Financing And Investment In Affordable Housing In India

Ms. Kaushiki Narayan, BA LLB, School of Law, KIIT University, Bhubaneswar, India

Dr. Ipsita Das, Assistant Professor, School of Law, KIIT University, Bhubaneswar, India

ABSTRACT

The rapid population growth in developing countries has become a major issue today, resulting in a shortage of affordable housing and the spread of slums. This research paper aims to identify the causes of the shortage of affordable housing and explore various economic, social, and political approaches to solving this problem. The study focuses on the current state of affordable housing in India and highlights the existing problems and opportunities. It suggests that the government, financial institutions, and private sector must take several important steps to make housing more affordable in India. The study also examines the functioning of Affordable Housing Finance Companies (AHFCs) and the strategies they use to provide housing finance to low-income households. The paper analyzes successful affordable housing projects in different countries and identifies the best schemes that can be implemented in India. Several state governments in India have designed their housing policies in line with the national housing policy to achieve the goal of providing affordable housing for all. For instance, the "Life Mission" under the Government of Kerala aims to provide affordable housing for all in Kerala by 2022. The study also examines the role of the Slum Rehabilitation Authority in India and its openness to alternative approaches to rehabilitation. The research is a pilot for a broader investigation into how significant gaps in the provision of financial services to the poor can be addressed. It examines two specific projects initiated by SPARC and the National Slum Dwellers Federation (NSDF). The paper

suggests that to provide affordable housing while preventing the growth of slums, policies must ensure the satisfaction of certain core economic principles, such as the household stock and flow principle, which are crucial for the efficient functioning of land and housing markets. Finally, the study argues that the success of initiatives like the Rajiv Awas Yojana depends on their ability to understand existing informal institutions and the distortions in land and housing markets.

Keywords: Affordable housing, financial institution, Affordable housing finance companies, Low income, Role of technology, Rajiv Awas Yojna.