5% area in residential projects now must for affordable housing

› Under current norms, development authorities can increase smaller sized plots supply only to a limited extent. Developing projects under the Affordable Colony Policy will allow an increase in supply of small plots.

A STATE GOVT OFFICIAL

MOHALI : To increase the supply of small plots, the Punjab housing and urban development department has decided that 5% of the area in all future residential plotted projects of development authorities in the state will be developed as per the Affordable Colony Policy, 2018.

Under the policy, notified in March this year, there are no density restrictions, the internal road width is 22 foot (against 35 foot for normal housing), the maximum plot size can be 125 sq yard; the average plot area cannot exceed 100 sq yard and permissible saleable area is 65% (against 55% previously).

“Under current norms, development authorities can increase smaller sized plots supply only to a limited extent. Developing projects under the Affordable Colony Policy will allow an increase in supply of small plots,” said a senior housing department official, on the condition of anonymity.

“In a plot scheme, development authorities offer different sized plots at uniform price. In actual experience, smaller plots fetch higher premium than larger plots in the open market,” the official added, attributing this to supply and demand.

“By facilitating supply, the new decision will check prices,” he added.

MONETISING LAND BANKS

In addition to more than 300 acres collected from developers under the provisions of the Punjab Apartment and Property Regulation Act (PAPRA), development authorities like the Graeater Mohali Area Development Authority (GMADA) have large portions of their own land banks earmarked for housing for the Economically Weaker Sections (EWS). These are not fully used. Under Section 5(11) of the PAPRA, developers have to reserve 5% of the gross project area in a colony for EWS Housing; again, the land chunks have remained underused.

“Now, the land that the private collector had collected for EWS housing will be monetised. The land that development authorities earmark for EWS Housing will be used and developed under the Affordable Colony Policy, 2018,” the official added. The new decision will not impact the mandatory reservation of land for EWS Housing by builders getting approvals under the PAPRA Act.

Even under the Affordable Colony Policy, the developer has to reserve 5% gross area of the colony for EWS Housing with plot sizes not more than 100 sq yard.