R. Narasimhan, K.R.Prakash & S Sriram
Affordable “Housing For All In India” Through Distribution of Free Floor space Index (FSI) for Homeless, Houseless, Marginal, Rent Paying Households
(Construction of 60 million houses of 120 Sq.mtrs priced at 20,000 US Dollars Each for next 5 to 10 years)
Rational Behind Distribution Of Free Floor Space Index To House Less, Home Less, Marginal, Rent Paying House Holds
In order to understand this concept one should know that present cost Analysis of Apartments and cost of Building a small house in a small piece of plot of land. To study better, in Tamilnadu particularly in Chennai and its surrounding area is taken for study.
|Apartments In||Cost per Sft Rs.||Cost per Sft of Land||Cost of Construction per Sft||Ratio of Land : Cost of construction|
|20,000 to 30,000||16,000 to 25,000||4000 to 5000||7:1 to 5:1|
|10,000 to 20,000||7,000 to 16,000||3000 to 4000||5:1 to 2:1|
|3500 to 10,000||1200 to 7000||2400 to 3000||1:2 to 1: 2.5|
The above table shows that Land cost to cost of construction is at 1:2 to 7:1 and it is difficult to find Apartments at Less than Rs.20,00,000 for 600 Sq.ft build up area and it requires Rs.5,00,000 minimum front end payment for Registration of undivided share of land. How many people can afford to find this kind of front end payment?
Similarly, if you want to buy a piece of land and build a small house with 600 Sq.ft of land and construct 400 Sq.ft of house you have to pay minimum Rs.250/- per sft for cost of land and Rs.2,000/- per sft for cost of construction which will amount to about Rs.2,00,000/- for land and Rs.8,00,000/- for construction and Rs.2,00,000/- for other issues Totalling Rs.12,00,000/- and this will happen beyond 60- 80 Kms outskirts of Chennai.
Thus If you Analyse even prime minister housing for all many of the city households cannot get the benefits of credit incentive and interest subsidy offered.
So the crux of issue is how the Poor without front end payments and with limited income, ever rent paying household to be given and affordable housing and give constitutional rights under Right to shelter? Big Land owners creates space out of their lands and sell at exorbitant prices and create more poverty and poverty gap widens. Slums are created in disputed land parcels and they are difficult to be evacuated. So it is rural or semi rural or urban or semi urban a new approach is required to attain housing for all households present future or generation next. This calls for the concept of distribution of free floor space index for houseless households. This is distributed as a Basic entitlement. Space created by private land owners are advised to reserve 50% of FSI and apartments constructed by them to these kind of Free FSI Certified eligibility holders and sell them at cost of construction only and no extra costs load at directly and indirectly without compromising and quality, standards and amenities offered.
Some rural semi rural or semi urban or even urban house holds get free governments patta land. But what about who do not get patta and what justices we are giving when the have zero title assets. Free distribution of FSI is the logical answer. How many people can be given such patta land and how long and how for this can happen. We do not have that kind of large lane parcels. Insted issuing free distribution of FSI will benefit 100 times more. This patta land distribution policy has to be scraped and free FSI distribution should comments. Similarly land owners get FSI and sell them at high cost is the root cost for rich become in richer and this process should be limited by bringing reservation for house less house holds when ever FSI is created by private land owners and builders.
Thus in a nut shell, people with no ancestral properties and not cable of paying front end money and always paying rent households with zero or marginal titles tilt them to have their first dream dwelling place and full fill their wish is all this concept about.
Suggested Reforms – Single Code Of Conduct & Procedures For FSI
1. Fundamental Rights & Equitable Justice – Distribute Free FSI & undivided Share of land to all households for their first dwelling places & convert and tilt zero or marginal titled holders to full fledged title holders of dwelling assets
2. Whenever FSI is created some space has to be reserved for house less households for their first dwelling
3. All bottle necks for creation of spaces in land and approvals should be revisited
4. Development rights, basic spaces rights, individual user rights in space creation policies for human living is the best suggested approach
5. Rent payments by one household to another household should be banned and compulsory institutionalized.
6. By rent paying households their consumption power decreases this has to be corrupted
7. Households present, future and third generation needs for their dwelling without affecting agriculture, water and infra needs with protection of ecology flora and fauna
8. New assets are created on cost to cost basis and first dwellers get titled and best valuations and best usage and a winwin situation for government, households and people involved in construction industry
9. Policy benefits every one and hurts none
Marketing And Selling Of Households Dwelling Places
( New Rules)
1. Catalogue of selling – Describes origin of title, plan sanction no of units & size and other amenities and detailed pricing
2. Confer ownership rights, user rights as per eligibilities certificate
3. Confer specific rights, general rights as per eligibility certificates
4. Pricing for land, land development cost, foundation cost, pillar cost, roofing cost, walls ( Internal & External ) finishing cost explained in detailed
5. Free Electricity, water, sewerage, car park lift cable & other common amenities
6. Waiver of stamp duty & registration charges
7. No Deposits & front money of any kind
8. Pay rent and get full titles transferred over a long period of time
9. Payment through bank loans and get mortgaged titled
10. Half titled assets sale
11. Full titled sale of assets
12. Easily scalable in user space and switching option as family expands, migrates or reduces its number of members and space is altered as per their intension and convenience
13. List of authorized services providing for maintenance repairs and consumer protection as per law
1. By Creation, Allocation, Reservation, Identification of Land for socio infra asset creation – housing, in all 534 Parliament Constituencies in India.
2. By Creation, Allocation, Reservation, Identification of Beneficiaries in all 534 Parliament Constituencies in India.
3. Through Creation of 4 FSI – one acre pre-approved housing plots for all pre-qualified end uses are in all 534 Parliament Constituencies in India.
4. For Less than 1 acre Housing plots depending on the size of the plot suitable FSI, Number of Households are spelt and reserved for the beneficiaries, at least 50% of Total FSI and Number of Flats.
5. Every Beneficiary will be entitled to minimum free 400 Sft of Undivided share of land with one unit of Apartment of not more than 1500 Sft of constructed and completed and certified space at cost price with lift and free car parking and free EB, Water and sewerage, cable other Amenities.
1. As per last census we have 4.8 persons per family.
By stating the above, in all about 30 crores families, presently, will have a permanent dwelling place spread all over India.
(Some statistics says that there are 46 crore families in India).
2. By stating the above, all future emerging families will also have a permanent assured dwelling place spread all over India.
3. By stating the above, those families who are Marginal or Rent Paying Households will have own dwelling place of 1200 to 2400 Sq.ft. depending upon their family size and rent paying capacity without front end payments.
4. Rent, a word, will not be used by any households for dwelling in India, henceforth.
5. No family is superior or inferior to any other family; right to shelter, as per fundamental rights will be guaranteed as per our constitution.
6. Whenever a baby is born, it will have a permanent dwelling place by birth; when one dies he will die from his own dwelling place.
6A.Every year about 1 crore students write +2 Exams (Schooling) after 8 years they are 50 Lakhs married couples and they need houses, are we planning housing for them?
6B.What about young people moved out of their states to other states or other countries and for Defence purpose when they decide to come back are we giving them back with housing and employment opportunities?
7. To strengthen the Prime Ministers Mission for Affordable housing for all households for all times to come, present shortfalls should be corrected immediately.
8. Housing for houseless is not a real estate or wealth creation process.
9. Housing, is based on socio asset infra creation model and is restated as a welfaremeasure.
10. Every family will not only have smart Ration Card, Pan Card, Passport, Aadhar Card for identity sake, but will also have a permanent dwelling place of their own with Zip Code.
11. By assuring this, every family one house and own house is guaranteed, smart house with Car Parking.
12. Net Rent Payment will be zero between households.
Creation, Allocation, Reservation, Identification And
Distribution Of Free Floor Space Index (Fsi) For Housing To Houseless Households
CREATION OF 4 FSI – 1 Acre pre-approved housing plots (Warm shell) for socio asset infra creation at 1200, 1800, 2400 Sq.ft. free FSI per family distributed.
In 1 Acre, after setting aside 4 grounds, balance 14 grounds into 2400 Sq.ft. per ground with 4 FSI ,will amount to development of 1,34,400 Sq.ft. of built up area for dwelling.
This built up area will have at 1,200 Sq.ft., 1800 Sq.ft., 2,400 Sq.ft.,per household will have 112,74.66, 56 houseless families accommodated respectively.
1 Acre1,34,400 Sq.ft developed area
|112 Households at 1200 Sq.ft per Household||74.66 Households at 1800Sq.ft per. Household||56 Households at 2400 Sq.ft per Household|
|5,000 Acres per Parliament Constituency||5,60,000 houseless Households||3,88,300 houseless Households||2,80,000 houseless Households|
|5,000 Acres in all 534 Parliament Constituency||29,90,40,000 houseless Households||20,65,22,000
|14,45,20,000 houseless Households|
|10,000 Acres per Parliament Constituency||11,20,000 houseless Households||7,76,600 houseless Households||5,60,000
|10,000 Acres in all 534 Parliament Constituency||59,80,80,000 houseless Households||41,46,96,400 houseless Households||29,90,40,000
For Plots Less than 1 Acre following Guidelines are recommended
|Plot Size||Permissible FSI||Permissible No. of Flats||Reserved For free FSI Holders||Balance General||Land cost for Free FSI Holders||Land cost for General Category|
|1- 4.5 Grounds||1.5||24 units||12||12||1% (12%)||7.33% (88%)|
|4.5 – 9 Grounds||2.25||48 units||36||12||1% (36%)||5.33% (64%)|
|9 – 13.5 Grounds||3||72 units||54||18||1% (54%)||2.55% (46%)|
|13.5 – 18 Grounds||3.75||100 units||78||22||1% (78%)||1% (22%)|
|Above 18 Grounds||4||112 units||112||–||1% (100%)||–
This will discourage private landowners to enter into joint venture with Builders and make them less profitable. Also discourages putting 600 Sq.ft plots in the DTCP Plan Approval. Large plot size of 9 Grounds and above will be available for flat promotion.
Socio infra base asset creation cost per acre = land cost per acre + development cost + foundation cost + pillar cost + roofing cost
All finishing cost will be borne by individual, if split, cost wise, land + development cost will be distributed between 56 to 112 end users and will not be more than 1 to 2 percent of the land cost repayable over 30 years.
Socio infra base assets creation cost will be financed by very very long term loaned funds like land compensation bonds and other instruments.
Finishing cost presently at Rs.1200 Sq.ft. will beborne by a house hold will be financed by housing loans or substituted by present rental payments. No front end money is required and repayable in 10 to 15 years.
Creation, Allocation, Reservation, Identification And
Distribution Of Free Floor Space Index (Fsi) For Housing To Houseless Households
CREATE AGRO VILLAGE TOWN SHIPS IN EVERY DISTRICT WITH FREE FSI SCHEMES SO THAT EMPLOYMENT HOUSING ARE CO-GENERATED, STOPS MIGRATION AND WE WILL HAVE MORE THAN 10% AGRICULTURE GROWTH AND FOOD STABILITY. 400 Specific Agro Products are identified for this purpose covering grains, dhal, Millets, cash crops, Plantation crops, fish, dairy, poultry, forest based, flori culture, Horticulture, etc) for every 5000 Acres of Agro Activity 500 Acres of infra and about 100 Acres 4 fsi housing plots should be planned. This will assure 11200 families have their housing and employment and stops migration. Recent Budget talks of Leasing of Agri Lands and corporate can avail cheap loans. This will lead to very good stable agri prices, employment and good standard of living for rural poor.
Socio Asset Infra Creation Process
1. Government Land and private land acquired are land parcel with all clearances and master plan is put in place. 50 to 100 years old structures in major cities have to be remodelled in one acre 4 FSI plots. Also old commercial Buildings, NPA and Stressed Assets from Banks, Trust Lands can be used for creating Land Banks.
2. Land is acquired either by swapping land compensation bonds or by raising money through such bonds and paid to the sellers of the land.
3. Land is given to title insurance companies (custodian)
4. Land compensation bond holders are the base charge holders; on this guarantee only entire program starts.
5. Housing authorities act as trustees.
6. First mortgage is created with investors who mainly fund for development cost, foundation cost, pillar cost and roofing cost; this is being repaid, amortized in 30 to 50 years depending upon the life of the structure from property tax collected every year.
7. Finishing cost is funded by regular housing loans to houseless households by their rent paying capacity and it is only Rs.1200 per Sq.ft. (2nd Mortgage) repaid in 10 to 20 years.
8. For every 1 acre developed plots we have pre identified buyers with their floor requirement.
9. There is no question of unsold stock or NPA for bankers.
10. Hence forth all the assets and end users are having title insured assets. Similarly all investors , titles, lenders and borrowers, service providers are of international class and follow international procedures and standards which will attract huge funds from abroad from REITs, Multi-Lateral Agencies, world Banks, Commercial Borrowing, Suppliers credit etc.,
11. At 25 Crores per acre, every parliament constituency will have 1 Lakh to 2 Lakh Crores of economic activity assured; attract investments in two to three years’ time frame.
12. Huge manpower, steel cement water sand and other housing materials will be in demand all over the country.
13. By using big push theory and using LEONTIFF’s input output model and using PARETOS welfare economic principles this housing for houseless mission will be carried out to optimum levels and allocate resources effectively.
14. At the earliest opportunity, we will have India seeing 10 to 12 % yearly growth rate assured.
15. This has to be done without affecting agricultural, activities and water bodies and create agro village centric townships. We can attainpermanent, efficient and steady economic growth.
16. We should have minimum 1 to 10 crore liters per day capacity desalination plants in every 30 km. in entire Arabian and Bengal Coast also require Power,Transport, sewerage, communication and logistics created. All rivers should have reverse water flows and all irrigation facilities should have maximum water levels throughout the year from origin to sea and viseversa.
Creation Of Separate Ministry For This Distribution Of Free Fsi And Implementation Of Progames
1. All existingstate and central agencies and ministries will be coming under this ministry.(Re group or reorganize)
2. And “socio infra-structure asset creation – housing” will be the new name.
3. Creation of 1 acre 4 FSI land parcel practicethroughout India and will be the standard land parcel in all states. Individual housing plots banned.
4. Permanent registration of houseless households will be an on-going process.
5. Projects will be cleared as per master plan with single window clearance.
6. District wise title insurance companies beformed and land parcels transferred.
7. RBI, SEBI, Stock exchange, REITs, Land compensation bonds, Housing Banks, Guarantee Corporation, First Mortgage, II Mortgage and vendors rules are formulated.
8. A national construction labour force with 50 Lakh people will be formed.(Engineers, Architects, skilled, non-skilled labours, site supervisor , project managers, electricians, plumbers are required.
9. Huge cement, steel, bricks sand, paint, other building accessories capacity creation and logistics have to be done. After completion and possession further demand in the form of Car, Two Wheelers, T.V. Fridge, Furnitures and other consumer durable and communication facilities will further reactivate growth.
10. There will be parliamentary standing committees, annual reports and budgets presented annually.
11. Since there is a huge capital expenditure a separate ministry should be formed with separate budget proposal passed in Parliament like regular finance bill. Henceforth, this component will decide the real economic growth and employment opportunities and will be a standard economic indicator.
Scope For Growth Of Financial Markets
FOR LAND COMPENSATION BONDS, FIRST MORTGAGE MARKET AND SECOND MORTGAGE IN RS.CRORES.
Proposed Structure For Distribution Of Free Fsi From Housing Ministry
|Chief Minister||Deputy Chief Minister||Housing Minster||Urban Devel opment Minister||Town and country planning||CMDA||Finance planning and vision 2023|
|Member||Member||Member||Member||Chief Secretary||Housing Secretary||Housing secretary technical|
|–||–||–||Special Secretary (FSI)||–||–|
|PRO||Enrolment of Beneficiaries||project identi fication concept co-ordination||Project
|Secretary Admi stration
|Tenders||Project completion and Manag ement|
|–||Zone 1||Zone 2||Zone 3||Zone 4||Zone 5||–|
|Division 1 -8||Division 9 -16||Division- 17-24||Division 25-32||Division 32-40||–
|Asse mbly Offices
|Total work force||1200||1200||1200||1200||1200||6000|
Action Plan for 2018-19 before parliamentary elections
Total Number of flats- 20 Lakhs units of 900 Sq.ft at 20 Lakhs each
Value – Approx 4 Lakhs Crores
Target for each Parliament constituency 50,000 units of 900 sq.ft at 20 Lakhs
Target for each Assembly constituency 15,000 units of 900 sq.ft of 20 Lakhs
for Parliament constituency total value 10,000 crores Approx
For Assembly constituency total value 3000 crores Approx
SPECIMEN FOR FREE FLOOR SPACE INDEX ELIGIBILITY CERTIFICATE
This certificate issued to Sri _____________________ (male/female) Aged_________ Date of Birth ________________ residing at _____________________(Street Name),Door no_________________, Village Name)___________________, Pincode ______________, Survey No as per Sub-Registrar office of ______________________, Taluk, District, Assembly constituency, Parliament Constituency in Tamilnadu (SPECIFY)
Aadhar Number ________________________
Ration card Number and shop details _________________________
Voters Id Number _____________________
Pan card Number _______________________
Passport Number _______________________
Police Jurisdiction _______________________
Your eligibility in the proposed list of Free FSI Holders is as follows:
Tamilnadu General Waiting list Number ______________________
Tamilnadu Parliamentary Constituency wise waiting list number _________________________
Tamilnadu Assembly constituency wise waiting list number _________________________
Municipal Jurisdiction wise waiting list number __________________________
Street wise waiting list number ________________________________
Door number wise waiting list number ______________________________
Survey Number as per registration department wise waiting list number ________________________________
This Certificate entitles you to minimum free 400 Sft undivided share of land, One unit of Certified completed Apartment of not more than 1500 Sft super built up area at cost price and with a free car parking lot, lift facility, free EB, Water and sewerage and cable connections and gas installation and free registration and stamp duty as applicable. This can be used for your purchase of first dwelling place promoted by housing department or by any registered builders under existing acts.
Issued by seal, Name and Authority
As per Government orders.