Office Order No. 9/2017, Constitution of Shelter Fund
The Chennai Metropolitan Development Authority, Administration Division, issued Office Order No. 9/2017 dated 28 August 2017, directing collection of a Shelter Fee to support public housing and affordable housing for Economically Weaker Sections and Low Income Groups. The direction implements G.O. (Ms.) No. 135 dated 21 July 2017 of the Government Housing and Urban Development (SC1-2) Department, with collection taking effect from 21 July 2017, while related rule and regulation amendments were to be issued separately.
What the office order does
The Chennai Metropolitan Development Authority, Administration Division, issued Office Order No. 9/2017 dated 28 August 2017 to implement the Tamil Nadu Shelter Fund funding arrangement approved by the Government Housing and Urban Development (SC1-2) Department in G.O. (Ms.) No. 135 dated 21 July 2017.
The fund is intended to promote public housing and affordable housing for Economically Weaker Sections and Low Income Groups. Chennai Metropolitan Development Authority officers were directed to collect the Shelter Fee along with the development charges demand advice, effective from 21 July 2017.
Developments covered
Office Order No. 9/2017 applies the following funding terms from the government order:
- A Shelter Fee is charged on proposed developments with a floor space index area of 3,000 square metres or more.
- The fee is 75 per cent of the applicable I&A rates for the relevant category of building.
- Residential projects are excluded where the carpet area of the dwelling units does not exceed 50 square metres.
- The fee replaces the prevailing requirement to reserve 10 per cent of built-up area for Low Income Groups in developments on land parcels exceeding 10,000 square metres.
The source does not provide the actual I&A rate amounts or a calculation example.
Who may be affected
Office Order No. 9/2017 directly concerns applicants proposing developments that meet the stated floor space index area threshold. It also instructs Chennai Metropolitan Development Authority planning and enforcement staff involved in processing development applications and issuing development charge demands.
A buyer or owner should check whether a proposed project meets the 3,000 square metre threshold and, for a residential project, whether the stated dwelling unit size exclusion applies.
Handling of the money
Office Order No. 9/2017 requires Shelter Fee collections to be credited to the specified government account for the Tamil Nadu Shelter Fund. The receipts are then transferred through the Housing and Urban Development Department grant and credited to the Tamil Nadu Shelter Fund in the Public Account under reserve funds not bearing interest.
Further changes
Office Order No. 9/2017 states that amendments to the relevant rules and regulations concerning the Shelter Fee would be issued separately. No such amendments are included in the supplied document.
This summary is generated from the source document to help you find what is relevant. The PDF above is authoritative. For advice on your own property, use LandLens One or speak to a qualified professional.
Common questions
When did Chennai Metropolitan Development Authority start collecting the Shelter Fee?
Office Order No. 9/2017 directs collection from 21 July 2017, the date on which G.O. (Ms.) No. 135 was issued.
Does every proposed development have to pay the Shelter Fee?
No. The stated charge applies to proposed developments with a floor space index area of 3,000 square metres or more, subject to the residential project exclusion described in the office order.
Are residential projects with small dwelling units excluded?
The office order excludes residential projects where the carpet area of the dwelling units does not exceed 50 square metres.
Does the document contain the final amendments to the planning rules?
No. Office Order No. 9/2017 says amendments to the relevant rules and regulations would be issued separately.
