Huda Affordable Housing Policy


What is Huda Affordable Housing Policy?

In this article we explore in detail the Huda Affordable Housing Policy of 2013, Gurgaon.

A policy named ‘Huda Affordable Housing Policy of 2013’ has been notified by the government. This policy is

made by the government in order to encourage the housing projects in which apartments of predefined

size and predefined rates are made available for the deserving people from the lower and the lower

middle classes. Those projects for which licenses are given under the present policy cannot be converted

in to the normal housing colony under any circumstances. In this regard, it does not matter if the

projects fall within the limit of 20 percent for residential sectors that’s prescribed for group housing

projects. Projects under the policy will be sold on the bases of Carpet area. So the people are only going

to pay for the area that they will use.

Granting the license

As per the Huda Affordable Housing Policy, the projects will be allowed in residential areas of notified

development plans of various cities and towns. The first come first serve basis will be used for granting

the licenses for the housing projects of this type.

Incentives for the developers

It is envisioned in the Huda Affordable Housing Policy that the capital investment for the development of the

affordable houses will be made by the private sector. And according to the policy, incentives will be

given to the private developers. Following are the incentives offered to the developers:

1. The developers will be exempted from the license fee as well as the infrastructure development

charges.

2. The floor area ratio is higher at 225 against 175 which is usually permitted in group housing

projects.

3. Higher ground coverage to the tune of 50% against 35% and is normally allowed.

Requirements for Zoning

The maximum area for which such projects are allowed in the development plans include 300

acre for the Panchkula Extension, Panchkula, Pinjore-Kalka, Gurgaon and Faridabad, 150 acre

for the Bahadurgarh, Sohna, Karnal, Dharuhera, Sonipat and Panipat and 75 acre for the rest of

the development plans. Under this policy only 5% or less than 5% of the total planned area

under residential zones is allowed for projects that fall under affordable housing policy.

However, if the total area in a residential sector is less than one hundred acres, then only one

project of this type will be allowed on five acres. In addition, to make sure that such projects

are distributed well over the development plan, the maximum net planned area permitted

under the policy in a residential project is restricted to 10 acre.

Rates of Flats

In the development plans of Pinjore-Kalka, Faridabad, Gurgaon and Panchkula, the maximum allotment

rate for the apartment units approved under affordable housing policy is 4000 Rupees for each square

foot. This rate is 3600 Rupee for each square foot in the development plans of the other towns having

medium and high potential and it is 3000 Rupees for each square foot in the remaining towns that have

low potential.

Eligibility criteria and the allotment of flats

Draw will be made for the allotment of the affordable housing units and the deputy commissioner of the

district in which the unit is situated will handle the draw. As per the Huda Affordable Housing Policy, any

individual who doesn’t own a house or a flat or a plot in a colony of the Haryana Urban Development

Authority (HUDA), or in a licensed colony in NCR or in Chandigarh, would be eligible for the scheme.

Time period for completing a project

The affordable housing projects will be required to be completed within a period of 4 years after the

grant of environmental clearance or building plans. The days is going to be referred to as the date of

commencement of the project and the licenses will be renewed beyond four years period from the

commencement of the project.

Area of apartments

As per the policy, the size of apartments which will be constructed is going to be in the range of 28 sq.

meter to 60 sq. meter carpet area. The carpet area is the net usable area that is bound within the walls

of the residential unit and it excludes the area covered by the balconies and the walls. Carpet area does

include the toilet, bathroom, store, kitchen, shelf, built-in-cupboard and almirah areas.

There are no separate EWS categories in the apartments so that the cross subsidy components are

eliminated and the adverse impacts on the affordability of apartments are avoided.

Parking spaces

The parking space for each residential unit is provide at the rate of half the equivalent car space. Only

single two wheeler parking site will be earmarked for each flat and it will only be allotted to the owner

of a flat. The parking bay of two wheelers will be 2.5 meter x 0.8 meter unless specified otherwise in the

zoning plan. There won’t be any car parking allotted to owners of an apartment in such projects.

Check on the builders

Bank guarantee must be taken by the colonizer. This guarantee will be taken against the total realization

from project at rate of 15 percent for the areas that fall in the development plans of Gurgaon,

Panchkula, Faridabad, Pinjore-Kalka and Panchkula Extension. The rate will be 10 percent for the rest of

towns. This bank guarantee must be taken as a matter of the security against any of the possible

neglects in the completion of the project.

Maintenance of the project after the deliver

As per the affordable housing policy, the developers will maintain the project for 5 years after the

completion of the project. This maintenance will be provided by the developer free of cost. After these

five years, the maintenance will be overtaken by the resident association. Maintenance of the

residential projects is an important issue which has to be defined in more detailed and better way so

that there is a clear cut solution.

Conclusion

Huda Affordable Housing Policy is a wonderful step by the government. It will enable the availability of the

apartments of predefined size at predefined affordable rates to the residents in the urban markets. The

policy will make sure that the projects get completed on time.

Also the policy strikes a good balance by giving incentives to the builders and by putting a proper check

on the builders, ensuring that the projects are delivered on time.

If the affordable housing policy is implemented the way it is envisioned, it’s going to be very beneficial

for the people belonging to lower middle and lower classes strata of the society. Approximately 6 lac

people in the urban centers of Harayana will benefit from this policy in the next 5 years.