TNUHDB announces a new scheme to facilitate maintenance of tenements by RWAs

December 17, 2021

The Tamil Nadu Urban Habitat Development Board (TNUHDB) has announced a scheme ‘Nam Kudiyiruppu, Nam Poruppu’ (Our Tenements, Our Responsibility) to facilitate the formation of Resident Welfare Associations (RWAs) or restructuring of already existing RWAs as per model by-laws approved by TNUHDB, such that the RWAs can take further responsibility of operations and maintenance of tenements constructed under the housing schemes of TNUHDB. The Government Order (4D) No. 55, dated 17.12.2021 states the new scheme and the guidelines by which the owners of tenements shall take responsibility along with partial assistance by TNUHDB and the state government.

GO-55 states that TNUHDB has constructed and maintains 1.80 lakh tenements across Chennai and other towns. The collection of maintenance charges from households at these tenements is low, as a result of which the tenements are poorly maintained but at the same time TNUHDB incurs huge expenditures on maintenance. Hence, this proposal for Nam Kudiyiruppu, Nam Poruppu scheme shares the responsibility of maintenance between RWAs and the TNUHDB.

TNUHDB has proposed financial implications for three financial years, 2021-22, 2022-23 and 2023-24. As per GO-55,  the state government will provide a matching grant to TNUHDB, which shall be released on quarterly basis after the collection of equivalent maintenance charges by RWAs. The RWA will be responsible for routine maintenance and minor repairs (incurring expenditure less than Rs. 30,000), whereas TNUHDB will be managing water supply, electricity charges for common area and lift, and major repairs (for works incurring over Rs. 30,000) of tenements. The additional infrastructure will have equal contribution from both RWAs and TNUHDB. The annexure attached in GO-55, details the different works that constitute the maintenance responsibilities of both the bodies. The annexure also provides guidelines for funding sources, financial accountability, composition of maintenance committees and capacity building norms. 

Source:https://cms.tn.gov.in/sites/default/files/go/hud_e_55_2021_4D.pdf 

NHB announces increased concessions for refinance assistance focused on north-eastern states, Jammu & Kashmir and Ladakh

National Housing Bank (NHB) has enhanced concession in interest rate on refinance of individual home loans extended to certain categories of borrowers. To focus on increasing the flow of formal housing credit in areas less penetrated, concession of 25 basis points (bps) has been introduced in refinancing of home loans extended by banks and housing finance companies (HFCs) in north-eastern states and the union territories of Jammu & Kashmir and Ladakh. The increased concession is available for all fresh refinance disbursements by NHB during the period of October 1, 2021 to September 30, 2022.

Additionally, home loans extended for rural housing, green housing, small ticket loans of upto Rs 10 lakh, for women, transgenders, differently abled and individuals in aspirational districts, NHB has extended 25 bps concessions under its refinance lending rates. For home loans extended to scheduled castes (SCs) and scheduled tribes (STs) borrowers, the concession is of 30 bps. Such initiatives are expected to increase lending by banks and HFCs to individuals at the bottom of the pyramid and in geographies of special focus. 

This announcement was made as part of the ‘Azadi ka Amrit Mahotsav’, an initiative of the Government of India (GoI) to mark a 75 week countdown to the 75th anniversary of India’s independence.

 Source:  

https://nhb.org.in/wp-content/uploads/2021/11/NHB-ENGLISH-Press-Release-Nov-12-2021.pdf

TNSCB is renamed Tamil Nadu Urban Habitat Development Board

The Chief Minister of Tamil Nadu made the announcement in the recent State Legislative Assembly that the Tamil Nadu Slum Clearance Board (TNSCB) has been renamed the Tamil Nadu Urban Habitat Development Board (TNUHDB). This has also been stated in their Government Order (GO) No. 103, dated 01.09.21. The GO mentions that this renaming brings attention to not only redeveloping the slum housing or providing habitable tenements for slum dwellers but also to improving the overall living conditions and habitation of people living in the slums. The GO also states that the Tamil Nadu Slum (Improvement and Clearance) Act, 1971 under which the TNSCB was formulated, shall be revised according to the new name and approach, and shall be published separately.

TNUHDB, erstwhile TNSCB, was established in 1970 and has been implementing various housing, slum redevelopment and resettlement programmes in the state. Currently, TNUHDB is the state level nodal agency for implementing the national housing scheme of Pradhan Mantri Awas Yojana -Urban (PMAY-U) in Tamil Nadu.      

Source: GO No. 103, dated 01.09.21. https://cms.tn.gov.in/sites/default/files/go/hud_t_103_2021.pdf

The Union Cabinet has approved the Model Tenancy Act for adoption by state governments

The Union Cabinet approved the Model Tenancy Act (MTA) for adoption by states by enacting new legislation or revising current rental laws in accordance with the central law. MTA will assist in the revision of the legislative structure governing rental housing across the country. This will facilitate the development of formal and institutionalised rental housing supply for people from different income groups. The draft of the MTA was released in 2019 by the Ministry of Housing and Urban Affairs (MoHUA). 

The Act strives to bridge the trust deficit between tenants and landlords by delineating their respective obligations. It mandates that the terms of tenancy shall be fixed through a written agreement on mutually agreed terms that protect the interest of both tenants and landlords. It proposes setting up a rent authority, rent court and rent tribunal to ensure speedy redressal of disputes.  However, the states shall take the lead in adopting and implementing the Act. 

Under the Pradhan Mantri Awas Yojana - Urban (PMAY-U), one of the mandatory reforms that states shall undertake is to legislate or amend the existing rental laws on the lines of the MTA. The official press release of the central government mentions that it is expected that MTA can make it easier to use vacant housing stock for rental housing purposes. It is also expected to give a boost to private participation in rental housing as a potential business model for addressing housing shortfall.

Source: https://pib.gov.in/PressReleseDetailm.aspx?PRID=1723636

MoHUA has launched a new portal for the ARHC scheme

The Ministry of Housing and Urban Affairs (MoHUA) has announced the launch of a dedicated web portal for the Affordable Rental Housing Complexes (ARHCs) scheme, as a convenient platform for the public to access detailed information on the scheme.  The platform   also aims to assist the participating public and private agencies in submitting applications, following up on all actions and referring to updates on the process of implementation of the scheme. 

ARHC is a sub-scheme under the Pradhan Mantri Awas Yojana - Urban (PMAY-U). It aims to provide ease of living to migrant workers and the urban poor by enabling access to dignified affordable rental housing close to their workplace. The ARHC scheme will be implemented through two models:

1. Utilising the existing stock of government funded vacant houses by converting them into ARHCs through public private partnerships or by public agencies. 

2. New construction, operation and maintenance of ARHCs by public/private entities on their own vacant land.

MoHUA is inviting proposals from eligible public/private entities with required experience as mentioned in the Expression of Interest (EoI) document. The interested entities can apply online within the next three months, up till January 14, 2020. 

Source: https://twitter.com/Secretary_MoHUA/status/1316442029061279745

MoHUA has Released a Knowledge Pack for the Affordable Rental Housing Complexes (ARHCs) Scheme

The Ministry of Housing and Urban Affairs (MoHUA) recently released a knowledge pack for the development of Affordable Rental Housing Complexes (ARHCs). The knowledge pack includes the ARHC Operational Guidelines, Model Request for Proposal,  Request for Expression of Interest (EoI), Memorandum of Agreement (MoA) and Frequently Asked Questions (FAQ) documents.

The ARHC scheme has been launched as a response to large-scale reverse migration by urban migrant workers on account of the Covid-19 pandemic and resulting lockdown measures. The socio-economic vulnerability of the migrant workers and the non-availability of adequate housing in proximity to their workplaces was exposed by this mass migration, calling for a strategic post-Covid-19 solution for rental housing that aligns with the vision of the ‘AatmaNirbhar Bharat Abhiyan’ announced in May 2020. ARHCs aim to provide options for dignified living with necessary civic amenities near the workplace on affordable rent for urban migrant workers belonging to the economically weaker section (EWS) and lower income group (LIG) categories.

The guidelines mention that the 

“ARHCs will be implemented in all statutory towns as per Census 2011 and towns notified subsequently, notified planning areas and areas of development/ special area development/ industrial development authorities. States/union territories (UTs) may consider any project as ARHCs in any other areas after due notification. Projects under ARHCs will be applicable for consideration and funding till PMAY (U) mission period i.e. March 2022. Projects approved during the Mission period will continue for another 18 months to enable fund release and completion of projects.”

The approach for implementation of ARHCs has been structured as two distinct models: 

Model 1 -  Converting existing government-funded vacant houses into ARHCs through concession agreements. This model will empanel concessionaires to repair/retrofit, develop, operate and transfer vacant housing stock built by states/urban local bodies (ULBs) under the Jawaharlal Nehru National Urban Renewal Mission (JNNURM) and Rajiv Awas Yojana (RAY). The selection of the concessionaire will take place through a transparent bidding process conducted by the ULBs. 

Model 2 - Construction, operation and maintenance of ARHCs by public/private entities on their own vacant land. This will be achieved by creating a conducive ecosystem for public/private entities to leverage investment in rental housing. Any interested entity can respond with an application in response to the EoI issued by MoHUA.

The ARHC projects under Model 2 shall be constructed with a mix of at least 40 dwelling units (DUs) and dormitories with basic infrastructure amenities. The DUs will comprise single bedroom units up to 30 sq metres and double bedroom units up to 60 sq metres. Dormitory rooms shall have  4/6 beds with up to 10 sq metres per bed. 

The complexes shall be operated and maintained by the concessionaire/entity for a minimum period of 25 years. The trunk infrastructure will be provided by the concerned ULB/planning authority. The rent will be decided by local authorities based on a local survey and the rent agreement will be signed between the relevant concessionaire/entity  and the tenants. The rent may be increased biennially by 8 per cent, subject to maximum increase of 20 per cent in aggregate, over a period of 5 years effective from the date of signing the contract.

The ARHC Knowledge Pack can be accessed here: http://arhc.mohua.gov.in/ 

Source: https://pmay-urban.gov.in/5yearcelebration/Operational-Guidelines-of-ARHCs.pdf 

Government of India announces Affordable Rental Housing Complexes; CLSS extended for MIG

The Government of India has announced its plan to launch a scheme for setting up Affordable Rental Housing Complexes (ARHCs) across the country. The announcement was made as part of the second tranche of relief measures to support the poor, including migrants and farmers, under the Aatmanirbhar Bharat Abhiyaan. The scheme aims to increase the stock of affordable rental housing for migrant workers and the urban poor, 

1. initially by converting vacant government housing - built under previous Central government schemes including the Jawaharlal Nehru National Urban Renewal Mission (JNNURM) and the Rajiv Awas Yojana (RAY) - into ARHCs, 

2. and in the longer-term by incentivising private/public agencies for the construction of ARHCs. 

While details of the scheme are still being worked out and have not been shared publicly so far, the Government of India has indicated that the ARHC projects will be implemented and managed by concessionaires under the public-private partnership (PPP) mode. 

The Government of India has also extended the Credit Linked Subsidy Scheme (CLSS) under the Pradhan Mantri Awas Yojana - Urban (PMAY-U) for the Middle Income Group (MIG) up to March 2021. Reportedly, 3.3 lakh MIG beneficiaries (defined as households with annual income in the range of Rs 6-18 lakhs) have benefited under the CLSS scheme during January 2017-March 2020. An additional 2.5 lakh MIG beneficiaries are expected to benefit from now up to March 2021. 

Source: Ministry of Housing and Urban Affairs and Press Information Bureau

https://pmay-urban.gov.in/assets/nw-pdf/ARHC.pdf 

https://static.pib.gov.in/WriteReadData/userfiles/Aatma%20Nirbhar%20Bharat%20presentation%20Part-2%2014-5-2020.pdf

MoAs exchanged for light house projects under GHTC

The Ministry of Housing and Urban Affairs is supporting six Light House Projects in the six states of Gujarat, Jharkhand, Madhya Pradesh

The Ministry of Housing and Urban Affairs is supporting six Light House Projects (LHP) in the six states of Gujarat (Rajkot), Jharkhand (Ranchi), Madhya Pradesh (Indore), Tamil Nadu (Chennai), Tripura (Agartala) and Uttar Pradesh (Lucknow) under the Global Housing Technology Challenge - India (GHTC-India). The latest milestone in the implementation of the LHP programme have been the Memoranda of Agreement (MoAs) that were exchanged between MoHUA and the respective state governments at a ceremony on November 25, 2019.

GHTC-India was launched under the overall purview of the Pradhan Mantri Awas Yojana - Urban (PMAY-U), to "identify and mainstream a basket of innovative construction technologies from across the globe for affordable housing that are cost effective, fast, safe, sustainable, green and disaster resilient." Besides the LHPs aimed at demonstrating effectiveness of proven technologies from across the globe in the Indian context, GHTC-India has two other components - promoting potential future technologies through the establishment of Affordable Sustainable Housing Accelerators - India (ASHA-India), and conducting a biennial Construction Technology India (CTI) expo-cum-conference.

The state-wise layout and drawings of the shortlisted LHPs can be accessed here: https://ghtc-india.gov.in/Content/LHP-DRAWINGS.html

Source: Ministry of Housing and Urban Affairs media reports