The document proposes establishing best practices and a rating system for India's affordable housing ecosystem. It discusses setting up a framework to encourage more developers, housing finance institutions and community-based organizations to enter the affordable housing space. A rating system would assess organizations on key parameters like project characteristics, loan terms, and customer facilitation. A three-step process is outlined for developing the rating system, including defining goals and objectives, evaluating key parameters and indicators, and prioritizing factors as desirable or critical. The framework aims to strengthen quality, increase transparency and help different stakeholders in affordable housing.

1. Streamlining the Affordable
Housing Eco-system
DRAFT FRAMEWORK FOR BEST PRACTICES & RATING SYSTEM

2. Shop talk
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3. www.dbscommunities.com
DBS Communities
• 2 Projects launched
o Umang Lambha (792 units) – 100%
booked
o Umang Narol (810) – 86% bookings
• Moraiya (400 homes) & Kudasan (600 homes),
Narol expansion – phase 3 & 4 (2000 homes),
Surat (1200 homes) being considered
3

4. Griha Pravesh – empowering buyers
• Griha Pravesh equips potential buyers to make the right choices
& hand-holds them through the process of buying a house
4

5. ASHRAM
• The Academy for Sustainable Habitat Research and Management
(ASHRAM) intends to work with practioners of affordable housing to
add value, build relationships and disseminate knowledge in the
affordable housing space.
• ASHRAM’s activities include Research & Development, Training,
Advocacy, Interaction platforms, etc.
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6. 6

7. Setting the Context
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8. Affordable Housing - A
Composite
Supply Side Demand Side
Production of right sized Customer facilitation
and right priced housing • For upward socio-economic mobility
• Preparedness for home ownership
Affordable housing
finance
Demand aggregation
8

9. Affordable Housing Space in
India - Developers
• 30 developers in 12 cities
• A housing stock of about 25,000 to 50,000 units to enter the
market
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SOURCE: MONITOR GROUP’S STUDY

10. Affordable Housing Space in
India - HFIs
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SOURCE: MONITOR GROUP’S STUDY

11. Demand
Aggregation/Facilitation
Discourse & debate still
very primitive 11

12. Objectives of Best Practices
& Rating System
Encourage more DEVELOPERS, HOUSING
FINANCE INSTITUTIONS and CBOs to
• Enter into the space of affordable housing provision &
facilitation
• Work in partnership
Ensure home buyers get a fair deal
Strengthen quality of process and products both
on supply side and demand side
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13. Standards or Certification or
Rating ???
Standards Certification Rating
• Highly • Puts a few on a • Flexible and
prescriptive & pedestal & open to
control excludes the innovation
oriented rest • Every one is
included
…. a rule or principle … the act of certifying … classification
that is used as a basis or state of being according to grade or
for judgment certified rank
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14. Best Practices to Rating
System
• Overall objectives
Preparation of • Structure of Best Practices
Framework • Structure of Rating System
Documentation of • Sector wise documentation
• Web based
International Best • Open source contribution, etc.
practices
• Norms
• Forms and formats
Rating System • Operations strategy
• Strategic tie-ups
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15. Rating for whom?
Developer
Affordable
HFC Housing Project
CBO
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16. What’s in it for them?
Developers HFC CBO
Better terms Access to
Stamp duty
& rates for philanthropic
relaxation
refinancing funding
Better terms
Fast approvals for Provisional ?
Rates for
recovery
Service tax?? ?
?
?
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17. Who will use the rating?
Government
Donor/
CBO funding
agencies
RATING
SYSTEM
Impact
HFC
investors
Developers
17

18. Characteristics of the System
Prescriptive Quality
or Output driven or
based balanced
Objective
Absolutely
assessment
required or
or subjective
desirable
assessment
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19. At what point in time?
Constructi
Project on/ Loan
developm disbursem Post
ent/ APF ent occupancy
Booking & Handing
sales/ over
loan
process
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20. Pitfalls
• Adapting existing systems like LEED will lead to complexity
• New constraints
• Opportunities for arbitrage
• Sabotage by vested interests
• ?
• ?
• ?
20

21. Draft Sector-specific
Framework
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22. Pre-qualification criteria
• Primary Factors • Secondary Factors
o Urban o Marketing & sales strategy
o Dwelling Unit size up to 550 o Maintenance strategy
sq ft carpet area??? o Customer facilitation
o Price per unit up to `. 10 offerings
lakhs???
o MoU between 3 Key o Financial health??
stakeholders – developer, o Track record??
HFC, CBO
o Project specific SPV • ??
• ??
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23. Construction
• Site Characteristics • Mechanical, electrical,
• Status of approvals plumbing
• Master planning • Construction technology &
• Site and Services Structural design
• Design – typology, units, • Specifications
clusters, common spaces, • Construction/project
community areas management
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24. Energy & Environment
• Construction technology & • Planning for site services
embedded energy such as
• Energy requirements – unit, o Water supply – rain water,
building, campus fresh water
o Waste water
o Lighting & ventilation
o Solid waste
o Mechanical, electrical,
plumbing • To evaluate
o health & safety
o Reduce, reuse & recycle
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25. Housing Finance
• Informal vs formal sector • Debt consolidation
lending • No double counting of
• Rates customers/cannibalism
• LTV
• Exposure
• Margin money terms
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26. Community Interaction/Customer
facilitation
• Information/ disclosure • Post-occupancy services
• Facilitation with loans, • Services wrt upward
margin money mobility
• Problem resolution o Livelihood
o Health
o Education
o Access to credit
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27. Cost to customer
One time Recurring
cost costs
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28. Format for Deliberation
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29. Step 1
• What are the goals and objectives of the rating system?
o Overarching
o Sector specific
• Enhance supply in market driven solutions in the affordable
housing space
• Ensure value for customer
• Strengthen process & outputs
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30. Step 2
• What are the key parameters that must be evaluated?
o Site characteristics
o Loan terms
o Customer facilitation
• What ‘verifiable indicators’ will help measure these
parameters?
o Loan terms – interest, tenure, LTV, margin money, etc.
o Site characteristics – access to public transport, access to health and
education facilities, etc.
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31. Step 3
Objectives/Parameters
for evaluation Indicators Objective 1 Objective 2 Objective 3 Objective 4
1.1. xxxxx
1.2 xxxx
Parameter 1 1.3 xxxx
2.1 xxxxx
2.2 xxxx
Parameter 2 2.3 xxxx
3.1. xxxxx
3.2 xxxx
Parameter 3 3.3 xxxx
DESIRABLE CRITICAL
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