survey instrument - global housing policy...
TRANSCRIPT
Date Conducted:
Country: India State/Province: Tamilnadu
Region: South India City: Chennai
First Name: Henry Family Name: Waller
Organization:
Address:
City: Chennai Zip Code: 600040
Country: India Email Address: [email protected]
Telephone: 91-044-26181384/2618 4380 Fax:
Habitat for Humanity India
It is important to note here that in attempting to find out what is the official housing “policy” in the country, three different and
complementary approaches to understanding housing policy should be pursued: (1) the policy intentions of officials; (2) the
policy prescriptions as they are articulated in writing in published documents, regulations, laws, and decrees; and (3) the
actual practices of those engaged in carrying out official policy. Needless to say, the three are not always identical.
Please use this spreadsheet form to collect and record the data for the survey and send it to Jane Katz, Director of
International Affairs & Programs, Government Relations and Advocacy with Habitat for Humanity ([email protected]) when it is
complete. Instructions and definitions are provided with this survey instrument. Any questions or comments you may have
concerning the information or its source should be written down in the sections provided for comments. Please provide an
explanation for any unanswered question in the comments section indicating why the information could not be obtained.
Data collection will involve interviews with informants, examination of documents, and field observations. In some cases, it
may be necessary to interview more than one informant to complete the data collection. In some cases, it may be necessary
to obtain the information from documents, rather than from interviews. It is the responsibility of the interviewer to evaluate the
data collected and to use the best possible data source for obtaining the information. In evaluating the data collected, it may
be important to consult knowledgeable persons in the field and to make sure that the results are sensible and can withstand
close scrutiny.
To this effect, Habitat for Humanity seeks to generate reliable and comparable information on the global housing policy
environment. The organization seeks to do so by collecting housing policy data in a large number of countries on a regular
basis, and using this data for two complementary purposes: (a) to maintain a web-based housing policy clearinghouse with the
up-to-date information on housing policy environment in each country; and (b) to arm advocates with factual data to influence
housing policy.
The collection of data is structured in five sections:
1. The Property Rights Regime;
2. The Housing Finance Regime;
3. The Housing Subsidies Regime;
4. Residential Infrastructure; and
It is expected that the actual time required for collecting the data necessary for completing all sections is of the order of 20 full
working days over a 2-months period.
Habitat for Humanity
The Global Housing Policy Indicators
Survey InstrumentRevised May 23, 2011
1/15/2014
Originally designed and tested by Shlomo Angel and Lucy Gitlin
Information about the Field Researcher:
1835, 20th Main Road , Anna Nagar
INTRODUCTION:
Habitat for Humanity (HFH) has built, rehabilitated, repaired, or improved more than 400,000 affordable housing units
worldwide since 1976. While this is clearly a laudatory achievement, the organization has come to realize that it can never
meet its prime objective of “decent housing for all” through its own building efforts. It is now gradually moving towards an
advocacy role, where it aims to influence overall housing policy and practice in the more than 100 countries in which it has a
presence.
5. The Regulatory Regime.
* * *
Thank you!
QUESTIONING THE SURVEY INSTRUMENT:
Before starting the survey, please review the survey instrument carefully. If you have any question regarding a definition of a
concept or a method for gathering the information, please write it down in the comment section attached to each individual
question. Then send your questions to [email protected]. We will then respond directly to your questions. Please do that as
soon as possible, so as not to waste time. But in the meantime, you can start collecting data on those items that you
understand and have no questions about. You can keep sending us questions throughout the period when you are collecting
the data. If you are using an official definition, please include the definition in the comments section.
SENDING THE QUESTIONS IN ADVANCE TO INFORMANTS:
Many of the questions require quantitative or specific information, which may not be available to informants at the time of the
interview. You may find it useful to send the questions to the informants in advance, together with an introductory letter
introducing you and explaining what you are doing and why you need the information. We will provide a template letter to the
Habitat for Humanity point person in your region that will be responsible for your work, and he/she can provide you with such
an introductory letter. If you plan to send the interview information in advance, please make sure that you give the interviewee
adequate time to prepare the materials.
14. A housing advocate; and
15. A legal expert.
If the suggested informant listed above cannot provide the required information, it will be up to the local consultant to find a
way to obtain the information from other sources. Similarly, if information obtained does not seem to be accurate or
trustworthy, it may be necessary to obtain it from more than one source so as to ensure that it is correct.
8. A municipal official familiar with evictions and demolitions;
9. A municipal housing official;
10. A municipal budget official;
11. A commercial bank mortgage officer;
12. A real estate agent;
13. A land subdivision developer;
2. A program official (National Housing Agency);
3. A budget official (National Housing Agency);
4. A housing program official (Provincial/State Government);
5. A housing budget official Provincial/State Government;
6. A municipal regulator;
7. A municipal infrastructure official;
THE INTERVIEWS:
Obtaining information for completing the survey will necessarily involve interviews. All interviews should be conducted in the
metropolitan area of the capital city or an alternative large city in the country. The interviews may include meetings with
officials in the national housing agency, the provincial or state government in which the capital is located, and the municipal
offices of a city on the fringe of the metropolitan area. They may also include interviews with private sector and civic sector
informants.
The following is a partial list of informants who may be interviewed to collect the data for the survey:
COMMENT SECTION:
Please list all sources of information used to obtain the answer in the comment section, for example list the name, title, and
organization of each person interviewed. There are additional questions in the instruction section that need to be addressed in
the comment section. Read through the instructions carefully and give thorough responses to these open-ended questions.
Add as many details or additional information you might have in the comments section, as this will help add a bigger picture
explanation to the quantitative answers.
1. A policy official (National Housing Agency);
Housing Finance Regime 6/25/2014
Housing Finance Regime
Questions Score Instructions Comments
F 0.69
F1 Conditions support mortgage lending. 0.33
F1.1 The inflation rate last year. (%) 8
Obtain from Central Bank documents, in local
currency. If the inflation rate for the last year
is not typical of previous years, please clarify
in the comment section.
7.52% ( November 2013). In November 2013, India's headline
inflation rate edged up to 7.5 percent, from 7.0 percent a
month earlier. Prices rose at its faster pace since September
of 2012 mainly due to higher food articles and energy costs.
(Ministry of commerce and Industry, Government of India).
inflation drops to 6.16% in December 2013 (The Hindu,
January 15,2014)
F1.2
Residential mortgage debt as percentage of GDP.
(last year) 7
Information usually available from
Superintendent of Banks or Central Bank.
Note: if last year is not available, please use
the most recent year available and add the
year to the comment section. 7% (2012 ) (www.rbi.org.in)
F1.3
Are there ceilings on interest rates for bank
deposits? (Yes=1/No=0) 1
Please consult a manager of a commercial
bank.
Yes. Periodically revised by RBI. (Assistant Manager- Indian
Bank)
F2 Mortgage lending is liberalized. 0.80
F2.1
Are private housing finance institutions
(commercial banks) allowed to engage in
mortgage lending? (Yes=1/No=0) 1
Information for this section is usually available
from commercial bank managers involved in
mortgage lending. Yes. ( Managers - HDFC and India Bulls Home Finance)
F2.2
Can private housing finance institutions make
mortgage loans in any geographical region inside
the country? (Yes=1/No=0, or if no mortgage
lending=100) 1 "
Yes, after getting approval from RBI/NHB for branches
anywhere in India. Rural segment is restricted to private
housing finance institutions. The rural segment is covered by
dedicated rural housing finance companies. ( Managers -
HDFC and India Bulls Home Finance)
F2.3
Is mortgage lending available for both newly-built
and existing houses? (Yes=1/No=0, or newly-built
only =0.5, existing only=0.5) 1 "
Yes. For properties with clear titles. ( Managers - HDFC and
India Bulls Home Finance)
F2.4
Is mortgage lending available for the construction
of rental housing? (Yes=1/No=0) 0 "
No. India does not have a rental housing policy as of now. A
government appointed panel has recommended a separate
law for regulating residential rental housing in India.
Government of India is in the process of allocating funds for
rental housing with concessions from the 2% CSR funds from
top companies. ( Managers - HDFC and India Bulls Home
Finance)
F2.5
Is construction lending for residential development
(infrastructure and housing) allowed?
(Yes=1/No=0) 1 "
Yes. For the builder and new developer with good track
record and detailed project proposal. ( Managers - HDFC and
India Bulls Home Finance)
F3
Mortgage interest-rate subsidies are
eliminated. 0.08
F3.1
The government has a public housing bank or
agency that lends directly to borrowers.
(Yes=1/No=0) 1
Information for this section is usually available
from commercial bank managers involved in
mortgage lending.
Yes. All public sector banks, Housing Finance Companies
and other private financial institutions lends directly to
borrowers. National Housing Bank plays a regulator role and
hence do not lend directly. ( Managers - HDFC and India
Bulls Home Finance)
3
Housing Finance Regime 6/25/2014Questions Score Instructions Comments
F3.2
What is the difference between the interest rate on
a mortgage given by a private housing finance
institution and an interest rate on a mortgage
given by a government agency? (%) Enter 100 if
there are no private housing finance institutions.
Enter 0 if government agency does not give
mortgages. 3
You may calculate this difference yourself
from data on mortgage interest rates in
commercial banks and in the government
mortgage bank.
3 % is the difference. (Government Banks - 10% and Private
Banks - 13%) Depends on the Prime Lending Rate(PLR). (
Managers - HDFC and India Bulls Home Finance)
F3.3
Are there mortgages given at subsidized interest
rates? (Yes=1/No=0) 1
You may also consult officials at the
government mortgage bank or agency
providing the subsidy. Please describe who
the beneficiaries are for the subsidized rates.
Yes. for low income households and first time buyers for
Loans less than or equal to 20 lakhs as part of the priority
sector lending. Risk is assesed based on the profile. Even the
loan is secured, its high risk business for the bank. Usually
banks lends on the higher rate of interest for risky profile.
Banks and Housing Finance Companies have a spread of 3 to
5% . ( Managers - HDFC and India Bulls Home Finance)
F4
Mortgage lending is protected from undue
risk. 0.95
F4.1
Private housing finance institutions are required to
investigate borrower credit using independent
credit agencies. (Yes=1/No=0) 1
Information for this section is usually available
from commercial bank managers involved in
mortgage lending.
CIBIL (Credit Information Bureau India Limited) check is
mandatory for all borrowers if they apply housing loan with
any lending institutions. It plays a critical role in India's
Financial system. CIBIL collects and maintains records of an
individual payments pertaining to loans and credit cards.
These records are submitted to CIBIL by banks and other
lenders on Monthly basis. This information is used to create
Credit Information Reports (CIR) and credit scores which are
provided to lenders in order to help evaluate and approve
loan applications. ( Managers - HDFC and India Bulls Home
Finance, India Bank)
F4.2
Private housing finance institutions are required to
assess the value of collateral using an
independent third party. (Yes=1/No=0) 1 "
Yes. Institutions use third party as well as their own team. For
eg. Leading lenders like HDFC and ICICI use their team to
assess the value of the collateral. State Bank of India and
Indian Bank use licensed surveyors) . ( Managers - HDFC and
India Bulls Home Finance, Indian Bank)
F4.3
Is there a legal upper limit to the loan-to-value
ratios for bank mortgage loans? (Yes=1/No=0) 1 "
Yes. Indvidual House/Apartment Purchase - LTV is 80%. Land
Purchase - LTV is 70%. Minimum variation of 5% is based on
the risk of the profile and additional collaterals. ( Managers -
HDFC and India Bulls Home Finance)
F4.4
Is there a legal upper limit on the loan payment-to-
monthly income ratio for bank mortgage loans?
(Yes=1/No=0) 1 "
Yes. Ranges from 40-60% and varies with bank based on the
risk of the profile. ( Managers - HDFC and India Bulls Home
Finance)
F4.5
Does government guarantee individual mortgage
loans for housing? (Yes=1/No=0) 0 "
No. Purely depends on the repayment capacity and collateral
value. Property is mortgaged with Bank. ( Managers - HDFC
and India Bulls Home Finance, Indian Bank)
F4.6
Banks that provide mortgage lending are required
to have annual audits. (Yes=1/No=0) 1 "
Yes. In addition to Monthly Audits, Internal and External
audits annually. ( Managers - HDFC and India Bulls Home
Finance, Indian Bank)
F4.7
The volume and size distribution of mortgages is
reported annually to the regulatory agency.
(Yes=1/No=0) 1 "
Yes. Every month to National Housing Bank and Central
Registry of Securitisation Asset Reconstruction and Security
Interest of India (CERSAI). 4
Housing Finance Regime 6/25/2014
Questions Score Instructions Comments
F4.8
Please indicate the percentage of the mortgage
lending portfolio that is in default (60-days past
due). (%) 5
If a different standard is used to define default
(more or less than 60 days past due), please
describe in comments section.
5-6%. ( HDFC - < 1% and State Bank of India - 8%) (
Managers - HDFC and India Bulls Home Finance)
F5 Lender's interest in the collateral is protected. 1.00
F5.1
Percentage of residential properties with
mortgages that have legal titles. (%) 100
Information is typically available in the
land/property registry. If the answer is less
than 100%, please list what is generally used
for collateral in the comments section.
100%. Construction Agreement, Sale Agreement, Sale Deed,
Building Approval notification, Mother documents and other
corresponding document. ( Managers - HDFC and India Bulls
Home Finance)
F5.2
Private housing finance institutions view property
titles or long-term lease agreements as sufficient
collateral and do not require personal guarantees
(Yes=1/No=0, or no mortgage lending = 100) 1
Information for questions F5.2-F5.4 is usually
available from commercial bank managers
involved in mortgage lending. If answer is No,
please list what is generally used for collateral
in the comments section.
Yes. Lien is created for commercial property. Rental
discounting loans can be availed against the future expected
rentals of self-owned commercial property for personal and
housing purposes. ( Managers - HDFC and India Bulls Home
Finance)
F5.3
The number of months required for a bank to
register a lien on a property used for collateral
(Months) (no mortgage lending=100) 0 If less than 1 month, enter zero.
Less than one month, if titles are clear. ( Managers - HDFC
and India Bulls Home Finance)
F5.4
The number of months required to foreclose on a
mortgage and transfer the property to the bank
(Months) (If no foreclosures or no mortgage
lending=100) 0 If less than 1 month, enter zero.
Reserve Bank of India allows Foreclosure of housing loans
anytime. But If its less than 6 months, charges are applicable.
No charges for more than 6 months. ( Managers - HDFC and
India Bulls Home Finance)
F6 Secondary mortgage markets are operational. 1.00
5
Housing Finance Regime 6/25/2014
Questions Score Instructions Comments
F6.1
Has legislation passed for the creation of a
secondary mortgage market? (Yes=1/No=0) 1
Information for this section may be available
from a person in the banking sector familiar
with plans for programs concerning the
secondary-mortgage market.
Yes. Bank can do a secondary mortgage with NHB.
Secondary Mortgage Market Enhancement Act was passed in
1985 to enable private issuers of securities to compete more
effectively with Government related agencies by removing
some of the legal impediments. ( Managers - HDFC and India
Bulls Home Finance) . Considering the need to promote the
development of secondary market for Residential Mortgage
Backed Securities (RMBS) in India, the RMBS Policy of NHB
envisages to introduce specialized institutional measures for
providing credit enhancements for promoting the
development of secondary market for residential mortgages.
It may be mentioned that the presence of specialized forms of
credit enhancements such as Guarantees of institutions such
as Fannie Mae, Freddie Mac and Ginnie Mae in respect of the
RMBS issued by these institutions, have considerably
contributed to the success of RMBS in developed nations
such as USA. Since such credit enhancements are presently
absent in India, the Board had approved a proposal to
Guarantee the Senior Classes of Residential Mortgage
Backed Securities (RMBS) issued by NHB. This is expected to
reduce credit enhancement costs, improving viability of
RMBS transactions and encouraging the Housing Finance
Companies (HFCs) and Banks to take up securitization of
their home loan portfolios.
Under the arrangement, NHB would offer to provide/furnish
an irrevocable Guarantee in its corporate capacity, to the
RMBS issues of eligible Primary Lending Institutions (PLIs)
viz. HFCs and banks, with the main intent to obtain Rating of
investment grade indicating highest safety AAA(So) from an
approved Rating Agency. At the same time, in order to ensure
that the cashflows to the investors are sufficiently protected,
it has been stipulated that there should be adequate
subordination and collateral levels to the Guaranteed Class
F6.2
Government liabilities in support of secondary
mortgage markets are transparent and have a
sunset clause (Yes=1/No=0, or no secondary
mortgage market =100) 1
Some information may be available from the
Superintendency of Banks or the Central
Bank.
Yes. As per RBI and NHB despite several measures,
securitisation has not been successful in India due to various
factors. (Manager - India Bulls Home Finance and
www.nhb.org.in)
F6.3
Are mortgages standardized? (Yes=1/No=0, or no
mortgage lending=100) 1 " Yes. ( Managers - India Bulls Home Finance)
6
Housing Finance Regime 6/25/2014Questions Score Instructions Comments
F6.4
Is mortgage insurance is readily available?
(Yes=1/No=0, or no mortgage lending=100) 1 "
Yes. Most of the lending institutions linked INsurance to the
mortgage to mitigate the risk. ( Manager - India Bulls Home
Finance). The formation of first Indian Mortgate Guarantee
company by NHB through a joint-venture with US based
Financial security company Genworth, the Aisan
development Bank and International Finance Corporation. Its
aim is to offer credit risk coverage in the form of guarantees
to housing finance companies and banks in case of
borrowers defaulting. This would help mortgage lenders
avoid piling bad debts in their books.
NHB holds 38 per cent stake in the venture and Genworth 36
per cent, while ADB and IFC have 13 per cent each.
The initial paid-up capital is Rs 120 crore, to be increased
over time to support the new company’s growth.
(www.nhb.org.in)
F6.5
Have banks issued mortgage bonds?
(Yes=1/No=0) 0 " No. ( Manager - India Bulls Home finance)
F6.6
Are mortgages traded in a secondary market (i.e.
mortgage-backed securities)? (Yes=1/No=0) 0
Please elaborate in comments section on the
types of instruments used in the secondary
mortgage market and how long they have
been traded.
No. The market for mortgage backed securities is shallow.
(Manager - India Bulls Home Finance)
F7 Microcredit for housing is available. 0.67
F7.1
Is there a ceiling on lending interest rates for
microcredit? (Yes=1/No=0, or microcredit for
housing is not available = 100) 1
Information should be obtained from any
institution providing microcredit for housing.
Yes. 26% is the maximum allowed Interest Rate. (Asst. Vice
President - MFI)
F7.2
Organizations providing microcredit for housing
are licensed and require annual auditing
(Yes=1/No=0, or no microcredit available = 100) 1 " Yes. (Asst. Vice President - MFI)
F7.3
The volume and size distribution of microloans for
housing is reported annually to a regulatory
agency or other association. (Yes=1/No=0, or no
microcredit available = 100) 1 " Yes. Half-yearly. (Asst. Vice President - MFI)
F7.4
Private money lenders, individuals, or private
companies provide unregulated credit (Very
common=3, Somewhat common=2, Rarely=1,
Never=0) 2
Information should be based on personal
experience or obtained from institutions
providing microcredit for housing.
Somewhat common. After the regulations on 2 loans per
borrower, clients started availing credit from Individual
money lenders. MFI : Money Lenders is in the ration of 70:30.
(Manager - MFI and NGO Head).
F8 General financing questions
F8.1
The typical loan term (number of years of
mortgage loans by private housing finance
institutions) for mortgage lending. 30.0
Information should be obtained from any
institution providing mortgage lending for
housing. 1 to 30 years. (Manager - India Bulls Home Finance)
F8.2
The typical interest rates (annual nominal rate by
private housing finance institutions) for mortgage
lending. 12.0
Information should be obtained from any
institution providing mortgage lending for
housing. 10% to 12% (Manager - India Bulls Home Finance)
F8.3
The typical loan term (number of years of
mortgage loans by private housing finance
institutions) for micro-credit. 2.0
Information should be obtained from any
institution providing micro-credit for housing. Micro-credit - 6 months to 2 years. (Manager - MFI)
F8.4
The typical interest rates (annual nominal rate by
private housing finance institutions) for micro-
credit. 26.0
Information should be obtained from any
institution providing micro-credit for housing. Micro-credit - 22 % to 26% (Manager - MFI) 7
Housing Finance Regime 6/25/2014
Questions Score Instructions Comments
F8.5 Are mortgages tied to an index?
Information should be obtained from any
institution providing mortgage lending for
housing.
Yes. Residential Mortgage index launched by Ratings firm.
This index tracks home loans that have not been repaid > 90
days and other factors like borrowers income, second house
purchase, LTV ratio, delinquency factors etc. Credit
Information Bureau of India (CIBIL) and Transunion, a global
leader in credit and information management services
launched CIBIL Mortgage Check in consultation with National
Housing Bank(NHB) to check the fraudelent activities in the
residential property market place. Property Price Index
'RESIDEX' by NHB is to contain excessive speculation in the
market place in India, started in July 2007 and updated every
quarter. (www.nhb.org.in)
F8.6
Are there other sources of funding for the housing
sector?
For example, this could include remittances,
co-ops, savings clubs. Consult private
construction company or home-builder.
Yes. Deposits and Foreign Institutional Investors. (Manager -
HDFC and India Bulls Home Finance)
8
Subsidy Worksheet # 1
Name of Subsidy Indira Awaas Yojana (IAY)
Date subsidy began (month/year) 01-06-1985. Made an Independent scheme
from 1st January 1996.
Please describe the subsidy in the space below
Subsidy Targeting
What income group does the subsidy target? Rs 32000/ An
How many households benefit from this subsidy? 24.71 lk
Subsidy Administration
Who administers the subsidy program?
Deputy Commisioner
Who provides funding for the subsidy program?
Central and State Government in the ratio 75:25
The cost of the scheme would be shared between Government of India and
State Governments in the ratio of 75:25. Indira Awaas Yojana is essentially
a public housing scheme for the poor , below poverty line (BPL) houseless
families identified by the community through Gram Sabhas following criteria
suggested for such identification from time to time.IAY has the following two
components:
(i) Assistance for construction of a new house; this would be Rs.70,000/- in
plain areas, Rs.75,000/- in hilly states (eight North eastern states including
Sikkim, Himachal Pradesh, Jammu & Kashmir and Uttarakhand) and difficult
areas. Difficult areas include the following –
What criteria is used to determine eligibility for the subsidy? (For example, is
it based on income, household size, assets, etc)
Priority in selection of beneficiaries from amongst BPL families without
houses would be as follows:-
(i) Widows/women headed families
(ii) Freed bonded labourers/rehabilitated manual scavengers;
What is the typical household expenditure on housing for the targeted
income group? (provide answer in local currency, indicate whether per
month, year, or other)
What is the total budget for the subsidy program?
Rs 10,000
Cr
What is the cost of the subsidy per household?
Rs 70,000 -
75,000
Yes
IAY Guidelines March 2013 .
source: www.iay.nic.in
Subsidy Worksheet # 4
Name of Subsidy Chief Minister Solar Power Green House Scheme
Date subsidy began (month/year) Jun-11
Please describe the subsidy in the space below
Subsidy Targeting
Is information about the cost and # of beneficiaries publicly available?
From the list of eligible beneficiaries, a Committee comprising of Block
Development Officer (Village Panchayats), Deputy Block Development
Officer and Village Panchayat President concerned shall select the genuine
BPL beneficiary as per guidelines and the final list of selected beneficiaries
Please provide source of information and any comments:
What criteria is used to determine eligibility for the subsidy? (For example, is
it based on income, household size, assets, etc)
Solar Powered Green House Scheme For Poor in Rural Area to construct
houses meaasuring 300sq.ft. The Commissioner of Rural Development &
Panchayat Raj is authorized to draw the annual allocation for CMSPGHS in
two half-yearly instalments. The fund in turn will be released to the districts
at the rate of Rs.1,50,000/- per house. The balance amount at the rate of
Rs.30,000/- per house shall be deposited with Chairman & Managing
Director, TEDA for the purchase and installation of materials relating to
Solar Powered Lighting System. The DRDA shall release the funds directly
to the respective Village Panchayats. The funds should not be routed
through the Blocks.
What income group does the subsidy target? Low income
How many households benefit from this subsidy? 60,000
Subsidy Administration
Who administers the subsidy program?
Ministry of Rural Housing Department
Who provides funding for the subsidy program?
Fully funded by State Government
What is the total budget for the subsidy program?
Rs.1,080 cr
What is the cost of the subsidy per household?
1.8 lk
yes. 17,554 houses have been completed as of 20th March 2013
www.tnrd.gov.in
What is the typical household expenditure on housing for the targeted
income group? (provide answer in local currency, indicate whether per
month, year, or other)
Please provide source of information and any comments:
Is information about the cost and # of beneficiaries publicly available?
Subsidy Worksheet # 2
Name of Subsidy Basic Services for Urban Poor
Date subsidy began (month/year) Dec-05
Please describe the subsidy in the space below
Subsidy Targeting
What income group does the subsidy target? Low income
How many households benefit from this subsidy? 470798
Subsidy Administration
Who administers the subsidy program?
State Level nodal agency designated by the local government
Who provides funding for the subsidy program?
Grants from Central and State Governments(including beneficiary contribution) in the ratio - 50 : 50
What criteria is used to determine eligibility for the subsidy? (For example, is
it based on income, household size, assets, etc)
Basic servies for urban ppor provides tenure, improved hpusing, water
supply and sanitaion at affordable prices.
Income
What is the typical household expenditure on housing for the targeted
income group? (provide answer in local currency, indicate whether per
month, year, or other)
What is the total budget for the subsidy program?
Rs 16356.56 crore
What is the cost of the subsidy per household?
Rs 1.2 lakh
Yes
GUIDELINES FOR THE PROJECTS ON BASIC SERVICES TO THE URBAN
POOR (BSUP), TO BE TAKEN UP UNDER JAWAHAR LAL NEHRU
NATIONAL URBAN RENEWAL MISSION (JNNURM). Www.mhupa.gov.in
Subsidy Worksheet # 5
Name of Subsidy
Date subsidy began (month/year)
Please describe the subsidy in the space below
Subsidy Targeting
Is information about the cost and # of beneficiaries publicly available?
Please provide source of information and any comments:
What criteria is used to determine eligibility for the subsidy? (For example, is
it based on income, household size, assets, etc)
What income group does the subsidy target?
How many households benefit from this subsidy?
Subsidy Administration
Who administers the subsidy program?
Who provides funding for the subsidy program?
What is the total budget for the subsidy program?
What is the cost of the subsidy per household?
What is the typical household expenditure on housing for the targeted
income group? (provide answer in local currency, indicate whether per
month, year, or other)
Please provide source of information and any comments:
Is information about the cost and # of beneficiaries publicly available?
Subsidy Worksheet # 3
Name of Subsidy Interest Subsidy Scheme for Housing the urban poor(IHSUP)
Date subsidy began (month/year) 01-02-2009
Please describe the subsidy in the space below
Subsidy Targeting
What income group does the subsidy target? Rs.3,301 upto Rs.7,300
How many households benefit from this subsidy?
Subsidy Administration
Who administers the subsidy program?
NHB & Housing & Urban Development Corporation Ltd (HUDCO)
are the central nodal agencies.
Who provides funding for the subsidy program?
Governmen
t
What is the typical household expenditure on housing for the targeted
income group? (provide answer in local currency, indicate whether per
month, year, or other)
What criteria is used to determine eligibility for the subsidy? (For example, is
it based on income, household size, assets, etc)
Interest subsidy scheme for housing the urban poor, provides interest
subsidy on housing urban poor to make the housing affordable.Loan
amount admissible - The scheme will provide a subsidized loan for
15 – 20 years for a maximum amount of Rs.1,00,000 for an EWS individual
2 Interest Subsidy for Housing the Urban Poor - Guidelines
for a house at least of 25 sq.mts. Additional loans, if needed would be at
unsubsidized rates.
2.4 A maximum loan amount of Rs.1,60,000 for a LIG individual for a house
at
least of 40 sq.mts will be admissible. However, subsidy will be given for loan
The economic parameter of EWS is defined as households having
an average monthly income upto Rs.3,300 and the economic parameter of
LIG is defined as households having an average monthly income between
Rs.3,301 upto Rs.7,300. This will be subject to revision by the Steering
What is the total budget for the subsidy program?
Rs 1100 Cr
What is the cost of the subsidy per household?
Rs.1,00,000
Yes
Guidelines for Interest Subsidy Scheme for Housing the Poor (ISHUP), February 2009
Source: www.mhupa.gov.in
Subsidy Worksheet # 6
Name of Subsidy
Date subsidy began (month/year)
Please describe the subsidy in the space below
Subsidy Targeting
Is information about the cost and # of beneficiaries publicly available?
Please provide source of information and any comments:
What criteria is used to determine eligibility for the subsidy? (For example, is
it based on income, household size, assets, etc)
What income group does the subsidy target?
How many households benefit from this subsidy?
Subsidy Administration
Who administers the subsidy program?
Who provides funding for the subsidy program?
What is the total budget for the subsidy program?
What is the cost of the subsidy per household?
What is the typical household expenditure on housing for the targeted
income group? (provide answer in local currency, indicate whether per
month, year, or other)
Please provide source of information and any comments:
Is information about the cost and # of beneficiaries publicly available?
Property Rights Regime 6/25/2014Property Rights Regime
Question Score Instructions Comments
0.74
P1 Barriers to land ownership are removed. 1.00
P1.1
Can women legally own or inherit land?
(Yes=1/No=0) 1
For the following six questions, please consult
a person familiar with property law.
Yes. BPL category households, free land and patta issued in
women name. ( Advocate - Chennai High Court and
Registrar)
P1.2
In practice, do women own or inherit land?
(Yes=1/No=0) 1
Please indicate whether this includes
inheritance from parents, husband, or both in
the comment section.
Yes. Women own or inherit land from parents,husband or
both. It is in practice around 8 years. (Advocate - High Court
and Registrar)
P1.3
Can land be jointly owned by husband and wife?
(Yes=1/No=0) 1
If the answer is yes, please comment whether
this occurs in practice.
Yes. It occurs in practice. For BPL category, ownership on
the free land from the government issued in women name.
Joint ownership not allowed. However, all formal segments
can register land/property jointly. (Advocate - High Court and
Registrar)
P1.4
Does the law recognize the customary or tribal
land rights of indigenous people? (Yes=1/No=0
or 100 if no indigenous people) 1 If yes, please describe in comments section.
The Scheduled Tribes and Other Traditional Forest Dwellers
(Recognition of Forest Rights) Act, 2006, is a key piece of
forest legislation passed in India on 18 December 2006. It
has also been called the Forest Rights Act, the Tribal Rights
Act, the Tribal Bill, and the Tribal Land Act. The law concerns
the rights of forest-dwelling communities to land and other
resources, denied to them over decades as a result of the
continuance of colonial forest laws in India. (Advocate - High
Court & Registrar)
P1.5
Are immigrants, refugees and non-citizens
allowed to own land? (Yes=1/No=0) 1
If the answer is no, please indicate whether
this constitutes a large portion of the
population.
Yes. If its free land from the government, the person should
reside in the area for more than 10 years. (Registrar)
P1.6
Is it common for residents to hold land through a
long-term lease? (Yes=1/No=0) 1
Please describe the method of holding land in
the comment section - i.e. is land owned
collectively, is land leased short or long-term,
or can be owned individually?
Yes. Holding land through short or long term lease is
possible. Under the lease system, people are living in the
temple land for generations and paying a very nominal
amount as rent every month. Long lease system( upto 99
years) prevailed in the commercial establishments earlier. I
practice, Current lease system (residential or commercial
units) goes upto 5-7 years. Residents holds Agriculture land
for long-term lease upto 10 years. (Registrar)
P2
All residential land has registered titles
and/or incremental tenure documents 0.50
P2.1
Is there an operating program to register titles
or incremental tenure documents?
(Yes=1/No=0) 1
Please examine recent government policy
documents. Specify in comments whether the
policy/program is implemented by the national
or local government. "Incremental tenure
documents" refer to any document that
protects resident against eviction.
Yes. The policy is implemented by the local government
through the registration department. Normally government
won't issue document to protect against eviction. For the
free land, the government issue ' enjoyable rights patta for
10/20 years' which protects resident against eviction till such
time. (Registrar)
P2.2
Estimated percent of all the properties in the
greater municipality that have their title properly
registered. (%)
Please consult persons working in the agency
that registers property titles.
% not known. With Patta registrations are followed.
(Registrar)
18
Property Rights Regime 6/25/2014Question Score Instructions Comments
P2.3
Are titles updated regularly when property is
transferred? (Yes=1/No=0) 0
Please consult persons working in the agency
that registers property titles. Please indicate
in the comments whether the practice is
different towards female headed versus male
headed households.
Property transfer or title updation is irregular among low
income households. In Middle households, most of the
times the transfer happen when legal hier dies or during sale
or to avail mortgage loan. No difference for female or male
headed households. Low Income Households, not get
updated regularly. (Registrar) . Around 25-35% of the
properties are getting transferred /updated regularly. 70% of
the cases in the court are property cases either due to title
or transfer issue. (Advocate - High Court)
19
Property Rights Regime 6/25/2014Question Score Instructions Comments
P3
Titles and/or alternative property documents
are given to long-term residents of informal
settlements. 0.67
P3.1
Is there a policy or program that supports the
regularization of titles or alternative documents
in established informal settlements?
(Yes=1/No=0) 1
To answer this question, please consult a
member of the housing agency leadership.
Please specify in the comments whether the
policy/program is implemented by the national
or local government. Please indicate in the
comments whether there are special efforts to
reach out to female headed households.
Yes. The owner of the property has to initiate. No special
efforts to reach out female headed households. (Registrar)
P3.2a
Number of households living in informal
settlements in the greater municipality. 0
Please consult official documents. Make sure
the estimate of total number of squatter
households is realistic by asking several
experts.
28.5% of Households lives in Slum in Chennai. 137.49 lakh or
1.37 crore households which is 17.4$ lives in Slum in India.
Source : Census 2011 data .
P3.2b
Number of households living in informal
settlements in the greater municipality who have
titles provided by a regularization program. 0
Please consult official documents. Make sure
the estimate of informal settlements is realistic
by asking several experts. If there is no
regularization program or no informal
settlements enter 0 and make a note in the
comments section. If the number of female
headed households is known, please add to
comment section.
Exact households not known. 504 slums in chennai have
been taken up for ugradation and 1.30 lakh families have
benefited till date. 1.08 lakh plots have been developed and
allocated. A large number of slum infrastructure upgradation
scheme have been implemented across the state at the cost
to Rs. 81.45 Crores (www.tnscb.org) . As part of the
Resettlement, 23000 homes planned in Perumbakkam Area
in chennai.This conformed with JNNURM’s call for property
rights because residents were able to get ownership papers
for their homes, but only a limited number of units able to
get these “property rights”
G + 7 buildings with elevators planned, which raises
concerns about maintenance and costs. Property Rights
under Rajiv Awas Yojana- Under Draft model Property rights
to Slum Dwellers Act 2011 (RAY website), every landless
person living in a slum area or any urban area as of June 4,
2009 is eligible for a dwelling unit at an affordable cost and
will be given a legal document of entitlement for the space.
(www.transperantchennai.com)
P3.3
Is the occupation of public land tolerated?
(Yes=1, No=0) 0
Please consult person familiar with land law,
particularly with homesteading or with adverse
possession.
No. People occupy land and Eviction happens during
infrastructure development projects with proper notice and
time period. (CMDA).
P3.4
Is there a process or program to recognize
occupancy of public land? For example,
certificates of occupancy, street addressing, or
other official documents are given to informal
settlers. (Yes=1/No=0) 0
Please consult person familiar with land law,
particularly with homesteading or with adverse
possession.
No such program or process to recognise the occupancy of
public land. But Government owned/public land market
value mentioned as 'zero' in the registration department to
avoid transactions by anyone. A board on the site will state
the ownership by the government after evictions and
sometimes fencing installed to restrict occupancy.
(Registrar).
P4
Evictions are minimized and, when the
occur, they are legal and involve just
compensation or resettlement. 0.80
20
Property Rights Regime 6/25/2014Question Score Instructions Comments
P4.1
The number of persons evicted in the largest
mass eviction that took place in the greater
municipality in the last three years.
Please obtain reliable estimates from media,
from government agency engaged in the
eviction, or from organizations working with
evictees. Please provide references and
elaborate the situation in comments section.
Total number not known. Almost 3 lakh slum dwellers and
huts along cooum river (Pudupet, Broadway, Anna Nagar,
Sathya Nagar, Kalkottai) across chennai were evicted and
displaced under the various slum rehabilitation projects
carried out under Rajiv Awas Yojana(RAY) by chennai
corporation to achieve 'Slum Free chennai by 2013' . Another
94 families evicted near Nehru stadium and shifted to
Kannagi Nagar to facilitate construction of additional tracks
for Asian Athletics Championship. More than 100 families
evicted from Konnur High Road to take up work on
pavement and not alloted alternative settlement and forced
to share their living spaces with neighbours. ( News Papers
publications)
P4.1a
Did the eviction follow an established legal
guidelines for evictions? (Yes=1/No=0, or 100 if
no eviction) 1
Please consult person familiar with legal
framework for eviction.
Most of the cases - Yes and few cases 'No'. Governmet will
follow the guidelines. The Co-ordinator for Chennai Slum
Dwellers' Rights Movement, K. Shanmugavelayutham, said a
demolition notice was made mandatory by the Supreme
Court in the famous case involving public writ petition filed
by a Mumbai journalist, Olga Tellis in 1981. Quoting from the
court ruling, Mr. Shanmugavelayutham said, "a person who
is likely to be adversely affected by a particular act should
be informed about the commission of such an act and must
be given an opportunity to be heard". Usually 7-10 days
notice. Some times no notices served prior to eviction.
Notice is mandatory as per the Act. (CMDA)
21
Property Rights Regime 6/25/2014Question Score Instructions Comments
P4.1b
How long in advance of the actual eviction were
people first informed? (months) Please enter
100 if no eviction. 1
Please consult organization working with
evictees.
Yes. Notice will be issued by the government and average
time given will be 7-30 days. (CMDA)
P4.1c
Was violence involved? (Yes=1/No=0, or 100 if
no eviction) 0
Please consult media or organization working
with evictees.
No. Hunger Strike, Road Roko, Protest are the form of
agitations. Evictions / demolotions happens in the presence
of police force to manage resistance/Violence. (CMDA)
P4.1d
The percent of people who were resettled or
given compensation roughly equivalent to the
value of their homes. (%) Please enter 100 if no
eviction. 100
Please consult organization working with
evictees. Please indicate in comments
whether there was any difference in
compensation between female-led and male-
led households.
Evicted people get 100% compensation as per the Market
Value if they own the land. If they do not own the land,
alternate accomodation will be provided by the government.
No difference in compensation for female-led or male-led
households. Market value decides the price. (CMDA)
P5
Clearance of low-income communities to
replace them with more profitable
development is minimized. 1.00
P5.1
Slum clearance and redevelopment is an
established policy of the national or local
housing agency. (Yes=1,No=0) 0
Please consult person working in national
housing agency as well as advocates for slum
dwellers. Please identify whether the policy is
at the national or local level in the comments
section.
Yes. Housing and Urban Development Board work for
Economic weaker sections nationally. (CMDA)
P5.2
The government has torn down existing low-
income neighborhoods and transferred the
vacant lands to the private sector for
development of new commercial, infrastructure
or higher-end residential. (Yes=1/No=0) 0
"Government" can refer to national, provincial
or municipal governments. It is important to
find out if the government is using its powers,
such as eminent domain, to demolish existing
housing against residents' will. No. Government does not permit. (CMDA)
P6
The public housing stock is privatized, and
restrictions on the sale of units are
minimized. 0.50
P6.1a
The estimated share of the housing stock that is
publicly owned. (%)
Please consult the agency that manages or is
familiar with public housing stock.
% Not known. (the Tamil Nadu Housing Board plays an
important role with the ideal objective of providing house for
every one. TNHB as a matter of policy ensures quality
materials in construction, using the latest modern
techniques in the construction and provides shelter to the
people under Economically Weaker Section (EWS), Lower
Income Group (LIG), Middle Income Group (MIG) and Higher
Income Group (HIG), at costs affordable by people of these
Groups. As of July 2013, 2413 plots, 138 houses and 362
flats developed by Tamilnadu Housing board are for sale in
Tamilnadu state. As of October 2013, Development of plots
and construction of flats ongoing is 10192 units, will be
completed within 2 years and 29436 newly proposed units at
the cost of 5720.16 crore). www.tnhb.gov.in
P6.1b
The estimated share of the public housing stock
that is being or has been privatized. (%) 0
Please consult documents of agency directly
engaged in public housing privatization.
Indicate the year(s) privatization process
occurred. Enter 0 if there is no publicly owned
housing. Nil
22
Property Rights Regime 6/25/2014Question Score Instructions Comments
P6.2
Is the public housing stock generally well
maintained? (Yes=1/No=0 or 100 if no public
housing stock) 0
Please visit public housing site and use your
best visual assessment or consult a reliable
resident of public housing or an organization
that works with public housing residents. No. (CMDA)
P6.3
A national or local housing policy is in place to
support the privatization of the public housing
stock. (Yes=1/No=0 or 100 if no public housing
stock) 1
Please examine recent documents of housing
agency or consult person familiar with the
views of the housing agency leadership. If
possible, examine recent housing policy
documents or texts of recent speeches. Yes.( Www.tn.gov.in)
23
Housing Subsidies Regime 6/25/2014The Housing Subsidies Regime
Questions Score Instructions Comments
S 0.45
S1
Housing subsidies are an important share of
the national government budget. 0.5
S1.1
Housing was one of the ten highest priorities in
the platform of the national government.
(Yes=1/No=0). 1
Please consult platform documents and policy
papers of national government. Yes. Housing is one of the top most priorty.
S1.2
Is there a ministry or department of housing in
the national government (Yes=1/No=0) 1 Please consult national government.
Yes. At the central government levels - Ministry of Housing
and Urban Poverty Alleviation(MHUPA) and Ministry of Rural
Housing. At the state levels - Ministry of Urban Development
and Ministry of Rural Development.
S1.3
What is the housing budget as a percentage of
the total national government budget in the last
year? (0-100%) 0.5
100*(last year housing budget/last year total
government budget). If more than one entity
has budget for activities related to housing,
enumerate in the housing budget. Please
specify numbers used for calculation in the
comments section.
Budget - 2013-2014: Total Budget - 16,65,297 crores.
Allocation to Rural Housing - 6,000 crores ; Allocation to
Urban Housing 2,000 crores ; Percentage = 8000 / 1665297
(source: indiabudget.nic.in)
S1.4
What is the estimated share of the housing
budget at the national level that finances the
production of completed housing units or
housing improvements this year? (%) 0.5
Consult budget office of the national agency that
is concerned with housing, or published budget
documents of the agency.
No dedicated budget for Home Improvements. Budget
allocation is only for new homes with clear titles. Budget -
2013-2014: Total Budget - 16,65,297 crores. Allocation to
Rural Housing - 6,000 crores ; Allocation to Urban Housing
2,000 crores ; Percentage = 8000 / 1665297 (source:
indiabudget.nic.in)
S1.5
What is the estimated share of the housing
budget at the national level that was given in rent
vouchers, direct demand subsidies (housing
allowances, vouchers or subsidies for a down
payment), interest-rate subsidies, grants given
directly to beneficiaries or slum-upgrading in low
income communities, this year? (%) 0.5
Consult budget office of the national agency that
is concerned with housing, or published budget
documents of the agency. Please include
details of each program in the subsidy
worksheet.
All the subsidies for housing allocated from the budget for
housing. No practice of rent vouchers or subsidies for down
payment prevails. service tax exemptions for low cost
housing and single residential unit is applicable. A person
taking a loan for his first home from a bank or Housing
Finance companies upto Rs. 25,00,000 during the period
1.4.2013 to 31.03.2014 will be entitled to an additional
deduction of interest of upto Rs. 1,00,000 . This initiative is to
promote home ownership and give a fillip of to a number of
industries like steel, brick, wood, glass etc besides jobs to
thousands of construction workers (Budget 2013-14)
S1.6
What is the estimated share of the housing
agency's budget dedicated to all forms of
homeless assistance? (%) 0.5
Consult budget office of the national agency
concerned with housing, or published budget
documents of the agency. 'Homeless people'
refers to persons without any shelter at all. If the
issue of homelessness is taken care of by
another agency, please indicate in the
comments. Please obtain budget of that agency
and its domain of operation (municipal,
provincial, national).
Budget - 2013-2014: Total Budget - 16,65,297 crores.
Allocation to Rural Housing - 6,000 crores ; Allocation to
Urban Housing 2,000 crores ; Percentage = 8000 / 1665297
(source: indiabudget.nic.in)
S1.7
What is the estimated share of the housing
agency's budget dedicated to upgrading homes
and infrastructure in low-income communities?
(%) 0
Consult budget office of national housing
agency, or published budget documents of the
agency.
No separate budget for home upgradation and Infrastructure
development to low-income communities . Subsidy schemes
like IAY provide funds for upgradation. (Source:
indiabudget.nic.in) 24
Housing Subsidies Regime 6/25/2014S2
Housing subsidies are serving low-income
households. 0.0
S2.1
Housing agency provides demand side subsidies
such as housing vouchers to beneficiaries to rent
or purchase housing. (Yes=1/No=0) 0.0
Please do not include subsidies given to
producers for infrastructure upgrading in low-
income communities as "supply side" subsidies.
Consult a person reliably familiar with the views
of the housing agency leadership. If yes, please
reference specific subsidies in the subsidy
worksheet. No. (Block Development Officer)
S2.2
Is eligibility and the value of demand side
subsidies (housing allowances, vouchers or
subsidies for a down payment) determined by
income level of the resident? (Yes = 1/No=0 or
100 if no demand side subsidies) 0 Consult both national and local housing agency.
No. Based on the BPL list. The annual household income is <
Rs.60,000. Income greater than the specified amount will also
fall under BPL category. (Block Development Officer)
S2.3
Are there other criteria to target demand side
subsidies? (Yes=1/No=0, or 100 if no demand
side subsidies) 1
Consult both national and local housing agency.
If answer is yes, please indicate the criteria in
the comment section.
Yes. Clients falls under BPL has an BPL #. In addition to the
number, they should have own a piece of land to avail the
subsidy. (Block Development Officer)
S3
The government engagement in public
housing is limited 0.0
S3.1
Does the government subsidize the construction
of new housing for low-income residents?
(Yes=1/No=0) 1
Consult person in operations department of
national housing agency or municipality.
Yes. Government have different subsidy schemes for urban
and rural poor. Various schemes by Government targets low-
income households especially Economicall Weaker Sections
/ Below Poverty Line and provides subsidy to construction
new homes in 3 or 4 stages. (Block Development Officer)
S3.2
The private sector is engaged in carrying out
government funded housing programs. (Very
engaged=5/Not engaged=1, or 100 if no
government housing program) 1
Consult person in operations department of
national housing agency.
Not engaged. Government disbursed the subsidy directly to
the low income residents. (Block Development Officer)
S3.3
The civic sector is engaged in carrying out
government funded housing programs. (Very
engaged=5/Not engaged=1, or 100 if no
government housing programs) 1
Consult person in operations department of
national housing agency. Not engaged. (Block Development Officer)
S4
Down-payment assistance is provided in
conjunction with mortgage lending. 0.0
S4.1
Is the government providing up-front subsidies in
the form of a partial or full payment of a down
payment for a mortgage loan. (Yes=1/No=0) 0
Consult person in operations department of
national housing agency. Also answer "No" if
there is no available mortgage lending.
No. Government release the first stage of subsidy after
foundation. Low income resident to raise money to construct
the foundation. (Block Development Officer)
S4.2
Subsidies were given in association with micro-
loans for housing improvement last year.
(Yes=1/No=0) 0
Consult person in operations department of
national housing agency. Also answer "No" if
there is no available micro-lending.
No. Loans to Self-Help Groups not linked withSubsidies for
housing. (Block development officer)
25
Housing Subsidies Regime 6/25/2014S5
Other assistance related to housing is
provided. 0.7
S5.1
Subsidies for costs associated with land titling
were provided by the national or local
government to incentivize residents to obtain a
land title. (Yes=1/No=0 or 100 if everyone has
land title) 0
Consult budget office of national housing
agency or municipality, or published budget
documents of the agency.
No. If free land provided by the Government, patta is issued
free of cost. For such cases, Patta proves the 'enjoyment
rights' not the ownership of the land. In normal cases, patta
is issued for a fee after verifying the land and documents.
(Block Development Officer)
S5.2
The government has a slum upgrading program
providing infrastructure improvements in low-
income settlements. (Yes=1/No=0 or 100 if no
slums) 1
Consult budget office of national or municipal
housing agency, or published budget documents
of the agency.
Yes. Tamilnadu Slum Clearance Board provides basic
amenities like water and sanitation. (www.tnscb.org)
S5.3
The government has a sites-and-services
program. (Yes=1/No=0) 1
Consult budget office of municipal and national
housing agency, or published budget documents
of the agency. "Sites-and-services" refers to the
practice of providing serviced plots of land for
redevelopment. Yes. (www.transparentchennai.com)
S6
There are tax incentives for homeownership
and rental 1.0
S6.1
Are there tax deductions for constructing
affordable rental housing? (Yes=1, No=0) 1
Please consult a builder or developer engaged
in the construction of affordable rental housing.
Rental Housing concept does not prevail here. Bank don't
fund for such projects ( Builder ). Ministry of Housing and
Urban Poverty Alleviation(MHUPA) came up with the
guidelines on the scheme 'Affordable Housing in partnership
' in December 2013 to encourage creation of rental housing
stock and dormitaries for the new migrants to prevent slums.
This is necessitated by the estimation of census 2011 that
about 27.5% of the urban population is living in rental
accomodations. (www.mhupa.gov.in)
S6.2
Can mortgage interest payments be deducted
from income tax calculation? (Yes=1/No=0 or
100 if not applicable) 1
Consult certified public accountant or lawyer
familiar with tax law.
Yes. Only for home purchase or construction, mortgating a
property(Loan Against Property) for any othe purpose is not
allowed to claim tax exemption. (Chartered Accountant)
S6.3
If so, is there a ceiling on the amount of
mortgage interest that can be deducted?
(Yes=1/No=0 or 100 if not applicable) 1
Consult certified public accountant or lawyer
familiar with tax law.
Yes. Upto 1.5 lakhs in case of self-occupied. If rental
purpose, no ceiling is applicable. (Chartered Accountant)
S7
The housing subsidy system is transparent
and well-understood. 1.0
S7.1
Does the government provide insurance for
mortgages issued by the private sector at
preferential rates? (Yes=1/No=0 or 100 if not
applicable) 100
Consult a person familiar with mortgage
insurance.
NA. Bonds/HFCs partner with Insurance companies for
mortgage loans. (Manager-India Bulls Home Finance)
S7.2
The estimated amount of tax exemptions to
homeowners is documented and publicly
available. (Yes=1/No=0 or 100 if not applicable) 1
Consult budget office of national housing
agency or published budget documents of the
agency.
Yes. Available in all housing finance institutions websites(
Manager - India bulls Home Finance & chartered Accountant)
26
Housing Subsidies Regime 6/25/2014
S7.3
If there is a government housing bank providing
mortgages at below market rates, is this implicit
subsidy being documented and made publicly
available. (Yes=1/No=0 or 100 if not applicable) 100
Consult people working in the government
housing bank.
Yes. National Housing Bank is the nodel agency
implementing the schemes for Banks and Housing Finance
Companies. (Manager - India Bulls Home Finance). Subsidy is
applicable only for specific schemes like ISHUP(Interest
Subsidy Scheme for Housing the Urban Poor). Interest
subvention of 1 percent will be available on housing loans
upto rupee symbol download, indian currency symbol 10 lakh
to individuals for construction/purchase of a new house or
extension of an existing house / resale of a flat or House,
provided the cost of construction/price of the new
house/extension does not exceed rupee symbol download,
indian currency symbol 20 lakh. For FY 2011-12 interest
subvention of 1% will be available for housing loans upto
rupee symbol download, indian currency symbol 15 lakh,
provided the cost of house does not exceed rupee symbol
download, indian currency symbol 25 lakh are eligible under
the Scheme. All such loans sanctioned and disbursed, during
the period of the Scheme shall be eligible for the said interest
subsidy. (www.nhb.org.in)
S7.4
The estimated amount of mortgage loans given
by public agencies that are in default is known
and published. (Yes=1/No=0 or 100 if not
applicable) 100
Consult budget office of national housing
agency, or published budget documents of the
agency.
Yes. Banks and Financial Institutions shared the data with
RBI and RBI published the data. ( Manager - HDFC and India
Bulls Home Finance)
27
Residential Infrastructure 6/25/2014Residential Infrastructure
Questions Score Instructions Comments
I 0.44
I1
Infrastructure services in informal
settlements are upgraded. 0.50
I1.1
There is an active infrastructure upgrading
program in the city's informal settlements
(Rank 1 to 5, Strong program=5/No program=
1, enter 100 if no informal settlements) 3
Consult a person in the housing agency or
municipal government who is familiar with the
policies and programs.
Tamilnadu slum clearance board(TNSCB) has the
infrastructure upgrading program based on slum types.
(www.tnscb.org).
I1.2
There is an active national-level infrastructure
upgrading program operating in informal
settlements in numerous municipalities.
(Rank 1 to 5, Strong program=5/No program=
1) 3
This question seeks to explore whether the
upgrading program is at the national scale.
Consult a person in the housing agency or
someone who is familiar with policies and
programs.
Yes. Ministry of Urban Development, Government of India
through various schemes like Basic Services to the Urban
Poor(BSUP), (BDO)
I2
Infrastructure plans are adequate to meet
future population growth 1.00
I2.1
There are approved physical plans in the city
and its surrounding municipalities for urban
expansion to accommodate population
growth. (Yes=1/No=0) 1
Please check that planning documents
contain population projections, and that plans
actually seek to accommodate the projected
populations. Indicate the date of approved
physical plans in the notes and who is
responsible for preparing them (national,
municipality, district, etc).
Infrastruture and services projected for 20 years (upto 2026)
in the master Plan. (CMDA)
I2.2
There are recent capital investment plans for
urban expansion to accommodate population
growth in the city. (Yes=1/No=0) 1
Please consult urban planning documents or
with local government officials. "Recent"
means less than 2 years. Please describe an
example of a recently planned capital
investment project.
Yes. Capital Investment obtained from Tamilnadu Urban
Development Fund(TNUDP), World Bank, Jawaharlal Nehru
National Urban Rural Mission(JNNURM), Japanese
Corporation Agency (JCA) for the urban expansion. (CMDA)
I2.3
Is there an active program of acquiring the
right-of-way for major roads in expansion
areas? (Yes=1/No=0) 1
This means that there is a public agency that
is presently acquiring land for major roads in
expansion areas.
Yes. National Highways Authority of India under Ministry of
Transport & Highways , Government of India implies National
Highways Act 1956 and have power to acquire lands for
Building, Maintenance and operation of national highway,
road expansion after issuing notice and compensation to the
owners.(www.nhai.org) Land required for infrasturucture
projects are acquired under Tamilnadu Highways Act 2001.
In case the land is occupied, eviction & demolition notice will
be issued by giving 30 days time period.
(www.chennaicorporation.gov.in & CMDA)
I3
There is adequate water supply in all
neighborhoods. 0.33
I3.1
Most recent data on the percentage of the
urban population in the country with access to
improved water supply (From
www.wssinfo.org) 70.6
Consult the website for available data as well
as the accepted definition of "improved water
supply".
70.6% . 62% in urban and 17.9% in rural received Tap water
from treated source. 17% still fetch drinking water from a
source located more than 500 metres in rural areas and 100
metres in urban areas. 28
Residential Infrastructure 6/25/2014Questions Score Instructions Comments
I3.2
Year for which most recent data is available.
(Year) Consult the website. Census 2011
I3.3
How many hours a day, on average, is water
available in pipes in low-income settlements
in the city? (hours) 2
If no published data is available, please visit a
typical settlement and inquire about it.
1-2 hours. Water Supply from 7-8am or 6-8am. People pump
water around 3 am in some areas in Chennai. Drinking water
in chennai has become a scarce economic commodity and
the poor end up shelling out a substandial amount of their
income on it. Poor makes informal payment for the public
water supply . (Stella - Low Income Household)
I3.4
What is the ratio of the price of water sold by
water trucks or private vendors and the price
of metered water in a typical informal
settlement in the [capital] city? (if there are no
water trucks then write 100 and note in the
comments section)
Calculate price per liter or per cubic meter
and then divide one by the other.
Water supply is through pumps. Water charge to
Government is Rs. 50 per month irrespective of getting water
or not. Water supplied through Trucks from the pumping
station based on request - Rs. 1500-Rs. 1700 for 12 000
Litres. Rs. 2700 for 20,000 litres.
(www.chennaimetrowater.tn.nic.in). Water transported from
Pumping station to tanks at low income households - 1 pot
water (Approximately 10 litres) is Rs. 5-7 (Kala- Low Income
household) . There is no concept of metered water as it is
not supplied through pipes. The cost of water is around 15
times higher if the households get water through trucks.
I4
There is adequate sanitation in all
neighborhoods. 0.00
I4.1
Percent of urban population with improved
sanitation (From www.wssinfo.org) (0-100%) 50.00%
Consult the website for available data as well
as the accepted definition of "improved
sanitation".
49.29% Households in Tamilnadu (Rural and Urban) have
latrines within premises.
I4.2
Year for which most recent data is available.
(Year) Consult the website. Census 2011 data
I4.3
Percentage of the city's sewerage that is
treated (0-100%) 20%
"Treated" means going through a treatment
plant of some kind, rather that flowing freely
into a river or into the sea.
20% of the sewerage is getting treated(Officer in Metro Water
office). 486 million litres per day is being treated in 9
Sewerage treatment plants in Chennai. Chennai has the
capacity to treat 558 million litres per day. In the sewage
treatment process, bio-gas is produced and is being used to
produce power to run the plants. This incidentally reduces
the discharge of Green House Gas into the atmosphere and
provides for Carbon Trading. CMWSS Board has adopted
Clean Development Mechanism (CDM) whichleads to
savings in energy cost to a turn of Rs.43.05 lakhs per month.
(www.chennaimetrowater.gov.in)
I5
The road network is adequate and well
maintained. 0.67
I5.1
The percentage of paved roads in the country
[From World Bank's WDI website] (0-100%)
Consult the website or if data is unavailable
consult a public official with agency
concerning transport or public works.
Chennai - 638.77 kms (Chennai corporation website) .
Country - 50% paved roads as of 2008.
(www.databank.worldbank.org)
29
Residential Infrastructure 6/25/2014Questions Score Instructions Comments
I5.2
The average time of the journey to work by all
modes in the city (minutes)
Consult municipal transport department or
engineer familiar with latest transport survey
data.
1 hour. Travel to reach distance of 5 kms through walk, bus,
share auto and walk will take about 45 mins to 1 hour to
reach the destination. (Area officer - Madras Transport
Corporation)
I5.3
Number of days last year that the roads in the
city were flooded.
If data is unavailable, please use best
estimate.
5 days. Government declared holidays for all educational
institutions during heavy rainfall. Chennai received 9
centimetres of rain. Local government introduced helpline to
people to alert officials on floods or any damage. (Various
News Paper items and www.ndtv.com dtd Sep 11,2013 )
I6 Electricity is available in all dwelling units. 0.38
I6.1
Percent of urban dwelling units with electrical
connection [from last census] (0-100%) 99.10%
Data for the country as a whole from last
census.
Tamilnadu - 93.36% . Chennai - 99.1% of the households
posssed electricity connection. In India, 55.3% rural and 92.7
urban households have electricity connection.
I6.2
Year for which most recent data is available.
(Year) 2011 Census data
I6.3
Number of hours per day that electricity is
available in a typical low-income settlement in
the city. 22
Consult people in a typical low-income
settlement or members of organizations
working in such settlements. Please indicate
whether illegal connections are common in
the comments section.
22 hours per day (info. from Low income settlements) and
Low income settlements are often affected by supply and
voltage fluctuations due to single supply system. During
power shortage time, the duration of load shedding is 4
hours in urban and 6 hours in rural areas of Tamilnadu.
Power shortage caused due to the failure of the monsoon
and inadequate generation of the electricity from Central
Generating Stations due to annual maintenance and
temperory snags. (The Hindu, November 15, 2013)
I7
There is adequate police and fire
protection in all neighborhoods. 0.55
I7.1
The share of the area of the city in
neighborhoods that are regularly patrolled by
the police (0-100%) 70
Consult police headquarters or members of
organizations working in low-income
settlements.
Main roads and sensitive areas - 90% ; other areas - 30-40%.
Vehicle Check is round the clock in the city. (Public Relation
Officer, Police Commissioner office)
I7.2
Ratio of the value of a mid-range dwelling unit
in a safe neighborhood and a similar-quality
dwelling unit in an unsafe neighborhood. 1.25
Consult real estate agents with knowledge of
the mid-range housing market in the city.
Value of the mid-range dwelling unit(Single Bed Room - 450
sqft ) in a safe neighborhood is around Rs. 20,00,000. Value
of the similar size quality dwelling unit in unsafe
neighborhood is around Rs.15,00,000 lacs. (Builder)
I7.3
Number of murders per 1,000 people in the
city last year.
Consult police headquarters, published crime
data, or World Health Organization website. If
data on murders does not exist in this format,
please calculate to the best of your abilities.
1877 murder. 0% per 1,00,000 (Source: The director general
of police, Chennai - 4 2011 report data)
I7.4
Does the government provide resources to
address youth violence?
Consult police headquarters or members of
organizations working in low-income
settlements.
Yes. More forces will be allocated along with Riot control
vehicle with tear gas, water etc. (Police Commissoner office)
30
Residential Infrastructure 6/25/2014Questions Score Instructions Comments
I7.5
Is there adequate fire protection in all
neighborhoods? (Rank 1 to 5, adequate fire
protection in all neighborhoods=5/fire
protection in some neighborhoods=3/No fire
protection=1) 5 Consult fire department headquarters.
Slum areas - Created oupost in the location. Fire vehicle is
ready with all resources 24*7. After receiving the call, vehicle
has to leave the fire station in 20 secs. Urban - Every 5 kms
one fire station. Semi-urban and rural - 10-25 kms one fire
station. (Fireman-Fire station)
I8
Public transport is available throughout
the city. 0.00
I8.1
The estimated percentage of the city within 10-
minute walking distance of a public transit
(bus or rail) stop. (0-100%) 90% Consult mass transit authority.
80-90% witin Chennai city. (Area Officer - Madras Transport
Corporation)
I8.2
Estimated percentage of commuters who
walk to work (0-100%) 30%
Consult latest traffic study data. Consult
experts on updating data if it is more than 5
years old.
In a group of 100, 26 travel by bus, 2 by train, 33 by walk, 13
by cycle, 19 by two wheeler, 4 by car and 3 by other modes
(Auto and Cycle Rickshaw &
others)(www.cmdachennai.gov.in-Traffic and Transportation
survey conducted in 2005). No safe pathways for
pedestrians. (Area Officer - Madras Transport Corporation)
I8.3
Estimated percentage of journey-to-work trips
in the city and its environs by public transport,
mini-busses and other non-private transport,
excluding walking trips (0-100%) 8.6
Consult latest traffic study data. Consult
experts on updating data if it is more than 5
years old. 35% by public trasport. Ratio - 30% / 35%. (Area Officer- MTC)
I9 Garbage collection is adequate. 0.17
I9.1
Percentage of the city with regular public
garbage collection. (0-100%) 95%
Consult garbage collection agency. Public
garbage collection refers to government
managed or contracted garbage collection.
May include government collection or
government contracting out services to a
private company.
Garbage collected on the same day. 3000 conservency
workers work during night. 493 vehicles used in 12 zones.
16,338 workers on the rolls. 3500 tricyles used. More than
5000 tonnes collected per day. Heavy Vehicles - 2 trips per
day. Light vehicles - 4 trips per day.11 Transfer stations.
68%,16% and 14% of waste collected from
residents,commercial and Halls,Schools, Institutions
respectively. (chennaicorporation.gov.in)
I9.2a
How many times a week, on average, is
garbage collected from households in high-
income neighborhoods in the city? 7 Consult garbage collection agency. Daily. (chennaicorporation.gov.in)
I9.2b
How many times a week, on average, is
garbage collected from households in low-
income neighborhoods in the city? 4
Consult garbage collection agency or persons
working in low-income neighborhoods.
Daily - 57% ; Twice a day - 18% ; Alternate days - 17% ; Once
in a week - 7% (chennaicorporation.gov.in) . Mostly Alternate
Days (Stella - Low Income Household)
I9.3
Percent of garbage disposed in sanitary
landfills (0-100%) 90% Consult garbage collection agency. 90%. No. of disposal sites - 2 (chennaicorporation.gov.in)
I10
Access to education and health care is
adequate in all neighborhoods. 1.00
31
Residential Infrastructure 6/25/2014Questions Score Instructions Comments
I10.1
What is the average travel time in minutes to
the nearest primary school from low income
communities? (minutes) 15
Please consult a trusted resident, NGO, or
education professional. Make your best
judgment on the estimate for low income
communities in the greater municipality.
Urban - 15 mins - 1 km (Chennai city) . 3 kms in rural areas
(45-60 mins). There are about 10 – 15 % of remote areas that
do not have easy access to schools as above, where the
children have to travel more. (Assistant Education
Officer,Corporation of Chennai & HeadMaster of Panchayat
School)
I10.2
What is the average travel time from low-
income neighborhoods to the nearest health
care center or medical facility? (minutes) 15
Please consult a trusted resident, NGO, or
health care professional. Make your best
judgment on the estimate for low income
communities in the greater municipality.
Urban - Government Primary health centre (PHC) for every
30,000 population. The average time for low income
neighbourhoods to the nearest Health Care Centre is within
30 minutes and 5 kms distance. (Medical Officer- Chennai
Corporation). Rural areas - For about 90 % of the population
the average travel time to the nearest health care center (or)
medical facility is a maximum of 30 minutes and 5 km
distance. The reason being, apart from Govt. facility a large
number of private medical colleges have come up in the
outskirts (Rural area).
This is not applicable to about 10% of the population spread
over in the remote areas like hilly regions, forest areas etc.
Source: Asst. Professor, Forensic Medicine, Trichy Medical
College.
I11
Municipalities can mobilize finance for
infrastructure investments. 0.25
I11.1
Municipalities are allowed to borrow or issue
bonds to finance infrastructure. (Yes=1/No=0) 0
For this section, consult person familiar with
municipal finance, municipal loans, and
municipal bonds. No. Quasi-Government bodies issue bonds. (CMDA)
I11.2
Municipal budgets and expenditures of all
municipalities are subject to strict accounting,
reporting, and auditing rules. (Yes=1/No=0) 1 " Yes. Annual Audit. (CMDA)
I11.3
All municipalities have available revenue
streams that can be pledged for debt
repayment. (Yes=1/No=0) 0
In the comment section, please indicate
whether these funds are substantial, secure,
or not earmarked for other purposes. Revenue through Taxes only. (CMDA)
I11.4
Municipal assets, especially land, can be sold
or used as collateral to finance infrastructure
investments. (Yes=1/No=0) 0 "
No. Government assets will be acquired for developing
infrastructure and will not be used as an instrument to
finance infrastructure investments. (CMDA)
32
Regulatory Regime 6/25/2014The Regulatory Regime
Questions Score Instructions Comments
R 0.61
R1
An official housing policy document is
prepared. 0.75
R1.1
The law mandates the preparation of an official
housing policy document by at least one level
of government. (Yes=1/No=0) 1
Consult a person in the housing agency who is
familiar with the preparation of housing policy
documents. Please indicate whether the policy
was prepared at the national-level, local-level,
or both levels of government.
Policies are prepared at the national level and special
subsidies scheme is designed at state level but jointly
funded by state and central government.
R1.2
Number of UN global resolutions on housing
rights that are adopted by the government. (If
none=0, enter 1-7 depending on the number of
resolutions adopted)
Consult UN Declarations of the human rights to
adequate housing at
www.unhchr.ch/html/menu6/2/fs21.htm, to find
out how many resolutions the country has
adopted.
Yes. Exact no. of resolutions not known. The Right to
adequate housing and WATSAN is being implemented
through policies and several subsidies.
R1.3
Do representatives of the private sector, the
civic sector, and residential communities
actively participate in the preparation of the
housing policy document? (Yes=1/No=0) 1
Consult a person in the housing agency who is
familiar with the preparation of housing policy
documents, a representative of civic society,
and a private sector representative involved in
housing policy or production.
Yes. Private -Public partnership is encouraged in the
Housing Policy to reach the goal ' Affordable Housing for
All'.
R1.4
Is progress against the official housing policy
document publicly known? (Yes=1/No=0) 1
Consult a person in the housing agency who is
familiar with the preparation of housing policy
documents, a representative of civic society,
and a private sector representative involved in
housing policy. Yes. Available in websites like www.nhb.org.in, mhupa.gov.in
R2
There are no restrictions on residential
mobility. 1.00
R2.1
Are there restrictions on residential mobility?
(Yes=1, No=0) 0
Consult actual documents. A restriction on
residential mobility could include the
requirement of internal passports, residence
permits, or other documents preventing the
ability to change residence with-in the country.
No. Equal rights to all citizens across the country.
Constitution provides equal rights to all citizens. ( BDO)
R2.2
If yes, is the government working to eliminate
the restrictions? (Yes=1/No=0 or enter 100 if
no restrictions exist) 100
Consult a person in the housing agency who is
familiar with the leadership and its policies. No restrictions exist. (BDO)
R3
Exclusionary housing practices are
discouraged. 0.75
R3.1
Are there policies, laws, or regulations that
prohibit the refusal to rent or sell property to
someone based on race, religion, ethnicity,
gender, or marital status. (Yes=1, No=0) 0
Consult a person in the housing agency who is
familiar with its policies. If yes, please describe
in the comments section.
No such restrictions or policies in place. (Real Estate
Developer and Builder)
R3.2
If yes, are the policies, laws, or regulations
enforced? (Rate 1 to 5, Strong
enforcement=5/No enforcement=1, Not
Applicable=100) 100
Consult a reliable resident or real estate rental
or sales specialist. Not Applicable. (Real Estate developer and Builder) 33
Regulatory Regime 6/25/2014Questions Score Instructions Comments
R3.3
Are residential neighborhoods in the city
segregated by race, income, or religion? (5=all
neighborhoods are mixed,1=highly segregated) 5
Consult a reliable resident or real estate rental
or sales specialist.
No. All the residential neighborhoods in the city are mixed. (
Real Estate Developer and builder).
R3.4
Are gated communities for specific race or
income groups common? (Rate 1 to 5; Very
common=5, Not common=1, Not
Applicable=100) 100
Consult a real estate sales specialist familiar
with this market. See definition for gated
communities.
Not Applicable. But the Investment/buying decision is
influenced by friends/relatives. Few execeptional cases on
Rental,buying & selling. For eg. Certain individuals insists on
Vegetarians to Vegetarians and minorities to minorities.(Real
Estate Developer and Builder)
R4
Land and housing regulations are not
burdensome or costly 0.25
R4.1
Please indicate the most recent year that the
municipality reviewed or revised land
regulations and building codes. (Enter 0 if
official building regulations or codes do not
exist )
Consult person familiar with municipal codes
and regulations
April 2012. After April 2012, Guideline value is approximately
80%-90 closer to Market Value. Before April 2012, Guideline
value is 30% of the Market value. (Source: Registrar)
R4.2
Smallest minimum lot size for residential
building of any kind in the city (square meters).
Please consult a municipal land subdivision
code or building code. If the minimum lot size
varies across the city, please list the smallest
number not the average. The answer is zero if
there is no minimum lot size.
Yes. EWS - 20 sq.m ; Others - 40 sq.m. (CMDA- As per the
2nd Master Plan of Chennai Metropolitan Development Rules
1975)
R4.3
Maximum allowable number of stories for new
residential multi-unit buildings in the city.
(Number)
If the restriction is on building height, given in
meters, rather than in number of stories, then
divide the number by 3.5 to get an estimate of
the number of stories.
Ordinary Buildings - 4 units (Ground+1 floor) ; Special
Buildings - Any numbers (Ground +3 floors) ; Multi-Storey
Buildings(MSB) - 4 floors & Above. Sanction depend on road
with and other parameters. (CMDA)
R4.4
Maximum allowable density in new housing
developments (persons per hectare).
If density restrictions are expressed in dwelling
units per hectare, please multiply by the
average household size: e.g., if maximum
allowable density if 50 units per hectare, and
average household size is 5.0, then maximum
allowable density is 250 persons per hectare.
1 plot = 1.5 floor space Index for Ordinary(1 plot size - 500
sqm) and Special Buildings( 1 Plot size - 220 sq.m) . For Multi-
storey buildings 1 plot = 2.5 Floor Space Index. (1 plot size
ranges from 1200 sq.m to 2500 sq.m across 4 categories)
3.5 sq.m per person (CMDA)
R5
Processes to meet land and housing
regulations are not burdensome or costly 0.75
R5.1
What is the number of days required to register
a property?
Consult with a private builder or municipal
building department. If information is not
available, consult the World Bank Doing
Business Survey www.doingbusiness.org.
5-7 days. Bank Approval - 3-10 days with clear documents
and clearance from Legal and Technical validation. Get Sub-
register approval of the sale deed draft and obtain token no.
for the registration. (Bank Manager and Registrar)
R5.2
What are the typical costs involved in
registering a property? (in local currency)
Consult with a private builder or municipal
building department. This should include the
typical costs or fees that are involved in
obtaining a title. Specify how this cost is
calculated in the comments section.
7% of purchase value as stamp duty (2% surcharge, 5%
duty); 1% registration fees from the guideline or market
value. Surcharge will be given to local panchayat union +
Rs.100 for computer fees. Greater than Rs. 1000, DD to be
given or stamp paper challan. (Registrar)
R5.3
What is the number of days required to obtain
building permits for residential construction.
Consult private builder or person familiar with
municipal codes and regulations.
60 days if all the required documents are submitted as per
the requirements. (CMDA)
34
Regulatory Regime 6/25/2014Questions Score Instructions Comments
R5.4
What is the number of agencies that an
individual is required to visit to obtain a permit
for new construction?
Consult private builder or person familiar with
municipal codes and regulations. Specify the
names of agencies in the comments section.
For ordinary and special buildings - Corporation of Chennai
and Chennai Metropolitan Development Authority(CMDA).
For Multi-storey buildings - CMDA, Police clearance, Fire
Services, Metro Water and Sewerage board, Pollution
Control Board, Airport authority of India and concern local
bodies like municipality or panchayat. (CMDA)
R5.5
What are the typical costs associated with
obtaining a building permit? (in local currency)
Consult with private builder or municipal
building department. Specify how this cost is
calculated or whether it is based on value of
construction or a fixed fee in the comments
section.
Application Fee, Developmental Charges and other fees
applicable. Fees will be vary according to the floor area and
proposed uses. (www. Cmdachennai. Gov.in)
R5.6
Can alternative documents be used in place of
official property title to obtain construction
permits? (Yes=1/No=0) 0
Consult person familiar with municipal codes
and regulations
No. Even Patta is not required for housing board plot to
obtain construction permit. (Registrar and CMDA)
R6 Incremental building practices are allowed. 0.00
R6.1
Land regulations require that new residential
land be fully serviced before it is occupied
(Yes=1/No=0) 1
Consult actual documents. "Fully serviced"
denotes working connections to utilities such
as water, sewerage, and electricity.
Yes. Electricity will be provided first. Water and sewerage
connections, roads in Multi-story buildings will take time due
to registration formalities with local body. (CMDA)
R6.2
The building code requires that houses be
completed before they are occupied
(Yes=1/No=0) 1 Consult actual documents. Yes. (www.chennaicorporation.gov.in)
R7
Residential development is not permitted
on environmentally sensitive or hazardous
land. 1.00
R7.1
Recent municipal documents and maps
designate areas to be protected from
development. (Yes=1/No=0) 1 Consult actual documents.
Yes. Designate areas are protected through guidelines like
Coastal Regulation Zone(CRZ), Catchment Railway Land,
100 metres away from Canal/waterways. (CMDA)
R7.2
Illegal or irregular construction in protected
areas is demolished. (Always=3, sometimes=2,
never=1) 3
Consult a person familiar with municipal
policies regarding the protection of open
space.
As per the Town & Country Planning Act 1974, Stop work
notice / Notice calling for approval plan. Non-receipt of
Approval plan or non-submission of application for approval
resulted in issuing demolition notice. The building will be
demolished after 30 days. If tenant resides in the building for
rental, additonal 30 days time will be given, Show cause
notice or B-Memo is issued by Highways Department for
Demolotion for buildings in the highways. (CMDA)
R7.3
In earthquake prone areas, do building codes
require earthquake resistant construction
standards? (Yes=1,No=0 or 100 if not
applicable) 1
Consult actual documents or person familiar
with municipal building codes.
Yes. Plan Permits by Chennai Metropolitan Development
Authority (CMDA) and Structural stability is by Corporation
of Chennai. (CMDA)
R8
There is an ample supply of land for
residential development. 0.33
R8.1
The most distant year for which populations
projections for the metropolitan area of the city
are available to municipal or metropolitan
planners (Year).
Consult actual documents. Please note that
"most distant year" should refer to a year in the
future.
2026. (Second Master Plan for Chennai Metropolitan Area
2026 Volume 1 to 3, published by Chennai Metropolitan
Development Authority (CMDA))
35
Regulatory Regime 6/25/2014Questions Score Instructions Comments
R8.2
Estimated number of years it would take for
raw land where residential development is
allowed on the periphery of the city to be filled
up, given present densities and present annual
levels of land consumption. (Years)
Consult the municipal planning office or real
estate experts, how much land, on average, is
converted to residential use every year. Divide
total area reserved for residential development
by that number.
Exact no. not known. But converting raw land to residential
projects will take 6 months -2 years as it depends on various
factors and the type of residential projects. (CMDA)
R8.3
Does the city have an urban planning
document designating areas for urban
expansion. (yes=1, no=0) 1 Consult actual documents.
Yes. 2nd Master Plan for Chennai Metropolitan Area 2026,
CMDA)
R9
Home-based businesses and mixed land
uses are allowed. 0.50
R9.1
Municipal regulations allow the operation of
home-based businesses in residential
communities (Always=3, sometimes=2,
never=1) 1 Consult actual documents.
Regulations will not allow to operate home-based
businessess. But in practice, most people operate business
from home without name board. (CMDA)
R9.2
Municipal zoning regulations allow mixed-use
zoning of residences, stores and productive
establishments (Always=3, sometimes=2,
never=1) 2 Consult actual documents. Yes. Only in Multi-storey buildings. (CMDA)
R9.3
Degree of segregation of different land uses in
the city (Rank 1 to 5, 5=highly mixed, 1=highly
segregated). 5
Question concerns segregation of residential,
commercial, and industrial areas. Highly Mixed. (CMDA)
R10
Condominium and cooperative housing
laws are in operation. 0.60
36
Regulatory Regime 6/25/2014Questions Score Instructions Comments
R10.1
There is a condominium law and it is
operational (Yes=1/No=0) 1 Consult actual documents.
Yes. The National Cooperative Housing Federation of
India(NCHF) has made good head way in promoting and
strengthening housing cooperatives and it has assisted a
number of States in the matter of setting up of State level
cooperative housing federations. At the time of registration
of NCHF, the number of apex federations was only 6 which
have now increased to 26. It has also made a number of
initiatives for augmenting the flow of funds to housing
cooperatives from various funding agencies like LIC, NHB,
HUDCO etc. In order to meet the specialized needs of
housing cooperatives NCHF drafted a Model Cooperative
Housing Societies Law which has been approved by the
Ministry of Law and the Ministry of Urban Employment and
Poverty Alleviation. The above Model Law has been sent to
State Governments and Union Territory Administrations for
adoption keeping in view the local conditions and
requirements. The States of Delhi, Goa, J&K and Madhya
Pradesh have included a Special Chapter on Housing
Cooperatives in their existing Cooperative Societies Acts. In
order to facilitate smooth and efficient functioning of
housing cooperatives,NCHF has prepared the 'Model Bye-
laws and Subsidiary Rules of Primary Housing
Cooperatives'.The Document which is a sort of guidelines
has been circulated to the Registrar of Cooperative Societies
of various states with a request to revise their respective
Model Bye-lawsof Primary Housing Cooperatives keeping in
view local requirements and Cooperative law.
(www.mhupa.gov.in & www.ncfindia.net)
R10.2
There a cooperative housing law and it is
operational (Yes=1/No=0) 1 Consult actual documents.
In our country, housing cooperatives have been playing a
very significant role in meeting the shelter requirements of
needy people. Cooperative housing movement is well spread
and well-organised. At base level, there are 92,000 primary
housing cooperatives, with a membership of over 65 lakhs.
At state level, there are 25 apex cooperative housing
federations/corporations, which are members of national
level federation i.e. National Cooperative Housing Federation
of India (NCHF). About 24 lakh housing units have been
constructed under the aegis of housing cooperatives in the
country.(www.ncfindia.net)
R10.3
If yes to R10.1 or R10.2, are common elements
of apartment buildings also privatized?
(Yes=1/No=0) 0
Consult actual documents. "Common
elements" are defined as roof, hallways,
commercial or storage spaces that are part of
the building as well as the adjacent land.
No. (www.ncfindia.net) In the Apartment Buildings, Common
Places will be handed over to the Association after the
construction. (builder)
R10.4
There are regulations allowing for restrictive
covenants in residential communities
(Yes=1/No=0) 0
Restrictive covenants are binding regulations
that accompany the purchase of a dwelling unit
in a residential community.
No. The Laws and regulations applicable to building
constructions conforming to the approved specifications
and design and the project should be done by licensed and
registered architects and structural engineers.
(www.ncfindia.net) . 37
Regulatory Regime 6/25/2014Questions Score Instructions Comments
R10.5
There are regulations that allow the creation of
formal community organizations (Yes=1/No=0) 1
Consult community organizers in low-income
residential areas.
Yes. Community organisations are registered under Society
Act or Trust Act. Formal community organizations can be
created anywhere. No specific regulations for low-income
residential areas. (NGO working in low-income settlements) .
The National Cooperative Housing Federation of India
promote apex cooperative hosing federations in the states
where such organisations do not exist to promote, develop
and coordinate the activities of housing cooperatives in the
country. (www.ncfindia.net)
R11
Rent restriction or rent control is phased
out 0.75
R11.1
Rental units as a percentage of total housing
units. (%) Consult person familiar with the rental market.
Out of the total urban housing shortage of 24.7 million units
in 2012, 22.9 million units, approx 90% of the shortfall is
housing for the Economically Weaker Sections(EWS). (11th
Five year plan 2007-2012 working group on Urban Housing
with focus on Slums, Government of India)
R11.2
The percentage of total rental units now under
rent restriction or rent control in the [capital] city
(0-100%) 0 " Nil
R11.3
What is the ratio of the estimated average
market rent to the average rent in a similar rent-
controlled or restricted unit in the city? (100 if
no rent control) 100 " No.
R11.4
New rental units are not rental controlled or
rent restricted (Yes=1/No=0) 0 "
No. New Rental units are not constructed in Chennai
(Builder)
R11.5
The dismantling of rent control or rent
restriction on new rental units is addressed in
recent policy documents.(Yes=1/No=0 or 100 if
no rent control) 1 Consult actual documents.
Yes. Government is in the process of creating more rental
units to low income group. There is a growing need to revisit
regulations and reform the Rent Control Act, which are
proving to be a deterrent in the development of rental
houses and redevelopment of
areas with old properties. By formulating more clear and
defined guidelines within building bylaws and rules for Floor
Space Index (FSI), zoning and development plans the
local urban authorities in India can reduce the difficulties
faced in planning for construction projects in India. (KPMG
study - 2012). As mandated by JNNURM states must
complete reforms to their Rental Control Act to balance the
interests of landlords and tenants to create a conducive
atmosphere for private rental(www.idfc.com - Affordable
Rental Housing by Infrastructure Development Finance
Company Limited). Maharastra Government launched
affordable rental housing scheme to build 5 lakh 160 square
foot homes in 5 years. But the rental housing scheme was
flawed and the government decided to replace rental
housing with affordable houses and increase the size from
160 to 320 sqft. (News Paper - the Hindu, 26th April 2013)
38