G.O.(Ms).No.135, Constitution of Shelter Fund for Affordable Housing, 2017
The Housing and Urban Development Department, through G.O.(Ms).No.135 dated 21 July 2017, constitutes the Tamil Nadu Shelter Fund to finance public and affordable housing for economically weaker sections and lower income groups. It creates a two-tier funding structure and directs collection of a shelter fee from certain developments, while exempting qualifying residential projects with dwelling units not exceeding 50 square metres of carpet area.
What the document does
The Housing and Urban Development Department issued G.O.(Ms).No.135 dated 21 July 2017 to constitute the Tamil Nadu Shelter Fund. The fund is intended to support public housing, affordable housing and rehabilitation through a two-tier financial structure.
Two-tier structure
G.O.(Ms).No.135 creates the following structure:
- Tier-I is a government-regulated fund receiving approved fees and other collections. It is maintained by the Tamil Nadu Slum Clearance Board and administered by the Housing and Urban Development Department in consultation with the Finance Department.
- A substantial portion of Tier-I is to fund government housing projects through the Tamil Nadu Slum Clearance Board, including the State Government grant component in centrally sponsored housing schemes.
- Part of Tier-I may support Tier-II and help attract other funding for affordable housing.
- Tier-II is to be registered with the Securities and Exchange Board of India as a Category-I Social Alternate Investment Fund and maintained by the Tamil Nadu Infrastructure Fund Management Corporation Limited.
Developments affected
G.O.(Ms).No.135 directs that a shelter fee equal to 75% of the applicable infrastructure and amenities rates be charged on proposed developments with floor space index area of 3,000 square metres or more.
The shelter fee does not apply to residential projects where the carpet area of each dwelling unit does not exceed 50 square metres. The fee is introduced in place of the prevailing requirement to reserve 10% of built-up area for lower income groups in developments on land parcels exceeding 10,000 square metres.
The document states that amendments to the relevant rules and regulations for this change will be issued separately.
Other funding sources and administration
G.O.(Ms).No.135 also provides that:
- Proceeds from the sale of Special Transferable Development Rights obtained by the Tamil Nadu Slum Clearance Board for construction of slum tenement units will be added to Tier-I.
- The Housing and Urban Development Department may identify additional levies or taxes from time to time.
- Shelter fees are to be credited through the specified government accounts and transferred to the Tier-I account maintained by the Tamil Nadu Slum Clearance Board at the end of each financial year.
- The Tamil Nadu Slum Clearance Board and Tamil Nadu Housing Board are directed to provide initial first-loss capital of up to 5% each of the initial Tier-II corpus after registration with the Securities and Exchange Board of India.
- Separate guidelines will govern use of the fund.
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
Will every property development have to pay the shelter fee?
No. G.O.(Ms).No.135 applies the shelter fee to proposed developments with floor space index area of 3,000 square metres or more, subject to the stated residential exemption.
Is a residential project with small dwelling units exempt?
Yes. The shelter fee exemption covers residential projects where the carpet area of the dwelling units does not exceed 50 square metres.
Does the document immediately amend the planning rules?
The document says that amendments to the relevant rules and regulations concerning the shelter fee and the lower income group reservation requirement will be issued separately.
Who manages the Tamil Nadu Shelter Fund?
Tier-I is maintained by the Tamil Nadu Slum Clearance Board and administered by the Housing and Urban Development Department in consultation with the Finance Department. Tier-II is to be maintained by the Tamil Nadu Infrastructure Fund Management Corporation Limited after registration with the Securities and Exchange Board of India.
