LAND for Affordable Housing Prof.Dr.P.S.N.Rao Professor of Housing School of Planning and Architecture ( SPA ) New Delhi, INDIA Costs Involved in Housing Cost of Land Cost of Finance Cost of Infrastructure Cost of Housing Units Other costs Cost Apportionment in Housing Making Housing Affordable While there are many cost components, any attempt at making housing affordable needs to tackle ALL of the components. Land being the major cost component, reductions in land costs make a big dent in the ultimate pricing of housing. In an attempt to make housing affordable, fringe locations with low land costs are taken up for development. Invariably these outlying projects are not well connected by public transportation and take a long time to take off. System of Housing Supply Housing Projects by Government Agencies - state housing boards, development authorities, statutory housing corporations, etc. Housing Projects as part of National / State Government Programmes – BSUP, RAY, Indiramma, Manyawar Kanshiram AawasYojana, etc. Town Planning Schemes Housing Projects by Cooperative Societies Housing Projects by Real Estate Developers Illegal Land Subdivisions Squatting on Various Types of Lands Method of Land Procurement in Various Housing Supply Systems Housing Supply System System of Land Procurement Costs Housing Projects by Government Agencies -Land Acquisition -PPP -As per LAA 1894 and State Policy -Market Rate Housing Projects as part of National / State Programmes -Land Acquisition -PPP -As per LAA 1894 and State Policy -Market Rate Town Planning Schemes -Private Lands are Readjusted -Small portions are acquired as per LAA 1894 and State Policy Housing Projects by Cooperative Societies -Allotment by Govt. Agencies -Market Purchase -As per LAA 1894 and State Policy -Market Rate Housing Projects by Real Estate Developers -Allotment by Govt. Agencies -Market Purchase -As per LAA 1894 and State Policy -Market Rate Illegal Land Subdivisions -Market Purchase -Market Rate Squatting -Land Grab -Nil Key Methods of Sourcing Land Land Acquisition under LAA 1894 Pooling and Readjustment Market Purchase PPP and Other Methods LAA 1894 Land can be acquired only for ‘public purpose’ Compensation to be paid as per ‘market value’ Provision for appeal and enhanced compensation Conflict of Interests Government ( political ) perspective Developer perspective Farmer / land owner perspective Financier’s perspective Environmentalist perspective City Planner’s perspective Poor and Houseless also have a perspective The Dilemma Government has been acquiring large parcels of land and giving to private companies ( SEZs, private industries, etc.) on the one hand while government housing agencies are citing many reasons for not acquiring lands for housing and instead encouraging private real estate developers – this obviously hurts the farmers when they see developers make huge profits. While the government / government agencies acquire raw land at low rates from the farmers, they auction the developed land at high rates to the real estate developers. This boosts up land prices as a whole and adds substantially to the housing costs. Land acquisition often ends in protracted ligitation leading to delays. The process is highly susceptible to political manipulation and consequent fallouts. Governments have been acting much like private profit making entities !! How can one expect affordable housing for the masses ? Land at the Centre of Litigation According to a media report : “………….as many as 40 districts in 17 states in India have now been caught in land acquisition glitches. An estimated 3.69 lakh acres is involved” Farmer Agitations Upjaoo Bhoomi Sanrakshan Andolan Karnataka Rajya Raithu Sangha Bharatiya Kisan Sangh RAY Under the Government of India sponsored Rajiv Awas Yojana ( RAY ), the government desires to grant property ownership rights to slum dwellers – in the case of Jaipur, it has been observed that most of the slums are on lands which are untenable or which belong to the Forest Department – obviously, the policy is easier said than implemented. No Financing for Land Housing Finance Institutions in India are averse to funding land procurement. HUDCO used to have a scheme for the same but in the recent past, few cases are processed under this. Poor Utilisation of Land Most cities have poor utilisation of lands for residential developments, often characterised by : a) low densities b) low FAR / FSI c) height restriction d) restrictive zoning We need to completely change the present paradigm so that high intensity land utilisation occurs. Some Innovations 12 ½ percent scheme in Navi Mumbai Reasonable compensation on slab system, plots, annuity and stamp duty exemption in Haryana Land assembly by pooling by VUDA in Visakhapatnam Innovations in Rajasthan Reservations in housing projects in various states Farmer Driven Real Estate Development in Pune Land Banking The Land Imperative for Affordable Housing Need for appropriate land laws for acquisition for housing Land Records,Titling and Guarantee System Modernisation of Offices of Registrars of Land / Property Registration Appropriate Valuation Regime Full Land Mapping with Ownership Details Appropriate Land Taxation High Intensity Land Utilisation Low Transaction Costs ( Stamp Duty ) Financing Land Procurement eMAIL : firstname.lastname@example.org Thank you.