Urban Housing Presentation

8/12/2019 Urban Housing Presentation

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It is also of concern that such a risein the number of urban poor is in stark

contrast with rural poverty where both

the total number of rural poor and its

incidence in comparison with the rural

population has fallen.

Migration to cities continues whateverthe efforts made in rural areas to help

generate more employment

opportunities, and it is the large number

of workers engaged in the urban

economy as self-employed in the

informal sector who fall in the category

of urban poor.

It is a stark paradox of urban Indiathat though they play a major role in

wealth creation, development ofinfrastructure and provision of a

certain quality of life to urban

dwellers, the urban poor themselves

are denied shelter, basic amenities

and a dignified life.


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The growth of the Indian workforce isalso characterized by an increasing

level of urbanization. At the onset of the

21st century (2001), 32% of the total

workforce resided in urban areas.

According to the 2001 Census, 29% of

the urban workforce falls in the category

of main workers and the balance

in the category of marginal workers.

The male-female composition of theurban workforce is structured in favour

of male workers (the male-female ratio

being 84:16 in 2001) although there has

been some improvement in the volume

of female employment.

Further, it is of critical significancethat79% of the new jobs totaling 19.3

million between 1991-2001 were

generated in urban areas and only 5

million jobs were generated in ruralareas.

RURAL TO URBAN SHIFT OF LABOUR


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It is important to highlight the fact that the informal sector in urbanareas is growing exponentially.

In the decade 1991-2001, workers classified as marginal workersregistered an increase of 360% as compared to an increase of only 23%

for workers classified as main workers.

As a consequence, the ratio of marginal workers to total workersincreased from 2.2% in 1991 to 7.9% in 2001.

Further, the proportion of female workers to total workers rose from14.3% in 1991 to 16% in 2001.

In a nutshell, the 1991-2001 decade has witnessed strong trendstowards casualization and feminization of the urban workforce. Further,

wage employment is being progressively replaced by sub-contracting.


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Shelter is a basic human need next only to foodand clothing.

At the end of the 10th Five Year Plan, the housing

shortage

is estimated to be 24.7 million. However, urban

areas in ourcountry are also characterized by severe

shortage of basic

services like potable water, well laid out drainage

system,sewerage network, sanitation facilities, electricity,

roads and

appropriate solid waste disposal. It is these

shortages that

constitute the rationale for policy focus on

NATIONAL URBAN HOUSING AND HABITAT

POLICY


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Given the magnitude of the housing shortage and budgetary

constraints of both the Central and State Governments,

it is amply clear that Public Sector efforts will not suffice infulfilling the housing demand.

In view of this scenario, the National Urban Housing and

Habitat Policy,

focuses the spotlight on multiple stake-holders namely, the

Private Sector, the Cooperative Sector, the Industrial Sector for

labour housing and the Services/Institutional Sector for

employee housing.

In this manner, the Policy will seek to promote

various types of public-private partnerships for realizing the

goal of Affordable Housing For All.


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The policies of urban development and housing in India have come a long waysince 1950s. The pressure of urban population and lack of housing and basic services

were very much evident in the early 1950s. In some cities this was compounded by

migration of people from Pakistan. However, the general perception of the policy

makers was that India is pre-dominantly an agricultural and rural economy and that

there are potent dangers of over urbanization which will lead to the drain of

resources from the countryside to feed the cities. The positive aspects of cities as

engines of economic growth in the context of national economic policies were not

much appreciated and, therefore, the problems of urban areas were treated more aswelfare problems and sectors of residual investment rather than as issues of national

economic importance.

In the First Five Year Plan(1951-56), the emphasis was given on institutionbuilding and on construction of houses for Government employees and weaker

sections

The scope of housing program for the poor was expanded in the Second Plan(1956-61). The Industrial Housing Scheme was widened to cover all workers.

The general directions for housing programmes in the Third Plan(1961-66) were

co-ordination of efforts of all agencies and orienting the programmes to the needs ofthe Low Income Groups.

HOUSING AND URBAN POLICY IN INDIA


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The Fifth Plan(1974-79) reiterated the policies of the preceding Plans topromote smaller towns in new urban centres, in order to ease the increasing

pressure on urbanisation. This was to be supplemented by efforts to augment

civic services in urban areas with particular emphasis on a comprehensive and

regional approach to problems in metropolitan cities

The thrust of the planning in the Sixth Plan(1980-85) was on integratedprovision of services along with shelter, particularly for the poor.

The Seventh Plan(1985-90) stressed on the need to entrust majorresponsibility of housing construction on the private sector. A three-fold role was

assigned to the public sector, namely, mobilization for resources for housing,

provision for subsidized housing for the poor and acquisition and development of

land.

The balanced urban growth was accorded high priority in the Fourth Plan(1969-74). The Plan stressed the need to prevent further growth of

population in large cities and need for decongestion or dispersal of

population. This was envisaged to be achieved by creation of smaller towns

and by planning the spatial location of economic activity.


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The Eighth Plan(1992-97) for the first time explicitly recognized the role andimportance of urban sector for the national economy. While growth rate of

employment in the urban areas averaged around 3.8% per annum, it dropped to

about 1.6% in the rural areas. Therefore, the urban areas have to be enabled to

absorb larger increments to the labour force. The Plan identified the key issues in

the emerging urban scenario:the widening gap between demand and supply of infrastructural services badly

hitting the poor, whose access to the basic services like drinking water, sanitation,

education and basic health services is shrinking

unabated growth of urban population aggravating the accumulated backlog of

housing shortages, resulting in proliferation of slums and squatter settlement and

decay of city environmenthigh incidence of marginal employment and urban poverty as reflected in NSS

43rdround that 41.8 million urban people lived below the poverty line.

The response of the Plan to this scenario was the launching of Urban Poverty and

Alleviation Program of Nehru Rojgar Yojana (NRY)

Urban Housing Shortage at the end of the 10th Five Year Plan

(dwelling units in million)

Continued...

St t /UT HOUSING


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State/UTs HOUSING

SHORTAGE

Andhra Pradesh 1.95

Arunachal Pradesh 0.02

Assam 0.31

Bihar 0.59

Chhatisgarh 0.36

Goa 0.07

Gujarat 1.66Haryana 0.52

Himachal Pradesh 0.06

Jammu & Kashmir 0.18

Jharkhand 0.47

Karnataka 1.63

Kerala 0.76

Madhya Pradesh 1.29

Maharashtra 3.72

Manipur 0.05Meghalaya 0.04

Mizoram 0.04

Nagaland 0.03

Orissa 0.50

Punjab 0.69

Rajasthan 1.00

Sikkim 0.01

Tamil Nadu 2.82

Tripura 0.06

Uttaranchal 0.18

Uttar Pradesh 2.38

West Bengal 2.04

A&N Islands 0.01

Chandigarh 0.08

Dadra & Nagar Haveli 0.01

Daman & Diu 0.01

Delhi 1.13

Lakshadweep 0.00

Pondicherry 0.06


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Affordability can be defined as the consumers ability to purchase but it is a relative term

that could acquire different meanings under varying circumstances. With a bevy of realestate companies riding on the wave of economic growth the focus on the fortune at the

bottom of the pyramid has become an important component of their strategy evident in

numerous low price housing projects sprouting across the nation.

AFFORDABLE HOUSING IN INDIA : ROLE

OF HOUSING MICROFINANCE

For instance Tata Group has come up with

a project at Boisar near Mumbai, GodrejGroup is building a township outside

Ahmedabad, Ansal Properties is

constructing homes for low income groups

in U.P. and Rajasthan and the list goes on

and on.

However, the availability of adequate financing sources for the consumers is a

major factor in determining the sale of these projects. Thus, the role of

microfinance institutions in enabling the low income consumers, mostly

employed in the informal sector in purchasing these Affordable houses is of

much importance


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Demand for Affordable housing:

There is an enormous unmet demand for low-income housing finance. The

segment earning between Rs 7,000-Rs 15,000 has never been considered

significant for home loan offerings.

While the prospects of getting a home loan for the formal sector employee do

exist, chances for informal sector employees and the self-employed like

drivers, NGO staff, small caterers and others are bleak.

This is despite the fact that they have marketable skills, steady jobs/incomesand employer/customer recommendations.

Moreover, urbanization has played a key role in making Indias housing

problems worse.

In the present, scenario the total urban land is estimated at 2.3% of Indias

total geographical area, which accommodates 30% of population.Pressure on land and infrastructure is only going to increase further with 40%

of the nation expected to inhabit cities by 2020 at which time urban population

is expected to be 455 million.

Apart from this, with 200 million people anticipated to be living in slums and

slum like conditions by 2020, the focus is bound to be on urban housing.


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A slum, as defined by the UNITED

NATIONS agency UN-HABITAT, is a run-

down area of a city characterized by

substandard housing and squalor and

lacking in tenure security.

The term has traditionally referred to

housing areas that were once relatively

affluent but which deteriorated as the

original dwellers moved on to newerand better parts of the city, but has

come to include the vast informal

settlements found in cities in the

developing world.

Although their characteristics vary

between geographic regions, they areusually inhabited by the very poor or

socially disadvantaged. Slum buildings

vary from simple shacks to permanent

and well-maintained structures. Most

slums lack clean water, electricity,

sanitation and other basic services.

SLUM


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Increase urbanization is

emerging as the most pervasive

dominating challenges as well as

opportunities facing our country

today.

Urban population in India has

grown from 78.9 million in 1961

to 286million in 2001, it is

estimated that is going to double

in next 25 years.

Urbanization accompanied by

sustained population growth due

to large scale migration from

rural to urban center leads to

mushrooming slum settlements

in all cities and town India.

As urbanization grows and the

share of urban house hold rise in

the next to decayed from the

current 28% to 50% of thecountry population. We are


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SLUM UPGRADING PROGRAMMES

Indonesia: The World Bank supported

the Kampung Improvement Program

(KIP) over a 14-year period from 1974-

88.13 For a cost averaging from $23 per

person in smaller cities to $118 in Jakarta,

almost four million kampung residents in

11 cities benefited from improved

footpaths, roads and drainage, garbage

bins and collection vehicles, safe drinking

water through public taps, public washing

and toilet facilities, neighbourhood healthclinics, and primary school buildings.

Despite the complexity of the challenge, a

number of successful slum upgrading

examples and approaches can serve asbest practices:

Recognizing the needs and focusing in

the development and up-gradation of slum

with basic amenities and affordable housing

is the basic aim of our government.

By major programmers'JNNURM, AHIP ,ISHUP


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Nigeria. In 2005, the Lagos

mega-city of over 11 million

people, 70 percent of whom

live in slums, adopted a new

citywide approach to slumupgrading after witnessing

the limited impact of previous

top down efforts.

Community participation is

central to the programs

design. The aggregateestimated economic rate of

return for the infrastructure

improvements is 17 percent,

and a 75 percent increase in

garbage collection by private

operators has already beenrealized.


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Mexico : The national

government has a large-scale

effort, Piso Firmo, under way to

replace dir t wi th cement f loors in

slum dw ell ing s. By 2007, 300,000

f loors h ad been replaced o ut o f a

total in i t ial stock of th ree mi l l ion

uni ts w ith dir t f loors, at a cost of

abou t $150 per unit. To b e eligib le

occupants mus t prove uni t

ownership. The incent ive toobtain essent ial documentat ion is

the poss ib i l i ty of receiv ing th e

benefi tsPeru: An impact evaluation

of the effect of Perus

nationwide program

distributing titles to urbansquatters on public land found

that investment in housing

renovations and improvements

associated with land titling

increased 68 percent in the

four years following title

SLUM PREVENTION


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Slum prevention is at least asimportant as upgrading and clearly more

cost effective.

Slum prevention isat least as important

as slum upgrading

and is clearly more

cost effective.Another example is cities in ElSalvador that have been able largely to

prevent the formation of new slums

through good planning and timely

investments in transportation that

provides decent access to peri-urban

locations. Access to secure land plots

provided by municipalities or private

developersis key to encouraging the

type of incremental housing construction

by which the majority of the urban poorattain decent housing.

SLUM PREVENTION


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The process can be accelerated, as can slum upgrading, with access to

micro finance that permits use of higher quality materials each time

as improvement is made.

CHALLENGES OF URBAN HOUSING


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CHALLENGES OF URBAN HOUSING

The most important factor limitingprogress in improving housing and living

conditions of low income groups particularly

in informal settlements and slums is the lack

of sufficient political willto address the issue

in a fundamentally structured, sustainable

and large scale manner.

One crucial and common shortcomingin the housing sector is the inadequacy

and limitations of housing finance

mechanisms. The fact that conventional

housing finance usually works in favour of

middle and high income groups is reflected

in highly segmented housing markets. thepoor, low- and even middle-income

majority of the population in most

developing countries cannot afford a loan

even for the least expensive commercially

built housing units.

Security of tenure is another


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Security of tenure is anotherfundamental challenge in urban

housing. Promoting security of tenure is

a prerequisite for sustainable

improvement of housing and

environmental conditions. Squatterupgrading projects need to be carried

out and these projects should prevent

unlawful evictions. Governments should

focus on regularization schemes in order

to provide incentives to families to invest

in their homes and communities.

Another important topic requiringattention is the promotion of rental

housing options.Regardless of the

nature of existing or new finance

mechanisms, the reality for many poorand low-income urban residents remains

that adequate housing is simply too

expensive to own.The majority of urban

residents in many developing countries

are actually tenants in the private

informal sector.


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Another major challenge of housing policies is to adopt an adequateapproach to urban land management. Due to rapid urbanization, the urban

poor are forced to find their shelter in illegal settlements located in a variety

of places: customary land, public land reserves, marginal land or in illegal

sub-divisions. The dynamisation of land markets is a key element of anygood housing strategy.


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SOLUTION TO URBAN HOUSING

CHALLENGES

Government should focus on thedevelopment, operation and maintenance of

trunk infrastructure (roads and water supply) at

city-wide level.

They should support the establishment of fairand transparent municipal finance systems

based on equitable land taxation.

Government should promote a facilitatinglegislative and institutional framework in the

housing sector.

Governments and local authorities shoulddesign, adopt and implement pro-poor city

development strategies, ensuring sufficient

availability of public and private land for housingdevelopment.

They should build partnerships with theprivate sector for the management of basic

services and utilities, such as water supply, and

with private investors and developers for the

delivery of both owner-occupied and rentalhousing.

They should strongly


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They should stronglyencourage and support the

efforts and initiatives of slum-

dwellers in the incremental

upgrading of their living

environment, through technical

and financial assistance.

They should provideappropriate incentives to the

banking and cooperative sectors,

as well as to private foundationsand ngos, in order to direct more

resources to the housing market.

Finally, in terms of process andmethod, governments should

adopt decentralization policies,strengthen local authorities and

involve all stakeholders in the

elaboration, monitoring and

evaluation of the housing policy,

through consultative and

participatory approaches.

THE TIME TO ACT IS NOW


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THE TIME TO ACT IS NOW.....

Even though it is well-recognized that at

the core of the poverty and vulnerability

in cities is the poor asset base of many

citizens, a problem centering on housing

and lack of security of tenure, we still

have to do a lot to enable the markets

to deliver low income housing solutions.

Resolving land tenure issues is a must

for poverty reduction and inclusive

development.

Noting that affordable housing provision

for the growing urban population

remains a big challenge to our cities, the

housing mandate needs to be clearly

assigned at the city level with majorsupport programmes. As the midterm

appraisal of the current Five-Year Plan

states, several fold increase in the funds

for affordable housing and slum

transformation initiatives will be

necessary.


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*RITIKA SINGH

*SWATI SAMANT RAY*SHARANYA DAS

*MATRIPRASAD CHOWDHURY.

*RAKESH KUMAR

Presented by:-

Urban Housing Presentation

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