The Hindu Business Line : Institutional finance for rental housing on cards

According to the National Housing and Habitat Policy 2007 released today, the Government plans to promote rental housing market as a viable alternative for home seekers and provide incentives to housing finance institutions (HFIs) for promoting such projects.

These would cater to the growing needs of employees who migrate from one city to another every few years, particularly those employed in the services sector.

The policy also intends to develop a National Land Policy and develop a National Shelter Fund under the control of the National Housing Bank for providing subsidy to the underprivileged sections, the Minister for Housing and Urban Poverty Alleviation, Ms Kumari Selja, told newspersons here.

It also intends to eliminate the existing ambiguities in transaction of conveyance deeds, lease deeds, mortgages, gifts, partition deeds and other property-related documentations.

Rent control law

The policy aims to introduce a model rent control legislation that would set the guidelines for the States to formulate their respective rent control laws.

“This would free around 5 lakh dwelling units that are lying vacant due to litigation,” the Minister said.

According to the estimates by the Ministry, the shortage in urban housing units at the end of 10th Plan stood at 24.7 million units which would need an investment of around Rs 3.61 lakh crore for construction.

“In order to meet this huge demand-supply gap there would also be a major thrust in the public-private partnership model since it is not possible for the Government alone to eliminate shortage of urban housing,” Ms Selja said.

The Government also intends to encourage cooperative housing, housing projects for employees, housing projects to be developed by the employers to be rented to their employees for fixed duration and housing projects for labourers, the Minister said.

“The State Governments would be advised to develop their own housing policies with a 15-year perspective since this is a State subject. I would be writing the Chief Ministers shortly,” she said.

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