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Housing and Urban Development Department
POLICY NOTE- 2002-2003
DEMAND No.25
Introduction
The Government of Tamilnadu has set for itself the goal of providing “ A house for each family”. In order to achieve this goal, Tamilnadu Housing Board, Tamilnadu Slum Clearance Board, Tamilnadu Cooperative Federation and its affiliated Societies are formulating and implementing schemes to provide plots and houses to different income groups.
1.2 House Building Advances are also being provided to Government Servants at low rate of interest to meet their Housing Demand. Tamilnadu Government constructs rental quarters through Tamilnadu Housing Board for the use of Government Servants, besides allotment of dwelling units at nominal rent through Accommodation control scheme.
1.3 The Directorate of Town and Country Planning has been assigned with the responsibility of administering the Town and Country Planning Act, 1971. The function includes assisting the Local Planning Authorities in preparing and implementing the statutory plans and various schemes to ensure orderly planned development and provide healthy environment in the human settlements. The Town and Country Planning Act has as its objectives the preparation of Regional Plans, Master Plans, New Town Development Plans and Detailed Development Plans etc.
1.4 Tamilnadu ranks third most urbanised state in India. 43.86% of its population living in urban centers. Of this 25% of the State's urban population live in Chennai Metropolitan Area (CMA). About 10% of the total State's population live in the Chennai Metropolitan Area.
1.5 Chennai is recognised as one of the National Priority Cities by the National Commission of Urbanisation (NCU). Because of its primacy, Chennai tends to grow faster and bigger. In the context of liberalised economy, focus on Industrial Development and entry of Multi-national Companies in Industrial Sector, the pace of development of Chennai Metropolitan Area is likely to be faster. This warrants urgent measures to plan, implement and guide the developments in order to make the Metropolitan Area livable by improving its quality of life. Chennai Metropolitan Development Authority focuses its activities on various development schemes with the above concept in mind.
2. TAMIL NADU HOUSING BOARD
The main aim of the Tamilnadu Housing Board is to cater to the Housing needs of the people of different income groups such as Economically Weaker Section, Low Income Group, Middle Income Group and Higher Income Group. Tamilnadu Housing Board provides developed plots with all infrastructure facilities for all the income groups at affordable prices.
2.1 ACHIEVEMENTS OF THE TAMILNADU HOUSING BOARD
Tamil nadu Housing Board has been in the field of land development and construction of houses for the past 41 years. So far, Tamilnadu Housing Board has developed 3,93,082 housing units. Out of 3,93,082 units, 2,04,389 are developed plots and balance is houses and flats. The plots developed for economically Weaker Section alone amounts to 1,25,623 out of the 2,04,389 plots developed. The budget outlay of Tamilnadu Housing Board has been steadily increasing from 1960-61.
2.2 TAMILNADU GOVT. RENTAL HOUSING SCHEMES
Tamilnadu Housing Board has been implementing rental housing scheme for Tamilnadu Government Servants. So far 29,055 rental flats have been constructed at a cost of Rs. 268.88 Crores as deposit work. A sum of Rs.13 crores has been sanctioned for special repairs to Tamilnadu Govt. Servants Rental Housing Schemes in 2001-2002 and repairs have been taken up. This will be completed this year.
2.3 SLUM TENEMENTS
Before the constitution of Tamilnadu Slum Clearance Board, the Tamilnadu Housing Board has been constructing 20060 slum tenements throughout Tamilnadu. Out of this, 9637 slum tenements at the district headquarters at Madurai, Salem, Thirunelveli, Coimbatore, Cuddalore and Trichy are still under the maintenance of Tamilnadu Housing Board.
ECONOMICALLY WEAKER SECTION HOUSING SCHEMES
As on to-day about 8,600 plots developed for Economically Weaker Section are available for allotment. Out of that, 6,860 are developed under Tamilnadu Urban Development Project and the balance 1740 is developed under land bank schemes. The plot sizes of the above plots vary from 350 sq.ft. to 750 sq.ft. These plots are allotted to Economically Weaker Section at subsidized prices. The prices of the above plots vary according to their locations, from Rs. 4,300/- to Rs. 23,000/-. The monthly income ranges for the allotment of plots under TNUDP are as follows:
For EWS-A - Rs. 920 & below
For EWS-B - Rs. 1340 & below
The monthly income range for the allotment of plots developed under land bank scheme is below Rs. 2,100/-.
2.5 LOW INCOME GROUP HOUSING SCHEMES
The monthly income eligibility for the Low Income Group is from Rs. 2,101/- to
Rs. 4,500/-. The allottee has to pay 30% of the cost as Initial Deposit and the balance has to be paid in equated monthly instalments, the repayment period ranges from 8 to 15 years (depending on the tenure of the loan). Tamilnadu Housing Board has so far developed/constructed 91,463 units at a cost of Rs. 148.36 Crores. During the year 2002-2003, it has been proposed to develop / construct 1923 units at a cost of Rs. 3.30 Crores.
2.6 MIDDLE INCOME GROUP AND HIGHER INCOME GROUP HOUSING SCHEMES
The monthly income eligibility for Middle Income Group housing scheme is from Rs. 4,501/- to Rs. 7,500/-. The allottee has to pay 35% of the cost as Initial Deposit and the balance has to be paid in equated monthly instalments, the repayment period ranges from 8 to 15 years (depending on the tenur of the loan). During the year 2002-2003, it has been proposed to develop / construct 1752 plots/ flats / houses at a cost of Rs. 6.88 Crores.
The monthly income eligibility for Higher Income Group housing scheme is above
Rs. 7,500/-. The allottee has to pay 40% of the cost as Initial Deposit and the balance has to be paid in equated monthly instalments; the repayment period ranges from 8 to 15 years (depending on the tenur of the loan). Tamilnadu Housing Board has so far developed/constructed 1,20,094 MIG & HIG plots/houses/flats at a cost of Rs. 961 Crores. During the year 2002-2003, it has been planned to develop/construct 988 plots/houses/flats at a cost of Rs. 7 Crores. The allottees of L.I.G., M.I.G., and H.I.G. have also an option to pay as low as 15% of the cost as initial deposit and to pay the balance in equated monthly instalment in 15 years. The allottee choosing this option has to pay 1% additional interest.
2.7 SMALL AND MEDIUM TOWNS SCHEME
A scheme for providing housing facilities in selected small and medium towns throughout Tamilnadu was taken up during 1990-91. Based on the demand for housing in selected small and medium towns, land development schemes were formulated and construction of houses was also contemplated in these schemes. So far, 68 Small & Medium Towns were selected in which 12,125 houses and 11,176 developed plots at a cost of
Rs. 218.85 Crores have been completed.
2.8 HARNESSING SOLAR ENERGY AND RAIN WATER HARVESTING
Tamilnadu Housing Board has been providing rain water harvesting in all its schemes within Chennai metropolitan area in the recent years. Action has been taken to implement the rain water harvesting techniques in other schemes also throughout Tamilnadu. All efforts will be taken to harness solar energy appropriately for water heating etc in the Housing Schemes.
2.9 DEVELOPED PLOTS – EXPEDITIOUS ALLOTMENT SCHEME
In order to implement the goal of “ A house for each family ” as announced in the Governor’s address for the year 2001, 1384 plots have been sold this year so far. A thrust on marketing will be given to allot the balance available plots of about 27,800 under Developed Plots – Expeditious allotment scheme during 2002-2003.
Under the above scheme, it has been planned to sell the plots in 8 schemes in which plots remain unsold for quite a long time, in public auction by fixing the original price as upset price. The capitalization for these plots has been removed.
2.10 JOINT VENTURE PROJECTS
Tamilnadu Housing Board is initiating action on joint venture projects. As a pilot project, it is proposed to allot about 50 acres of developed plots to private developer for construction of houses in the Sholinganallur Scheme. Based on the success of the pilot project, this will be extended to other schemes also.
The plot owners/house owners in valuable places are entering into agreement with private builders for demolishing old houses and constructing multistoried flats on joint venture basis. These flats thus constructed are shared among the two. Tamilnadu Housing Board is planning to undertake such joint venture projects with private plot/house owners, which will enable orderly development, within the purview of development control rules.
2.11 NEW CONSTRUCTION STRATEGIES
So far Tamilnadu Housing Board has been adopting “ BUILD AND SELL ” policy. In this method, Tamilnadu Housing Board has to borrow loan from Housing Financial Institutions and invest the same in the project. The interest on the loan is being charged to the houses/flats, which is to be borne by the allottee. In addition, selling of these constructed flats/houses becomes difficult since the demand is not scientifically assessed. In order to over come the above situation, Tamilnadu Housing Board is switching over to the policy of “SELL AND BUILD”. By this method, the capital required for the project is collected from the allottees by identifying the allottees even at the planning stage. This method relieves the allottee of the interest burden and the Tamilnadu Housing Board is also relieved of the marketing burden. This type of self financing scheme has been taken up on a trial basis in the construction of 85 houses at Vellore and plans are on the anvil to construct houses under self financing scheme in Kancheepuram and other places.
2.12 PROPOSAL TO HELP THE ALLOTTEES OF TNHB’S SCHEMES TO OBTAIN LOAN FOR CONSTRUCTION FROM HOUSING FINANCIAL INSTITUTIONS AND TO ASSIST THEM IN CONSTRUCTION
Many of the allottees of Tamilnadu Housing Board’s schemes are finding it difficult to mobilize financial resources to take up the construction of house in their plots. Tamilnadu Housing Board is taking action to arrange for loan to such allottees from Housing Financial Institutions and to assist them in construction.
2.13 ACTION TAKEN TO IMPROVE THE SALES OF AVAILABLE STOCK
Considering the slump in the real estate market, stiff competition created by the private developers, influx of housing financial institutions coming forward to lend housing loans at a comparatively low rate of interest, the financial crisis faced by Tamilnadu Housing Board, accumulation of unsold stock, priority and satisfaction of the consumers, Tamilnadu Housing Board is changing its marketing policy by implementing various marketing strategies on par with private developers, by removing capitalization, by relaxing certain of its allotment rules, announcing prize schemes and announcing discount sales. Tamilnadu Housing Board will continue to implement the various marketing strategies in order to improve the sales further.
Besides the above, the following marketing strategies have also been undertaken:-
(i) Creating separate sales team in Board’s Secretariat, Circle Office and Division Offices by fixing specific targets for each team;
(ii) Participating in property fairs, exhibitions, trade fairs;
(iii) Organizing sale camps in the Offices of Government Departments and Govt. under taking such as Port Trust, Southern Railway, I.C.F. Tamilnadu Electricity Board etc;
(iv) Exhibiting slides in Cinema theatres;
(v) Announcing prize schemes during the festival seasons;
(vi) Announcing 1% discount on the amount paid to those who register in the Tamilnadu Housing Board stall put up in Trade Fair;
(vii) Engaging commission agents;
(viii) Inviting applications by issuing advertisement for the allotment of houses/flats under Govt. Discretionary Quota.
2.14 CONSTITUTION OF COMMITTEES FOR THE EFFICIENT FUNCTIONING OF TAMILNADU HOUSING BOARD
The Government have constituted a High Level Committee under the Chairmanship of the Hon’ble Minister for Housing & Urban Development Department vide G.O.Ms.No. 479, HUD dated 5.12.2001 to recommend ways and means to improve the sales, marketing strategies and pricing policy. The committee met on 14.12.2001 and has made some recommendations. Based on the recommendations of the committee, the Govt. have issued orders to sell the plots in 8 schemes by fixing the original price as upset price and to sell by auction in groups vide G.O.Ms.No. 60, HUD dated 21.2.2002. Action has been taken to implement the orders to sell the plots.
The Government have issued orders in G.O.Ms.No. 418, HUD dt. 22.10.2001 to constitute a committee to review the existing pricing policy of Tamilnadu Housing Board and to suggest changes if any in the pricing policy. The committee has met and is finalizing its recommendations. Based on the recommendations, the new pricing policy will be formulated and implemented.
In the present context of the slump in the real estate market, stiff competition prevailing in the market and the beneficiaries’ attitude, the role and function of Tamilnadu Housing Board as an Urban Development agency needed to be reviewed and modified. The Government in its G.O.Ms.No. 419, HUD dt. 24.10.2001 have issued orders constituting a committee for this purpose. Based on the recommendations of the committee the role and function of Tamilnadu Housing Board will be modified.
In order to determine the right size of the Tamilnadu Housing Board and to suggest the ways to down size the staff if necessary, with reference to the prevailing slump in the real estate market and the consequent reduction in the construction activities of Tamilnadu Housing Board, the Government have issued orders constituting a committee in G.O. Ms. No. 17 H&U.D dated 18.1.2002. Appropriate decisions will be taken on the recommendations of the committee.
2.15 ACTION TAKEN TO REDUCE THE INTEREST BURDEN OF TAMILNADU HOUSING BOARD
The loan outstanding with financial institutions at the beginning of the financial year 2001-2002 was Rs.843 crores. Of this, about Rs.400 crores have been borrowed at higher interest rates ranging from 14% to 20%. Efforts have been taken to borrow loans at lower interest rates and clear the high cost loans. Tamilnadu Housing Board has so far borrowed Rs.205 crores at lower rates of interest (11% to 11.1%) and foreclosed the high cost loans. Further Rs.100 crores has also been sanctioned by commercial banks. With this, the total saving of interest burden will be Rs.13 crores in a year and Rs.100 crores for the entire loan period.
2.16 COMPUTERISATION OF THE ACTIVITIES OF THE TAMILNADU HOUSING BOARD
The day to-day activities of Tamilnadu Housing Board and the accounts of the allottees will be computerized. All the division and circle offices will also be interconnected through a network system. Tamilnadu Housing Board will procure the required computer systems from out of the fund of Rs. 50 lakhs sanctioned under Part-II scheme and install the same in each division & circle. Software for the above purposes will be developed this year.
2.17 PREFERENTIAL ALLOTMENT TO SCHEDULE CASTE/SCHEDULE TRIBE IN TAMILNADU HOUSING BOARD SCHEMES
Tamilnadu Housing Board reserves 18% and 1% of the plots developed, houses/flats constructed in all its schemes (except self-financing scheme), for allotment to Schedule Caste and Schedule Tribe respectively. This preferential allotment will be continued in future schemes also.
2.18 DECENTRALISATION OF POWERS
In future, the powers for issue of No Objection Certificate for plan approval from Chennai Metropolitan Development Authority /Commissionerate of Town and Country Planning, allotments, confirmation of auction sales etc. will be delegated to Circle/Division level officers.
2.19 CONSTRUCTION AND AREA DEVELOPMENT PROPOSALS FOR 2002-2003
Schemes for the construction of 567 houses/flats, area development schemes for the development of 4630 plots, land acquisition, special repairs to TNGRH Quarters and Ancillary schemes etc. will be implemented at a cost of Rs. 70 Crores during the year 2002-2003.
3. TAMIL NADU SLUM CLEARANCE BOARD
The main aim of the Tamilnadu Slum Clearance Board is to clear the slums especially those located in flood prone and other vulnerable areas and to resettle them in self contained hygienic houses with basic amenities near the urban limits and to provide basic amenities like drinking water supply, roads, storm water drain, sewerage disposal, street lights, etc. to all the slums.
3.1 PROGRAMMES IMPLEMENTED BY THE TAMILNADU SLUM CLEARANCE BOARD
Tamilnadu Slum Clearance Board has been implementing various programmes to improve the living conditions of the slum families as detailed below:-
SLUM CLEARANCE PROGRAMME
The Slum Clearance Programme envisages the construction of storeyed tenements with adequate infrastructure like water supply, sewerage, roads and streetlights, etc. Tamilnadu Slum Clearance Board has been implementing this programme since inception of the Board and so far constructed 68550 storeyed tenements at a cost of Rs.259.28 crore in Chennai, Madurai, Coimbatore, Trichy, Salem, Tirunelveli, Erode, Tuticorin, Thanjavur, Karur, Kumbakonam, Nagapattinam, Tiruppur and Sankarankoil.
It is programmed to complete the construction of 576 tenements at Swathandra Nagar in Chennai City at a total cost of Rs. 7.08 crores before 31.3.2003. The funds required for this programme will be obtained from TUFIDCO as loan assistance and will be repaid by the Government over a period of 15 years.
ENVIRONMENTAL IMPROVEMENT OF URBAN SLUMS
To make the slum areas habitable, basic amenities like water supply, roads, street light, etc. are provided as a short time measure in unhygienic urban slums on "as is where is" basis at an average cost of
Rs.2,000/- per family. This programme is being implemented out of the budgetary support provided by the Government every year. The slum improvement works under this programme have so far been provided to 320710 families living in urban slums at a cost of Rs.46.34 crore.
The slum improvement works as detailed above will be provided to 15,000 urban slum families at a total cost of Rs.3.00 crore during 2002-2003.
REHABILITATION & RESETTLEMENT OF THE SLUM FAMILIES LIVING IN OBJECTIONABLE AREAS IN CHENNAI CITY - SPECIAL PROBLEM GRANT - TENTH FINANCE COMMISSION OF GOVERNMENT OF INDIA
Tamilnadu Slum Clearance Board has availed special problem grant of Rs.54.00 crore from the Tenth Finance Commission/Government of India for the improvement of slums in Chennai City. Utilising this grant assistance, construction of 6500 houses at Okkium Thuraipakkam has been completed. So far 4265 houses have been allotted to slum families living on the alignment of MRTS and in other objectionable places. The remaining houses will be allotted to the slum families squatting on the alignment of MRTS Phase II soon on receipt of the list of affected families from the MTP authorities.
FLOOD ALLEVIATION PROGRAMME - CONSTRUCTION OF HOUSES FOR THE SLUM FAMILIES
Under flood alleviation programme, Tamilnadu Slum Clearance Board has programmed to construct 2688 houses at a cost of Rs.23.87 crore at Okkium Thuraipakkam, to resettle the slum families living on the river margin and posing hindrance to the desilting operations. Tamilnadu Slum Clearance Board has completed construction of 2296 houses at a cost of Rs. 20.37 crore.
Under this programme, Tamilnadu Slum Clearance Board shall complete the construction of the remaining 392 houses at a cost of Rs.3.50 crore during 2002-2003. The Government will provide Rs.3.50 crore as grant for this programme.
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