PROCEEDINGS OF THE GOVERNMENT OF KARNATAKA

Subject : New Housing Policy - Encouraging investment by Private Sector / Co-operative Sector in Housing Porjects.

Read : 1. G.O.No. HUD/341/MNX/95 dated 1st June 1995.

2. D.O.letter No. BDA/Ch/1855/95-96, dated 6th July 1995 from the Chairman, Bangalore Development
Authority, Bangalore.

In Government Order dated 1st June 1995, read at (1) above Government have accorded approval for implementation of Group Housing Projects / other Urban Development Projects by Bangalore Development Authority / Urban Development Authority involving Private Developers / Financial Institutions / Institutions engaged in Housing / infrastructure development subject to certain conditions.

2. The Chairman, Bangalore Development Authority, BAngalore in his D.O. letter dated 6th July 1995 read at (2) above, has made certain futher suggestions to promote housing activities in Bangalore.

3. Government have considered the Suggestions of Chairman, BAngalore Development Authority, Bangalore. Accordingly the following Orders are issued.

Government Order No.HUD/341/MNX/95 Bangalore, Dated 17th November 1995

Government are pleased to accord approval for the following :-

(a) In case where the land has been notified by Bangalore Development Authority, but acquisition proceedings are not completed and the land has vested in B.D.A., the owner of the land may, if he so desires, be permitted to develop the land for formation of sites or sites or for Group Housing. Where the land owner on his own or with the assistance of a devloper takes up Group Housing Projects, he shall give 12% of the total built area to the BDA. In case, if he forms sites on such land, he should hand over 30% of the sites so formed to the B.D.A.

(b) If the private Developers / Owners who desires to form sites on the land owned by them but not covered under land acquisition process may be permitted to do subject to earmarking of 25% of total sital area for E.W.S. and L.I.G. These sites should be made available to deserving persons identified by B.D.A. at affordable prices.

(c) Where private Developers go in for Group Housing projects, their proposals shall include construction of L.I.G./M.I.G-II and H.I.G.-I and II Type houses. The cost of the L.I.G./M.I.G.-I houses should be so priced that it should be affordable and made available to the deserving persons. The allotment of these will have to be in confirmity with the BDA. Allotment Rules and the number of such L.I.G. and M.I.G.-I houses should not be less than 25% of the total number of houses proposed to be built up.

By Order and in the name of the Government of Karnataka,
SIDDARAMAIAH,

Under Secretary to Government,
Housing and Urban Development Deptt.

To,

1. The Chairman. B.D.A., Bangalore.
2. The Commissioner of all Urban Development Authorities.
3. The Commissioner, Karnataka Housing Board, Bangalore - 9.
4. The Secretary, Karnataka Slum Clearance Board, Bangalore - 3.
5. The Commissioner, BAngalore City Corporation, Bangalore - 9.
6. The Under Secretary, D.P.A.R. ( Cabinet Section )
7. Spare Copy / Office Copy.

PROCEEDINGS OF THE GOVERNMENT OF KARNATAKA

Subject :- New Housing policy - encouraging investment by Private Sector / Co-operative Sector in Housing Projects.
Preamble :

It is proposed to establish an appropriate a policy frame work for adopting innovative strategies to meet the housing needs in urban areas. Public intervention in delivery of serviced land / housing has not been effetive due to legal, organisational and financial difficulties. There is a need to establish a frame work for partnership with the privae sector / co-operatives for (i) Land Assembly, (ii) Development of Infrastructure, (iii) construction of houses and (iv) Development of Townships.

2. Government has identified the required legal / procedural changes to encourage and promote private investment in housing and related infrastructure facilities.

3. The most critical input for a housing programme is land. The housing programme is highly dependent on the availability of developed land. At present, the progress of land acquisaition is very slow and Government Agnecies are not in a position to provide sites/houses to the public speedily. it is, therefore, proposed that the supply of land for housing urban development be augmented by adopting two alternative methods - (i) land would be acquirted by Government Agencies (BDA, KHB and Urban Development Authorities), by adopting the method of negotiated purchase of land from the land owners. Thereafter, the developed land may be allotted/made available to private developers / housing co-operatives for construction of dwelling units, (i) involvement of private sector in pooling of land of different owners and provisions of infrastructure.

4. Under the first alternative, the development authorities (BDA, Urban Development Authorities in Mysore, Hubli-Dharwad, Mangalore, Belgaum, Bellary) will identify land for housing projects. Thereafter, the land will be acquired and schemes prepared for taking up group housing projects involving private developers (Indian / Foreign Companies) / or Financial insatitutions, institutions engaged in housing or infrastructure development subject to the following conditions : -

( i ) On the land provided by BDA / Development Authority, the developer or agency will undertake construction of the housing project including provision of services.

(ii) The design for the different types of dwelling units will be as prescribed or as formulated by the developer subject to approval of BDA/DA will also prescribe the ratio of different categories (Low Income Group / Middle Income Group / high Income Group ) of houses to be taken up. A minimum of 30% shall be earmarked for LIG.

(iii) The allotment of houses and Corner / Commercial and Civic Amenities sites on lease-cum-sale / outright Sale basis will be the responsibilities of BDA/development Authority. The BDA/DA may also have the option to have an arrangement whereby th disposal of houses / sites is shared between the BDA/DA and the developers/agency in an appropriate proportion after proper evaluation of investments and costs.

(iv) The financing arrangement between the BDA/DA and the developer / agency for implementation of project will be on mutually agreed terms.

5. Based on the conditions indicated above, the BDA/DA will invite proposals from developers. The offers received will be evaluated with reference to :

(i) an assessment of the technology / building design and its suitability ;

(ii) an assessment of the cost of construction and development (internal and external) ;

(c) an approval of the experience of the developers in undertaking similar projects in India / abroad and his financial standing.

6. Under the second alternative, the land owners will be permitted individually or in groups to take up Group Housing Schemes in association with developers. The BDA/DA while according approval to the scheme / layout plan would impose a condition that a specific numbers of dwelling units shall be constructed for allotment in favous of middle and low income groups. Once approval is given, necessary exemption would also be granted under the provisions of the Karnataka Land Reforms Act and in the Urban agglomeration area from the provisions of the Urban land (Ceiling and Regulations) Act.

7. In order to encourage housing activities through co-operative effort, the BDA/DA may allot land not exceeding ten acres to Housing Co-operative Socities for the purpose of Group Housing Projects, subject to such terms and conditions as may be permitted by the Authority.

8. The BDA may plan for establishment of new Townships in the bangalore Metropolitan Region with a view of decongesting Bangalore City. A new township should be self-contained and provide for the infrastructure facilities like roads, drains, water supply, sewerage, electrcity and other civic emenities. The construction of the township may be undertaken by the BDA with the assistance of financial or other public institutions or in coolaboration with private sector organisations / or BDA may promote and enable development of the township by the private sector. Selection of private company / developers / institution to undertake township project will be as per the norms indicated in para 5.

9. The methodology outlined above would have the following advantages :-

(a) Increased supply of housing stock in a short time with high quality.
(b) Mobilisation of funds from private sector for housing.
(c) Overcoming land acquisition and area developments constraints and delays in imnplementation being faced by Government Agencies.
(d) Market linked operations with social justice in the form of cross subsidisation for the Economically weakers sections and Low Income Group.

Government Order No.HUD/341/MNX/95, Bangalore, Dated 1st june 1995.

After careful consideration, Government are please to accord approval for the following : -

(a) acquisition of land through negotiated purchase by BDA/Urban Development Authority for the purpose of taking up Group Housing Porjects / Other Urban development projects.
(b) implementation of Group Housing Projects / Other Urban Development Projects by BDA/UDA involving private developers / financial institution/institutions angaged in housing / infrastructure development subject to the conditions specified in para 4 of the preamble.
(c) BDA/UDA may permit Group Housing Projects to be undertaken by land owners in association with developers / institutions as suggested as para 6 of the preamble.
(d) BDA/UDA may allot land not exceeding ten acres to housing Co-operative socities for the purpose of taking up Group Housing Projects subject to such items and conditions as may be prescribed byu the concerned Authority.
(e) BDA may plan for and / or undertake construction / development of new township in the Bangalore Metropoitan Region as suggested at para 8 of the preamble.

By Order and in the name of the Governor of Karnataka,
SIDDARAMAIAH,

Under Secretary to Government,
Housing and Urban Development Deptt.

To :-

1. The Chairman, BDA, Bangalore
2. The Commissioners of all U.D. As.
3. The Commissioner, K.H.B., Bangalore.
4. The Secretary, Karnataka Slum Clearance Board, Malleswaram, Bangalore - 3
5. The Commissioner, B.C.C., Bangalore - 9
6. The Under Secretary D.P.A.R., ( Cabinet Section ).
7. Spare copy / Guard file.

PROCEEDINGS OF THE GOVERNMENT OF KARNATKA

Subject : - Policy on slum Re-development-involvement of private sector / NGOs.

Preamble :

1. The slum population in Bangalore is estimated at 8 lakhs spread over about 400 slums. About 50% of the slums are located in BCC / BDA / Government land and the remaining 50% are located in private land.

2. In situ development is the most attractive method for resettlement of slum dwellers. This method will be operationalised in the following manner in respect of slums located on private land / public land where Hakku patras have not been given.

(i) A tripartite team consisting of representatives of the BDA/BCC/ Karnataka Slum Clearance Board and of slum dwellers and a Non-Government Organisation will undertake a detailed survey of the families of the selected slum. thereafter, design including specification for the dwelling units will be prepared.

(ii) The concered authority after selecting the design will finalise the detailed specifications and prepare cost estimates. Thereafter, offers would be invited from developers / builders. The concerned agency will be permitted to relax the Zoning / Building regulations to accomodate slum dwellers on at least 50% of the land area. The land owner will permitted to utilise the remaining upto 50% of the land for uses prescribed in the CDP. Houses will be delivered to the slum dwellers subject to such term and conditions as may be prescribed. Arrangements will be made to tie up funding for securing house building loans from financial institutions such as HUDCO.

(iii) The devloper would have to ensure provision of basic infrastrusture services like drinking water, electrification and underground drainage.

3. In respect of slums located on public land and where Hakku Patras /- lease-cum-case rights have been given, it would be open to he slum families to pool their land and form a society for development in accordance with the
scheme outlined in para 2.

Government Order No.HUD/341/MNX/95, Bangalore Dated 1st June 1995

After careful consideration, Government are pleased to accord approval for undertaking slum re-development on the principle of land sharing between slum dwellers and land owners / developers / institutions for construction of accomodation for slum dwellers as suggested in para 2 of the preamble.

By Order and in the name of the Governor of Karnataka,
SIDDARAMAIAH,

Under Secretary to Government,
Housing and Urban Development Department.

To :-

1. The Chairman, Bangalore Development Authority, Bangalore
2. The Commissioners of all B.D.A's.
3. The Commissioner, K.H.B., Bangalore - 9.
4. The Secretary, Karnataka Slum Clearance Board, Bangalore - 3
5. The Commissioner, Bangalore City Corporation, Bangalore - 9
6. The Under Secretary D.P.A.R., ( Cabinet Section ).
7. Spare copy / Guard file.


W.D.6747