Govt notifies shelter fund rules for housing to poor

The Tamil Nadu Town and Country Planning (Levy of Shelter Charges and State Shelter Fund) Rules, 2020 was published in the Tamil Nadu government gazette (Extraordinary) on January 31. Through the rules, the government also has formed the Tamil Nadu State Shelter Fund.

In a major modification to the existing norms for collecting shelter charges, the new rules mandate the builders to pay charges based on the guideline value of the area rather than making payment based on built-up area. Planning authorities had been collecting 75 per cent of infrastructure and development charges, which is being calculated based on built-up area, as shelter charges.

As per the Town and Country Planning Act, builders of new constructions, in which the floor space index area exceed, must pay the shelter charges. A Government Order establishing shelter fund was issued in July 2017. The newly notified rules have fixed shelter charges of between 1.2 per cent and 3 per cent of guideline value for commercial buildings and IT buildings. For residential buildings, the shelter charge is fixed between 1.1 per cent and 3 per cent of the guideline value. For institutional buildings, the shelter charge is fixed between 1 per cent and 3 per cent of the guideline value.

As the shelter charges would be calculated based on guideline value, the amount would differ from one area to other. Earlier, the shelter charge was uniform across the State irrespective of the guideline value of the land.

According to the rules, the shelter fund would be utilised for funding affordable housing unit projects through the Tamil Nadu Slum Clearance Board or the Tamil Nadu Housing Board or any other Agency. The fund would also be used to meet the State government’s share of the grant component of centrally sponsored housing schemes for the urban poor. While welcoming the move, S Rama Prabhu, chairman of Builders’ Association of India (Southern Centre) cautioned the government should ensure the purpose of collecting the shelter fund met.

“However, levying shelter fund based on the guideline value would become an extra burden for the home buyers, as the builders would collect the expenses from the buyers,” he said. The government has segregated the shelter fund into two components and the first component would be managed by a Tamil Nadu State Shelter Fund Committee that would be headed by housing and urban development secretary. The Tamil Nadu Infrastructure Fund Management Corporation Limited will manage the second component.

Shelter charges are not payable in cases where dwelling units for economically weaker sections or low income group are provided for not less than 10% of the FSI area. Also, the builders could get a refund after deducting the scrutiny fee of Rs 5,000, if the planning permission applications rejected or non-commencement of the project.