affordable housing

  1. The budget aims to provide a push to the affordable housing and real estate sector which have been adversely affected by the demonetization.
  2. Affordable housing will be given infrastructure status. It will provide ample push for the sector as developers will now be able to get access to preferential and lower borrowing rates from banks.
  3. After demonetization, banks already have a surplus liquidity and the status of infrastructure to affordable housing is a win win situation for both the banks as well as the builders.
  4. It also means that the Government officially acknowledges its importance as an industry and as a vital driver of the economy.
  5. Infrastructure status ensures that the sector becomes entitled to various Government incentives, subsidies and tax benefits.
  6. It also opens the sector up for institutional funding. All this will translate into more supply of affordable housing, which will help keep the rates in check.
  7. It can also mean that the Government releases land specifically for affordable housing in central locations.
  8. Further, the definition of affordable housing modified to include carpet area instead of built up area. Carpet area is the area which is actually used, and add the areas under the walls, it become the built up area.
  9. National Housing Board (NHB) is to refinance the individual housing loans of about 20000 cr for 2017-18.
  10. The government also announced tax sops for builders sitting on a huge unsold stocks amid multi-year slowdown in the real estate sector, particularly housing segment.
  11. At present, the houses which are unoccupied after getting completion certificates, this rule only after one year of the end of the year in which completion certificate is received so that they get some breathing time for liquidating their inventory.