Tamil Nadu Town and Country Planning (Levy of Shelter Charges and State Shelter Fund) Rules, 2020 (31 Jan 2020)
The Housing and Urban Development [UD4(3)] Department issued G.O.(Ms).No.31 dated 31 January 2020, notifying rules for levying shelter charges and creating the Tamil Nadu State Shelter Fund. The rules apply to areas covered by the Tamil Nadu Town and Country Planning Act, 1971, and generally affect new buildings or additions where the relevant Floor Space Index area exceeds 3,000 square metres.
What the rules govern
The Tamil Nadu Town and Country Planning (Levy of Shelter Charges and State Shelter Fund) Rules, 2020 provide for collecting shelter charges from persons undertaking building development. The charges are intended to rehabilitate the urban poor and are assessed using the prevailing land guideline value fixed by the Registration Department.
The rules apply throughout areas covered by the Tamil Nadu Town and Country Planning Act, 1971.
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.
- Additions to an existing construction where the additional area exceeds 3,000 square metres.
- Conversion of approved Low Income Group units into regular units, based on the floor area proposed for conversion and the proportionate common area. Revised planning permission and a completion certificate must be obtained.
After the final assessment, payment must be made to the planning authority or local authority, as applicable.
Rates and exemptions
The shelter charge is calculated as a percentage of guideline value per square metre, within these limits:
- Commercial and information technology buildings, minimum 1.2 per cent and maximum 3 per cent.
- Residential and industrial buildings, minimum 1.1 per cent and maximum 3 per cent.
- Institutional buildings, minimum 1 per cent and maximum 3 per cent.
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. If such units occupy less than 10 per cent, a proportionate shelter charge applies to the Floor Space Index area exceeding 3,000 square metres.
Relevant assessment date
For Directorate of Town and Country Planning areas, the crucial date is the date of technical clearance where that clearance is required. In other cases, including the Chennai Metropolitan Planning Area, it is the date when the demand notice for development charges or infrastructure and amenities charges is raised.
Tamil Nadu State Shelter Fund
The Tamil Nadu State Shelter Fund has Tier I and Tier II components. Shelter charge receipts go to Tier I. The fund may support affordable housing projects, the State Government share of centrally sponsored urban poor housing schemes, and government contributions to Tier II. Tier II is to be registered with the Securities and Exchange Board of India as a Category I Social Alternative Investment Fund.
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Common questions
Will every new residential building attract shelter charges?
No. For new construction, shelter charges apply where the Floor Space Index area exceeds 3,000 square metres. Residential buildings are subject to rates between 1.1 per cent and 3 per cent of guideline value per square metre.
Can a project avoid shelter charges by providing affordable housing units?
Shelter charges are not payable if dwelling units for Economically Weaker Sections or Low Income Groups account for at least 10 per cent of the Floor Space Index area. A proportionate charge applies if the share is below 10 per cent.
Who collects the shelter charge?
After the final assessment, the charge must be paid to the planning authority or local authority, as applicable.
What is the shelter charge money used for?
The money is credited to the Tier I component of the Tamil Nadu State Shelter Fund. The fund may finance affordable housing projects and the State Government share of centrally sponsored housing schemes for the urban poor.
