Affordable Housing Policy


What is Huda Affordable Housing Policy?

Here is all you need to know about the Huda Haryana Affordable Housing Policy 2013, Gurgaon.

The government has notified a policy by the name of ‘Affordable Housing Policy of 2013’. The policy has been made to encourage the housing projects in which the apartments having a predefined size and are made available at the predefined rates within targeted frame to the deserving beneficiaries in the urban housing market. The projects for which the licenses are granted under current policy can’t be converted into housing colony of normal grouping under any circumstances and it doesn’t matter if it falls within 20 percent residential sectors area limit that are prescribed for the group housing projects. The sale of the apartments under the project will be on the basis of Carpet area. What this means is that the people will only have to pay for the area which they use.

Granting the license

According to the affordable housing policy, projects will be allowed in the residential zones of the notified development plans of different cities and towns. License for housing projects of this type will be given on the basis of first come first get.

Incentives for developers

Affordable housing policy seeks to make a capital investment by the private sector for development of the affordable homes. This policy envisages giving incentives to private developers. These incentives include

  1. The exemption of the license fees and the infrastructure development charges.
  2. The higher floor area ratio of up to 225 against 175. This is normally permitted in the group housing projects.
  3. The ground coverage is also higher. It is to the tune of 50% of 35% and is usually allowed.

Zoning Requirements

Maximum area for which this type of projects are allowed in development plan includes 300 acres for Faridabad, Gurgaon, Panchkula, Pinjore-Kalka and Panchkula Extension, 150 acres for Panipat, Sonipat, Dharuhera, Karnal, Sohna, and Bahadurgarh and 75 acres for rest of development plans. In a residential sector, only 5% or less of net planned area under the residential zone is allowed for the projects under the policy.

But, in case the residential sector has a total area of fewer than 100 acres, one project of this type is allowed on 5 acres. Moreover, to make sure that this type of projects is well distributed over development plan area, maximum net planned area which is permitted under the policy in a residential project will be restricted to ten acres.

Rate of Flat

Maximum rate of allotment for apartment units approved under the affordable housing policy will be 4,000 Rupees per square feet of the carpet area in development plans of Faridabad, Pinjore-Kalka, Panchkula and Gurgaon, 3,600 Rupees per square feet in development plans of other medium and high potential towns and 3,000 Rupees per square feet in remaining towns of low potential.

The allotment of flats and the eligibility criteria

Affordable housing units will be allotted via draw of lots that will be handled by Deputy Commissioner of the district in which unit is situated. According to Haryana’s new affordable housing policy, anyone who does not own a flat, or a plot or a house in a colony of HUDA (Haryana Urban Development Authority), a licensed colony in Chandigarh or NCR, will be considered eligible for this scheme.

The time period to complete a project

All the affordable housing projects are required to be completed within 4 years from the approval of the building plans or the grant of the environmental clearance. The date will be referred to as the date of commencement of the project and the licenses will be renewed beyond 4 years period from the commencement date of the project.

Apartment Area

According to the policy, the size of the apartments that will be constructed is going to be in a range of 28 square meters to 60 square meters carpet area. Carpet area is going to be net usable covered area bound within walls of the apartment but it will exclude the area covered by walls and balconies which are approved free of FAR. However, it will include area forming part of toilet, bathroom, kitchen, store and almirah, built-in-cupboard, shelf. This would be a part of carpet area.

There won’t be any separate EWS category apartments provided in order to eliminate cross subsidy components and therefore to avoid the adverse impacts on the affordability of the apartments made under the policy.

Parking Space

Parking space for every dwelling unit will be provided at the rate of half the equivalent car space. Only 1 two-wheeler parking site is going to be earmarked for every flat. It will only be allotted to the owners of the flat. Parking bay of the two wheelers will be 0.8 meters x 2.5 meters unless specified otherwise in zoning plan. No car parking is going to be allotted to the owners of the apartment in these projects.

Check on the Builders

The colonizer will be required to get bank guarantee against total realization from the project at a rate of 15%. The areas falling in development plans of Faridabad, Gurgaon, Panchkula, Pinjore-Kalka and Panchkula Extension and at a rate of 10% for rest of towns. This bank guarantee is required as the matter of security against any of the possible delinquencies in the completion of the project.

The maintenance services after the delivery of the project

Under the affordable housing policy, developers will be required to maintain project free of cost for 5 years. After this period of 5 years, the resident association will take over the maintenance aspects. It’s a very important issue with the affordable projects which must be defined in a better way in order to get a clear solution.

Conclusion

It is an excellent step in right direction. Affordable housing policy is in place to encourage planning and the completion of the Group Housing Projects wherein the apartments of the pre-defined sizes are made available at the pre-defined rates within targeted time frame in order to make sure that there is increased the supply of affordable housing in an urban housing market.

This policy hits a fine balance. This policy, on one hand, gives incentives to the builders and on the other hand, it puts a proper check to make sure that projects are delivered on time.

If the affordable housing policy is implemented in its true spirit, it will benefit the lower and the lower middle-class population of about 6 lakhs in Haryana’s urban centers in next 5 years.