corporate law
India's "One Nation One Housing Policy," shaped by Sustainable Development Goal (SDG) 11 and frameworks from the United Nations Human Rights Council (UNHRC), is designed to tackle shelterlessness through financial and regulatory reforms. This policy critiques the existing Prime Minister’s Awaz Yojana and the urban Credit Linked Subsidy Scheme (CLSS) for their inefficiencies, particularly due to prohibitive land costs. By advocating for a universal right to housing, the policy draws on the principles of social justice and equality inherent in the Dravidian model.
The proposed housing policy revolves around several key elements:
Uniform Land Rates: The initiative calls for standardized land rates to be managed by the Reserve Bank of India (RBI). This would help mitigate the challenges posed by inconsistent land valuation across states.
Land Compensation Bonds: There is a proposal for the issuance of land compensation bonds, incorporating tax benefits and goods and services tax (GST) exemptions, aimed at fostering affordable housing solutions.
Floor Space Index (FSI) and Undivided Share (UDS): Each citizen should be eligible for a basic allocation of FSI and UDS as a fundamental right, which is integral to achieving equitable housing access.
Structured Financial Framework: The policy embraces a financial framework for housing loans and insurance that supports long-term viability and inclusivity in housing access.
The core challenge remains: how to provide shelter to those without land or financial means—particularly rent payers, first-time shelter seekers, those with marginal titles, and residents of slum areas. To address this, the following measures are essential:
Identifying Land Values: With India possessing approximately 8 lakh pin codes, a uniform guideline value for land across these regions is necessary. Recognizing that land prices account for 35% to 90% of total housing costs underscores the need for reform.
Incorporating Climate and Health Considerations: The influence of climate change on housing and recognized human rights concerns—promoted by UN reports including those from UN rapporteurs Leilani Farah and Balakrishnan Rajagopalan—should shape housing policy moving forward, emphasizing personal spacing and segregation.
Insurable Interest in Housing: The notion of insurable interest must be integrated' in both supply and demand sides of housing.
The Dravidian model articulates a definition of housing as a spatially segregated, habitable space that balances supply and demand rights. Notable features include:
Housing Dimensions: Proposals recommend a minimum of 150 sq. ft. of FSI on a cost basis, alongside 50 sq. ft. of UDS for all Indians. Adequate housing metrics suggest a need for 1200 sq. ft. of FSI for an 8-member family.
Loan and Insurance Structures: The Real Estate (Regulation and Development) Act (RERA) and the Insurance Regulatory and Development Authority of India (IRDAI) should lead efforts to create affordable insurance packages that provide protection for housing loans.
Currently, two primary inequalities exist in housing; those with land holding receive FSI while the landless do not. The policy addresses the need for a unified strategy that promotes the right to shelter over commodification. The overarching goal is to transition approximately 30 crore families—comprising those with marginal titles, renters, and first-time home seekers—into sustainable living conditions.
A foundational proposal suggests:
Issuing Bonds: Land compensation bonds would be structured at 15% of the construction value and would assign one cent of land UDS to each family. The bond would have a face value of ₹1 crore with a 5-year maturity and tax-free coupons attached.
Benefits Analysis: Detailed calculations outline how much land would be required at different FSI rates to generate sufficient bonds, demonstrating the financial feasibility of this approach.
The following table provides insights into the land required at various FSI levels to achieve a bond value of ₹1 crore.
| FSI Index | Land Required (sq. ft.) | Land Required (acres) | Face Value of Bond | GST Benefits |
|---|---|---|---|---|
| 2.778 | 120,000 | 1 | ₹100 Lakhs | 150 Lakhs |
| 2.5 | 120,000 | 1.11 | ₹100 Lakhs | 150 Lakhs |
| 2 | 120,000 | 1.39 | ₹100 Lakhs | 150 Lakhs |
| 1.5 | 120,000 | 1.85 | ₹100 Lakhs | 150 Lakhs |
| 1 | 120,000 | 2.78 | ₹100 Lakhs | 150 Lakhs |
| 0.75 | 120,000 | 3.70 | ₹100 Lakhs | 150 Lakhs |
| 0.5 | 120,000 | 5.55 | ₹100 Lakhs | 150 Lakhs |
The financialization of housing in India necessitates further involvement from financial institutions, including:
This comprehensive framework aims to enable sustainable and inclusive housing solutions that promote financial security, accessibility, and rights for citizens across India.