HOUSING POLICY

ANALYSIS AND COMPARITIVE DATA

JITENDRA SRI VISHNUKANTH

MANIKANTESWARA
TENZIN
LAKSHMI VARSHINI

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POLICY
A policy is a principle or protocol to guide decisions and
achieve National outcomes.
TYPES
Health policy
Foreign Policy
Housing Policy
Economic policy etc..
HOUSING POLICY
Principled guide for accommodating the needy. The
policy aims at providing housing facilities for all groups
of people and creating healthy environmental
conditions with a view of changing socio-economic
parameters.

Housing :
On an average a person lives almost two third of his life in a house,
therefore access to a safe, secure, durable and healthy shelter is
essential.
As per an estimate by National Building Organization (1991) nearly
75 percent lived in an inappropriate shelter out of which 48% were
IMBALANCED REGIONAL
below poverty line.
DEVELOPMENT
ROLE OF HOUSING
AND HOUSING
NEEDS

MAGNITUDE OF
POVERTY

NEW TOWNSHIPS
AND GREEN FIELD
DEVELOPMENT

LABOUR SHIFT
FROM RURAL TO
URBAN
URBANIZATION
AND
DEVELOPMENT

NEED
FOR
HOUSING
POLICY

DEVELOPMENT
OF SUSTAINABLE
HABITAT

 China
Third largest country in the world in terms of area and largestbased
on population.
Developing nation with a capitalist economy ,controlled politically by
communist leadership.
Population:1,336,718,015 (July 2011 estimate)
Capital:Beijing
Major Cities:Shanghai, Tianjin, Shenyang, Wuhan, Guangzhou,
Chongqing, Harbin, Chengdu
Area:3,705,407 square miles (9,596,961 sq km)
Urbanization in the People's Republic of China
increased in speed following the initiation of thereform and
openingpolicy.
Raise of urban population from 26% in 1990 to 52.6% by 2012
Over years of Industrialization, during 1960s the population
employed in agriculture has fallen from 70 percent to 30
percent, to transform the People's Republic of China from a
primarily agrarian economy by peasant farmers into a modern
communist society through the process of agriculture and
industrialization.

Government of China
Central Government
The central government develops policies on land use, residential
building construction, sales and use, financing and taxes. Collection
and disclosure of the related industry data nationwide is also within
the responsibilities of the central government.
Local Government
The local governments introduce specific rules and guidelines
pursuant to the applicable regulations and policies of the central
government, and then take responsibility for their implementation.
The local governments also play a key role in local urbanization.
NGOs
The NGOs, are well represented by China Real Estate Chamber of
Commerce (CRECC), who come out with suggestions on policies
and development for the government; delivering reports of policy
implications based on the tracking, examination and study of the
real estate market in collaboration with other research institutions,
and boosting healthy development of the industry by organizing
communications and exchanges between the real estate
developers.

Chinas economy
Now:
Then:
Planned economic system Economically tied to other
No international trade
countries
China has a slightly lower proportion of the population living in
urban areas than the average for low-income countries.

HOUSING POLICY OF CHINA

China has not published any legal documents which provide explicit guidelines on housing so
far.
China has undergone tremendous economic reforms since 1978 which also included housing.
The housing market only began to emerge after 1987 when land and housing reform were
carried out in full force.
Transition
1948 formation of Peoples Republic of China
Communist party forming the Government
Ideologies
The housing system in China is heavily influenced by the ideologies of the Communist party

Reformed from 1978

Land and housing reforms in 1987
Rural land belongs to Rural farmers, for building own houses.
No real housing market in rural areas.
Only urban housing policy

THE PRACTICE OF HOUSING POLICY

DURING SOCIAL TRANSITION
The command economy period - (1949-1978)
Housing allocation during this stage was characterized by low salary,
low rent plus subsidy and provision of goods in kind. No nongovernmental agency.
. The housing policies of this period triggered off a severe housing
Double-track system period _ (1979-1997)
shortage.
gradual transition from welfare housing to the provision of housing
subject to market forces.
The policy of this period was characterized by the trial of housing, and by
the parallel existence of welfare housing and a market mechanism of
housing distribution.
The complete transition to the provision of market based
housing (from 1998 to today)
In July 1998, Chinas housing policy reform entered a new era,
characterized by monetization of housing allocation and the
establishment of multiple housing supply systems as well as the
standardization of housing transaction market. Starting from this period
onwards, the housing industry has become a new engine of growth for
the economy

THE EVOLUTION OF CHINAS HOUSING POLICY

(1) The transition from welfare housing to partial welfare housing.
welfare housing began to target medium and low-income families
after reform.
(2) The transition from non commercialized to market based housing.
houses were traded on the market and many service agencies
came into existence
(3) The transition from unitary to multiple and comprehensive policy
measures.
after reform, with the appearance of real estate finance, the
Housingland
Provident
Fund,
and consumer credit, multiple policy
Further
policies
include:
have been introduced in the housing sector to allow for
measures
Land policy
financing of housing purposes.
Financial policy
Tax policy
Housing social security policy

Problems of housing policy

The ambiguity of housing policy principles.
High house prices forced ordinary citizens to demand affordable housing
from the government.
The number of affordable housing set up by the government has been
decreased
China has 99 million migrant workers. Even if we make their living area
60% of their urban counterparts, there should be 1.43 billion m2 of
housing for them. The government is the only provider for such housing.
Therefore it is a challenge to ensure social justice and maintain social
stability.
Public housing
The government provides public housing through
various sources, such as new housing, abandoned
properties, and old flats which are rented at a low price
Additional housing is built by providing free land
and exemption from fees to estate developers .
The concept of the low-cost rental housing
started in 1998.
The provision of more affordable housing is one of the key components
of China's Twelfth Five-year Plan, That program's costs will be split
between the private and public sector.

Low-income Housing in Chinese Cities:Policies and Practices

housing affordability and housing
poverty are becoming increasingly
acute problems for low-income
households.
indemnity and comfortable
living project
Low-income housing policy is
also a moving target in China,
low-income housing in 2007
Currently there are two main
types of low-income housing in
China:
(1) cheap rental housing and
(2) economic and comfortable
housing
China is to combine two subsidized housing programs -- low-rent
and public rental -- and manage them together as "public rental
housing."

AFFORDABLE HOUSING
Specific programs
Affordable housing
+ State paid subsidies to build homes
+ State offers housing at a subsidized rent
Low income housing
+ A part of National Comfort Residence Project
+ Similar to affordable housing
+ But a response to macro economic factors

Affordable housing estate in Beijing: Huilongguan (from 1998)

URBANIZATION IN INDIA:
URBAN- Settlement with min. population of 5000 persons, 75% male
working population engaged in non-agricultural activities, population
density of min. 400 persons per Sq. M.
CAUSES OF URBANISATION IN INDIA
Expansion in government services, as a result ofSecond World War.
Migration of people fromPakistan afterpartition of India
TheIndustrial Revolution
Eleventh five year plan that aimed aturbanization for the economic
development ofIndia
Economic opportunities are just one reason people move into cities
Infrastructure facilities in the urban areas
Growth ofprivate sectorafter 1990 .
1991 economic reforms

URBAN POPULATION RISE IN

INDIA

Over crowding of
cities
Increase in slums
Living in unsafe
conditions, illegal
buildings
Mismatch
between demand
and supply of
housing
Very low Housing
facilities for EWS and
LIGs

Decrease in GDP and

standard of living
conditions

Work
force

Environment
al damage

Urban work
Pollutio
force increasing, n
Lack of Water
rural
lines, roads,
electricity, proper employment
housing facilities decreasing,
primary sector is
not able to cope.
Affordability
Wage
employment

MAGNITUDE OF POVERTY
One fourth of the countrys
total urban population,
numbering 80.7 million
persons is below the poverty
line.
The urban poor have limited
access to basic services.
DEVELOPMENT OF SUSTAINABLE
HABITAT
reserving a significant
proportion of the total Master
Plan area as
green lungs of the city
protecting water bodies with
special emphasis on the flood
plains.
developing green belts
around cities.
to accelerate the
development of small and
medium towns which can
serve as generators of
economic momentum and

BALANCED REGIONAL DEVELOPMENT:

to develop an ecologically sustainable symbiotic rural-urban
continuum

NEW INTEGRATED TOWNSHIPS AND

GREEN-FIELD DEVELOPMENT:
Green-field townships-

located on comparatively degraded

land, at a reasonable distance from
medium or large existing towns.
to develop mass rapid transport
corridors between existing medium and ROLE OF HOUSING
large towns and new green-field towns the Housing Sector- 4.5% to
Indias Gross Domestic
Product (GDP)
in urban areas the GDP in
2003-04 was 3.13%.
16% of the Indian work
force is engaged in
Construction and
Transport Sectors.
Industrial demand - use of
cement, steel,
Whereas more than 23% of the urban
marble/ceramic tiles,
population resides in slum
electrical wiring, PVC

NATIONAL HOUSING POLICIES:

National Housing Policy (NHP) was announced in 1988.
GOAL:
to eradicate houselessness, improve the housing conditions of the
inadequately housed and provide a minimum level of basic services
and amenities to all.
Housing policies were formed in August 1994, July 1998
involvement of multi-stakeholders,
permitting Foreign Direct Investment in housing and real estate
sector, etc.
Most of the policies were generic and applicable to both rural
urban areas.
NUHHPand
2007:
Taking
into account
emerging
of required
shelter and
GOAL:
Affordable
housing
for all challenges
and sustainable
development
of all
growth
of slums,
National
Urbanby
Housing
andamenities.
Habitat Policy,
urban
human
settlements,
serviced
basic civic
2007 multiple
was announced
in December
2007
FOCUS:
stake-holders
namely,
the Private Sector,
the Cooperative Sector,
the Industrial Sector for labor housing
the Services/ Institutional Sector for employee housing.
Special emphasis has been laid on SC/ST/BC/Minorities,
empowerment of women within the ambit of the urban poor with
emphasis on security of tenure.

AREAS OF ACTION
Technology Support And Its Transfer
Low energy consuming and using renewal form of energy for construction
techniques and rain-water harvesting technologies will be encouraged.
Use of prefabricated factory made building components will be encouraged
for mass housing,
so as to achieve speedy, cost effective and better quality construction.
Infrastructure
The policy seeks to ensure that all required physical and social infrastructure
for the affordable housing projects is in place.
Transportation linkages with the region and employment centers shall be
ensured.
Sustainability Concerns
Suitable green recreational areas like zoo, lakes and gardens will be
earmarked /developed for public visits in the Master Plan of each city/town.
Efforts will be made to encourage
cities/towns to keep a significant proportion of the total Master Plan area as
green lungs of the city.

The National Slum Development Programme (NSDP)

had provision for adequate and satisfactory water supply,
sanitation, housing, solid waste management, primary and nonformal education.
The scheme provided additional central assistance for provision of
basic infrastructure and services in slum areas.
The Swarna Jayanti Shahari Rozgar Yojana (SJSRY)
To provide gainful employment to the urban poor by encouraging
self-employment ventures and provision of wage employment
opportunities for families below poverty line in urban areas.
The Two Million Housing
Programme (TMHP) was launched with the objective of housing for
all with
particular emphasis on the needs of economically weaker sections
and low income group categories.
The Valmiki Ambedkar Awas Yojana (VAMBAY)
aimed at providing subsidies for construction of housing and
sanitation for urban slum dwellers living below poverty line in
different towns/cities all over the country.

The Jawaharlal Nehru National Urban Renewal Mission

(JNNURM), was
launched in December 2005 with aim to cover construction of 1.5 m
houses for urban
poor during the Mission period (2005- 2012).
It has two Sub-Missions :
Basic Services for the Urban Poor (BSUP) seeks to provide seven
entitlements/
services - security of tenure, affordable housing, water, sanitation,
health, education
and social security in low income segments in the 65 Mission Cities.
The Integrated Housing and Slum Development Programme
(IHSDP) seeks to
provide
above mentioned
7 entitlements,
in towns/cities
Interestthe
Subsidy
Scheme for
Housing theservices
Urban Poor
(ISHUP)
other
than the
To enhance
affordability of the urban poor through the provision of an
Mission
interest Cities.
subsidy of five per cent per annum on a loan amount of up to
Under
thethe
scheme,
over 1300
residential
projects
and income
1.5 million
1 lakh for
economically
weaker
sections
and lower
groups
houses
have areas
already
sanctioned to the poor
at a total cost of INR
in the urban
forbeen
acquisition/construction
of houses.
33,
860 crores.
Some scheme
modifications were later incorporated in the
Affordable
housing
scheme
to facilitate
affordable
housing. Housing
The Government
hasland
alsoassembly
launchedfor
a scheme
of Affordable
in 355 Partnership with an outlay of 5,000 crore for construction of
one million houses for EWS/LIG/MIG with at least 25 per cent for EWS
category with partnership between various agencies/

The Indira Awas Yojana (IAY)

has been focused on the provision of cash subsidy scheme to rural BPL
families for construction of dwelling units using their own design and
technology.
Rajiv Awas Yojana (RAY) for the slum dwellers and the urban
poor envisages a Slum-free India through encouraging
States/Union Territories to tackle the problem of slums in a
definitive manner.
It calls for a multi-pronged approach focusing on:
Bringing existing slums within the formal system and
enabling them to avail of the same level of basic
amenities as the rest of the town;
Redressing the failures of the formal system that lie
behind the creation of slums; and
Tackling the shortages of urban land and housing that
keep shelter out of reach of the urban poor and force
them to resort
to extra-legal solutions in a bid to retain
State sponsored
initiatives
sources of
and employment.
localtheir
government
of livelihood
various states
also introduced different
initiatives to empower the affordable housing sector.
Rajiv Gruha Kalpa is one such housing scheme launched by the
Andhra Pradesh government that promises best civic amenities
and free land to projects targeting the LIG and EWS. Under the
scheme around 3,916 low costApartments in Hyderabadhave

Role of banks and housing finance institutions

Reassess their strategies with a view to make them more
inclusive in terms of EWS and LIG segments
Promote innovative financial instruments like development of
Mortgage Backed Securitization Market (MBSM), and Secondary
Mortgage Market.
Enhance/ strengthen the income spread of housing loans portfolio
to increasingly cover BPL and EWS beneficiaries.
Adopt a more flexible and innovative approach in relation to
credit appraisal norms.
Develop financial products which encourage EWS and LIG
beneficiaries to take insurance cover.
Devise innovative housing finance schemes for targeting the EWS
and LIG segments, for slum improvement, with suitable subsidy
support from the government.

Population between India and China stands in favour of

India:
By 2030, India's working population will be youngest in the world
as compared to China, USA and other countries.
India's Population will start stabilizing by 2060.
India is predicted to exceed chinas population by 2030 with an
expected population of 350 million.
There is a need for improving National Housing Policies.
India Vs China - the role of urbanization
The Economistpoints out that in 2011 China's urban population
surpassed its rural population.
The rapid pace of urbanization, especially manufacturing led
urbanization. Rapid urbanization and economic growth
In contrast, India's urban population has grown slowly, a reflection
of itsrural-centric growth strategy. State and central governments
in India will have to redress thisskewedness in prioritiesin order
to push the economy into a sustainably higher growth trajectory.

urbanization

References

https://www.cia.gov/library/publications/the-world-factbook/ge
os/ch.html
http://www.infoplease.com/ipa/a0107411.html
http://www.state.gov/r/pa/ei/bgn/18902.htm
National Urban Housing and Habitat policy 2007 by
Government of India, Ministry of Housing & Urban Poverty
Alleviation, New Delhi.
www.mospi.nic.in
www.nhb.org.in
http://mhupa.gov.in/policies/index2.htm

Effectiveness of housing and habitat policy the reality

bites!!! By Hetal A. Patel, CEPT Ahmedabad.