Coming soon: Policy for urban private rental housing regulation in Chennai

Tamil Nadu is facing a shortage of 1.5 million homes in urban areas and there is an urgent need to regulate and streamline private urban rental housing to enable access to the urban poor, according to

CHENNAI: Tamil Nadu is facing a shortage of 1.5 million homes in urban areas and there is an urgent need to regulate and streamline private urban rental housing to enable access to the urban poor, according to the State Urban Housing and Habitat Policy (SUHHP). It has been drafted by German agency GIZ along with the State Housing Board.

It is learnt that through the new policy, government subsidies towards housing will undergo a significant change, with focus being more on streamlining private urban rental housing.The State will be looking at housing supply intervention in the state as an integrated market rather than sub-markets for different income groups, as failure in any sub-market will have ramifications across the city.
It feels that housing supply intervention for the urban poor is often usurped by the low income group and middle income categories in the city.

The policy will also focus on the  lack of access to credit for urban poor. In the absence of vaild proof, it is difficult for the poor to access funds, the draft policy observed.It is learnt that the focus under SUHHP will be on urban renewal strategies which allow ‘densification’ of core city area and redevelopment of congested and dilapidated housing stock.

Another event of concern is the transaction cost imposed during conversion of land to built space through various land and housing regulations which constitute 10 to 25 per cent of urban dwelling price across India. The policy will try to implement reforms in land and housing that can reduce the transaction costs and lower housing prices.

Focus on credit too
The State Urban Housing and Habitat Policy (SUHHP) will also focus on the lack of access to credit for urban poor. In the absence of documented income proof, irregular income and absence of collaterals, it is difficult for the poor to access funds, the draft policy observed. The Union government too is working to expand institutional credit flow to the housing needs of urban poor.