Page 76 - HUDCO-SHELTER-APR21

POLICY REVIEW

housing demand at a network or system of cities could be to provide an 'increase'
metropolitan scale and the (metropolises), because in household income through
experience in countries like urbanisation relies upon a well- subsidies supporting rental
Sudan, Nigeria or Colombia has developed and dense network of housing.
shown that the administrations transportation and DEMAND SUPPLY
are capable in budgetary terms communication for making the DYNAMICS OF AFFORDABLE
to provide affordable housing to connection between cities HOUSING IN INDIA
its population. In Sudan for possible to allow mobility of
In India, it has been observed
instance, the cost of providing resources between cities. The
that on account of the
affordable housing was 5% of housing strategy has to evolve in
complexity of the housing
the oil income of the country. In response to the direction
supply issue for growing
Colombia, Bucaramanga, the assumed by urbanisation.
population, the city
housing policy required 15% of While the concept of affordable
the municipal budget. In such housing seems to be a simple governments have been unable
circumstances, if the country solution to current housing to match the desired standards.
does not house its population in woes, its execution also remains On top of this, if the income
decent homes it is not because complicated due to the unclear levels of the city residents do not
the government cannot, it is policy framework. In addition, match with the land rates,
because the Government has the lack of availability of urban housing prices and the rents,
other priorities, probably related land at reasonable price, rising slum pockets start emerging in
to the financial transfer of funds costs of construction, high fees the already expanding city
than to the wellbeing of the and taxes, regulatory issues & limits. The city, which gradually
population. In such cases, the unfavourable development becomes a metropolis, hence
delegation of affordable housing norms are few of the major requires an efficient affordable
provision to the metropolitan constraints, restricting the housing policy to meet the
governments becomes necessary. desired growth and growing housing demands. The
affordable housing policies are
The Indian Government has implementation of affordable in a way, an intervention that
formulated many policies and housing in India. Public curbs the growth of slums,
programmes for housing authorities can directly intervene which in turn, affect the
especially since the late eighties in the supply by promoting economic growth, productivity,
including the National Housing social housing projects for efficiency & efficacy of the
Policy of 1988. Additionally, middle-low income households. metropolis.
many bodies like the National An indirect public action could
The demand-supply gap in India
Housing Bank (NHB) and be to try to make market prices
is widened as private developers
Housing & Urban Development more affordable by applying
Corporation (HUDCO) have also fiscal incentives in return for primarily target the luxury, high
been created to facilitate the tiered rents or by making and upper-mid housing
implementation of such policies subsidies available for segment, as it fetches a
and programmes. For these refurbishments, consisting in premium. On the other hand, the
policies to be more successful, interest subsidies or capital housing for the poor and EWS is
the cities must not be treated as grants, to obtain adequate primarily provided by the
individual and isolated entities, housing. An action on the government for welfare
but as components of a larger demand side, on the other hand, purposes which is insufficient

74 HUDCO-HSMI Publication