Tamil Nadu Town and Country Planning (Levy of Shelter Charges and State Shelter Fund) Rules, 2020 (2020)
The Housing and Urban Development Department issued G.O.(Ms).No.31 on 31 January 2020, notifying the Tamil Nadu Town and Country Planning (Levy of Shelter Charges and State Shelter Fund) Rules, 2020. The rules impose shelter charges on certain large building developments and establish the Tamil Nadu State Shelter Fund to support affordable housing for the urban poor.
What the rules govern
The Tamil Nadu Town and Country Planning (Levy of Shelter Charges and State Shelter Fund) Rules, 2020 apply to areas covered by the Tamil Nadu Town and Country Planning Act, 1971. Shelter charges are assessed on buildings based on the prevailing land guideline value fixed by the Registration Department.
The charges are collected from persons undertaking building development and are intended to support rehabilitation and affordable housing for the urban poor.
Who may have to pay
The Tamil Nadu Town and Country Planning (Levy of Shelter Charges and State Shelter Fund) Rules, 2020 apply shelter charges in the following cases:
- New construction where the Floor Space Index area exceeds 3,000 square metres.
- Addition to an existing construction where the additional area exceeds 3,000 square metres.
- Commercial and information technology buildings, at between 1.2 per cent and 3 per cent of guideline value per square metre.
- Residential and industrial buildings, at between 1.1 per cent and 3 per cent of guideline value per square metre.
- Institutional buildings, at between 1 per cent and 3 per cent of guideline value per square metre.
Payment must be made to the planning authority or local authority after receipt of the final assessment order.
Exemptions and reduced liability
The Tamil Nadu Town and Country Planning (Levy of Shelter Charges and State Shelter Fund) Rules, 2020 provide that shelter charges are not payable where dwelling units for Economically Weaker Sections or Low Income Groups occupy at least 10 per cent of the Floor Space Index area.
Where such units occupy less than 10 per cent, proportionate shelter charges apply to the Floor Space Index area exceeding 3,000 square metres. Approved Low Income Group units may be converted into regular units after payment of shelter charges for the proposed converted floor area and proportionate common area, provided revised planning permission and a completion certificate are obtained.
Tamil Nadu State Shelter Fund
The Tamil Nadu State Shelter Fund has Tier-I and Tier-II components. Shelter charge proceeds are credited to Tier-I, which may also receive government grants, approved transfers, institutional contributions and corporate social responsibility contributions.
The fund may finance affordable housing through the Tamil Nadu Slum Clearance Board, the Tamil Nadu Housing Board or another government designated agency. It may also meet the State Government share of centrally sponsored urban housing schemes and other specifically approved affordable housing purposes.
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Common questions
Does every new building have to pay shelter charges?
No. Shelter charges apply to new construction where the Floor Space Index area exceeds 3,000 square metres, subject to the exemptions in the rules.
Can providing Economically Weaker Section or Low Income Group housing avoid the charge?
Yes. Shelter charges are not payable when those dwelling units account for at least 10 per cent of the Floor Space Index area. If they account for less than 10 per cent, proportionate charges apply.
Which authority receives the shelter charge payment?
After the final assessment order is received, payment is made to the planning authority or local authority, as applicable.
What is the money collected through shelter charges used for?
The money supports affordable housing for the urban poor, including projects implemented through designated housing agencies and the State Government share of centrally sponsored housing schemes.
