In order to encourage more participation by the private sector in the construction of affordable housing units in economically weaker sections (EWS) and low income groups (LIG), the Rajasthan Urban Development Department has prepared draft amendments to Mukhyamantri Jan Awas Yojana.
These draft amendments will ensure that there are no financial problems in making the affordable housing developments viable and resolve the issues of location, infrastructure availability and delay in construction.
Additional buildable area ratio (BAR), exemption from various state government fees and new land needs have been proposed by the department. These draft amendments are still being considered and will be taken up before notifying the same.
As per a senior official of the Urban Development Department (UDH), these amendments will help in attracting private builders to develop affordable housing in Rajasthan.
BAR to Enhance Project Feasibility
An important aspect in the draft is the recommendation to award additional BAR of 1.0 for EWS and LIG houses. Additional BARs may be granted to individual projects depending on the height of buildings. The additional buildable area will provide developers the opportunity to enhance their options in land use and improve affordability of housing projects.
Financial benefits in the form of complete exemption from certain charges like land conversion fees have also been suggested by the state government. Such measures will help to decrease costs involved in the project and motivate private developers to initiate housing projects for lower economic strata.
It is believed that the combination of both the above aspects can increase interest among private players in housing projects for economically weaker sections.
Revised Location Norms for EWS and LIG Housing.
The new amendments will also set out how the construction of DDA-complaint EWS and LIG apartments will be taken up. At present, the developer has allegedly kept these units a bit away from their residential project, which makes it difficult for the beneficiaries to access some basic things.
The new rules would put a cap on the amount of distance permitted between the primary residential development and the other affordable housing units. This distance will be dictated by the size of the city or town.
As per the norms, the EWS and LIG housing units will be located within 5 km from the main project in cities with a population of more than 10 lakh. In case of cities with a population between 1 lakh and 10 lakh, this distance will be 3 km, while for cities with less than 1 lakh population, the EWS and LIG units will be located within 2 km from the main development. The civic authorities concerned will give the required approvals.
This distance criteria is designed to bring affordable housing closer to the main project to make sure EWS and LIG dwellers have better access to roads water public transport, and other similar facilities.
Minimum Land Requirement Revised
Minimum land size for affordable housing the draft amendments also suggest raising the minimum land size for affordable housing projects. The suggested plot size is now more than 10,000sq m, compared with 5,000sq m.
The hope is that this will lead to increased scale of developments and allow for greater planning and infrastructure while providing affordable housing.
A town planner said the amendments go some way to alleviate the scheme's failings, like failed or delayed projects.
Government to Review Draft Proposals
The amendments to Mukhyamantri Jan Awas Yojana show the intention of Rajasthan to provide more private sector involvement in affordable homes and to better serve EWS and LIG housing demands.
The proposals still will be implemented only after negotiations and an official announcement from the state government. After the provisions are introduced, they might impact where developers choose affordable housing units, decide to develop projects, and the project economics of residential developments statewide.
