MIPR Mylapore Institute for Policy Research proposes Affordable Housing

Mylapore Institute for Policy Research, an urban policy think tank, has proposed a government-CSR partnership for ‘truly affordable’ housing to replace urban slums and provide residential space for the poor.

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MIPR Mylapore Institute for Policy Research proposes Affordable Housing

Mylapore Institute for Policy Research, an urban policy think tank, has proposed a government-CSR partnership for ‘truly affordable’ housing to replace urban slums and provide residential space for the poor.

It is a financially viable model that will rope in developers and efficiently use slum space to provide free housing to residents and additional housing for sale to Economically Weaker Sections and Low Income Groups.

The government lands locked up in slum tenements and vacant temple lands held by the Hindu Religious and Charitable Endowments (HR&CE) department should be unlocked to provide affordable housing in Chennai for both rentals and ownership, according to a Chennai-based urban policy think-tank.

With land available at zero cost, registration cost borne by the State government and a higher Floor Space Index of 3 allowed projects can be built with funds from corporate social responsibility of private sector. In a slum of about 3 acres, over 1,000 apartments of 400 sq ft each can be built. With 600 houses given back to slum dwellers, the balance can be sold at discounted prices to EWS segment with adequate margin for developers.

Buyers identified by lottery would be eligible for subsidised borrowings under the Centrally-sponsored Pradhan Mantri Awas Yojana scheme.

At an estimated project cost of Rs. 95.89 crore, CSR funding can meet about Rs. 55 crore needed after registration costs met by the State government and sale of 400 apartments, according to MIPR.

Similarly, temple lands can be developed with part funding from landowners and CSR contribution to create rental stock. A plot of close to 2 acres can be used to create 640 rental units which would get a monthly rent of Rs. 6,000. This would mean an annual return of 14 per cent for the land owning entity with break even of seven years, the report said.

Source Link- http://www.thehindubusinessline.com/news/real-estate/thinktank-proposes-affordable-housing-to-replace-urban-slums/article9964060.ece

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