Infrastructure

Housing

Housing is one of the basic necessities of life and the right to housing and adequate shelter is guaranteed in the Directive Principles of the Constitution of India. Kerala has historically been a front runner in social innovations including housing. As early as by 1970’s, Kerala had launched a massive housing scheme for 100,000 houseless families and it was hailed as a pioneering effort in the housing sector. Since then governments in Kerala have been following housing policies to ensure that every family has a shelter. While the housing situation in Kerala is far better than the rest of the country, a significant proportion of the population continues to face the problem of lack of adequate housing. At present the homelessness, in particular of those without land, and poor quality, dilapidated houses of the vulnerable sections of society are the problems confronting the housing sector in Kerala.

According to 2011 housing census, there were 336 houses for every 1000 persons in Kerala (all-India 273 houses per 1000 persons). The average size and quality of housing units are far better than in the rest of the country. More than two-third households reside in good quality houses where 53.1 per cent is the all-India average. However, average cost per unit of a house in Kerala is more than four times the costs at the all-India level. The latest housing Census also shows that 10.6 per cent of the total census houses in Kerala remain vacant. But at the same time a large number of households among underprivileged and poor sections of society still did not have a reasonable shelter and the State stood top in terms of housing inequality among the disadvantaged social groups.

During 12th Plan period, Kerala had formulated a policy of ‘Adequate and Affordable Housing for All’ by providing standardized housing services to Economically Weaker Sections(EWS), Low Income Group(LIG) and Middle Income Group MIG) categories by coordinating various activities to ensure high living standard, healthy environment and basic infrastructure development. One of the strategies of 12th Plan was the improvement of effectiveness and reach of Kerala State Housing Board and Nirmithi Kendra. The key initiatives of the KSHB in the housing sector were Grihasree and Working Women’s hostel.

The Government of Kerala in 2016 has announced an ambitious housing cum livelihood project ‘LIFE’ (Livelihood Inclusion and Financial Empowerment) which will be the major focus during the 13th Plan. A complete rehabilitation package for the houseless and landless in the next 5 years is envisaged through a comprehensive housing scheme providing all basic facilities. This together with training and employment creation activities is expected to directly benefit about 4.32 lakh families.As per the draft 13th Plan Working Group Report on Housing , out of the total, 1.58 lakh are landless and houseless, 2.3 lakh have land but are houseless and 44,000 houses are incomplete. With the help of LSGs, and Kudumbasree a comprehensive list of houseless, landless people and incomplete houses will be prepared to resolve the housing problems in the State. Existing housing schemes of other Departments will be brought under this umbrella scheme. LIFE is one of the four Missions announced by the Government of Kerala for the state’s comprehensive development in the next five years.

Agencies in Housing Sector

Several agencies which are implementing housing schemes in the State which include Local self-Government Department including Kudumbasree, Kerala State Housing Board, Kerala State Nirmithi Kendra, Kerala State Development Corporation for SC/ST, SC/ST Development Departments. Non–governmental agencies such as COSTFORD and Habitat Technology group, Co-operative societies and Corporations such as Kerala State Co-operative Housing Federation, and Kerala Police Housing & Construction Corporation, have helped in constructing houses. Several NGOs too, have contributed significantly. Other Departments like Labour, Fisheries, Sainik Welfare, Urban Affairs, and Minority Welfare are also implementing various affordable housing schemes for the poor labourers and economically weaker sections. These agencies/departments have provided assistance to construct around 476,490 houses during the period from 2011-12 to 2016-17. Data upto 2015-16 show that 90 per cent of these houses were for people with land. It is in this context that LIFE attempts to focus on landless people first in the years to come. Achievements under major housing schemes by different housing agencies in Kerala are given in Appendix 5.59

Housing Finance

Finance for house construction comes as loans from banks and other financial institutions, grants from government and own sources. People from Economically Weaker Sections (EWS) cannot get loan facilities easily because loan is available only to those who have assets and income to repay it on time. The public sector banks and other financial institutions in Kerala have sanctioned 1655 housing loans and disbursed an amount of 21,644.58 lakh during 2015-16 and to the period upto September 2016. Details of housing loans from 2010-11 to 2016-17 is given in Appendix 5.60 and interest rates of housing loans of major financial institutions is given in Appendix 5.61

Housing schemes and implementing agencies

Kerala State Housing Board

Innovative Housing Scheme aims to provide flats on rental basis to the poor urban workers who are increasingly displaced from the city limits or from their work places. 24 flats have been constructed during 2015-16 and a total of 160 flats were constructed under the scheme in various urban centres like Thiruvananthapuram, Thrissur, Ernakulam, and Kozhikode.

Grihasree Housing Scheme. In this scheme financial assistance is given as Government subsidy at the rate of 2 lakh/house for the construction of houses in EWS/LIG category in their own land with the support of Voluntary Organizations. 709 houses have been assisted during 2015-16 and total 1081 houses were constructed under the scheme.

Saphalyam Housing Scheme (flats for BPL category). The scheme envisages setting up of support services and infrastructure facilities for the construction of flats for BPL category. Unit cost of 280 sq.ft will be 3.50 lakh (2 lakh Government subsidy, 1 lakh loan from HUDCO, 0.25 lakh voluntary contribution from NGO and 0.25 lakh beneficiary contribution). About 48 flats during 2015-16 and 24 flats during 2016-17 (up to September 30) have been completed under the scheme.

Kerala State Nirmithi Kendra

A margin free market, ‘Kalavara’ for the building materials at reasonable rate has been started at Ernakulum, Kozhikode, Thiruvananthapuram and Thrissur and steps have been taken to extend it to all districts. The International School of Habitat Studies (LaBISHaS) was established in memory of late Padmasree Dr. Laurie Baker. It has completed 50 artisan training courses across the state to provide self-employment opportunities to 750 persons and completed a Pre Fab structure of about 400 sq.ft to popularize Pre Fab construction that is a new technology of constructing houses which ensures less damage to environment as well as cost effective, safe, eco-friendly, disaster proof, time saving with minimum skilled labour and building materials.

Kerala State Co-operative Housing Federation

This agency provides financing facilities to the affiliated primary co-operative housing societies (PCHS) for the construction of houses, repair/extension. During 2015-16 an amount of 8,149.4 lakh and during 2016-17 (up to September 30, 2016) an amount of 2,314.11 lakh have been disbursed among EWS, LIG, MIG and others for constructing 2344 and 665 housing units respectively. Houses assisted and amount disbursed by Kerala State Co-Operative Housing Federation is also given in Appendix 5.61

Other agencies involved in construction of houses

a. Fisheries Department
During 2015-16, 1612 houses were constructed in Marine and Inland Fishing sector of Kerala at the cost 2 lakh per house under the scheme Integrated Development of Fishing Villages (IDFV). During 2015-16, 3660 houses were constructed to provide safe homes for fishing families in the Fishing Housing Scheme and House Repair Scheme 2015-16 under Basic Infrastructure Facilities (BIF)and Human Development of Fisher Folk (HDF).

b. Scheduled Tribes Development Department
General Housing Scheme- This scheme aims to provide financial support to houseless Scheduled Tribes for construction/repair of houses. The amount provided in this scheme is 3.50 lakh / house for new houses. Total Number of houses assisted so far under the scheme was 2498.(See chapter 4 Section 6 for details)

c. Scheduled Caste Development Department
Houses to Houseless Scheme- The Scheme aims to provide an amount of 3 lakh to houseless families for constructing houses. During 2015-16 the number of houses constructed for Scheduled Caste families was 5197. Another programme called the Development programme for Vulnerable Communities aims at providing financial assistance for purchase of land, construction / repair of houses and allied amenities for vulnerable communities whose annual income does not exceed 0.5 lakh. During 2015-16 102 houses were assisted under the scheme. (See chapter 4 Section 7 for details).

d. Sainik Welfare Housing Department
The Department provides house building grant to disabled servicemen before completion of terms of engagement, recruits, war widows and widows of Jawans who died in harness. The beneficiaries’ annual income limit is 1.5 lakh and the present rate of grant is 1 lakh. The income limit is not applicable to the war widows and war disabled Ex-servicemen. 4 households in 2015-16 and one household in 2016-17 upto September 30, 2016 were assisted under the scheme.

e. Directorate of Minority Welfare
Housing Schemes for divorced women and widows-The scheme aims to construct houses for divorced /abandoned women and widows who belong to minority communities. The beneficiaries should have at least 2 cents of land in her name for construction of houses. The departmental assistance is 2.5 lakh. During 2015-16 798 houses have been constructed under the scheme.

National Housing Policy

Central Government formulated a Policy on Housing in 2015 for addressing the shortage of adequate and affordable housing with special emphasis on EWS and LIG and other vulnerable sections of society such as Scheduled Castes/Scheduled Tribes, Backward Classes, Minorities, Senior Citizens, and Physically Challenged Persons. In the same year the Ministry of Housing and Urban Poverty Alleviation came up with the National Urban Rental Housing Policy (NURHP) ‘to create a vibrant, sustainable and inclusive rental housing market in India’. 2 million non-slum urban poor households are proposed to be covered under the Mission. Hence, total housing shortage envisaged to be addressed through the new mission is 20 million. The Mission is being implemented during 2015-2022 and provides central assistance to Urban Local Bodies (ULBs) and other implementing agencies.

The Scheme Pradhan Mantri Awas Yojana (PMAY) (Housing for all (Urban) by 2022) is the mega housing scheme of the Government under which the government aims to create about 2 crore affordable homes for the urban poor, especially for Economically Weaker Sections (EWS) and Lower Income Group (LIG) of the society by the year 2022. The scheme has been launched by the Government and will provide a credit linked subsidy of 1.00 lakh to 2.30 lakh to the beneficiaries.

The national Government has created an enabling framework for participatory action from public, private, community and individual sectors and encouraging rental housing for the poorest of the poor. In the Union Budget 2016, a significant announcement was that the exemption from service tax on construction of affordable houses up to 60 square metres (almost double what was prescribed in earlier public housing policies) under any scheme of the Central or State Government including PPP Schemes would be given.