The document provides a comparative study of the affordable housing policies for the states of Andhra Pradesh and Karnataka in India. It summarizes the key aspects of the policies, including the need for the policies, models of affordable housing, areas of intervention, implementation mechanisms, and norms. Overall, the policies aim to address the growing issue of urban housing shortage and promote affordable housing through various subsidy, financing, and public-private partnership models tailored to each state's needs. The document also provides a brief critical analysis of the comparative strengths and weaknesses of the two state policies.

1. Model State Affordable Housing Policy:Comparitive study of
Case of State of Andhra Pradesh & Karnataka
JANHVI GUPTA- M220230AR

2. Contents
1. Introduction to“Model State Affordable housing Policy for Urban Areas”
2. Affordable housing policy for state of Andhra Pradesh
3. Affordable housing policy for state of Karnatka
4. Critical Appraisal
5. References

3. 1. Introduction
1. Need for policy
• “Housing for all”is one of the 24 SDGs aimed to be fullfilled by 2030
• Current rate of migration from rural to urban area is 20%, evermore increasing, this creates a demand of
affordable housing in India. The figure below shows the status of housing in urban areas[1]
• The policy empowers the States to include passing of specific Acts by the States to achieve the housing policy
objectives through institutional, legal & regulatory reforms, fiscal concessions, financial sector reforms
and innovations in the area of resource mobilization for housing and related infrastructure development
including promotion of cost effective building materials and technologies at the State level.
• The importance of the housing and construction industry can be gauged from the fact that it supports more
than 250 ancillary industries and contributesnearly 10% to the GDP

4. 1. Introduction
2. Areas of Work
• Developing strategies/models for housing
• Defining areas of intervention of central government
• Defining interventions of state in following areas-
i. Land
ii. Finance
iii. Legal and regulatory reforms
iv. Technology support and transfer
v. Infrastructure
vi. Satellite/ Integrated township
vii. Institutions
viii.Capacity building
ix. Sustainbility concerns

5. 1. Affordable housing policy for urban areas in Andhra
Pradesh
1. Need for policy
• Ten states including erstwhile Andhra Pradesh contribute to about 75% of the total urban housing shortage in India. The erstwhile
Andhra Pradesh has a housing shortage of 12.7 lakhs which is expected to increase to 37 lakhs by 2030.
• As a result, there has been an increased incidence of the development of slums and squatter settlements with wider ramifications
on the health, safety and well-being of the citizens.
• 29.47 percent (1.46 crores) of the total population lives in urban areas.Visakhapatnam and Krishna are
highly urbanised districts. Srikakulam and Prakasam are the least urbanized districts.
• There are 112 statutory towns and 83 census towns in the State. The number of towns in the state has
increased by 45% since 2001
• 1.26 crores households house a population of over 4.9 crores. The total housing stock of Andhra Pradesh is
1.55 crores
• he total number of houseless households in urban areas is 7,330. The total number of households living in
dilapidated houses amounts to 55,304.

6. 1. Affordable housing policy for urban areas in Andhra
Pradesh
1. Objectives
Reduce the housing shortage in the State, especially in EWS/LIG categories,ensuring that all dwelling units have access to basic physical
and social infrastructure like sanitation facilities, drinking water,electricity, roads, and other livelihood infrastructure.
Address the shelter needs of destitute, single women households, old and infirm disabled, diseased, street children migrant workers etc.
Reduce barriers to appropriate credit flow and shift from subsidy based housing schemes to cost recovery-cum-incentive based scheme for
housing through proactive financial instruments such as micro-finance and related self-help group programmes
Remove legal, financial and administrative barriers in order to facilitate easy access to tenure, land, finance and technology by various
stakeholders,primarily concentrating on citizen and service providers.
Promote investments in housing in Urban Sector on PPP Model and involve private developers in the construction of EWS & LIG
categories of houses by offering various attractive incentives.
Promote affordable housing such that home-owners have easy access to places of employment, and such that local delivery agents are
engaged in housing delivery thereby promoting local employment.
Establish a monitoring and evaluation mechanism in the housing sector to strengthen the transparency in the building activities of the
state.
Creation of rental housing that has provisions of required infrastructure and services and transportation linkages to work areas as
transit accommodation for migrants to urban areas, and check creation of new slums.

7. 1. Affordable housing policy for urban areas in Andhra
Pradesh
2. Guiding Principles
• The Policy promotes the Principle of Sustainability and seeks to guide sustainable development of habitat in the
State of Andhra Pradesh with a view of ensuring equitable supply of land, shelter and services at affordable prices
to all sections of society.
• The Principle of Inclusiveness forms the core of the Policy, with the belief of ‘leave no one behind’.
• The Policy lays emphasis on Principle of Appropriate Design, taking into consideration cultural, geo-climatic and
environmental concerns of housing and habitat design so interventions are functionally useful and sustainable for
the user and community.

8. 1. Affordable housing policy for urban areas in Andhra
Pradesh
2. Policy Fundamentals
• The Policy adopts a citizen centric approach that places the end-user at the centre of the planning and
construction process. It advocates the provision of a carpet area in the range of 30-60 sq.m. area for housing a
family of 4-5; with differential financing models for different economic brackets.
• The Policy strives to redefine the role of the Public Sector as the ‘facilitator’ as well as indicate a way forward
for increased participation of the private sector and non_x0002_government agencies, accelerating the flow of
housing finance and promotion of environment friendly, cost effective and alternate technologies.
• The Policy necessitates flexibility in design intervention, technology choices, and their implementation
through community based processes and flexibility in accessing financial resources.
• It strives towards establishing sustainability as essentially a local endeavour that aims to achieve
socio_x0002_economic and ecological welfare for the entire region.
• The Policy emphasises that safety and security of families is given due importance in habitat development
through simple safety measures, design interventions, safe individual houses and community shelters to prevent
tremendous loss of life and property.
• Transparent and accountable governance mechanisms for an equitable, just, and participatory society are
essential for economic progress and the health of the ecological system that supports it.

9. 1. Affordable housing policy for urban areas in Andhra
Pradesh
2. Areas of Policy Intervention by State
• Development of End User Profile
• Probable Models for Access and Ownership
i. Welfare: Concept of providing permanent or transit shelters with suitable living conditions.
ii. Rental: Rental or transit housing will be considered whenever there is a high incidence of migrant
population.
iii. Rent to own: Rent to own housing model typically involves the initial allotment of the unit on a leased basis
for a fixed number of years
iv. Purchase: The end user will own the housing from the beginning in this type of model.
• Possible Approach for Habitat Development
i. Multi-Family
ii. Integrated township
iii.Mixed Land-use
iv. Mixed income housing

10. 1. Affordable housing policy for urban areas in Andhra
Pradesh
2. Areas of Policy Intervention by State
• Establishment of Land Ownership
i. Land owned by government agencies
ii. Land owned by private agencies
iii. Land owned by Private agencies and pooled for future development
• Agency for Housing Construction
i. Land owned by government agencies
ii. Land owned by private agencies
iii. Housing through public private partnership
• Agency for Infrastructure Development
i. Infrastructure by government agencies
ii. Infrastructure by private agencies
iii. Infrastructure by public private agencies

11. 1. Affordable housing policy for urban areas in Andhra
Pradesh
2. Areas of Policy Intervention by State
• Provision of Capital Finance
i. Cross Subsidy
ii. Debt
iii. Land Monetisation
iv. Corporate social responsibility
• Provision of Maintenance Finance
i. Paid directly by user
ii. Cross subsidised by the ULB
iii. CSR
• Provision of Mortgage Finance
i. Credit Linked Subsidy
ii. Direct subsidy

12. 1. Affordable housing policy for urban areas in Andhra
Pradesh
2. Procedures and Guidelines
• Formation of State nodal agency
Working of State Nodal Agency

13. 1. Affordable housing policy for urban areas in Andhra
Pradesh
2. Procedures and Guidelines
• Formation of State nodal agency
Constitution of State Nodal Agency

14. 1. Affordable housing policy for urban areas in Andhra
Pradesh
2. Areas of Policy Intervention by State
• Development of Integrated Database and its Use
• Development of a Single Window System
• Selection of End User
• Financial Systems
• Promotion of Private Investment
• Community Participation
• Sustainable Technologies’ Promotion
• Capacity building
• Housing Design

15. 1. Affordable housing policy for urban areas in Andhra
Pradesh
2. Areas of Policy Intervention by State
• Housing Design

16. 2. Affordable housing policy for urban areas in
Karnataka
1. Need for policy
• As indicated in the Socio-Economic and Caste Census (SECC) Report 2011, there are 50.9 lakh households
in urban areas of Karnataka. Of these, 13.7 per cent live in Kutchahouses. However, as per the Census of
India 2011, an additional 8.6 per cent live inCongested houses.
• Based on trends in decadal growth from 1961 to 2011, it is estimated that the urban population in the state
will increase at an annual compounded rate of 3 per cent. This means that another 15 lakh households may
join urban areas by 2022.

17. 2. Affordable housing policy for urban areas in
Karnataka
2. Models for affordable housing
• Model 1: Beneficiary Led House Enhancement
In this model, a grant of Rs. 1.5 lakh will be availed under provisions of the PMAY for beneficiaries living in Kutcha
houses. Any remaining cost of the house shall be borne by the beneficiary household.
• Model 2: Beneficiary Led New House Construction.
This model supports households presently living in Kutcha houses that cannot be enhanced or made Pukka, avail
direct financial support in order to make a new Pukka house. Households must own the land on which they intend to
build the house.
• Model 3: In-Situ Upgradation.
To improve living conditions of households residing in slum areas, the Policy envisages that the state government will
provide budgetary support to concerned departments to provide orupgrade site level Basic Services i.e. water and
sanitation, drainage, roads, street lighting, footpaths and community facilities.

18. 2. Affordable housing policy for urban areas in
Karnataka
2. Models for affordable housing
• Model 4: In-Situ Slum Redevelopment.
In slums in such urban areas, where the majority of the housing is Kutcha, In- Situ Redevelopment model may be
implemented. Redevelopment includes demolishing all existing built structures in the slum and building new housing
and infrastructure for the existing households on the same site
• Model 5: Plotted Development and Sites with House and Services.
New housing can be built through plotted development. In this model, Plotted Development refers to the laying out of
land in residential sites along with provision of physical infrastructure and civic amenities.
1.Reservation mandated in projects of Private Developers
2.Reservation mandated in projects of Public Development Agencies (PDA)
i. Land Acquisition Model
ii. Land Sharing Model
iii.Joint Venture Model
iv.Beneficiary households may be given
v. The beneficiary households shall bear the cost of the site.

19. 2. Affordable housing policy for urban areas in
Karnataka
2. Models for affordable housing
• Model 6: Group Housing and Township projects.
In order to increase build new affordable housing units at large scale, the Government willl enable reservation for
AHUs in the built-up area in Group Housing (apartments) and Township (mixed use) projects constructed by Private
Developers and PDAs.
1. Reservation mandated in projects of Private Developers
2. Reservation mandated in projects of Public Development Agencies
• Model 7: Affordable Group Housing in Partnership.
In order to encourage public-private partnerships in building new affordable housing units,PDAs shall enter into
partnerships with Private Developers on their land or on identified vacant government land.
1. Partnership with Private Developers on their land
2. Partnership with Private Developers on vacant government land
3. The Government will support PDAs to avail central financial assistance of up to Rs. 1.5 lakhs through the
Affordable Housing in Partnership vertical of the PMAY if at least 35 per cent of the houses in the project are
for EWS category (as per PMAY) and a single project has at least 250 houses

20. 2. Affordable housing policy for urban areas in
Karnataka
3. Special Planning and Zoning Regulations for Affordable Housing
• A change of land-use shall be implemented to “Residential” wherever possible for project areas under the
models of the KAHP.
• Incremental Zoning Regulations within the Master Plan of the concerned town/city will be framed for
Affordable Housing Project areas under this Policy, as per the provisions of Section 13(E) of the KTCP Act
1961.
• An appropriate percentage of land in future urbanisable areas in Master Plans needs to be demarcated and
notified

21. 2. Affordable housing policy for urban areas in
Karnataka
4. Implementation Mechanism
The Government will develop an Integrated Affordable Housing Database (IAHD) as its main source of data on
housing in urban areas. Based on the IAHD, a Comprehensive City Housing Plans (CCHP) is developed as a single
working document to guide overall city housing initiatives and individual projects.
• Integrated Affordable Housing Database (IAHD)
City Level Technical Cells (CLTC) generate information about housing shortage in each city and generate a database
that is maintained and updated regularly, based on guidelines issued by the SLECAH.
• Comprehensive City Housing Plan (CCHP)
The District Level Coordination and Monitoring Committee (DLCMC) is responsible for the development of the
CCHP with the support of the CLTC, based on guidelines issued by the SLECAH.
• Detailed Project Report (DPR)
The key components of a Detailed Project Report are project and site brief, scope of the project, statement of special
provisions (if any), specifications and estimation of quantities,and all detailed drawings of the project

22. 2. Affordable housing policy for urban areas in
Karnataka
5. Composition of SLEACH

23. 2. Affordable housing policy for urban areas in
Karnataka
6. Area Norms for Affordable housing

24. 2. Affordable housing policy for urban areas in
Karnataka
6. Area Norms for Affordable housing

25. 3. Critical Appraisal
• Draft policy for affordable housing for Urban areas is the need of the hour, with increasing rate of
urbanisation
• This policy gives independence to states to form the policy that is tailored to the needs of the state. Instead
of One size fits all policy
• As emphasized earlier, Andhra Pradesh draft policies has greater emphasis on providing sustainble
housing and infrastructure for the destitutes whereas Karnataka Policy focuses more on supporting
infrastructure
• Andhra Pradesh state policy focuses more on development through technology integration and heavily
reliant on urban local bodies, whereas Karnataka focuses on facilitation through bureaucracy
• Both the state, and the draft policy emphasizes on capacity building as key part of implementation
• Like many other existing housing policies in India, this works within the framework of
PMAY(Pradhanmantri Awas Yojna)
• The policy provides a descriptive mechanism and implementation tools to achieve the targets

26. 3. Critical Appraisal
• It is alarming to see high growth of informal settlements in India. The various models of providing housing
in this policy is more of “citizen engaging”partnership that exploits all means for providing housing
• The policy however lacks provisions for creating awarness among citizens. It should also educate and
inform the people about the bnefits of various proposed schemes
• Integration of technology and sustainbility is well appreciated.

27. References
1.Technical Group on Urban Housing Shortage for the 12th Plan (TG-12)
2. MOHUPA website
3. Draft Model State Affordable Housing Policy for Urban Areas
4. Andhra Pradesh Affordable Housing policy
5. Karnataka Affordable Housing Policy