School of Architecture

Affordable housing
– its need and
December 6
2018
necessity

With high rise in a population density, there is a rapid growth in Under the guidance-
urbanization which led to a huge demand for urban land in India.
Thus bridging the gap between the housing need and the Ar. Deepa Mane
availability of satisfactory dwellings. K.L.E TECH University
Huballi, Karnataka

JAGRUTHI .A. BAFNA

01FA15BAT014

VII SEM
ABSTRACT
This paper gives a synopsis of housing affordability. Due to the constant rising or doubling of
population from 1980 to 2018, where the major population of our country is below income
group, affordable living is the major concern for the government of India, which led to the
affordable housing scheme, collaborating with public and private partnership. HOME, a basic
necessity to every human that exists on earth, a shelter where one lives, grows, nourishes and
builds their dreams. It not only provides shelter but also gives the sense of security, a feeling
of place which is more comforting and required by everyone. And keeping this situation,
MICRO HOUSING MOVEMENT, as a solution to a rising population started, a small house
includes all the essentials, which are the basics to be given, which occupies less area,
sustainable and achieves higher level energy efficiency and cost effective for a growing
population. The aim of the paper is to understand an affordable housing, its types, need and
necessity in India.

AIM
The aim of the paper is to understand the reason and issues behind the fall of housing
shortage and defining the gap between the housing need and the availability of satisfactory
dwellings.

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CONTENTS
1. Introduction
2. Key words
3. Methodology
4. Affordable housing
4.1 types
4.2 Why affordable housing?
4.2.1 Urbanisation and housing shortage in India
4.3 Issues in the development of the housing
4.3.1 Availability of land
4.3.2 Home finances
4.3.3 Conclusions
5. Case study
6. Literature review
7. Need and necessity of affordable housing
7.1 Policy framework by government
7.2 housing need and necessity
7.3 Approach to affordable housing
8. Conclusions
9. Bibliography
10. Appendices

II
1. INTRODUCTION
In rural – urban development, India being one of the largest and populated countries in the
world, where the economic condition is lagging behind when compared to other countries.
India is a developing country having 30% population of high income group and other 70%
are middle income group and low income group. Housing affordability is a major issue
affecting both, the regional level and the users. The main reason behind the factors
contributing the issues related to housing affordability in and around the world is the
progressive and rapid increase in population, as the cities were not designed according to the
population. The growing population has led to the shortage of land, housing shortfall which
severely stressed on the existing basic amenities such as water, open spaces, etc. Despite of
decreasing the family size the size of homes grew. An expertise began to recognise micro
housing movement as a solution to a rising population. The Tiny house and Social Movement
advocating for a simple living in a small homes. A tiny house is a residential structure that
falls around 500 square feet. People look forward for the homes that provide them an easier
and simpler life. The main aim of the design is to develop micro housing community that
provides shelter to every user. Though micro apartments are smaller in size, but a good
design through accurate measures of architecture, selection of furniture and material selection
can make an ideal space for living. The paper will show the aim of research through various
case studies and this will allow for analysis of the material that are used and the sustainable
design measures taken. The successful project of a designer is based on his ability to design a
small space that feels larger.

2. KEYWORD
Affordable housing need, types, issues in development of housing

3. METHODOLOGY

The methodology of this report is to understand affordable housing, its various types and why
in today’s era we need an affordable housing for the people of low income group who cannot
afford a house which provides shelter and fulfils basic amenities and for the low class people,
due to the fail in equal citizen right. Through analysing case studies and various research
paper on housing affordability, the paper concludes on the issues that why there is so much of
gap between the total demand and the total stock of houses.

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4. AFFORDABLE HOUSING
Affordable housing is a fundamental right, as it fulfils basic human need for shelter, as well
as it contributes to the well being of both parents and children. There is no clear-cut
definition of the term “affordable”, as it is a correlative concept and has several meanings in
different context.
In the context of urban housing, affordability Table 1: Definition of affordable housing –
means a provision of an “adequate shelter”, MHUPA (2011)
ensuring security within the means of common
households on a sustained basis.
It also states, affordable housing is provided to
those whose needs are not met by the open
market. According to the task force on
affordable housing set up by the MHUPA on
2008, affordable housing for various segments is divided by the size of dwelling units and
housing affordability is derived by the income of the household population.
For living in decent affordable housing, the stress is reduced due to lessening of concern that
high housing cost leads to eviction and foreclosure, this in turn leads to the fewer physical
and mental health.

4.1 TYPES OF AFFORDABLE HOUSING

The affordability is determined with regard to local house prices and local incomes. The
housing should also include the provision to remain at an affordable price for future eligible
households.
To meet the particular need according to the house prices and local incomes, there are various
types of affordable housing designed.

4.1.1 SOCIAL RENTED HOUSING

The homes are either owned by local authorities or registered providers of affordable
housing. The rents of the houses are quite low and are generally affordable to major people.
4.1.2 AFFORDABLE RENTED HOUSING
It subjects to rent of no more than 80% of the local market rent (including service charges,
where applicable). As local market rents vary from place to place, these are measured by the
amount of local housing allowance administered in a particular area. The only exception is
the households who live in a 4 bed property, will be expected to pay a higher affordable rent
level.
4.1.3 HOME BUY DIRECT
A new specific build property which is available at 70% of market value and the other 30% is
funded by a loan from the government to the households.

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4.1.4 COORPERATIVE HOUSIG
Housing for people with low and moderate incomes. Residents contribute time towards the
upkeep of the building.
4.1.5 EMERGENCY HOUSING
Housing provides accommodation for short periods of time and serves people who are
homeless, displaced, fleeing violence or abuse.
4.1.6 PERMANENT HOUSING
It functions for an indefinite period of time without regard to enforceable conditions. No
specific time period that tenants can stay.
4.1.7 TRANSITIONAL HOUSING
It serves as a bridge between emergency housing and permanent housing.
4.1.8 FIRST BUY
New build property is available at 80% of market value through conventional mortgage. The
other 20% is funded by a loan from the government and the developer.
4.1.9 SUPPORTIVE HOUSING
It is the permanent housing for the people who need assistance to live independently. Houses
elderly or disabled people, addictions or mental illness.
4.1.10 PRIVATE PURPOSE BUILT RENTAL HOUSING
Built for the purpose for renting to the tenants. Where the apartments buildings are common
type owned by individual or private company.

4.2 WHY AFFORDABLE HOUSING?

Developing affordable housing projects are eminent today for India's developers as there is so
much of real requirement in this segment.

The reasons why affordable housing never took off was the issue of the applicant not having
enough money to give the margin for taking a housing loan. Thus, the government of India
has done three things to make it affordable.

First, by giving a subsidy of the 6.5 per cent at the lowest rung of the ladder. Secondly, it is
crediting the entire subsidy of a 20-year loan to the loan account of an applicant, which
reduces EMI, which further makes it more affordable to the applicant and Thirdly, they have
allowed withdrawals from the EPFO to the extent of 90 per cent of the amount for housing in
case there is a group of eight other people who are doing so for a house in the same society.

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4.2.1 URBANISATION AND HOUSING SHORTAGE IN INDIA
As per 2011 census, the country had a population of 1,238 millions, out of which 31% live in
urban areas. From 2001-11, the increase in level of urbanisation from 27.81% to 31.16%.
Thus resulting in growing population in urban areas which led to the problems of land
shortage, housing shortfall and congested transit which severely affected the basic amenities
such as water, power and open spaces of town and cities. Urbanisation has increasingly led
people live in slums and squatters settlements and deteriorated housing conditions of
economically weaker sections of the society.
Currently there exists a wide gap between the
demand and supply of housing both in terms of
quantity and quality. The technical group constituted
by Ministry of Housing and Urban Poverty
Alleviation (MHUPA), estimated 24.71 million for
66.30 million households for 10th Five – year plan in
the country of urban housing shortage.
In the current time of 26.53 million dwelling units for
75.01 million households and due to the backlog of housing, a minimum of 30 million
additional houses will be required by 2020. However, the total dwelling in the segment is
insufficient when compared to existing units. Thus, the housing requirements for lower
income group and middle income group are neglected and that led to the huge dearth in the
supply of affordable houses demanded by income group in India.

4.3 ISSUES IN DEVELPOMENT OF THE HOUSING

The demand for housing in the affordable segment has increased in cities due to a large
migrant population. The main reasons for rise in shortage of affordable housing is lack of
availability of urban land, rising construction costs and regulatory issues while lack of access
to home finance for low-income groups are constraints on the demand side.

4.3.1 LACK OF URBAN LAND AVAILABILITY

With high rise in a population density, there is a rapid growth in urbanisation which led to a
huge demand for urban land in India. The housing shortage has been further worsening
artificially by conceived central, state and municipal regulations. As a result, the land price in
India is much at higher level. Strict regulations initiated by government, where not
implemented correctly, which led to a rampant corruption as there are multiple stakeholders
having large stakes in real estate development.
India is facing a housing shortage, which is comprised by families of the weaker and low
income groups, whose actual income makes it impossible for them to own the cheapest
available housing unit.

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4.3.1.1 SITE SELECTION
Reduction of cost and for housing to be affordable it begins with the selection of the site. The
main criteria to be considered are-

 The area shouldn’t be within co-sensitive zone. It should be under ‘residential’ category.
 Not to be lying on the areas, which are likely to be affected by disasters
 The site should be well connected with transportation hubs, such as bus terminals, railway
station, educational institutions, and hospitals.
 Have soil with good bearing capacity, free of organic waste, saltpetre and other harmful
chemicals.
 Not to be in the zone of any polluting and hazardous industry, which leads to the various
problems and make a housing schemes non-liveable and unpopular.

4.3.2 HOME FINANCE

Despite of having an extensive network of financial institutions, banks, and low income
groups still lack access to the home finances. Housing projects requires a lot of finance,
which is not easy to arrange and can be rather expensive. Therefore, a proper financing
mechanism is the backbone of any affordable housing. Without developing adequate
financing mechanisms or making available special financial packages to both the developers
as well as to the house purchasers, housing projects cannot aim to succeed. To subdue the
cost of finances, the period of construction should be reduced to the bare minimum, with the
help of modern technology.

4.3.3 CONCLUSIONS
Undoubtedly, shelter is one of the basic needs of every human being. In any civilised society,
each and every citizen should be provided with a reasonably decent and liveable shelter or
housing/dwelling unit. The today government has to work relentlessly to achieve this goal. It
is good that the present government has bound itself with a mandate of achieving this goal. If
all the issues are carefully put to practice, by government of India, this goal, which appears
utopian at the moment, may definitely become feasible. It would be ideal if all of us, that is,
architects, town planners and engineers, could find ourselves with the mandate of the
government and ensure that each and every citizen of India has a shelter over his head by
2022.

5. A Case study of Industrial Migrant

Affordable Housing Opportunities in Small Indian Cities-

A small town Bhilwara is the 'Textile City of India” and one of the most industrialised town
of Rajasthan. The textile industry is the back-bone of the city’s economy. However, textile
industry is the second largest employer in the organized and unorganised sector after
agriculture. Over the past few decades Bhilwara has emerged as Rajasthan’s premier textile
destination. It is currently India’s leading Polyester-Viscose suiting and yarn exporter.
Bhilwara is a demographically diverse city and one of the fastest growing cities of the state.
The favourable weather conditions and historical development have facilitated investment in

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the city. Bhilwara is the seventh largest city of State having a population of 280185
(Census2001). The growth rate of the city in last three decade is more than 50%. The textiles
sector, being the prime economic driver of the city, is directly responsible for the increase in
housing affordability among the city’s various demographic segments. Over the past decade
there has been a paradigm shift in the attitude of home buyers. The economic growth has
resulted in an increase in the city’s per capita income, promoting fast development that has
changed the home buyer’s outlook. The traditional conservative consumer mindset has been
replaced by a desire for instant gentrification, resulting into frantic activities in housing
market. Home buyers in Bhilwara represent a mix of end users and investors, whereas
previously the former constituted the majority of housing demand.

Affordable Housing in Bhilwara

Now a day’s in urban area of Bhilwara housing affordability is a serious concern for
inhabitants of Bhilwara, Being the textile hub and one of the most prominent city of state for
employment generation, authority ought to address the housing crisis adequately. The rapid
urbanization and population influx increased the problem of the housing affordability in the
city in many fold. In urban area the lower income and middle income group always had
difficulty in purchasing a residential property within the city but it is the fact that despite
being in comparison to Mumbai, Delhi, Hyderabad, and Jaipur where the property prices are
considered to be highest in the country, Bhilwara is relatively more affordable for purchasing
a house. However, it has larger areas with huge land area available for housing development,
at various locations as options for the residents of the city to fulfil their housing needs.
Bhilwara revealed a number of interesting facts during the households survey carried out in
order to ascertain the affordability of the various income groups at city level. The results of
the household survey were used to compute affordability pertaining to various locations in
the city. Table 9 depicts in details of the maximum affordable EMI of households of various
income levels. The EMI for EWS is Rs 984/months; LIG is Rs 984 to 2190 and for MIG is
Rs 2190 to 4350/months is calculated. There is a wide gap between the EWS and MIG
groups.

Distributions of Sampled Households

According Types of Occupation

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Conclusion
What should be done to make housing more affordable? For the owner occupied sector, lack
of affordability is a problem for EWS/LIG and MIG in most of the urban centre in the
country. However, the study shows that in Bhilwara, the affordability is not a problem like
other metropolitans cities of the country. Till now the main concerns are metropolitan’s cities
and this paper argue that small cities are often neglected with respected to affordable housing.
If we ignore our fast growing small cities now, which are potential metropolitan cities, then
the future may become more critical in terms of providing affordable housing to inhabitants
of these cities. The Government and the developers are emphasizing more on metropolitan
areas where the saturation point has already been achieved and ignoring areas where it could
have been more fruitful in realizing the dream of affordable housing for masses, with all the
basic amenities with strong infrastructure. If that is done over a period of time, with gradual
growth these under developed areas would turn into a metropolitan area in the future without
having housing problem. Most of the EWS/LIG and MIG category houses require the basic
necessities for comfortable living which are more important in the present housing scenario.
Affordable housing has become a top priority for developers. The majority of demand is
coming from EWS/LIG and MIG sections of the society. The small and medium towns are an
ideal destination for investment and purchase of property and will be highly affordable for the
masses. Bhilwara provides all such scenarios where the concept of affordable housing can be
realized in practical manner.

6. LITERATURE REVIEW

6.1 Vidya Devi, RinkiTaur

This paper aims at varied aspects of prefab building methodologies for low value housing
by lightness the various manufacture techniques to scale back the price of construction.
Since there's continuous and recurrent production of same varieties of parts in formed
construction, therefore, it ends up in quicker execution, a lot of productivity and
economy. In prefab construction, the work on web site is reduced to minimum, thereby,
enhancing the standard of labour, irresponsibleness and cleanliness.

6.2 Jones Lang LaSalle

The paper offers the concept concerning Urbanization and Housing shortage in Bharat as
per EWS, LIG, MIG and HIG as per the technical cluster report on Estimation of Urban
Housing .In this paper below the Policy Framework and rules for Low price Housing the
Central level Schemes likewise as State sponsored initiatives area unit mentioned. Central
level schemes like. Statesman National renewal Mission (JNNURM) and Maharashtra
Housing and space Development Authority (MHADA).

6.3 Micro houses: Trends and Implications on the Gold Coast

The paper aims on the response of the major crisis of housing affordability and the desires of
many families to downsize, where, micro houses have become increasingly popular both in

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Australia and globally. In this context, micro houses play an important role due to their
relatively smaller size and higher level of affordability than conventional houses. The term
micro in context of housing refers to different types of dwellings such as, apartments,
townhouses and mobile homes. The paper focuses on detached houses.

7. NEED AND NECESSITY OF AFFORDABLE HOUSING

7.1 POLICY FRAMEWORK BY GOVERNMENT
There are several policies adopted by the government and initiated in the delivery of
affordable housing for the EWS, LIG and local MIG. The first ever national level housing
policy was formulated in 1988. It was followed by intervention of public sectors and related
developments of human settlements in India. With the formulation of National housing
policy, National housing and habitat policy in 1998. The initiatives of this policy focused on
the transition of public sector role as ‘facilitator’, increase in role of the private sectors,
decentralisation, development of tax and concessions, accelerated flow of housing finance,
cost effective, and pro-poor technology.
However, all these policies were encompassing and applicable to both the rural and urban
areas. Taking into account the challenges of required shelters and growth of slum area, the
policy specific to urban areas, the central initiated National Urban Housing and Habitat
policy in 2007.
In Karnataka, the board of industrial area development, it first acquires land and then allots to
the industries. Similarly, if the government could set the clear guidelines of what affordable
housing should be and make the land availability possible, then its developer’s responsibility
in developing the housing affordability.

7.2 HOUSING NEED AND NECESSITY

The rapid growth of urbanization in India today has made a necessity of the development of
Affordable Housing. Most of the metropolis has shortfall in them, which resulted in
escalation of informal settlements. The escalation of these settlements has led to the
deterioration of the landscape. This also caused the destructive effects on the planned city
growth. Thus, the troublesome of the government authorities is the development of the large
scale Affordable Housing projects. The factors contributing to these failures are shortfall in
land parcel, high construction price, regulatory approach, inadequate finance, corruption and
identification of beneficiaries. Therefore, an inclusive framework is crucial to achieve an
Affordable Housing in India.
Housing incompetence in India has both quantitative and qualitative aspects. The housing
issues have been worsening over the years due to (i) rapid growth of population, (ii)
urbanisation and (iii) inadequate housing. There is qualitative housing problem in between
urban and rural areas, where as the problem of urban areas is, by the congestion, slums and
squatter settlements, and the rural area are characterised by the absence of essential services
and poor environmental conditions.
In 19th Century, the housing problems where physical problems, such as bad housing
conditions, lack of ventilation, lack of running water, inadequate drainage systems, etc. The

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economic implication of such housing were not faced, but the problems of providing
physically adequate housing, the working people could afford as rent was faced,
As a society changes, so its need and expectations change, in housing as in everything else.
The concept behind housing desires is based on the household’s preferences and aspirations.
In some circumstances housing desires merge with both need and demand of housing. The
main problem of housing arises, when the gap between housing ‘need’ and availability of
dwelling units (satisfactory) exists. This gap explains numerical shortage in dwelling units to
accommodate all the households in need. The critical problems rose in India such as,
overcrowding, homelessness, shared accommodation and lack of amenities are the important
factors to be known as it is absolutely necessary to diagnose which factor is responsible, since
the remedies are different for each factors.
The provision of housing will ensure weather all the needs are met, an allocation is as
important as building. Is the social aim of housing policy is that of giving everyone? The core
of housing policy is to ensure that ‘need’ is no regardless of the level of effective demand.
The approaches to the solution of housing demand in India is characterised in private and
public sectors. In private sector, relief on tax mortgage interest, rent control, etc. reduces the
actual cost of renting a house or owning. Whereas, in public sectors, the dwellings are let out
to tenants because if their housing needs, rent rebates are also available due to their
inadequate to meet the rents. Both the approaches meet the necessity of housing demand.
Housing shortage leads to a gap between the total demand and number of dwelling units.
There are many reasons for arise in housing shortage ; rapid growth in population, internal
and external movement of population, change in families and household structures, lack of
sufficient supply of residential units due to the financial and material resources, etc.
The normative housing standards should not only reflect the socio-economic conditions but
also the climate and cultural differences that are characterised according to the regions and
classes of the households. The analysis say that estimate of housing shortage depends on a
minimum acceptable housing to adopted for and thus, keeping these consideration, the
National Building Organisation has been estimating the housing shortage from time to time.

7.3 APPROACHES TO AFFORDABLE HOUSING

The aim of creating affordable housing is to provide shelter which is basic fundamental right
to all. Providing of affordable housing should encompass both – enabling people to buy and
to rent. The present strategies on which affordable housing is being concentrated on the
ability of the people to buy, these strategies requires a myriad of agencies from public and
private sectors to work together for the development of the housing. A private sector
comprises residential developers, who develop housing projects and sell them in the open
market. A government sector comprises Urban Local Bodies and Urban Development
Department, which are responsible for laying down the guidelines and bylaws for Affordable
Housing. The Ministry of Environment and Forest have imposed certain restrictions of limit
in land use in urban areas for housing project development, resulting in lack of urban land
and thus increases in land cost, which regulates the policies of RBI that affects the interest
rates, thus has a major impact on the ability of the home buyers. A people requirement
differentiates the approaches towards Affordable Housing. The groups which are required to
work in sync to make a housing Affordable are –

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Providers: government departments, urban local bodies and research institute which needs to
provide the target groups with approval, technical and financial supports.
Enablers: NGO’s, self help groups and registered societies which helps to identify the users
groups, who initiates the common interest and establish channels of communication.
Executors: private developers, public private partnership, public sectors firms which requires
to be hold and maintain rental accommodations with adequate support from the first two
groups.
A common thread of Housing Development is required to bind these groups together such
that they work in a unified manner and reach the actual target of a Housing Affordability.

8. CONCLUSION
Development of large scale affordable housing is today’s greatest necessity of urban India.
Today the cities lack in low-income housing, which has resulted in escalation in slums,
squatters and unorganised estates across. Today, where the slum dwellers and low income
class people are deprived of basic amenities and failed to be an equal citizen, it is prejudicial
to the planned growth of cities. The large scale urban development on daily basis is
increasingly and difficult due to lack of urban land availability, congested transit routes, lack
of finance and regulatory hurdles. However, in today it is very important to recognise and
address these issues so that a framework can be established in ensuring the development of
affordable housing.

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9. BIBLIOGRAPHY

BUILDING TYPE BASICS FOR HOUSING – Stephen A. Kliment, Series Founder and Editor
Robert Chandler, John Clancy, David Dixon, Joan Goody, Geoffrey Wooding, with Jean Lawrence

PUBLIC HOUSING – Prof. M. A. MUTTALIS, Dr. MOHO, AKBAR ALLI KHAN (Editors)
Published by S.K. Ghai, Managing Director, Sterling Publishers Pvt.

10. APPENDICES

 http: //www.centralbedfordshire.gov.uk/housing/strategic/types.aspx
 //economictimes.indiatimes.com/articleshow/62066464.cms?utm_source=conte
ntofinterest&utm_medium=text&utm_campaign=cppst
 https://www.researchgate.net/publication/321937252_A_CASE_STUDY_-
_AFFORDABLE_HOUSING
 http://www.isocarp.net/Data/case_studies/2397.pdf
 /ISSNP_adopted%2011.2_201511041335060419.
 http://iihs.co.in/knowledge-gateway/wp-
content/uploads/2015/08/iihs_rf_housing_reduced.pdf
 https://www.weforum.org/agenda/2016/05/how-to-tackle-india-s-affordable-housing-challenge
 https://www.ijser.org/researchpaper/The-Challenges-in-Affordable-Housing-for-Urban-Poor-in-
India-Deciphering-the-Housing-for-All-by-2022-A-Comprehensive-Approach-to-Decrement-
Housing-Shortage-A-Case-Study-of-Delhi.pdf
 LiveabilityStandards.pdf
 Shelter-apr16.pdf
 tangible parameters for affordable low cost housing in India – CoA
https://www.coa.gov.in/show_img.php?fid=182
 12RFAffordableHousingFinance.pdf
 1.3-Apartment-Design-BCA-Class-2-Construction.pdf
 Affordable_Housing_in_India_2012.

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