit in Chennai city have fallen short of the targets.
In order to increase the supply of affordable housing units, the
building rules of the Second Master Plan, in 2008, made it compulsory on
private builders to reserve apartments for lower income groups.
So far, it has generated only 2500 units, against the annual demand of 36,000 units.
Another new initiative introduced in 2010 that provides 50 per cent
additional FSI for low income housing projects has no takers.
There is a need to generate about 4.2 lakh units for low income groups by 2016.
The CMDA has made it mandatory that apartments constructed on
properties exceeding one hectare should reserve 10 per cent of the
developed land for LIG and EWS dwelling units (measuring 450 sq.ft).
Alternative location
In the event, if the land cannot be provided within the same site, it
could be provided in an alternative property located within a radius of
two km from the site developed.
“There are no large properties measuring one hectare within a 20 km
radius of the Chennai city. Hence this rule will only have limited use.
If one were to develop a low income housing project in the far suburb of
Chennai, it requires good infrastructure support, which is absent. It
also does not make good business proposition to combine low income
housing with big budget housing projects,” explained M.K. Sundaram, past
president of builders association Southern Centre and Member, shelter
committee, CMDA.
Apart from poor response, the limited units that have been so far built are not affordable in terms of price.
Criterion
A housing unit is considered affordable to Economically Weaker
Section (EWS) and Low Income Group (LIG), according to the Ministry of
Housing and Urban Poverty Alleviation, when its cost is about four times
the gross annual income of the buyer.
Going by the annual income limit used for categorising EWS and LIG by
Tamil Nadu Housing Board, which is Rs.60,000 and Rs.1.2 lakh
respectively, a 450 sq.ft housing unit in Chennai has to be priced at
Rs.2.5 lakh and Rs.4.8 lakh to qualify as affordable housing.
Ground reality
The ground reality is that it is priced at Rs.8 to 9 lakh in the
faraway suburb and within the city it would be priced between Rs.25 lakh
and Rs.30 lakh.
“We need to give the policies some more time to take effect,” remarked Susan Mathew, Vice- Chairperson, CMDA.
Reserve housing units
“Efforts are taken to ensure that the large housing projects reserve
adequate number of affordable housing units. The final completion
certificate is not issued unless the low income housing units are built.
We will verify this through an onsite inspection,” she added.
