1) What is Housing for All (HFA), its objectives and scope?
HFA is a Programme launched by the Ministry of Housing and Urban Poverty Alleviation (MoHUPA), in Mission mode which envisions provision of Housing for All by 2022 when the Nation completes 75 years of its Independence. The Mission seeks to address the housing requirement of urban poor including slum dwellers through following programme verticals: i. Slum rehabilitation of Slum Dwellers with participation of private developers using land as a resource. ii. Promotion of Affordable Housing for weaker section through credit linked subsidy. iii. Affordable Housing in Partnership with Public & Private sectors. iv. Subsidy for beneficiary-led individual house construction.
2) What financial support will the HFA Mission provide to the States for the Preparation of Housing for All Plan of Action (HFAPoA)?
Mission will assist States/Cities in carrying out the activities for preparation of HFAPoA under capacity building and A&OE funds. States and Cities which have already been given assistance under erstwhile Rajiv Awas Yojana (RAY) for preparation of Slum Free City Plan of Action (SFCPoA) should utilise that amount for preparation of HFAPoA and claim next installment when 70% of the released funds have been utilised. It is mentioned here that HFAPoA addresses urban poor who may not necessarily be slum dwellers and it is thus required to integrate all four programme verticals of the HFA Mission whereas SFCPoA was linked only to slum dwellers. The activities required for preparation of HFAPoA will be funded by MoHUPA in the ratio of 75:25 and in case of North Eastern and special category States in the ratio of 90:10. The unit cost / financial norms for different activities will be determined by CSMC and till then the existing norms under RAY should be used.
3) Who is defined as a beneficiary under Housing for All?
A beneficiary is defined as a family comprising of husband, wife and unmarried children. Such beneficiary should not own a pucca house either in his / her name or in the name of any member of his / her family in any part of India to receive central assistance under the Mission. EWS category of beneficiaries is eligible for assistance in all four verticals of the Missions whereas LIG category is eligible under only CLSS component of the Mission.
4) How the proof of income for EWS/LIG will be done ?
For identification as an EWS or LIG beneficiary under the scheme, an individual loan applicant will submit self-certificate/affidavit as proof of income.
5) What is the definition of carpet area ?
Area enclosed within the walls, actual area to lay the carpet. This area does not include the thickness of the inner walls.
6) Who are Primary Lending Institutions ?
Primary Lending Instituions are Scheduled Commercial Banks, Housing Finance Companies, Regional Rural Banks (RRBs), State Cooperative Banks, Urban Cooperative Banks or any other institutions as may be identified by the MoHUPA.
7) What is Affordable Housing through Credit Linked Subsidy ?
Under Credit Linked Subsidy, beneficiaries of Economically Weaker section (EWS) and Low Income Group (LIG) can seek housing loans from Banks, Housing Finance Companies and other such institutions for new construction and enhancement to existing dwellings as incremental housing. The credit linked subsidy will be available only for loan amounts upto Rs 6 lakhs and such loans would be eligible for an interest subsidy at the rate of 6.5 % for tenure of 15 years or during tenure of loan whichever is lower. The Net Present Value (NPV) of the interest subsidy will be calculated at a discount rate of 9%. Any additional loans beyond Rs. 6 lakhs, will be at non subsidized rate. Interest subsidy will be credited upfront to the loan account of beneficiaries through lending institutions resulting in reduced effective housing loan and Equated Monthly Instalment (EMI).
8) What is the process of crediting the interest subsidy ?
The subsidy would be released by the CNAs based on the disbursements made by PLIs to the beneficiaries. Subsidy, so disbursed by the CNA to the PLI, will be credited by the PLI to the borrower’s account upfront by deducting it from the principal loan amount. As a result, the borrower will pay EMI on the remainder of the principal loan amount. E.g., the borrower avails a loan for Rs. 6.00 lakhs and subsidy thereon works out to Rs. 2.20 lakhs, the amount (Rs. 2.20 lakhs) would be reduced upfront from the loan (i.e., the loan would reduce to Rs. 3.80 lakhs) and the borrower would pay EMIs on the reduced amount of Rs.3.80 lakhs
9) Are there any area restrictions under the Scheme for availing of the subsidy under the CLSS component ?
The carpet area of houses being constructed under this component should be upto 30sq.m. for EWS category and upto 60 sq.m. for LIG category. This means that if the carpet area exceeds the respective limits, then the beneficiaries would not be eligible to avail of the benefit under this component.
10) Can we get 30 year home loan for EWS beneficiary ?
Yes, beneficiaries can apply for sanction of home loan for tenure of 30 years, which would depend on the due diligence norms of the PLIs concerned. In such cases, however, the interest subsidy would be restricted on home loans upto Rs. 6 lakhs for tenure not more than 15 years.
11) What documents are to be taken or relied upon for the purpose of Income proof of the borrower? OR How PLIs would grant loans in the absence of Income documents ?
For identification as a EWS or LIG beneficiary under the scheme, an individual loan applicant will submit self-certificate/ affidavit as proof of income. (paragraph 5.10).
12) What is Affordable Housing Through Partnership ?
Affordable Housing through Partnership will be implemented through : States/UTs/ULBs/Parastatals with no private sector States/UTs/ULBs/Parastatals with private sector. The Mission will provide financial assistance at the rate of Rs. 1.5 Lakh per EWS house being built under these different partnerships by States/UTs/Cities.
13) How will the beneficiaries be selected ?
State/Cities will undertake a demand survey through suitable means to assess the actual demand for housing and potential beneficiaries. The information about the eligible beneficiaries from this survey and other available data will be contained in Housing for All Plan of Action (HFAPoA) in prescribed formats along with interventions selected out of the four verticals of the Mission.
14) How the central assistance will be released to beneficiaries for individual house construction?
Central assistance will be released to the bank accounts of beneficiaries identified in projects through States/UTs as per recommendations of State/UT.
15) What is the timing and criteria of releasing of financial assistance for project for individual house construction ?
State Government should release financial assistance to the beneficiaries in 3-4 instalments depending on progress of construction of the house. Beneficiary may start the construction using his own funds or any other fund and GoI assistance will be released in proportion to the construction by individual beneficiary. The last instalment of Rs. 30,000/- of GoI assistance should be released only after completion of the house.
16) How the Central assistance under HFA be released ?
Central assistance under 3 verticals (except CLSS) will be disbursed through States/UTs.
17) Will a person having a plot without any construction be an eligible beneficiary ?
Yes, he can be covered under subsidy for beneficiary led individual house construction scheme, if otherwise eligible.
18) What are the components of PMAY? (घटकांसंबंधी माहिती)
If he or his family is not having any another home anywere in india
1. At the previous location redevelopment of slums should be done.
2. Through subsidy loan construct houses which are affordable to those who are financially weak and economically backward.
3. Build affordable houses on partnership basis.
4. Give provision to those who want to their own houses.