Housing for all

Supply of housing for the middle class and below deserves a more benevolent eye of the government....

Housing is a basic human requirement. Of our over a billion population,as of now,only a small percentage can afford to live in a decent residential accommodation of their own. The unfortunate part is that many can afford to own,but are not able to do so for want of support of law and policy. Irrespective of the economic strata class a person is born in,education and housing are at least as an opportunity his fundamental right. The rest depends on his skills,his labour,his determination,and also,to an extent,on his destiny. In his endeavour at moving upwards,the laws of the land should not fail him,but encourage and support him.

A look at some of the ground realities first. Haphazard and unauthorised construction is one of the problems that is ailing the housing sector. The extent of encroachment on public land is simply phenomenal. Lack of housing and the resultant human plight makes it difficult for the State to prevent encroachment. As a result,slums proliferate.

At lower economic levels and not exactly slums,many pockets in the cities comprising old village abadis or simply unauthorised colonies show an extremely high density of population; very concentrated construction; and poor living conditions. A walk through various housing settlements will depict the pathetic conditions people live in. Even the urban middle class does not receive what it can. The policy in relation to affordable housing cannot focus only on the urban well-to-do; it must,and equally,focus on the urban middle class including the lower middle class and the poor. At the same time,it must take into account the 750 million rural inhabitants,who hardly get any attention.

OWNING A HOUSE

Ideally,housing must be viewed in the light of what the person can afford with a clear title and at a cost not exceeding four times the gross annual household income. It also has to have value for money,without compromising on quality of construction or safety or even provision of civic amenities and socio-economic infrastructure in the vicinity.

The objective of the exercise here is that the middle class and below the urbanite and equally,the ruralite can also look forward to ownership apartments.

For this,the issue of finance personal and banks also have to be attended in practical terms. The banks reluctance towards tackling the problem calls for several steps to be taken. If possible,there should be special banks for the middle class and the rural sector. We need to put in place a specialist low income housing finance provider,or separate banks or branches of HF Banks to deal with the borrowers in the below 5 lakh income category.

How much of the home ought to be from the savings of the past and how much of it ought to be financed are questions that must be seriously addressed by the prospective home owner,in order that the foundation of his home remains solid,and strong. Banks push loans,which people sometimes take without realising the consequences. However,a loan for housing is an exception and therefore ought to be encouraged but to a point and no more.

RIGHT LEGISLATION

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On the legislative front,we can have new legislation to replace the prevalent Apartment Ownership Acts . Apartment ownership laws in the developed countries can serve as a basic model. The statute should identify the needs of this sector; provide the framework; and while looking after the interest of each party,prevent unfairness. All existing statutes,which presently cover the field in relation to apartment development,sale,mortgage and ownership,can be consolidated and replaced in their application to Unit-hold development by a comprehensive single statute.

Low cost housing calls for a continuing effort both on the existing situation and the recurring problems as also on the newer issues that emerge and require attention. Shelter being what it is,the government has to act to help provide opportunity for the basic. For this purpose,the government needs to enact the right legislation and establish systems and institutions that help achieve the intended goal. This will,hopefully,ensure an ownership home not only for the well-to-do strata of society,but also for the common man. The prospective buyers armed with the information and supported by laws can then feel safe to invest his savings and then come to live in an ownership home. l

The writer is author of Affordable Housing: How law and policy can make it possible.