Goal 1.3

ENSURE ACCESS TO SAFE, SECURE, ADEQUATE & AFFORDABLE HOUSING FOR ALL

  • Action 1.3.1 Reduce housing vacancies and create a vibrant, sustainable and inclusive rental housing market
  • Action 1.3.2 Incentivize private sector participation in responding responsibly to low-income housing construction & upgradation
  • Action 1.3.3 Increase access to home financing and opportunities to use housing finance for repair and retrofitting
  • Action 1.3.4 Improve processes of land titling and de-link land rights from basic services, development rights & formal mortgage
  • Action 1.3.5 Build institutional capacity to do participatory planning and regulation of housing in the Pune urban region

See details below, and you may provide your comments at the bottom of the page.

Action 1.3.1 Reduce housing vacancies and create a vibrant, sustainable and inclusive rental housing market

Lead: PMRDA

Rental yields are not lucrative enough to offset the challenges in enforcing contracts that don’t protect landlords adequately and long and expensive judiciary processes in case of conflict. Developing a healthy rental ecosystem can bring in the vacant stock into the supply fold and also create additional rental units to meet the housing demand.

  • Project 1.3.1.1 Enact The Draft Model Tenancy Act, 2011
  • Project 1.3.1.2 Incentivize a rental management ecosystem

Action 1.3.2 Incentivize private sector participation in responding responsibly to low-income housing construction & upgradation

Lead: TBD

In Pune, low-income groups drive nearly 75% of the demand in Pune but only about 4% of the supply. The major supply side barriers for private developers are availability of low cost developable land in the city, government approval processes that drive up interest, and stamp duty & registration costs that are passed down to the buyers.

  • Project 1.3.2.1 Rationalize Pune DCR, streamline approval procedures and ensure transparency in applications
  • Project 1.3.2.2 Make viability gap funding available for small/new developers
  • Project 1.3.2.3 Earmark State/ULB land for low-income housing, esp in DP of newly incorporated villages

Action 1.3.3 Increase access to home financing and opportunities to use housing finance for repair and retrofitting

Lead: TBD

AHFCs finance low-income borrowers who find it difficult to get finance from banks/ traditional HFCs; are self- employed or employed in the informal sector and lack income proof. AHFCs also finance housing that banks/ traditional HFCs are not comfortable financing, e.g. construction with plans sanctioned by Gram Panchayats, and certain types of informal titles. However, there are opportunities to use housing finance to improve living conditions for households living in slums and for customers approved for the Beneficiary-Led Construction scheme of the PMAY. These segments remain unserved by housing finance, despite interest from lending organizations.

  • Project 1.3.3.1 Support AHFCs/MFIs to finance improvements in living conditions for households living in slums
  • Project 1.3.3.2 Develop standards – clear definition of beneficiary segments, minimum size of housing units, criteria for projects to qualify for subsidies and also for banks to develop relevant products.

Action 1.3.4 Improve processes of land titling and de-link land rights from basic services, development rights & formal mortgage

Lead: Mashal

Property rights, when defined from a narrow “real estate” perspective, include rights such as use (e.g. residential, commercial, agricultural), transfer, gift, or restricting others from its use. However, in taking a household-centric view, which entails building a life on a property, the definition of property rights could expand to include rights such as developing the land, basic services, and formal mortgage. Thus, property rights could be better viewed as a bundle of rights, which include, but are not limited to Use (residential, commercial, etc.), development; transfer by inheritance; Basic services (e.g., electricity, water, sanitation), transfer by sale; and formal mortgage.

  • Project 1.3.4.1 Training for residents on entitlement rights, building negotiation capacity & simple on-site

Action 1.3.5 Build institutional capacity to do participatory planning and regulation of housing in the Pune urban region

Lead: PMRDA

There is not unifying body that plans and monitors the housing demand/supply in the city or manages the various government housing schemes. Private sector housing goes through the PMC building dept. for approval; while the Slum Rehabilitation Authority, a para-statal body, operates independently with little coordination to oversee even the central govt sponsored programs affecting slum communities. Some NGOs fill the space and act both as mediaries and service providers of housing & infrastructure needs of the slum communities.

  • Project 1.3.5.1 Pune Urban Region Housing Authority (under PMRDA)

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