Government of Andhra Pradesh Municipal Administration & Urban Development Department. Andhra Pradesh State Affordable Housing Policy, 2015 (For urban areas of AP) Table of Contents Definitions 3 List of Acronyms 4 1. Introduction 1.1 Housing Scenario in Andhra Pradesh 7 1.2 Vision & Target 8 1.3 Objectives 9 1.4 Strategic initiatives 10 2. Guidelines and Processes 2.1 Parameters for Affordable Housing 13 2.2 Planning norms 14 2.3 Eligibility for Developers 16 2.4 Eligibility and allotment to beneficiaries 17 2.4.1 Incentives for Beneficiaries General Process Guidelines 19 2.6 Repair & Maintenance provisions 22 Proposed Models for Affordable Housing 3.1 Model 1: Private Developer on Private Land 3.1.1 3.2 3.3 Incentives to private developers under Model 2 Model 3: Government led development 3.3.1 3.4 Incentives to private developers under Model 1 Model 2: Private Developer on Government Land 3.2.1 13 19 2.5 3. 5 Incentives to private developers under Model 3 Model 4: Rental Housing 4. 23 23 26 27 28 28 29 30 Annexures 4.1 Dwelling Unit Specifications 31 4.2 GoAP’s proposed Land and Approval Process Simplification System 32 31 Definitions Affordable Housing: Individual dwelling units with a Carpet Area of not more than 60 sq. mt. and preferably within the price range of 5 times the annual income of the household as notified, either as a single unit or part of a building complex with multiple dwelling units. Affordable Housing Projects: Housing projects where at least 60 percent of the FAR/ FSI is used for dwelling units of Carpet Area of not more than 60 sq. mts. The project shall also reserve 15 percent of the total FAR/ FSI or 35 percent of the total number of dwelling units for EWS category. Built up area and Plinth Area: As used in this report is, Plinth area shall mean the built up covered measured at the floor level of the basement or of any storey, the same as defined in detail in the IS code – IS 3861 : 2002, “Indian Standard Method of Measurement of Plinth, Carpet and Rentable Areas (Second Revision)”. Carpet Area for an Affordable Housing Dwelling Unit: The carpet area as used in this report is the usable and habitable rooms at any floor level (excluding the area of the wall). While the method of measurement of carpet area will be the same as in the IS code 3861:2002, it will include carpet area of the living room(s), bedroom(s), kitchen area, lavatory(s), bathroom(s), and balcony / verandah, if provided, in accordance with the definition of the Dwelling Unit/Tenement as provided in the National Building Code, 2005 which is an independent housing unit with separate facilities for living, cooking and sanitary requirements FSI (Floor Space Index) or FAR (Floor Area Ratio): The quotient obtained by dividing the total covered area (plinth area) on all the floors by the area of the plot: i. FAR = Total covered area of all the floors/ (divided by) Plot Area TDR (Transferrable Development Rights): TDR means an award specifying the built up area an owner of a site or plot can sell or dispose or utilize elsewhere, in lieu of surrendering land free of cost which is required to be set apart or affected for public purpose as per the Master Plan or in road widening or covered in recreational use zone, etc. The award is in the form of a TDR Certificate issued by the Competent Authority List of Acronyms MHUPA Ministry of Housing and Urban Poverty Alleviation GoI Government of India GoAP Government of Andhra Pradesh MA & UD Municipal Administration and Urban Development Department APHB Andhra Pradesh Housing Board APHDB Andhra Pradesh Housing and Development Board EWS Economically Weaker Section LIG Low Income Group MIG Middle Income Group HIG High Income Group JNNURNM Jawaharlal Nehru Urban Renewal Mission IHSDP Integrated Housing and Slum Development Programme RAY Rajiv Awas Yojana AHP Affordable Housing in Partnership Scheme BSUP Basic Services for Urban Poor RSS Rajiv Swagruha Scheme CAF Common Application Form SWC Single Window Clearance DCR Development Control Regulation FAR Floor Area Ratio FSI Floor Space Index TDR Transferrable Development Rights ULB Urban Local Body MC Municipal Corporation UDA Urban Development Authority SLNA State Level Nodal Agency EoI Expression of Interest TPI Third Party Inspection PMU Project Management Unit 4 1. Introduction The process of urbanization has been historically associated with important economic and social transformations. Cities are important drivers of development and poverty reduction in a holistic perspective, as they concentrate economic activity, government, commerce and transportation and provide crucial links with regional, national and international boundaries. Nevertheless rapid and unplanned urban growth also triggers unsustainable development and unequal sharing of city’s benefits. Today, despite the comparative advantage of cities, urban areas are perceived as more unequal than rural areas and hundreds of millions of the world’s urban poor live in sub-standard conditions. India’s Urban Population has grown over the past 3-4 decades from 109 million in 1971 to 377 million in 2011 and is expected to grow to almost 600 million by 20301. Large scale migration of India’s 700 million strong rural population will pose a major challenge for the Housing sector to address in all urban areas. The lack of cost effective housing is one of India’s most pressing developmental problems. The Report of the Technical Group on Urban Housing Shortage (TG-12) (2012-17, Ministry of Housing and Urban Poverty Alleviation) has estimated the housing shortage in urban areas to be 18.78 million units out of which 95% of the shortage is in the economically weaker section and low income group (56.18% in EWS and 39.44% in LIG). It is further estimated that another 15 million households are situated in “unacceptably congested conditions”. While India has seen a significant increase in home ownership in the last ten to fifteen years with various facilitators such as expansion of housing finance institutions and regulatory and fiscal support, reduced mortgage interest rates, rising per capita income etc, the benefits of the booming housing market are yet to reach poorer segments. The EWS, LIG & MIG sections make vital contributions to the growth of a city; hence, an inclusive city is essential to ensure healthy urbanization. Given rising land and construction costs, housing has become unreachable for the EWS, LIG, and MIG sections, especially in urban areas. For the last many decades, the only suppliers of Affordable Housing stock through projects for EWS and LIG categories have been public sector entities such as State Housing Boards and Urban local bodies and Development Authorities. Ten states contribute about 75% to the total urban area housing shortage in India, with erstwhile Andhra Pradesh ranking fourth with a housing shortage of 1.27 million units 1 Affordable Housing in Partnership Scheme Guidelines, GoI 5 The total urban housing need of India is expected to increase to 44-48 million units by 2022. MHUPA and State Governments have initiated several demand side interventions (Capital subsidy for dwelling units, interest subsidy, infrastructure funding) and supply side interventions (Higher FSI, TDR, liberal land- use norms) to reduce the challenge of increasing housing shortage. With changing policy environment, a set of private sector developers and financial institutions have started developing new models for building and financing affordable housing. However given the scale of the problem, current public sector contribution and a few private players alone cannot address the problem. A drastic scale up to meet the anticipated housing shortage, calls for radical changes in current policy regime and maximum co- operation between all relevant stakeholders. Figure 1: Requirement from key stakeholders Centre Appropriate policy instruments through rigorous stakeholder consultations, institutional framework and efficient disbursal mechanisms State Road map- target and time- line bound action plan, State level policy and incentives ULBs/ UDAs/ Statutory Bodies Land and infrastructure availability, pro- active engagement with private sector and citizens, simple and streamlined approval and allotment process Urban Development Authority Favorable development control regulationsHigher FSI/ FAR, TDR, liberal land- use mix etc Banks/ Housing Finance Institutions Affordable lending rates, simple and streamlined processes, relaxed repayment norms, stringent verification processes Private Developers Technological innovation and standardization to bring down construction costs, pro- active participation to promote state’s vision on affordable housing 6 1.1 Housing Scenario in Andhra Pradesh Andhra Pradesh (AP) is the eighth largest state in India accounting for 4.1% of the country’s population. Urban areas in the state are governed under 3 Urban Development Authorities (UDA), 13 Municipal Corporations (MC) and 75 Municipalities. Around 29.47% of the total population of AP of 49.6 million (2011), lives in urban areas. Visakhapatnam district has the largest urban population of 47.5%. Apart from Vishakhapatnam some of the key cities in the state are Vijaywada, Tirupati, Guntur, Kakinada, Nellore and Kurnool (Government of Andhra Pradesh, 2014b). Since 2001, the number of towns in the state has increased by 45%. Faster urbanization can be anticipated given proposed strategic economic initiatives in the state such as proposed Capital City and industrial clusters in the Capital City Region, Vizag Chennai Industrial Corridor, AP Petroleum Chemicals and Petrochemicals Investment Region, etc. AP has around 12.6 million households. Housing in the state is currently handled by various departments such as APHB, APSHCL, APRSCL, Independent ULBs, MEPMA, etc. Majority of MIG and HIG category houses being constructed are by private developers, or directly by the home owners, and a small proportion by APHB. The affordable housing segmentEWS/ LIG category housing is undertaken either by APHB or APSHCL. Private sector participation in affordable housing projects is virtually non-existent. Demand for housing in the state as per 2011 census is around 4 million. If % of households living in rented accommodation and % of dilapidated houses to total houses were to be considered as two of the parameters for assessing housing shortage, the geographical distribution of housing shortage in AP, would be maximum in districts of Visakhapatnam/ Krishna/ Guntur, and West Godavari/ Prakasham/ Nellore respectively. APHB estimates that of the total housing demand in the state, around 1 million units account for shortage in urban areas of AP. Table 1: Status of Housing Shortage in urban areas of AP Category Housing Shortage (nos. in lakhs) Investment reqd. (in crores) EWS I 1.5 9, 180 EWS II 1.5 9, 180 7 LIG 7 55, 930 TOTAL 10 74, 290 To tackle the affordable housing shortage for EWS/ LIG sections in urban areas of APHB has estimated an investment requirement of Rs. 74, 290 crores (inc. cost of construction of dwelling unit and infrastructure), translating to a requirement of Rs. 7,429 crores per year over a 10 year time- frame. 1.2 Vision & Target The Andhra Pradesh Urban Development Mission (APUDM) which focuses on nurturing cities in AP to be self-sustaining economic growth engines by creating basic urban infrastructure gives special emphasis to affordable housing and education for all, to alleviate poverty, thus opening avenues for bright livelihood and employment opportunities for the citizens of the AP. Among the expected outcomes of the AP Urban Development Mission, is – • Provision of affordable housing to all, particularly the poor and slum dwellers by 2022. While increasing housing supply is one dimension, a holistic approach towards providing affordable housing should emphasise inclusive planning principles that reflect and support the needs of EWS and LIG families. Aligned to this, AP State envisions: “To provide affordable housing that reflects social, economic, physical And emotional needs of the families, to live with dignity” Given the huge requirement of 1 million dwelling units in urban areas of AP, a phased implementation plan with gradual scale- up would be adopted over a 10 year time- frame, mandating a requirement of 2 lakh houses over the next three years. In the initial phase, affordable housing schemes may be undertaken in the key Municipal Corporations and the proposed new Capital City of AP “Amaravati”. Category No. of units (million) Yr 1,2,3 0.2 Yr 4,5,6 0.3 Yr 7,8,9, 10 0.5 TOTAL 1 An Illustrative Geographical Distribution of housing demand is elaborated below: 8 • In VUDA area 300,000 units (30%) • In TUDA area 50,000 units (5%) • In CRDA area 250,000 units (25%) • Other Municipal Corporation and Municipality areas (Nellore, Anantapur, Kurnool, Kakinada etc) 400,000 units (40%) While ULBs, UDAs, APHB and other statutory entities will share responsibility of achieving the above target, GoAP endeavours to implement a series of specific proactive measures and incentives to encourage maximum private sector participation in the affordable housing segment in Andhra Pradesh. 1.3 Objectives In order to achieve the above vision as closely as possible, the AP Affordable Housing Policy shall have the following objectives: • To address the housing shortage in AP for all sections of the society with special emphasis on EWS, LIG, and MIG categories in a time bound manner • To undertake large scale construction of Affordable Housing (with focus on EWS & LIG housing) by dovetailing with existing Government of India schemes and other bilateral/multilateral assistance programmes • To make housing “liveable and affordable” for EWS/ LIG categories by prescribing standards for unit cost, size, specifications and planning norms under the policy • To promote investments in affordable housing in AP through PPP and attract private developers Private developers in the construction of EWS/LIG categories of houses by offering various attractive incentives • To create affordable rental housing for migrant workers and other urban poor • To dovetail with existing Central and State Government schemes 2 and other bilateral/multilateral assistance programmes • To promote innovations in environmentally sustainable, low- cost building 2 Central Level Schemes for Urban Poor and Urban Slums: Affordable Housing in Partnership, Rajiv Awas Yojana, Basic Services for Urban Poor Scheme of Government of India under Jawahar Lal Nehru Urban Renewal Mission (JNNURM), Integrated Housing and Slum Development Programme (IHSDP) State Level Schemes for Urban Poor and Urban Slums: Rajiv Swagruha scheme, Existing schemes under AP Housing Board, APSHCL 9 design and construction technology 1.4 Strategic initiatives To achieve the above objectives and the over- arching Policy Vision, Government of Andhra Pradesh proposes to adopt a two pronged strategyCritical interventions in demand and supply side measures Demand side Interventions Supply side Interventions Capital & Interest subsidies Ensuring land bank availability • Alignment of proposed • Reservation of 10% residential land in housing scheme to Central development plans of new urban areas guidelines to access • Mandatory provision of marking either 10% of maximum subsidies for the total built up area or 25% of total number beneficiaries from the Centre of units, in all Group Development Scheme • Information regarding all Projects over plot size greater than 5 acres central and state government • Creation and management of Land Bank for subsidy schemes would be affordable housing by taking stock of available made available through a government land single unified online portal. All application and sanction • Incentivise land- owners to opt for landpooling for implementing group housing of Centre/ State subsidy will schemes over plot size of 5 acres and more, by be routed and monitored allowing mixed development scheme inc. high through this online portal rise for free- sale residential and commercial components Single State Level Agency • Municipal Administration and Urban Development Department proposed as single State Level Nodal Agency (SLNA), to integrate all affordable housing projects undertaken in the state of Andhra Pradesh, through APHB and other statutory entities, urban local bodies, development authorities etc Ease of doing business 10 • All verification and allotment to beneficiaries shall be done through a Common Application Form submitted to the e- portal along with requisite documents, operated and maintained by State Level Nodal Agency • Grievance redressal system for beneficiaries • All projects whether executed by the ULB/ UDA/ Statutory Body/ Developer shall be processed for approvals and clearances through a single online e- portal system maintained by the State Level Nodal Agency. • GoAP’s Land and Approval Process Simplification System: • Automatic land use conversion from agriculture land to non- agriculture status as provisioned under the Development Plan, upon payment of fee as set by the Government • Automated online Building Plan Scrutiny and Approval System • Empanelment of third party consultants by GoAP for speedy Survey, Fire approval certification etc • Reduced approval timelines for: • Registration & Survey, Land conversion, Mutation; Fire, Pollution control, utilities, MoEF etc (as elaborated in Annexure) • Grievance redressal system for developers State level incentives • 100% exemption in stamp- duty • TDR for EWS/ LIG • 100% exemption of land- use conversion charges, building plan approval fee, and all • Assistance in application filing other municipal charges for the affordable through e- seva centres opened housing component at every urban centre for availing affordable housing • High rise permitted for non- affordable units in state component • Cross- subsidization by allowing upto 10% of commercial land- use • Incentives for using prefabricated technology, green certification for project, solar and renewable energy use etc • Reduction in Impact Fee for group development schemes with affordable housing component (as per policy rules) Finance Assistance Innovative finance sources 11 • Co- ordination and facilitation of loan sanction for the benefit of successful applicants. • Letter of comfort/ Credit Risk Guarantee on case- to- case basis • Use of implact fee towards financing of external infrastructure • In case of Group Housing / Group Development Schemes whose land extent is more than 3000Sq.mtrs and upto 5 acres (including 5 acres), shelter fee3 shall be collected for 20% of total site area of the project, and shall be utilized for: • Development of EWS / LIG housing under JNNURM or any other Urban Housing Scheme meant for EWS categories • Undertaking civic amenities in slums and weaker section colonies only • Redevelopment / improvement / rehabilitation of slums under Rajiv Awas Yojana (RAY) programme as local body share Project Marketing • In order to change public perception towards affordable housing, and to improve the reach and acceptability of such projects, SLNA shall outsource marketing activities for affordable housing schemes to a separate media agency aligned to the principles of foundation of AP Affordable Housing Policy. With the help of the above policy framework and in-built incentives it will be possible to motivate various state level agencies and private developers to fasttrack construction of affordable housing in various urban centers of Andhra Pradesh. The Government of Andhra Pradesh wishes to adopt the middle path approach between the two paradigms, of state’s responsibility to provide affordable housing, versus free market system for the housing sector, with the latter effectively cross- subsiding the former. 3 Shelter Fee Rates Shelter Fee Rates Municipal Corporations Rs. 600/ sq.m Selection & special grade municipalities Rs. 500/ sq.m Other Municipalities, Nagar Panchayats and other Rural Rs. 400/ sq.m Local Bodies falling in UDA area/master plan areas 12 2. Guidelines and Processes This chapter details the framework for implementing the target as laid out under the policy. It elaborates upon parameters for classification under different categories of affordable housing, eligibility criteria and incentives for beneficiaries and developers, procedure for allotment of dwelling units, and process guidelines for the developer for approvals and clearances. 2.1 Parameters for Affordable Housing Government of Andhra Pradesh has set the below mentioned parameters on the basis of income criteria for affordable housing, aligned to requirements of existing Central and State schemes. Carpet Area (sq.m) Permissible height Tentative Layout (subject to alterations based on beneficiary requirements) Affordable Housing EWS LIG I LIG II 21-27 28-40 41-60 Shall not exceed 15 m (Cellar and / or Stilt as + maximum up to 5 floors) A hall, one A hall, 1 A hall, 2 room and bedroom, a bedrooms, kitchenette kitchenette, a kitchen with bedroom, area and a common and WC Block WC Block WC Block Rs. 2.9- Rs. 3.9- upto Rs. 8.6- upto upto Rs. Rs. 6.5 lakhs Rs. 13 lakhs 4.0 lakhs Maximum selling price per unit (inc. cost of construction for Super Built up area (30% over carpet area) but will not include maintenance deposit, registration and insurance) Annual Family Upto Rs. 1 1-2 lakh Income lakh 2-5 lakh MIG 61- 80 High- rise permissible A hall, 2 bedrooms, a kitchen area and a WC Block Rs. 16.3upto Rs. 22 lakhs Above lakh 13 5 2.2 Planning norms Planning norms are as per Andhra Pradesh Building Rules. • Land- use Mix Mandatory reservation: Section 1:“Provisions for Economically Weaker Section (EWS)/ Low Income Group (LIG) Housing Category” • All Group Housing and Group Development Scheme Projects, whose land extent is more than 5 acres are mandated to ear-mark either 10% of the total built up area or 25% of total number of units for EWS/ LIG housing • Mixed scheme project for affordable housing over and above Mandatory Reservation (as per AHP Guidelines by Govt. of India) • If the project size is 250 dwelling units and above, over a plot size more than 5 acres, at least 60% of the FAR/ FSI is to be earmarked for dwelling units of carpet area of not more than 60 sqm (affordable housing). In addition, 35% of the total number of dwelling units constructed should be for EWS/ LIG I category • The developer is free to undertake any kind of construction on that portion of land which is other than the land used for affordable housing. On this extra land the developer is eligible to make commercial construction upto 10% of the total construction • The project shall be eligible for capital subsidy under the Affordable Housing in Partnership scheme (AHP) extended by GoI, based on adherence to the scheme guidelines • Development Norms • The height of the dwelling units building/blocks covered under the Affordable housing component shall not exceed 15 m (Cellar and / or Stilt as + maximum up to 5 floors) (non- high rise) • In case the development is proposed as non- high rise with less than 100 dwelling units, the minimum abutting road width required shall be 9 m; It shall be ensured that the right-of-way shall be adequate to allow for the plying of emergency vehicles and also for other services like road side drains and greenery/plantation; the minimum setbacks shall be as prescribed under Table III, Section 5, AP Building Rules 2012 • High- rise is permissible for MIG II/ HIG/ and commercial components of the project. A mix of non- high rise for the affordable housing component, and high- rise for the other project components is permissible, provided the 14 project adheres to all norms with respect to road width abutting the site, building setbacks etc as per the proposed plot size and height of the building as prescribed under, Table III, Section 5, AP Building Rules 2012 • The height of the building for the high- rise component will be governed by existing/ proposed abutting road width and plot size. And all norms related to set- backs, plot size etc shall be as prescribed under Section 7, AP Building Rules 2012 • In case high- rise is proposed in the development schemes, then atleast 10% of the total site area shall be proposed as organized open space for greenery, soft landscaping etc • Internal civic amenities shall include internal roads, footpath, drinking water connections, water storage and distribution for the housing scheme, electricity connection, transformers (if necessary), internal drainage, compound gate, street light, garden etc. • The requirements of parts of building/ individual size of rooms/areas, etc. in the Affordable Housing Component of such schemes shall in be as per Special Requirements for Low Income Housing of Part III of the National Building Code of India,2005 • The site layout and design for such schemes shall be governed by good design practices without compromising on the public facilities and amenities and infrastructure requirements • Adequate precaution shall be taken to plan a design scheme which will be conducive for both the affordable housing component and the other components of the development scheme; for eg- separate amenities and open space facilities, commercial establishment/ shops to be planned across both components, etc • Rain water harvesting structures & sewerage treatment plant shall be mandatory for the complete scheme including EWS/LIG/MIG/HIG housing • Sustainable and environment friendly practices like greenery and foliage, recycling and conservation measures, environment friendly construction technology, decentralized water and sewage/ solid waste management systems etc may be adopted • Parking Norms: 15 Jurisdiction Minimum parking requirement as % of built up area Remarks For Affordable Housing Component In GVMC/ 5 % of total built-up • The parking requirement may area proposed for EWS be met either in Vijayawada and LIG; basement/cellar/or on stilts of MC areas resp?ective blocks or common 10 % of total built-up pool parking at ground level or area in case of MIG. a combination of the above For other categories, it shall be as per • Common basement parking is to be avoided Common Building Rules • The minimum parking is inclusive of all requirements In other UDA 3 % of total built-up like visitors parking, parking areas/ other area proposed for EWS for non- residential uses, etc. and LIG; Municipal 9 % of total built-up • The parking for EWS and LIG is expected to be exclusively area in case of MIG. for 2-wheelers. The parking For other categories, it requirement for MIG and other shall be as per categories are expected to Common Building comprise of both 2- wheelers Rules and 4-wheelers In other non- 2 % of total built-up • Where partial area under stilt area proposed for EWS UDA floor is provided for parking, Municipalities and LIG; the rest of the area can be used and other 8 % of total built-up for dwelling area; areas area in case of MIG. • Where partial area in cellar floor is provided for parking, For other categories, it the rest of the area can be shall be as per utilized for non-dwelling/public Common Building facilities purpose Rules Corporation areas For Mixed Development Scheme As per Section 13 of AP Building Rules 2012 2.3 Eligibility for Developers 1. Should have experience in building construction works for at least three years with a good track record of quality construction works with experience in 16 residential/ mixed use projects of atleast 5 acres 2. Total net worth (Reserve & Capital) of last three years (of the company or its sister concern) should be equivalent to at least 25% of the project cost (excluding land cost) i.e. cost of proposed EWS/LIG houses 3. Joint venture or Special Purpose Vehicle by private developers will also be eligible under the Policy. A consortium of 3 developers is permissible for a project. 2.4 Eligibility and allotment to beneficiaries • Under affordable housing schemes beneficiaries shall be defined as families • All projects whether executed by the ULB/ UDA/ Statutory Body/ Developer (implementing agency) shall be processed through a single online housing eportal system maintained by State Level Nodal Agency (SLNA). All verification and allotment shall be done through a Common Application Form submitted to the e- portal along with requisite documents. • For the purpose of clarity, all ULBs/ UDAs/ Statutory Bodies would align themselves to the online e- portal system. While the respective implementing agencies may post the project information in their websites, and are responsible for outreach and marketing of the project, all other procedures such as verification and allotment, and procurement of developer by the implementing agency, will be done through the e-portal • SLNA will be the umbrella agency through which all schemes will be routedAHP, RAY, RRY, existing state schemes etc • The State Level Noday Agency shall assist the applicant in filing his application through e- seva centres opened at every urban centre • Verification documents to be submitted by the applicants shall include copy of ration card, property tax receipts, Aadhar card (if available), receipts of electricity/ water bills, employment certificate by owner (if available), income certificate (if available), biometric testing and any such other relevant documents which may be prescribed from time to time by the Authority. • Two levels of scrutiny shall be carried out to establish beneficiary eligibility • By the implementing agency through SLNA e- portal • By the housing finance institution/ commercial bank providing home loan options to the beneficiary • For this policy those beneficiaries will be eligible who do not own any leasehold or freehold house or plot either in their own name or in the name of spouse or any dependent member (including unmarried children) of his family in any 17 urban area of Andhra Pradesh. Due online verification shall be done based on the online documents submitted by the Applicant • Housing benefits through ULBs as well as UDA/statutory bodies can be claimed by only those beneficiaries who have been living in the respective cities/urban areas of AP for at least three years • Before determining eligibility, applications will be invited from prospective beneficiaries. The implementation agency shall allot houses to only those beneficiaries who qualify the annual income criteria. • The list of beneficiaries is to be finalized through an online lottery draw of eligible applicants, before any development work begins • Ownership of the land will be vested with the agency responsible for implementation of the project • The flat allotted to the beneficiary must be occupied within one year of taking over the possession of the same • The state level nodal agency along with representatives from the financial institutions/ banks shall coordinate and facilitate sanction of loan for the benefit of successful applicants. However the loan agreement shall be exclusively between the beneficiary and the bank. • A letter of comfort may be provided by the Authority (State Govt) on caseto- case basis. Alternatively the authority may also approach the National Housing Bank for providing Credit Risk Guarantee to guarantee the lending agencies for loans to new EWS/LIG borrowers in urban areas seeking individual housing loans not exceeding a sum of ` 5 lakh for a housing unit of size upto 430 sqft (40 sqm) carpet areas without any third party guarantee or collateral security. • On allotment of the affordable housing unit, the beneficiary will have to pay 10 % of total price (or 50 % of 20 % of the total price as down payment). Capital subsidy schemes of the Central Govt. may be availed for payment of the same. Remaining 10% down payment may be paid as 6 instalments within the next six months. Beneficiaries’ allotment can be cancelled if he/she fails to make payment within stipulated time. • Every incumbent will have to become member of society, which will maintain common services and regular up keep of housing property • Beneficiaries of EWS/LIG I/ LIG II housing will not be permitted to sell their allotted houses or sublet them for at least 7 years and beneficiaries of MIG housing will not be permitted to sell their allotted houses or sublet them for at least 5 years. The Housing Association shall be empowered to report any discrepancies observed in this respect and with respect to no occupancy of the dwelling unit, to the Authority/ Developer as applicable 18 • Information regarding all central and state government subsidy schemes would be made available through the online portal. All application and sanction of Centre/ State subsidy will be routed and monitored through the online portal 2.4.1 Incentives for Beneficiaries • Prescribed ceiling cost of various categories of affordable housing or government intervention in sale price fixation by private developer, to ensure “affordability” of the dwelling unit • 100% exemption of stamp duty for the affordable housing component • Streamlined application and receipt of capital and interest subsidies as per various central and state government schemes through efficient online system • Simplified and transparent application, verification and allotment procedure for all affordable housing projects whether announced by the ULB/ UDA/ Statutory Body/ or Developer, through a single online e- portal system maintained by SLNA • Assistance from SLNA in filing application through e- seva centres opened at every urban centre • Assistance from SLNA along with representatives from the financial institutions/ banks to coordinate and facilitate loan sanction for purchase of dwelling unit • Grievance redressal system under SLNA • Quality infrastructure including roads, water supply, sewerage/ drainage, street lighting, community open space etc • In the case of government and private sector employees, advances and withdrawals from the Contributory Provident Fund (CPF) may be permitted as per the CPF Rules for: • Building or acquiring a suitable house, or ready-built flat for his residence including the cost of the site • Payment towards allotment of a plot or flat by State Housing Board or a House Building Co- operative society 2.5 General Process Guidelines • The implementing agency (ULB/ UDA/ Statutory Body) shall approach State Level Nodal Agency (SLNA) with intent for affordable housing project to be implemented through the online e- portal maintained by the SLNA. For the purpose of clarity, all ULBs/ UDAs/ Statutory Bodies would align themselves to the online e- portal system. While the respective implementing agencies may post the project information in their websites, and are responsible 19 for outreach and marketing of the project, all other procedures such as verification and allotment, and procurement of developer by the implementing agency, will be done through the e-portal • SLNA shall invite expression of interest for construction of houses in various urban areas (EOI) from interested developers through e- tendering process in case of a PPP venture. If it is a solely private developer initiative on private land, the developer may approach SLNA directly with project intent and concept The developer can avail all benefits extended under GoAP’s proposed Land and Approval Process Simplification System as detailed below: • Automatic land use conversion from agriculture land to nonagriculture status as provisioned under the Development Plan, upon payment of fee as set by the Government from time- to- time • Automated online Building Plan Scrutiny and Approval System • Empanelment of third party consultants by GoAP for speedy Survey, Fire approval certification etc • Reduced approval timelines: S. No 1. 2. 3. 4. 5. 6. 7. 8. 9. 10. 11. 12. 13. Activity Sequential/ Parallel Land Approvals Registration & Survey Sequential Land conversion from Agriculture to Sequential Non Agriculture (for lands falling under Development Plan) Obtaining Mutation Sequential Building Permit Approvals Fire Approval Parallel Consent for establishment from Parallel Pollution control board Power approval Parallel Plan Sanction by UDA Sequential Environmental Clearance Parallel NOC for multi- storey building from Parallel Airport Authority of India Occupancy certificate Approvals Approval for operation of elevators Parallel Consent for operation from Pollution Parallel Control Board Clearance from Fire Dept. for Parallel obtaining NOC Occupancy certificate from UDA Sequential Proposed timeline 45 days 90 days 45 days 20 • List of standard documents to be submitted with the EoI shall include: • Extent, location of land and project scheme • Detailed Project Report inc. layout and building plans, project mix, proposed amenities etc • Work Plan and Project Phasing Schedule • Broad project cash flows • Common Application Form regarding project and clearances required • The EoI (proposal) will be routed to relevant state departments by SLNA for their scrutiny and in- principle approval. The relevant state entities shall provide in- principle approval of the proposal within 30 days from receipt of proposals by them, in case there is no deviation from applicable norms and regulations • Automated Building Plan Scrutiny and Approval System shall be provided within 15 working days from receipt of layout and building plans • For the purpose of monitoring phase- wise achievement of the target, the state nodal agency shall appoint a Programme Management Unit (PMU). The prime responsibility of the PMU will be: • Provide technical, managerial and strategic support to the agency and ensure effective implementation of the programme at the state level • Periodic reporting on progress of development, verification and allotment activities through dashboard monitoring system etc • Coordinate and liaise with GoAP, MA & UD, ULBs, private developers, SLNA Board etc • Run a grievance redressal system to address issues raised by both beneficiaries and developers • Review third party inspection reports • The PMU cell will co-ordinate with relevant state entities regarding the progress of the proposal, and update in the e- portal. The developer and other concerned stakeholders will be able to track the status of their application online • A composite approval certificate will be issued to the developer to commence construction including land use conversion, municipal approvals etc. • In case of any deviation, or in case of further clarifications, the proposal shall be reviewed by the Board members of SLNA. The developer may be asked to present his proposal in front of the Board and provide necessary clarifications. 21 Composition of the Board would include: • Principle Secretary, MA & UD: Chair 1 • Principle Secretary, Housing: Chair 2 • VC & Housing Commissioner, APHB: Member • Chief Town Planner: Member • High level representation from Revenue Dept.: Member The Board shall be authorized to take all decisions with regards to approval of proposal, amend/ modify the affordable housing policy, amend/modify any variation from guide-lines issued under the Policy for specific projects on case to case basis. • The developer can start construction upon receipt of the composite approval certificate. The houses shall be constructed by the developers as per the guide lines issued by the State Government. • Third party Quality inspection of the project shall be carried out by the implementing agency (ULB/ UDA/ Statutory Body) from time- to- time till the hand- over of the entire project to applicants 2.6 Repair & Maintenance provisions The developer shall maintain the complete housing complex developed under the provisions of this policy for 3 years after the completion of the project post which it may be transferred to the relevant ULB/ UDA/ statutory body or the Association formed for the Housing Colony. For maintenance of the complex post transfer from developer, the ULB/ Govt. agency may utilize part funds from shelter fee collected. Over and above, the indicated maximum sale price, a payment at the rate of upto Rs. 15 per sq ft of plinth area shall be deposited towards corpus find which shall be utilized by the Association of the Housing Colony as maintenance deposit for upkeep of the colony, the buildings and facilities. Structural defect liability period for affordable housing scheme developed by the developer shall be for 10 years from date of completion certificate of the housing scheme. 22 3. Proposed Models for Affordable Housing GoAP endeavors to implement a series of specific proactive measures and incentives to encourage maximum private sector participation in the affordable housing segment in Andhra Pradesh. 3.1 Model 1: Private Developer on Private Land This model aims at incentivizing private developers to develop affordable housing scheme on their own private land. Under this model, three modes of private development are proposed. The first mode refers to the mandatory provision of ear-marking either 10% of the total built up area or 25% of total number of units, in all Group Housing and Group Development Scheme Projects, whose land extent is more than 5 acres. • Under this mode, demand side interventions such as capital and interest subsidy provided by the Central Government under various existing schemes, may not be applicable unless the housing scheme adheres to norms with respect to minimum no. of dwelling units, unit sizes and prescribed price etc. • The total built up EWS/LIG houses/flats will be handed over to the nodal agency at pre-determined prices for allotment to eligible applicants. • In case the developer is unable to build the affordable housing component in the same site, the Authority may on case- to- case basis permit the EWS/ LIG component to be built in some other site of the private developer, provided that the selected site is conducive in terms of economic activity, proper connectivity, availability of basic infrastructure and other such criteria which the Authority may feel necessary. • In case of Greater Visakhapatnam Municipal Corporation, Visakhapatnam / Vijayawada Municipal Corporation areas, the EWS/LIG units may be provided within the site or within the radius of 10km of the project site, or within 5kms from the nearest aerial route boundary of the municipal limits subject to approval of the Authority • In case of other Urban Local Bodies, the EWS/LIG units may be provided within the site or within the radius of 5 km of the project site, or within 5kms from the nearest aerial route boundary of the municipal limits subject to approval of the Authority 23 • Two or more builders may be allowed to provide (with respect to proportionate area of their main projects) the specified number of EWS / LIG units as prescribed with all civic amenities but the occupancy for the main projects will be released only after completion of the EWS / LIG projects. Separate undertakings shall be obtained from the builders concerned by the Local Body • In lieu of providing EWS / LIG units, 10% of City Level Infrastructure Impact Fee (under Rule 21 of A.P. Building Rules) will be exempted for the main project and total exemption to the EWS / LIG units area by the concerned local body/UDA provided the EWS/ LIG units are provided in- situ within the project site The second mode of private development refers to group housing schemes aligned to requirements of the AHP Scheme of GoI, with minimum 250 dwelling units. The DUs would be a mix of EWS/LIG/Higher Categories/Commercial of which at least 60% of the FAR/ FSI will be used for dwelling units of carpet area of not more than 60 sqm, in addition 35% of the total number of dwelling units constructed should be for EWS/ LIG I category. • The developer should develop a housing scheme under this model on a minimum of 5.0 acres of land • The developer is free to undertake any kind of construction on that portion of land which is other than the land used for affordable housing. On this extra land the developer is eligible to make commercial construction upto 10% of the total construction • The private developer may advertise and call for applications from eligible beneficiaries as per income limits laid down under the policy for EWS and LIG. The applicants for EWS/ LIG housing units may submit their interest through the Common Application Form through the e- portal maintained by the SLNA. All verification regarding eligibility of beneficiaries will be done based on the applications submitted through online e- portal and by the housing finance institution/ commercial bank which will be providing loan options to the beneficiaries. Post verification, the final list of eligible beneficiaries will be posted in the e- portal. <The private developer will pay a processing fee to the SLNA towards such services mentioned above> • The private developer will be authorized to sell EWS/ LIG directly to the eligible beneficiaries published in the e- portal through computerized draw of lottery • The sale price for the dwelling units in the affordable segment may be 24 determined by the private developer, subject to the price cap as approved under this policy. The private developer has to seek approval from the SLNA Board for any variation from the maximum selling price per dwelling unit mentioned in the policy. The board shall on case- to- case basis, approve any such variation based on appropriate due diligence of justification placed by the developer. However no such price variation will be allowed for affordable housing units upto 40 sq. m. • The developer will be free to sell the balance area on which HIG/commercial houses/flats are constructed, as per his choice, to the open market • The height of the dwelling units building/blocks covered under the Affordable housing component shall not exceed 15 m (Cellar and / or Stilt as + maximum up to 5 floors) (non- high rise) • The expenditure on all internal development works shall be borne by the developer and will not be allowed to charge the internal development cost to EWS/LIG flats • The maximum period of development of the affordable housing component shall be one and a half years (for a 250 dwelling units project). For any delay beyond 3 months, the developer is liable to pay to the implementing agency a penalty of upto five percent of the estimated cost of the affordable housing component of the project. • Free sale development can be started by the developer only after completion of at least 25% of the affordable housing scheme • If the developer completes EWS/LIG flats within the scheduled period (as decided by the Authority at the commencement of the project) without getting any extension, the developer will get extra incentive of 20% built- up area of the affordable housing scheme as TDR which may be utilized in the same scheme if possible, or may be allowed in other parts of the urban area as per norms and guidelines fixed in this regard. The award will be in the form of a TDR certificate issued by the Competent Authority, and can be sold/ disposed by the developer if not utilized. The TDR may be arrived at on the basis of relative land value and equivalent amount in both export and Import areas, as per the Registration Department records. The TDR certificate issued would be valid or utilized / disposed only within the concerned local body area and as per guidelines and conditions prescribed. TDR would be sanctioned only after obtaining completion certificate from the nodal agency. The period of completion shall be counted from the date of final approval issued by the Urban Local Body. • Government shall provide critical external infrastructure such as roads, water 25 supply and sewer lines, electricity connections to the project boundary etc. All external development charges will be borne by the nodal agency/ ULB/ statutory body to be recovered from Impact Fee imposed upon applicable nonaffordable components in the scheme, and partly from subsidy available from Government of India and state BSUP fund • The State Nodal agency/ULB/UDA would ensure that maximum subsidy amount is claimed from relevant Government of India schemes for the project • Due care should be taken for selection of site which should be close to existing infrastructure and transport network so as to reduce the burden on the ULBs • The developer would be duly assisted in obtaining fast- track clearances through innovative approaches such as Common Application Form/ Single window mechanism and e- approval system within 15 days of filing the duly filled applications through an e- portal operated by SLNA Under both the above modes the developer will be exempt from land use conversion charges, building plan approval fee, any other municipal charges for the EWS/ LIG component of the scheme. The third mode of private development refers to construction of affordable housing units by the private developer as a stand- alone affordable housing project or as a mix with other MIG/ HIG units with no conditions on number of units, pricing, size specifications, income eligibility etc, aligned to open market. • The developer is free to sell such units in the open market as per market requirements and market pricing. • In case the developer does not possess own land, he can take up the project on acquired land under the possession of ULBs/ UDAs/ Statutory bodies. The land would be made available to the developer on payment of compensation (Land Acquisition cost + 10% Administration charges). All other parameters, incentives, penalties remain the same as elaborated above. 3.1.1 Incentives to private developers under Model 1 • Two or more builders may jointly undertake affordable housing scheme through land pooling if the project mandates a minimum site requirement of 5 acres, to leverage upon maximum demand side benefits such as subsidies for beneficiaries • In lieu of providing EWS / LIG units, 10% of City Level Infrastructure Impact Fee (under Rule 21 of A.P. Building Rules) will be exempted for the main project and total exemption to the EWS / LIG units’ area by the concerned local 26 body/UDA, provided the EW/ LIG housing units are provided in-situ within the project site • The developer is free to undertake any kind of construction on that portion of land which is other than the land used for affordable housing. On this extra land the developer is eligible to make commercial construction upto 10% of the total construction • The developer has the flexibility to determine the sale price for the dwelling units in the affordable segment, with approval from the Authority. Also, the developer will be free to sell the balance area on which HIG/commercial houses/flats are constructed, as per his choice. • If the developer completes EWS/LIG flats within the scheduled period (as decided by the Authority at the commencement of the project) without getting any extension, the developer will get extra incentive of 20% built- up area of the affordable housing scheme as TDR which may be utilized in the same scheme if possible, or may be allowed in other parts of the urban area as per norms and guidelines fixed in this regard. • There is no FSI capping/ height restriction for the non- affordable component of the group development scheme (MIG- II, HIG, commercial development etc). Based on the guidelines proposed under the AP Building Rules 2012, the developer may propose high- rise based on governing conditions such as width of existing road, size of plot etc. • The developer is entitled to benefits such as zero conversion charges for land use modification for the whole project, 100% waiver on levy of Development charges for the affordable housing component, zero building plan approval fee for the affordable housing component • Fast- track composite clearance certificate through simple streamlined online process for commencement of project construction • Transparent online process for speedy and efficient allotment of affordable housing component to eligible beneficiaries • All benefits extended under GoAP’s proposed Land and Approval Process Simplification System 3.2 Model 2: Private Developer on Government Land • As per this model, Government land / ULB land would be identified for allotment to developers for construction of EWS/LIG/MIG/HIG flats through an open and transparent bidding process 27 • Developer offering maximum built-up for EWS/LIG-I, LIG-II type of affordable houses to be surrendered free of cost to the concerned authority will be selected. The built- up area offered cannot be less than at least 60% of the FAR/ FSI used for dwelling units, in addition 35% of the total number of dwelling units constructed should be for EWS/ LIG I category. The remaining built up can be utilized for free sale by the developer. • Government land shall be allotted free of cost to the selected developer for construction of the housing scheme on a 99 years transferrable lease basis. The developer can take up construction of EWS/LIG/ MIG/HIG flats & commercial flats (high rise permitted) and would surrender the EWS/LIG I/ LIG II flats free of cost to the ULB. • The Government land allotted shall be free of all encumbrances, with all relevant clearances in place such as land use conversion etc • All incentives and penalties shall be as per Model No. 2 • The expenditure on all internal development works shall be borne by the developer and will not be allowed to charge the internal development cost to EWS/LIG flats 3.2.1 Incentives to private developers under Model 2 • All incentives applicable in Model 1 hold good under Model 2. • The private developer will receive land free of cost as a 99 year lease, free from encumbrances, with all clearances in place such as land conversion etc • All benefits extended under GoAP’s proposed Land and Approval Process Simplification System 3.3 Model 3: Government led development • All APHB/ UDA/ MC/ Municipalities/ Other Statutory Bodies housing schemes for affordable housing shall earmark at least 60% of the FAR/ FSI for affordable housing units of carpet area of not more than 60 sqm, in addition 35% of the total number of dwelling units constructed should be for EWS/ LIG I category. • Another 20% of the houses to be constructed in the MIG category • Government land shall be allotted on priority basis for affordable housing projects in the state. The Authority will be entitled to get government land at the applicable benchmark price or at a further concessional rate as may be decided by the 28 government on a case to case basis. • The contractor/ developer for implementation of the project shall be done through open tendering process. Lumpsom contracts may be adopted to de- risk the project fromcost escalations due to delays and other reasons • Selection process of contractor or developer shall be done on basis of lowest-quoted tender bid and the entire process shall be open and transparent • The Government land allotted for implementation of the project shall be free from all encumbrances, with all relevant clearances in place such as land use conversion etc • In order to derive maximum subsidy, the group housing scheme shall be as closely aligned to the requirements of AHP scheme, RAY and other relevant central schemes • The project undertaken by the ULB/ UDA/ Statutory Body will be implemented through SLNA. • Project inspection and monitoring, shall be conducted jointly by the implementing agency and/ or through Third Party Inspection, and the PMU unit under SLNA • Double verification of the applicants documents, first level done by the Authority based on proofs submitted online by the Applicant, and second level verification by the HFC/ bank lending to the beneficiary • The implementing agency will authorize payment to the selected developer for construction on getting quality and progress related certification from the appointed PMC/TPI by the lending bank for different phases based on predetermined prices • Allotment and sale of dwelling units will be done through the online e- portal by the implementing agency, based on lottery system 3.3.1 Incentives to private developers under Model 3 • Streamlined transparent procurement process for selection of developer/ contractor; Standardized documents for procurement through Lumpsom Method • Time- bound payments as per progress of construction based on inspection reports submitted by professional Third Party Inspections reducing government bureaucracy involvement 29 • Grievance redressal system to address issues raised by developers 3.4 Model 4: Rental Housing • Rental housing may be the preferred choice to accommodate tenants of slums, laborers, floating population and urban homeless. • In projects for rental housing and dormitories, rent would be fixed by States/UTs either on no profit-no loss basis or through open and transparent procedure, as the case may be • For projects involving rental housing units and dormitories, the following aspects are specified: • The stipulation of at least 250 units shall not be applicable. Also, smaller projects having a mix of rental as well as ownership housing units can be considered • Management of rental housing and dormitories including collection of rent shall be with ULBs/Parastatals as designated by them • Carpet area restrictions shall not be applicable for projects involving rental housing and dormitories and mix of EWS/LIG can be designed based on actual needs • Private developers may also chose to build a mix of rental as well as ownership housing units • The State government would provide certain benefits such as exemption in service tax, trade license fees, stamp duty for affordable rental housing units (upto 60 sq.m) 30 4. Annexures 4.1 Dwelling Unit Specifications Structure • Framed structure with brick partition walls (well- designed structure) Bedroom • 1’x1' ceramic/porcelain tile flooring • Solid core flush door • Rooms with overhead storage space Kitchen • Ceramic tile flooring • Kota/ Granite stone platform with kota/ granite stone sink (or any other equivalent local material) • 2' high ceramic tile dado above kitchen platform • Overhead storage space Bathroom/ WC • Separate bathroom and WC • Anti skid ceramic tile flooring • Ceramic tile dado up to door height/skirting height • Concealed plumbing • Premium quality fittings • Indian style/Orissa pan WC Electrical Fittings • Sufficient points in all rooms • Branded electrical switches • Cable TV & telephone points in the living room • Batten copper wiring General • Colour wash/white wash in all rooms, kitchen, WC/Bath, exterior surface and common areas. Kota stone or any other equivalent local material flooring in common areas. All door/window frames in steel sections Water storage tanks on terrace with minimum capacity of 500 liters per flat. 31 4.2 GoAP’s proposed Land and Approval Process Simplification System With a view to streamlining processes, and reducing the time- line for various approvals, GoAP wishes to implement Land and Approval Process Simplification System as detailed below. Such process will not only help developers in overcoming current cumbersome and time- taking procedures, it will also be beneficial for Government entities. Most importantly it will bring down the cost of the project significantly in the absence of time delays, thereby enabling providing of truly “affordable” homes to the deserving. • Automatic land use conversion from agriculture land to non- agriculture status for land parcels falling under the Development Plan, upon payment of fee as set by the Government from time- to- time • Automated online Building Plan Scrutiny and Approval System • Empanelment of third party consultants by GoAP for speedy Survey, Fire approval certification etc • Reduced approval timelines: S. No 1. 2. 3. 4. 5. 6. 7. 8. 9. 10. 11. 12. 13. Activity Sequential/ Parallel Land Approvals Registration & Survey Sequential Land conversion from Agriculture to Non Sequential Agriculture (for lands falling under Development Plan) Obtaining Mutation Sequential Building Permit Approvals Fire Approval Parallel Consent for establishment from Pollution Parallel control board Power approval Parallel Plan Sanction by UDA Sequential Environmental Clearance Parallel NOC for multi- storey building from Parallel Airport Authority of India Occupancy certificate Approvals Approval for operation of elevators Parallel Consent for operation from Pollution Parallel Control Board Clearance from Fire Dept. for obtaining Parallel NOC Occupancy certificate from UDA Sequential Proposed timeline 45 days 90 days 45 days 32