15% reserve for affordable housing faces opposition
Bhubaneswar- Odisha developers are suspicious with the state government’s plan of developing one lakh affordable houses in 10 years.
The government had initiated ‘scheme for affordable urban housing in Odisha-2012′ which directs developers to reserve 15 percent built-up space for developing residential units for economically weaker section (EWS) and lower income group (LIG). But the developers are of the opinion that it is not feasible and sought for reduction in their contribution to low cost residential projects.
The president of Real Estate Developers Association of Odisha, Pradipta Kumar Biswasray, also expressed similar opinion. He said that 15% built-up area is high, so the government should reduce it to 5% or direct the builders to reserve 10% dwelling units for the poor.
The realtor’s body too has come up with an alternative model for developing affordable housing projects. The government can tell private developers in the state to build certain amount of dwelling units for the poor on a designated government land. This would create a cluster of LIG/EWS houses and can be allotted by the government later.
Biswasray explained that this plan will even help the poor as it may be difficult for them to share the same space with the rich. By allocating a separate place for affordable projects, all the residents will be hailing from similar financial backgrounds which would make them more comfortable. If they are forcefully made to share space with the super rich they may end up selling their apartments at higher prices defeating the basic purpose of their house allotment.
Developers alleged that the government should play better role in creating affordable houses. Several such residential units have to be built and kept in store by the government and should be sold to intended beneficiaries.
Urban development secretary said that the government will look into the developers’ concern. Shortly, a workshop will be organised wherein developers, housing loan providers and the city development agencies will discuss the new policy. Following this the government will consider the feedback provided by them and make a decision based on this.
He said that the policy is on the right track. The Odisha State Housing Board (OSHB) and Bhubaneswar Development Authority (BDA) have already decided on some projects as per the new policy, he added.
The government will give 100% stamp duty exemption on EWS and LIG houses while the urban local bodies will provide concession in holding tax. It has planned to reserve 20% of developed land for residential purposes in the city development plan for affordable housing projects.
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