In a bid to reach-out to lakhs of shelter-less slum dwellers across the country, the Housing and Urban Development Corporation limited (HUDCO) has chalked out a novel scheme wherein the beneficiary will be allowed to own the house after paying rent for 15 to 20 years.
A pilot project under the scheme ‘Rent-to-own,’ a first of its kind in the country will be soon kicked off from Mohali near Chandigarh in Punjab. Depending on its success, the success will be replicated across the urban cities where housing is a major problem for the poor people in view of increasing input cost.
“The rent amount to be charged from the allottee is yet to be decided. But it will majorly depend upon the cost incurred in building the project as well as keeping in mind the paying capacity of the EWS and lIG category, said Vinod Kumar Joshi, chief regional manager of HUDCO, Chandigarh division, Punjab Government.
Joshi said that consultations in this regards are in a final stage with the Greater Mohali Area Development Authority (GMADA) which would provide land for the Rs 2000 crore worth project envisaging construction of over 15,000 houses in the phased manner.
The prefabricated and environment-friendly multi-storied buildings will be constructed by the GMADA for which Housing and Urban Development Corporation limited (HUDCO), the mini-ratna under the Union Housing and Urban Poverty Alleviation Ministry, will provide housing loans at the interest rate as low as 8.50 per cent.
As per the scheme, the identified slum dweller will be allocated a one bedroom house on nominal rents as monthly installments for a certain period spreading over 15 to 20 years after which the flat would be transferred in his name, the official said.
“But in case if he tries to vacates or sell or stop giving rent before the completion of the term, then that property will be allocated to someone else with the same criteria. Such a legal clause is being inserted in the scheme to prevent its misuse,” said Joshi.
He was referring to various cases reported where beneficiaries have sold such flats in connivance with the building mafia and returned back to their original jhuggies, thus defeating the purpose of the Government’s plans to ensure housing to the poor.