Beneficiary Led Construction

Beneficiaries could avail the benefits of scheme component for New construction and Enhancement of existing house. Highlights of ‘Beneficiary Led (Individual House) Construction’ or Enhancement (BLC) Progress to be tracked through geo tagged photographs of the house.

Eligibility For New Construction

Urban residents of EWS : Economically Weaker Section (annual income upto Rs 3 lakh) & LIG: Low Income Group (annual income Rs 3 to 6 lakh).

Beneficiary families should not own a pucca house anywhere in India.

Benefit

To individual eligible families belonging to EWS categories, to either construct a new house or enhance existing house on their own to cover the beneficiaries, who are not able to take advantage of other components of the mission.

Such families may avail of central assistance of Rs. 1.50 lakhs for construction of new house or for enhancement of existing house under the mission.

Implementation through ULBs

Beneficiaries desirous of availing this assistance shall approach the ULBs with adequate documentation regarding availability of land owned by them. The ULBs shall validate the information given by the beneficiary and building plan for the house Minimum Carpe t Areaea as pe r NBC Illu llu stration submitted by beneficiary so that ownership of land and other details of beneficiary like economic status and eligibility can be ascertained. The condition of the houses e.g. Kutcha, Semi-Kutcha etc. of the prospective beneficiary should be checked with SECC data to ensure beneficiary’s consequent eligibility for construction of new housing. SECC data regarding number of rooms, details of family members etc. should also be checked to ensure beneficiary’s eligibility for enhancement of house. On the basis of these applications, ULBs will prepare an integrated city wide housing project for such individual beneficiaries in accordance with the City Development Plan (CDP) or other such plan of the city to ensure construction of proposed houses are as per planning norms of the city and scheme is implemented in an integrated manner. Individual applicants for assistance shall not be considered. Such Projects would be approved by States in SLSMC. While approving projects for individual house construction, ULBs and States/UTs should ensure that required finance for constructing the planned house is available to the beneficiary from different sources including his own contribution, GoI assistance, State Government assistance etc. In no case, GoI assistance will be released for house where balance cost of construction is not tied up, as otherwise release of GoI assistance may result into half constructed houses. States/UTs or cities may also contribute financially for such individual house construction. Central assistance will be released to the Aadhar linked bank accounts of beneficiaries identified in projects by the States/UTs as per recommendations of ULBs/implementing agency.

Affordable Housing In Partnership

The third component of the Mission is Affordable Housing in Partnership which is a supply side intervention. The Mission will provide financial assistance to EWS houses being built with different partnerships by States/UTs/Cities. Affordable housing projects are the projects where atleast 35% of houses are constructed for EWS category To increase availability of houses for EWS category at an affordable rate, States/UTs, either through its agencies or in partnership with private sector including industries, can plan affordable housing projects. Central Assistance at the rate of Rs.1.5 Lakh per EWS house would be available for all EWS houses in such projects. The States/UTs would decide on an upper ceiling on the sale price of EWS houses in rupees per square meter of carpet area in such projects with an objective to make them affordable and accessible to the intended beneficiaries. For that purpose, States/UTs and cities may extend other concessions such as their State subsidy, land at affordable cost, stamp duty exemption etc.

 An Affordable Housing Project (AHP) can be a mix of houses for different categories but it will be eligible for central assistance, only if at least 35% of the houses in the project are for EWS category and a single project has at least 250 EWS houses. CSMC at GOI level, however, can reduce the requirement of minimum number of houses in one project on the request of State Government.

Allotment of houses to identified eligible beneficiaries in AHP projects should be made following a transparent procedure as approved by SLSMC and the beneficiaries selected should be part of HFAPoA. Preference in allotment may be given to Physically Handicapped Persons, Senior Citizens, Scheduled Castes, Scheduled Tribes, Other Backward Classes, Minority, Single Women, Transgender and Other Weaker and Vulnerable Sections of the Society. While making the allotment, the families with person with disability and senior citizens may be allotted house preferably on the ground floor or lower floors. Detailed Project Report (DPR) of such projects prepared by concerned implementing agencies should be approved by SLSMC.

Coverage

All statutory towns as per Census 2011 and towns notified subsequently would be eligible for coverage under the Mission. The Mission will support construction of houses upto 30 square meter carpet area with basic civic infrastructure. States/UTs will have flexibility in terms of determining the size of house and other facilities at the State/UT level in consultation with the Ministry but without any enhanced financial assistance from Centre. Affordable Housing Projects in partnership should have basic civic infrastructure like water, sanitation, sewerage, road, electricity etc. The minimum size of houses constructed under the Mission under each component must conform to the standards provided in National Building Code (NBC). The houses under the Mission should be designed and constructed to meet the requirements of structural safety against earthquake, flood, cyclone, landslides etc. conforming to the National Building Code (NBC) and other relevant Bureau of Indian Standards (BIS) codes. All houses built or expanded under the Mission should essentially have toilet facility. The houses constructed/acquired with central assistance under the Mission should preferably be in the name of the female head of the household or in the joint name of the male head of the household and his wife. Only in cases when there is no adult female member in the family, the house can be in the name of male member of the household.

Implementation

A beneficiary will be eligible for availing only a single benefit under any of the existing options i.e. Slum Redevelopment with Private Partner, Credit Linked Subsidy, Direct Subsidy to Individual Beneficiary and Affordable Housing in Partnership. It will be the responsibility of States/UTs Government to ensure that the beneficiary is not given benefit under more than one component of the Mission.

Credit Linked Subsidy Scheme

Pradhan Mantri Awas Yojana (Urban) – Housing For All Mission, in order to expand institutional credit flow to the housing needs of urban poor is implementing credit linked subsidy component as a demand side intervention Beneficiaries of Economically Weaker Section (EWS) and Low Income Group (LIG) seeking housing loans from Banks, Housing Finance Companies and other such institutions would be eligible for an interest subsidy at the rate of 6.5 % for a tenure of 20* years or during tenure of loan whichever is lower. The credit linked subsidy will be available only for loan amounts upto Rs 6 lakhs and additional loans beyond Rs. 6 lakhs, if any, will be at nonsubsidized rate. Interest subsidy will be credited upfront to the loan account of beneficiaries through Primary Lending Institutions (PLI), resulting in reduced effective housing loan and Equated Monthly Installment (EMI). The Net Present Value (NPV) of the interest subsidy will be calculated at a discount rate of 9 %.

Home Ownership

The houses constructed/acquired with central assistance under the Mission should be in the name of the female head of the household or in the joint name of the male head of the household and his wife, and only in case when there is no adult female member in the family, the house can be in the name of male member of the household.

Benefit

To individual eligible families belonging to EWS categories, to either construct a new house or enhance existing house on their own to cover the beneficiaries, who are not able to take advantage of other components of the mission.

Such families may avail of central assistance of Rs. 1.50 lakhs for construction of new house or for enhancement of existing house under the mission.

Key highlights of the scheme :

Coverage

All Statutory Towns as per Census 2011 and towns notified subsequently, including planning area as notified with respect to Statutory Town.

Purpose

New construction, acquisition and addition of rooms, kitchen, toilet etc. to existing dwelling as incremental housing.

Beneficiaries

Beneficiary family will comprise husband, wife and unmarried children. The beneficiary family should not own a pucca house either in his/her name or in the name of any member of his/her family in any part of India. EWS Households having annual income up to Rs.3,00,000/- LIG Households having annual income between Rs.3,00,001/- and upto Rs.6,00,000/- Preference under the scheme, subject to beneficiaries being from EWS/LIG segments, should be given to Manual Scavengers, Women (with overriding preference to widows), persons belonging to Scheduled Castes/ Scheduled Tribes/ Other Backward Classes, Minorities, Persons with disabilities and Transgender.

Area which can be constructed

Carpet area of house being constructed or enhanced under this component of the Mission should be upto 30 square meters for EWS category and upto 60 square meters for LIG category. Beneficiary, at his/her discretion, can build a house of larger area but interest subsidy would be limited to first Rs.6 lakh only. For incremental housing/extension, the area limit will be 30 sq.mt. and 60 sq.mt. of carpet area for EWS and LIG category respectively.

Subsidy and Loan details

Maximum loan amount: as per eligibility of customer decided by bank / Financial Institution based on due diligence Maximum loan tenure : based on the guidelines of the PLI Maximum tenure for subsidy computation: 20* years or the tenure of the loan, whichever is lower Maximum loan amount for subsidy calculation: Rs. 6 lakh Interest rate for subsidy : 6.5% Housing and Urban Development Corporation (HUDCO) and National Housing Bank (NHB) have been identified as Central Nodal Agencies (CNAs) to channelize this subsidy to the Primary Lending Institutions and for monitoring the progress of this component.