G.O.(4D) No.54, Revised Norms for Collection of Beneficiaries' Contribution

What the government order covers

G.O.(4D) No.54 of the Housing and Urban Development [UHD-1(2)] Department applies to tenements constructed by the Tamil Nadu Urban Habitat Development Board under Affordable Housing in Partnership projects. The Board is the nodal agency for implementing Pradhan Mantri Awas Yojana (Urban), also called Housing for All, in Tamil Nadu.

The covered beneficiary groups include:

• Existing allottees whose dilapidated tenements were demolished for reconstruction.
• Extended families and other squatters in reconstruction schemes.
• Families receiving resettlement and Economically Weaker Section housing.
• Urban slum families receiving tenements at their existing place of living through in-situ development.
• Families moved from objectionable or vulnerable locations to alternate sites.
• Urban poor or Economically Weaker Section families who do not own a house anywhere.

Why the contribution system was revised

G.O.(4D) No.54 records that upfront payment of beneficiary contributions had become difficult because of loss of livelihood among the urban poor during Covid-19 and the rent paid by families living outside the schemes during construction. Contributions were not being paid, protests occurred, and allotment was delayed even where houses were ready for occupation.

The revised approach links monthly contributions for existing allottees in reconstruction schemes to the number of additional tenements created in each scheme area.

Contributions for existing allottees

The revised norms provide:

• Where additional tenements exceed 100 percent, the contribution is Rs.250 per month for 20 years.
• Where additional tenements are between 60 percent and 100 percent, the contribution is Rs.400 per month in Chennai and Rs.300 per month in other towns, for 20 years.
• Where additional tenements are between 30 percent and 60 percent, the contribution is Rs.500 per month in Chennai and Rs.400 per month in other towns, for 20 years.
• Where additional tenements are below 30 percent, the contribution is Rs.1.50 lakh or 10 percent of project cost, whichever is less, in Chennai. Outside Chennai, it is Rs.1.00 lakh or 10 percent of project cost, whichever is less. Payment is collected over 20 years.

For the below 30 percent category, beneficiaries who pay instalments continuously for six months without default receive an interest subvention equal to 50 percent of the interest payable. The Shelter Fund meets that amount.

Other payment responsibility

For resettlement from vulnerable locations, the agency requiring the resettlement pays the contribution. Project implementing agencies or land-owning departments must pay project cost less Central and State government grants for families relocated from vulnerable locations.