Housing For All

Beneficiary-led individual house construction or enhancement :

The fourth component of the mission is assistance to individual eligible families belonging to EWS categories to either construct new houses or enhance existing houses on their own to cover the beneficiaries who are not able to take advantage of other components of the mission. Such families may avail of central assistance of Rs. 1.5 lakh for construction of new houses under the mission. Such beneficiaries should be part of HFA PoA. 7.1 A beneficiary desirous of availing this assistance shall approach the ULBs with adequate documentation regarding availability of land owned by them. Such beneficiaries may be residing either in slums or outside the slums. Beneficiaries in slums which are not being redeveloped can be covered under this component if beneficiaries have a Kutcha house. 7.2 The Urban Local Bodies shall validate the information given by the beneficiary and building plan for the house submitted by beneficiary so that ownership of land and other details of beneficiary like economic status and eligibility can be ascertained. In addition, the condition of the houses e.g. Kutcha, semi-kutcha etc. of the prospective beneficiary should be checked with SECC data to ensure beneficiary’s consequent eligibility for construction of new housing. SECC data regarding number of rooms, details of family members etc. should also be checked to ensure beneficiary’s eligibility for enhancement. 7.3 On the basis of these applications, ULBs will prepare an integrated city wide housing project for such individual beneficiaries in accordance with the City Development Plan (CDP) or other such plans of the city to ensure construction of proposed houses are as per planning norms of the city and scheme is implemented in an integrated manner. Individual applicants for assistance shall not be considered. 7.4 Such Projects would be approved by States in SLSMC. 7.5 While approving project for individual house construction, Urban Local Bodies and State/ UT should ensure that required finance for constructing the planned house is available to the beneficiary from different sources including his own contribution, GoI assistance, State Ministry of Housing and Urban Poverty Alleviation 11 Government assistance etc. In no case, GoI assistance will be released for house where balance cost of construction is not tied up, as otherwise release of GoI assistance may result into half constructed houses. 7.6 State/UT or cities may also contribute financially for such individual house construction. Central assistance will be released to the bank accounts of beneficiaries identified in projects through States/UTs as per recommendations of State/UT. 7.7 Though the funds from Central Government to State Governments would be released in lump-sum including assistance for this component, State Government should release financial assistance to the beneficiaries in 3-4 instalments depending on progress of construction of the house. Beneficiary may start the construction using his own funds or any other fund and GoI assistance will be released in proportion to the construction by individual beneficiary. The last instalment of Rs. 30,000/- of GoI assistance should be released only after completion of the house. 7.8 The progress of such individual houses should be tracked through geo-tagged photographs so that each house can be monitored effectively. States will be required to develop a system for tracking progress of such houses through geo-tagged photographs.

Affordable Housing in Partnership (AHP) :

The third component of the mission is affordable housing in partnership. This is a supply side intervention. The Mission will provide financial assistance to EWS houses being built with different partnerships by States/UTs/Cities. 6.1 To increase availability of houses for EWS category at an affordable rate, States/UTs, either through its agencies or in partnership with private sector including industries, can plan affordable housing projects. Central Assistance at the rate of Rs. 1.5 Lakh per EWS house would be available for all EWS houses in such projects. 6.2 The States/UTs would decide on an upper ceiling on the sale price of EWS houses in rupees per square meter of carpet area in such projects with an objective to make them affordable and accessible to the intended beneficiaries. For that purpose, State and cities may extend other concessions such as their State subsidy, land at affordable cost, stamp duty exemption.

Credit-Linked Subsidy Scheme:

The Mission, in order to expand institutional credit flow to the housing needs of urban poor will implement credit linked subsidy component as a demand side intervention. Credit linked subsidy will be provided on home loans taken by eligible urban poor (EWS/LIG) for acquisition, construction of house. 5.1 Beneficiaries of Economically Weaker section (EWS) and Low Income Group (LIG) seeking housing loans from Banks, Housing Finance Companies and other such institutions would be eligible for an interest subsidy at the rate of 6.5 % for a tenure of 15 years or during tenure of loan whichever is lower. The Net Present Value (NPV) of the interest subsidy will be calculated at a discount rate of 9 %. 5.2 The credit linked subsidy will be available only for loan amounts uptoRs 6 lakhs and additional loans beyond Rs. 6 lakhs, if any, will be at nonsubsidized rate. Interest subsidy will be credited upfront to the loan account of beneficiaries through lending institutions resulting in reduced effective housing loan and Equated Monthly Instalment (EMI). Ministry of Housing and Urban Poverty Alleviation 7 5.3 Credit linked subsidy would be available for housing loans availed for new construction and addition of rooms, kitchen, toilet etc. to existing dwellings as incremental housing. The carpet area of houses being constructed under this component of the mission should be upto 30 square metres and 60 square metres for EWS and LIG, respectively in order to avail of this credit linked subsidy. The beneficiary, at his/her discretion, can build a house of larger area but interest subvention would be limited to first Rs. 6 lakh only. 5.4 Housing and Urban Development Corporation (HUDCO) and National Housing Bank (NHB) have been identified as Central Nodal Agencies (CNAs) to channelize this subsidy to the lending institutions and for monitoring the progress of this component. Ministry may notify other institutions as CNA in future. 5.5 Primary Lending Institutions (PLIs) can register only with one CNA by signing MoU as provided in Annexure 1. 5.6 CNAs will be responsible for ensuring proper implementation and monitoring of the scheme and will put in place appropriate mechanisms for the purpose. CNAs will provide periodic monitoring inputs to the Ministry of Housing and Urban Poverty Alleviation through regular monthly and quarterly reports as per Annexure 2. 5.7 State/UTs/ULBs/PLIs shall link beneficiary identification to Aadhaar, Voter card, any other unique identification or a certificate of house ownership from Revenue Authority of Beneficiary’s native district to avoid duplication. 5.8 Preference under the Scheme, subject to beneficiaries being from EWS/LIG segments, should be given to Manual Scavengers, Women (with overriding preference to widows), persons belonging to Scheduled Castes/Scheduled Tribes/Other Backward Classes, Minorities, Persons with disabilities and Transgender. 5.9 State Level Nodal Agency (SLNA) identified by State/UT for implementing the mission will facilitate the identified eligible beneficiaries in getting approvals and documents, etc. to avail of credit linked subsidy. 5.10 For identification as an EWS or LIG beneficiary under the scheme, an individual loan applicant will submit self-certificate/affidavit as proof of income. 5.11 In case a borrower who has taken a housing loan and availed of interest subvention under the scheme but later on switches to another PLI for balance transfer, such beneficiary will not be eligible or claim the benefit of interest subvention again. 5.12 Under the Mission, beneficiaries can take advantage under one component only. Since other three components are to be implemented by State Government through Urban Local Bodies/ Authorities etc. and this component is to be implemented by PLIs, therefore, in order that beneficiaries do not take advantage of more than one component, PLIs should take NOCs quarterly from State/UT Governments or designated agency of State/UT Governments for the list of beneficiaries being given benefits under credit linked subsidy. For enabling this process, the beneficiaries should be linked to his/her Aadhaar/Voter ID Card/Any other unique identification Number or a certificate of house ownership from Revenue Authority of Beneficiary’s native district and State/UT Government or its designated agency should furnish the NOC within 15 days of receipt of such request.


Beneficiary Led Construction: - (Work in Progress)

Total No: of Beneficiary (F.Y-2015-16)-1290

Total Project Cost: Rs 52.22 Cr.

Total No- of Beneficiary (FY-2016-17)-1945

Total Project: 71.51Cr.

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