Affordable housing is that which is deemed affordable to those with a median household income Reasonably adequate in standard and location for Economic Weaker Section/ Low Income Group / Middle Income Group. The purpose of it is to provide places for people to live at a reasonable cost for them to afford. AFFORDABLE HOUSING(EWS / LIG / MIG)
ECONOMIC WEAKER SECTION (EWS):- Sections of the societies living below poverty line. Families having household annual Income on an average up to 60K to 1Lac rupees per annum. LOW INCOME GROUP (LIG):-Sections of the society living above the poverty line. Families or household having annual income of more than 1Lac to 2 Lac rupees per annum MIDDLE INCOME GROUP(MIG):- Sections of the society living way above the poverty line. Families having household income of 2Lac rupees and above but cannot afford a house in ownership.
LOW INCOME HOUSING :- Low Income Housing refers to residences for individuals or families with low annual household income. Low Income housing benefits amount to a subsidy that helps close the affordability gap. In practice subsidies limit the amount of money a family spends on rent and utilities to no more than 30 percent of their household income. AFFORDABLE HOUSING(EWS / LIG / MIG)
LOW INCOME HOUSING (LIH) There are many such housing programs that are privately operated & funded by the State or Government Low income housing has historically been perceived as a subject under government domain. Government was expected to provide subsidies, come up with technology solutions and provide infrastructure enabling development of housing solutions. The scale of the problem especially when looked at in conjunction with infrastructure aspects such as water, power, transport, sewage, sanitation and relevant social infrastructure such as schools and health centres, poses a challenge that the government alone cannot be expected to manage. AFFORDABLE HOUSING(EWS / LIG / MIG)
BENEFITS OF LOW INCOME HOUSING ( CONSUMER) Economic growth will have meaning & value Better quality of life for people living in slum like conditions Lack of facilities properly planned High quality at low costs Accommodates individuals with different skills which benefits the communities (teachers, helper, shop assistants, home assistances etc) Increasing social & economic integration amongst people from different aspects of life. Easy accessibility for work, schools etc. Asset building, Less Govt. taxes, Stamp Duty, Etc. Fulfilling dreams Employment Opportunities. AFFORDABLE HOUSING
BENEFITS OF LOW INCOME HOUSING (DEVELOPERS) Increase in FSI (Floor Space Index), well planned layouts Tax Benefits Project appraisals are quicker (basic need water, power, security, roads, access points) Building trust based relations with communities & partners Cost of construction is decreased by adopting appropriate construction techniques Easier Land Sanctions (zone conversions & use) Allowance of area for HIG to cross subsidise higher costs.
BUSINESS MODELS FOR DEVELOPERS TRADITIONAL DEVELOPERS Buy Land Incremental Construction Sell units Wait for land value appreciation Land as asset Larger life cycle Very high but uncertain returns Construction Incidental LOW INCOME HOUSING DEVELOPER Buy Land Sell All Units Construct completely Land as inventory Short Life Cycle High IRR Good Margins Complete occupation AFFORDABLE HOUSING
Amenities Entertainment (Theaters, Malls, Parks, Sport activities) Hospitality (Hotels, Dormitories, Service Apartments) Playground (Play zone) Community Centers (Halls, clubs) Infrastructure Promotion of Medical Tourism
110 ACRE OF LAND Layout Design : 79,51,000 Sq ft Service Appt: 3,00,000 Sq ft 5 Star Hotel : 4,00,000 Sq ft Entertainment like play zone, mall recreational hall, club, multiplex, theatres : 3,50,,000 Sq ft FUTURE EXPANSIONS Degree College : 1,50,000 Sq ft Medical College: 1,50,000 Sq ft College for Hotel Management: 50,000 Sq ft Hostel for boys and girls: 50,000 Sq ft Health care, hospitals, clinics, chemist for medical tourism : 3,50,000 Sq ft Zoning plan