Lesson 32: Housing Finance – Public And Private Institutions
Housing Finance System
The housing front is most vital for national economy and human settlement. National Housing Policy has clearly admitted this fact and has stressed on the need for development of housing stock in the country in both quantitative and qualitative terms. An effort in this direction is feasible only with the coordinated and dedicated efforts of the public and private institutions at state and central level. A centralized housing fund is a very crucial requirement to bring in desired change in the nation.
Securing a shelter for living had been the self-help activity for a majority in the country. However, economically weaker section of population in both urban and rural area who are unable to secure a livable shelter looks for external support. Hence, Center and State intervention becomes necessary, to accomplish the goal of "shelter for all" in a self-sustainable basis.
Role of Central and State government:
The Central and State governments support the housing / building efforts both directly and indirectly.
The role of the Central government is to lay down broad principles, providing necessary advice and rendering financial assistance in the form of loans and subsidies to the state governments and union territories.
The Central government has also set up the Housing and Urban Development Corporation (HUDCO) to finance and undertake housing and urban development programme. It has provided equity support to HUDCO and guarantees the bonds issued by it.
The Central government has also introduced various social housing schemes for different sections of populations from time to time.
Apart from this, both Central and State governments provide due house building advances to their employees. While the Central Government formulates the housing schemes, the state governments are the actual implementing agencies.
Participants