05-09-2012, 05:00 PM
Affordable Housing & Slum infrastructure Development
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INTRODUCTION
BACKGROUND
Shelter is one of the basic human needs next only to food and clothing. A house is a composite and complex good that fulfills many important individual and social needs. As shelter it fulfills a basic need and it also provides social security, an aspect of people‘s sense of identity and self-esteem. Along with this provision of proper infrastructure facilities like drinking water supply, sewerage & sanitation system, roads is also very important. But unfortunately slums do not have basic municipal services.
It is one of the key economic indicators of economic prosperity. But the housing shortage in India, as per official estimate of 11th five year plan is 22.4 million, almost evenly divided in urban and rural segments all over India. Robust economic growth in last two decades has provided good employment opportunities in urban areas. At the onset of the 21st century, 32 % of the total workforce resided in urban areas and India‘s labour force has been witnessing a rural to urban shift since liberalization, culminating in increasing population at a fast speed in urban areas. During the last decade, urban population of India increased at an annual growth rate of 2.7 per cent, which is one of the most important reasons of a colossal housing shortage. According to the Planning Commission Report, the urban housing shortage in March 2007 was around 24.71 million houses and is estimated to increase to 26.5 million houses by 2012. Most of this housing shortage pertains to economically weaker sections (EWS) and low-income groups (LIG). As a result of this, approximately, 23 per cent of India‘s urban population lives in slums (Census: 2001) with inadequate sanitary and drinking water facilities.[1]
NEED FOR STUDY:
As per standard development theories, spurt in urbanization is inevitable with growth and development of the economy and Maharashtra is one of the forerunners in the race of development. Following the development theories Maharashtra is also one of the most urbanized states in the country. Whereas nationally 27 per cent of the population is in the urban areas, in Maharashtra, the figure is 42 per cent (Census 2001). Due to
offering greater economic opportunity labour migration from other parts of the country is steeper towards Maharashtra and in particularly urban areas. Apart from increasing urbanization and migration, an enormous rise in income level of growing young working population is evident because of continuous unprecedented high growth trajectory in some sectors of the economy, declining household size resulting in more nuclear families, and improved availability of loans has been augmenting the demand of house. Limited supply of residential land, planning and development control regulation, rent control provisions, high transition costs, lack of clear land titles, tedious approval processes has been preventing the required supply of houses.
WHAT IS AFFORDABLE HOUSING?
Affordable housing normally covers both low cost market and subsidized housing (irrespective of tenure, ownership – whether exclusive or shared – or financial arrangements) that is available in perpetuity to people who cannot afford to rent or buy a house generally available on the open market.
Most studies on affordable housing define that Affordable Housing is a segment of market where a proportion of the housing is targeted for those people who have a special housing requirement and /or who are unable to compete in the exiting local market for housing. It covers a spectrum of providers and tenure including housing associations, public sector , joint venture and own occupations.
In England, Affordable Housing includes social, rented and intermediate housing, provided to specified eligible households whose needs are not met by the market. Social housing is rented housing, owned and managed by local authority and targeted rent is determined through the national rent regime. Intermediate affordable housing is housing at a price and rent above those of social rent but below market price or rent.
In United States and Canada, a commonly accepted guide line for housing affordability is a housing rental cost that does not exceeds 30 per cent of a household‘s gross income. This housing cost includes taxes and insurance for owners. When the monthly carrying costs of home exceeds 30-35 per cent of household income, and then the housing is considered unaffordable for the household.