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| Locked Out - The Nib |
If you're an affordable housing advocate - for the record, Ginger Chai is one - the last few years must have brought you some small sighs of relief.
Though India's affordable housing commitment is commendable, spanners in the work remain.
The 4 Main Issues That Need Resolution
🛠 Urban Planning Reform: The foremost issue leading to the dearth of housing is a lack of land allotment and urban planning policies. If we want to increase the supply of affordable housing — homes that serve essential workers who keep our cities running — we must prioritize cost-effective housing creation that supports these individuals rather than drool over glitzy towers coming up all over town.
🛠 Simplifying Statutory Approvals: Drag in the permissions and approval process for new and existing home construction is another big blockade in the path to affordable housing. Time is literally money for any builder, and speeding up construction with faster approvals reduces costs and accelerates supply. How about a set of pre-approved plans? New Town, Kolkata is a great example of this.
🛠 Streamlining Affordable Housing Funds: Funding for those seeking affordable housing is a good thing. But as we’ve all seen through decades, earmarking these funds is not enough. In our past, central affordable housing programs have been drowning in bureaucracy, making funding inaccessible in reality. The PMAY, et al, are thankfully resolving this to an extent today.
🛠 Assessing Property Taxes Differently: The final issue is the growing property tax burden that ultimately forces rents to go up. Because of massive price appreciation in metro cities, tax assessments are based on comparable sales every year, making ownership and renting dearer. Property tax based on income from property, instead of circle rates, could be a real world solution.