Importance Of Housing To National Development
-0001-11-30 Posted By:Infra Bazaar
Housing schemes in India by Development Authorities have played a major role in strategizing and executing a planned and organized growth all over the county. Special functions like providing housing facilities to the residents, undertaking urban restructuring, and executing urban development plans fall into the premise of development authorities.
From time to time, the development authorities in India keep coming up with housing schemes for all different segments of the society and also develop commercial, institutional, and recreational facilities to ensure that the expansion of the city is done in a planned manner.
In Delhi, the development authority is known as DDA – Delhi Development Authority. It was created in 1957 under the provisions of the Delhi Development Act" to promote and secure the development of Delhi ". The fast developing NCR region is supported by 2 other development authorities; the New Okhla Industrial Development Authority and Haryana Urban Development Authority to turn Delhi/ NCR into the most happening satellite towns.
The Role of Affordable Housing in Creating Jobs and Stimulating Local Economic Development: Evidence in Brief and its companion a Review of the Literature highlights several ways affordable housing development fuels economic growth. Among other impacts, building or significantly rehabilitating affordable housing can
Investing in the development of affordable housing creates a significant number of construction-related jobs, and new residents support additional jobs in other sectors going forward.
Attract Both Employers and Employees
Surveys and supporting research show that both employers and workers understand the importance of affordable housing in attracting and retaining a skilled workforce.
Increase Consumer Spending
Building affordable housing increases the buying power of both those involved in its construction and those who occupy it afterward.
Home Financing, a Major Obstacle
The odds are also stacked against low-income developers when it comes to securing finance for their projects. Many are excluded from access to commercial banks because these lenders mostly do not provide loans against land; instead they have to turn to private borrowing at prohibitive interest rates. Some banks will lend to them, but at exorbitant rates of around 18–19%. High finance costs add 10–25% to the unit sale price.
In the case of Tata Housing, which is part of a multinational group, access to funding has been relatively easy. It used internal group funding to recapitalize the company with USD 16.5 million in 2008 and USD 82 million in 2012. Tata Housing will have to seek additional funding for new ventures and is evaluating several options, such as setting up a real-estate fund, as well as a mix of other options like equity, internal accruals, mezzanine and debt financing. The situation is, however, different for most other private real-estate developers that lack cash or other collateral to support a construction loan, and the capacity to produce satisfactory project feasibility studies.
Increase Government Revenues
The taxes and fees associated with the development of affordable housing – both during the construction and after the homes are occupied – can represent significant revenue for state and local governments.
Lower The Risk of Foreclosure
Affordable homeownership programs appear to produce a more sustainable path to homeownership, eliminating a number of significant foreclosure-related costs that municipalities would otherwise have to absorb.
With communities across the country struggling with high levels of unemployment and lower than expected tax receipts, it is important to understand, document, and communicate the fiscal and economic benefits of affordable housing. The research reviewed in these new publications confirms that investing in affordable housing can simultaneously help meet critical housing needs, stimulate local economies, and begin to address fiscal shortfalls.