1

THIMPHU : HOUSING AND SHELTER PLAN

INTRODUCTION
This Housing and Shelter Plan is prepared as part of the Structure
Plan for Thimphu. This document is organized as follows:

6.

a.

National Development Context

b.

A National Housing Policy Frame

c.

Housing and shelter plan for Thimphu.

d.

Land and Finance Policies

e.

Minimum Planning & Building Standards

Urban Management

TABLES
1.

Permanently inhabited dwellings

2.

Period of construction of dwellings

3.

Average age of dwellings (years)

4.

Size of dwellings (kitchen + no.of rooms)

5.

Gross floor area per apartment

6.

Living area per apartment

7.

Living area per person

8.

Persons per apartment

9.

Dwelling amenities
a)
b)
c)

running water
inside toilet
inside bathroom

10. Housing expenditure of households of employees living in rental

housing
11.

Average construction costs of a new flat as against annual net

household income

12.

Average costs per m2 in completed residential buildings

13.

Dwellings condemned each year.

NATIONAL DEVELOPMENT CONTEXT

Bhutan had a 1991 population of 600,000 of which about 15%

(90,000) is classified as urban. About two-thirds of it reside in Thimphu
and Phuntsholing. Urban growth rates increases are of the order of 5 to
10% per annum; Thimphu recording a doubling of population over the
last ten years.
Since the early 1960s, Bhutan has witnessed considerable
modernization
and change, with
significant
improvements
in
communications, governance and the standards of living. The
modernizing process has been guided at a pace and in a form that have
minimized disruption to the countrys cultural heritage and environment.
Its development strategy is articulated in its Eighth Five-Year Plan (19972002).
1.01 Economic Performance
Developments in the industry and services sectors have outstripped
those in agriculture. The share of agriculture in GDP declined from 53
percent in 1981 to 38 percent in 1998, industry sector rose from 17
percent to over 36 percent and services sector fluctuated in the range of
27-33 percent. The industry sector is dominated by a few large firms,
mostly State-owned or recently privatized.
The Government has
managed the economy prudently. Large overall balance of payments
surpluses have led to a buildup in foreign exchange reserves. The
countrys fiscal self-reliance has increased and the debt-to-GDP ratio has
been falling in recent years.
1.02 Human Development
Major strides have been made in indicators like life expectancy,
infant mortality rate, and
immunization. 70 percent of the urban
population has access to safe water supply. Piped sanitation systems are
under construction in Thimphu, Phuentsholing, and four other towns.
Although housing is adequate in Bhutan, urban slums and substandard
housing have increased due to the rapid growth of the urban population.
Primary school enrollment ratio has reached 72 percent. Adult literacy
rate has risen to 54 percent. But the country faces acute shortage of
skilled and semi-skilled workers.

1.03 Regional Development

The Household Income and Expenditure Survey (1992) indicated
income inequality as well as low average monetary incomes. However
improving access to potable water, sanitation, free education and health
facilities alleviate manifestations of low incomes. Housing conditions,
though generally good, are stretched by rural in-migration and are often
substandard on the edges of Thimphu and Phuentsholing. Rates of inmigration in the main towns of Thimphu and Phuentsholing, estimated at
5 - 10 percent annually, have placed increasing stress on urban
infrastructure and the quality of life for some migrants. Improving the
physical infrastructure in the rural areas of Bhutan would help promote
balanced regional development, and may also contribute to a slowing in
the pace of rural out-migration.
RGOB has initiated a policy of balanced regional growth and to
provide essential services to the residents of the urban centers by
strengthening their institutional, technical and financial capacity and
managing the urban development process by improving the delivery of
urban infrastructure services particularly in Thimphu. Government plans
to achieve a more balanced system of settlements to moderate the
effects of rural-urban migration, through investment in rural areas,
development of secondary towns and supporting the urban infrastructure
and management of Thimphu and Phuentsholing.
1.04 Urban Development
Rising rates of rural to urban migration have contributed to rapid
urban growth, particularly in Thimphu and Phuentsholing. The problems
include a shortage of affordable low-income housing; squatting on vacant
government land; unplanned conversion of croplands, inadequate water
supply, solid waste, wasterwater and storm water disposal systems. To
manage these problems, Thimphu and Phuentsholing city corporations
require strengthening. They have been empowered to impose and retain
certain user charges, but they may need more authority and an improved
capacity to undertake urban management.
1.05 Emergence of Private Sector Development
The potential role of the private sector in Bhutan has been receiving
increasing attention in recent years as a major contributor to future
income growth and employment generation. The objective of the
Government appears to be to withdraw from areas that are commercially
viable. But some of the constraints to development of the private sector
in Bhutan are; topography, small, widely dispersed population, acute
shortage of skills of all kinds and private sectors small size in a business

environment traditionally dominated by the state. This gives rise to a

shortage of entrepreneurial skills. Private sector development is also
hampered by weak financial institutions.
There is a need to develop a national housing policy to ensure
development of affordable housing; full cost recovery, limit subsidies,
identify urban land requirements, develop a land bank for future housing
needs, create long-term financing mechanism; and encourage private
sector participation in the shelter sector.

2.

A NATIONAL HOUSING POLICY FRAMEWORK

Background
2.01 Housing in Macro-Economic Context
Effects of housing policy on employment, income, consumption,
savings and investment, prices, inflation, and the balance of payments;
relationship with the financial sector institutions providing housing
finance demand and supply of housing; government contribution
through tax and subsidy policy; impact on socio-political stability,
productivity, attitudes and behaviour, are important issues to be
considered.
Housing delivery programmes will necessitate increased fiscal
spending on housing. However, the fiscal deficit should be maintained at
around 3% of G.D.P. as recommended by I.M.F. A surplus on the current
account of the balance of payments is necessary to offset the
persistent deficit on the capital account, caused by the need to repay
existing debt. Housing sector has a role to play in the revitalization of
economy. There is a direct and indirect economic multiplier effect of
housing production on employment. An increase in income of lowerincome groups can convert latent demand for housing into effective
demand. Low levels of income lead to low levels of investment. To
increase the level of housing investment, it is necessary to increase
personal savings and direct these towards mortgage lending institutions.
Level of inflation will increase the price of housing.
A higher rate of economic growth, rising and more equitably
distributed real per capita income; greater incentives to save; effective
containment of the rate of inflation (especially in construction prices) can
create an environment conducive to savings and investment in housing.
This is a long-term policy approach, the effects of which will become more
perceptible over time.
The Current Housing Context
There is a need to develop a comprehensive Housing and Services
Information System that can provide base information about:
2.02 Demographic profile

Projected average annual growth rate of population, estimated

households, average household size, single people and average new
household formation annually. Rate of urbanization and quantum of
Urban and Rural population. Proportion of households falling into various
income categories.
2.03 Housing Conditions, Existing Housing Stock and Rate of
Supply
Estimates of, urban housing backlog, (reflected in overcrowding,
squatter settlements, increasing land invasions in urban areas, and poor
access to services in rural areas), households having secure tenure
ownership estimates of urban households living in formal housing, total
formal housing stock, rate of formal housing provision for low-income
households per year, urban informal housing units, households residing
in hostel accommodation, households living in squatter housing and
new households per annum housing themselves in this way population
living under the poverty datum line in rural areas with inadequate
access to potable water and sanitation, farm worker households that
do not have security of tenure, people not having access to basic
services, (such a potable water, sanitation systems and electricity,
social and cultural amenities), urban households that do not have access
to flush toilets or having no access to any type of sanitation system.
2.04 Existing Constraints to Resolving Housing Situation :
The key constraints and problems that need to be addressed by a
housing policy are :
Scale of housing Problem, geographic disparities between rural
and urban areas, low-incomes, structure of human settlements,
(natural topography, high rate of urbanization concentrating housing
needs in urban centers, geographic segmentation according to race and
class, disparate levels of service provision and access to amenities and
dispersed nature of rural settlements), institutional framework
(underdeveloped institutional framework, inadequately resourced local
government), lack of housing strategy (lack of an overall legislation
governing housing, land and services) end-user finance and subsidies
(in availability of end-user finance for housing, dispersed impact of State
expenditure) land and planning issues (approaches to land planning
inhibiting higher densities and innovative use)
land title, (different
tenure arrangements) weak housing construction sector (building
materials supply, developers ability to undertake housing developments),
lack of basic and managerial skills.

Major Considerations in Framing A National Housing

Policy
A national housing policy and strategy has to be a multi-faceted
approach towards serving all segments of the market with particular
emphasis on the poor.
2.05 National Housing Vision
RGOB should strive for establishment of viable, socially and
economically integrated communities, situated in areas allowing
convenient access to economic opportunities as well as health,
educational and social amenities through a sustainable housing process
which will enable easy access to housing for all with secure tenure and in
a safe and healthy environment.
2.06 National Housing Goal
The Goal should be to increase housing delivery on a sustainable
basis to a peak level of
units per annum, within a five year period,
by mobilising housing credit, savings and savings linked credit schemes,
social housing subsidies and create institutions to supply affordable social
housing.
The National Ministry and Department of Urban Development and
Housing should set broad national housing delivery goals, determine
policy for land development and use, land title and registration systems,
minimum planning/building norms and standards, mobilize funds for land
acquisition, infrastructural development, housing provision and end user
finance; issue guidelines for spatial restructuring of cities and towns and
rural settlement patterns;
establish a national institutional and funding framework for housing, and
monitor national performance against housing delivery and budgetary
goals.
The concept of a broad partnership between the State and the nonState sectors in addressing the housing challenge in the country should
be central to Governments approach, to ensure supplies of materials and
services to the housing sector and effective participation of the private
construction sector.
Major Banks, non-traditional lenders and new special finance
institutions should form the back-bone of a financing system to facilitate
the provision of housing credit, assistance to individuals and private
sector in the housing process, and provide planning assistance and advice
in respect of contracting, supervision and material procurement.

The land delivery policy should ensure effective land development

and land use control; land registration and Tenure systems; infrastructure,
services standards and tariffs. It should ensure; identification of land for
housing, and legitimize all valid housing processes, including formal and
informal housing delivery, new residential settlements, upgrading of
existing settlements in-situ and redevelopment, and define a policy for
disposal of publicly-owned land for low-income housing.
Provision of adequate water, sanitation, roads, storm water drainage
and domestic energy to housing developments, the standards to be
adopted, technology choice and infrastructure choice; (enhancing the
capabilities of local authority to administer and maintain services) cost
recovery and tariffs should form an integral part of the delivery system.
2.07 NATIONAL HOUSING POLICY FRAME
A national Housing Policy would facilitate the participation of the
three main actors in shelter delivery governments (both national and
local), the private sector (formal and informal, as well as NGOs) and the
community. The policy should aim at improving the performance of the
shelter-delivery system, in order to attain adequate shelter for all. No
significant headway can be achieved without massive participation of the
private sector. This calls for creation of enabling environment by way of
legal and regulatory reforms and fiscal concessions to encourage nongovernment sector to take up land assembly, housing construction and
investment in infrastructure services.
The Housing Policy would aim at:
Creation of surpluses in housing stock either on rental or
ownership basis.
Providing quality and cost effective shelter options, especially
to the vulnerable groups and the poor.
Ensuring that housing, along with the supporting services, is
treated as a priority and at par with infrastructure sector.
Removing legal, financial and administrative barriers for
facilitating access to land, finance and technology.
Forging strong partnership between private, public and
cooperative sectors to enhance the capacity of the
construction industry to participate in every sphere of housing

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and habitat.
Using technology for modernising the housing sector to
increase efficiency, productivity, energy efficiency and quality.
This would require the National Government to,
take steps to bring in legal reforms,
devise macro economic policies to enable flow of resources to
the housing sector,
develop a debt market for housing fully integrated with the
financial markets in the country,
set up a National Shelter Fund to meet the requirement of low
cost funds for the housing needs of the poor,
promote research and development and transfer of technology
for construction of houses,
evolve parameters for optimal use of available resources,
provide fiscal concessions for housing, infrastructure,
innovative and energy saving construction materials and
methods,
develop and enforce appropriate ecological standards to
protect the environment,
promote the creation of a secondary mortgage market,

The Local Authority to,

promote private sector and cooperatives in undertaking
housing construction for all segments in urban and rural areas,
undertake appropriate reforms for easy access to land,
identify specific housing shortages and prepare
Action Plans for all areas,

Housing

devise programmes to meet housing shortages and augment

supply of land for housing,

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plan expansion of urban infrastructure services,

enforce effectively,
development.

regulatory

measures

for

planned

The Public/Private Housing and Finance Companies to,

redefine their role and move away from their traditional
approach to housing finance,
develop and expand their reach to meet the needs of people,
mobilise resources from provident funds, insurance funds,
mutuall funds etc. for house building activities,
develop innovative instruments to mobilise domestic savings,
take the lead role in land assembly, construction of houses
and development of amenities,
forge partnership with State Governments and local authorities
for construction of houses,
collaborate with the State Governments to work out schemes
for slum reconstruction on cross subsidization basis,
direct research efforts to locally available raw materials,
standardise the new technologies for easy adoption by various
public and private construction agencies,
promote energy efficiency
construction methods,

in

building

materials

and

promote disaster mitigation techniques for new constructions

as well as strengthening of existing houses to prevent
continuing loss of housing stock and human lives from natural
hazards like earthquakes, cyclones and floods,
disseminate information about new technologies and provide
training to construction workers in the use of new
technologies.

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The Housing and Shelter

graphically in the chart.

Policy

Formulation

Process

is

depicted

2.08 Shelter Strategy

Housing strategy should be directed towards identification of
housing requirements of the intended target group and providing an
opportunity for achieving these within the paying capacity of every family.
2.09 Goals of the strategy would be;
a time bound programme to balance Housing requirements with
availability;
adequate provision in the national plan,
Sector;

investment for Housing

tax exemptions, incentives; institutional finance for private builders,

mortgage insurance and developing secondary mortgage market;
social housing schemes for
society;

the least privileged sections of the

provision of public funds for housing directly in proportion to the

number of families in different income groups;
large scale sites and services programmes;
large scale repairs and renewal programmes to conserve existing
housing stock;
building materials production integrated with targets of Housing
production;
industrial training scheme to train building labour for specialized
skills;
strengthening of co-operative housing movement;
realistic and modest housing standards and building norms and
controls in conformity with prevailing socio-economic conditions,
restructuring of existing public housing organizations to enhance coordination, monitoring and evaluation of housing development
against predetermined targets and objectives;
incorporating efforts of voluntary agencies and community groups
in the programmes;

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extension of research and development activities to field projects to

demonstrate positive results;
2.10 Role of Public Sector
Public housing agencies should lay emphasis on facilitating and
promoting housing through development of infrastructure facilities
affecting the level and pattern of activity in private sector to meet the
demands of the current situation. The site and services programme suited
for least advantaged sections of the societies should be an important
element of public housing in urban areas, while in rural areas emphasis
should be on facilitating self help and provide resources mainly in the
form of building materials. Absolute external subsidies in urban social
housing schemes should be generally avoided. Institutional procedures
should be streamlined to ensure that intended beneficiaries, receive the
largest possible share of resources and benefits.
2.11 Role of Private Sector and Cooperatives
Due to absence of institutional frame work, the greater part of the
private investment generally caters only to the needs of middle and upper
income families. To stimulate investment local authorities should make
available developed land at suitable locations having transportation links,
to private individuals and co-operative societies, make institutional
finances available for undertaking housing development for lower income
groups. Incentives and tax exemption can be given for savings for
purpose of acquiring house, for investment in shares and deposits of
recognized housing finance institutions etc. Stress should be on small
loans to modest houses for the economically disadvantaged groups.
2.12 Investment in Housing
Housing demands special financial requirements which are not
always met due to speculation, rapid inflation and lack of appropriate
means and institutions. Special financial institutions with adequate means
are necessary to meet the requirements. The construction programme
and the utilization of resources should reflect the income pattern of the
society. The type and quantum of housing development for each income
group should be in proportion to the percentage of household within that
income group and within their paying capacity. This approach would
obviate the need for large scale subsidies. Some public sector investment
in middle and high income housing schemes is unavoidable, to make the
programme financially viable but it should be kept to minimum. Middle

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and higher income group housing should be undertaken on self financing

basis.
2.13 Building Materials
A major impediment to the execution of shelter programmes is the
scarcity of various building materials, their unreliable supply and
increasing cost affecting costs and time schedules of housing projects.
Proposals for utilizing public funds for housing should be linked up with a
programme of building materials productions. Incentives extended to
industries in general should be extended to industries concerned with
production of building materials.

2.14 Standards and Standardisation

The seriousness and realism of any Government commitment to its
social objectives are reflected in the standards it sets for shelter,
infrastructure and services. Realistic standards compatible with the
affordability of population and yet keeping the environmental quality at an
acceptable level are a key to the success of a Housing strategy.
2.15 Streamlining of Procedures
Housing cost are a composite of the cost of land, utilities and
shelter. A hidden cost is the cost of delivery. To reduce incidence of
overheads and cost of loan servicing, an effective extension mechanism
should be introduced to evaluate existing organizational structures and
regulate existing procedures and practices. Streamlining of existing
organizational structures will help in elimination of irritant procedures
coming in way of speedy delivery of housing services.
2.16 Pricing
The inherent deficiencies in a system of subsidized Housing activity
can result in drying up of housing funds. Hence, social housing schemes
should be designed to be within the paying capacity of the target group.
Absolute external subsidies, where unavoidable should be in the form of
infrastructural facilities so as not to create a large differences between
the market value and the subsidized price tempting the beneficiary to sell
out the plot/house. Even a low rate of interest on finance for low income

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groups can be avoided by increasing the repayment periods, instead

monthly instalments remaining the same.
2.17 Housing Organisations and Management
There should be institutions at National, District and local levels of
Government, responsible for the implementation of Housing policy and
strategy. Institutions should be restructured to be more relevant to
community needs and changing social pattens, legislation, administrative
procedures and fiscal arrangements. The management and maintenance
of housing projects is essential process of housing development.
2.18 Community Organisation and Development of Voluntary
Agencies
In rural areas local involvement and participation in construction of
houses or provision of house sites suited to the needs of the local
inhabitants is necessary. The village administrative system should be
strengthened for this purpose. The rural housing programme should be
essentially in the nature of an aided self-help programme. Hiring of
contractors to building houses must be discouraged and assistance in the
form of cash for building houses should be avoided. Provisions of building
materials to be procured under local conditions would be the best form of
assistance for aided self-help houses. Voluntary agencies can play a
significant role in the rural housing sector. All efforts to identify genuine
agencies and extending assistance to strengthen them is necessary.
2.19 Conservation of Existing Housing Stock
Repairs and renewals is as much an element in housing as new
construction. A repair programme is cheaper than new construction, in
terms of direct investment in housing and amenities. Special repairs and
reconstruction agencies should be established as corporate bodies
capable of raising institutional finance. Pending establishment of such
bodies some of the existing agencies should be entrusted with this aspect
of the housing problem.
2.20 Appropriate Technology
The development of research capabilities and the acquisition and
dissemination of knowledge and information on housing and urban
development should receive high priority as an integral part of a housing
strategy. The role of effective extension mechanism to demonstrate new
techniques to the users in urban and rural areas is important. This calls

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for joint/co-ordinated science and technology programme from the stage

of identification of S&T programmes, planning its structure and contents,
provision for feed-back and feed-in of information, monitoring and review
of the progress, provision for field trials and evaluation, followed by
recommendations for follow-up action by the extension and user
agencies. Extension programmes should also cover building materials
industry.
2.21 Monitoring, Feed Back and Review
The National and local Government have to monitor the information
on implementation of housing programmes.
A separate cell of
programme management responsible for monitoring, reviewing and feed
back should be set up in the Department of Urban Development and
housing, local bodies and special housing agencies to monitor
programmes and evaluate against basic targets/objectives, conduct
periodic feed back studies of selected projects and review programmes in
their scope and content.

2.23 Sites and Services Approach

It will be desirable to facilitate self-help housing by public agencies.
Shelter supply option in the form of serviced sites and upgradation of
slums should be made available. Supply of developed land in the form of
serviced sites and provision of land tenure to slum dwellers with full cost
recovery can be the key to shift public investment from subsided high unit
cost housing construction programmes,
halting slum growth and
subsequently reducing the absolute number of household in slums,
shifting private capital into the production of legal affordable shelter for
low income families.
Affordability and full cost recovery should be the underlying
principle that can be achieved by adopting functional standards for
spaces, (plot sizes, road widths and open spaces), engineering design
(water supply road crust thickness etc.) and rationalizing site layouts for
location and amenity pricing (differential pricing) of plots for different
income groups, developed land with core houses can be
leased to
cooperative societies of the beneficiaries.
2.24 Slum upgradation
The principal objective should be to provide environmentally
acceptable and legal shelters to slums households by improving public
health through adequate and spatially well distributed water supply,

17

sanitary facilities, storm water drainage and receptacles for collection of

solid waste, improving physical access and circulation within the slum,
street lighting, facilitating investment in shelter improvements by
granting security of land tenure, improving maintenance of environmental
facilities by devolving the responsibility of maintenance of cooperatives of
slum household; and improving access to basic social facilities by
providing multi-purpose community centers.
It is desirable to adopt in-situ upgradation of slums to reduce
displacement of slum population. Granting land tenure to slum dwellers
in upgradation programmes can speed up the process of transforming
slums into environmentally acceptable housing stock. The slum dwellers
cooperatives could undertake redevelopment as and when they can
afford.
2.25 Urban Renewal
Urban Renewal is a suitable option which not only provides safe
housing and improved environment in large areas but enables recycling of
derelict land and buildings for new activities and can attract private
investment.
Such schemes can be undertaken by:
establishment of a framework for promoting land assembly by
private land owners in the area identified for renewal,
preparation of redevelopment programme by allowing
appropriate changes in the existing land uses to bring about
distinct environmental improvements by offering FSI, set backs
and density relaxations to allow for such land use changes,
equity participation of the tenants staying in old buildings who
could choose to become owners of replaced tenements or sell
their equity at a premium if they decide to move away,
equity participation of owners of properties who would benefit
from the sale of additional space generated in the programme at
rates increased due to renewal.
Equity participation by tenants and owners in renewal of large areas
or individual buildings could be translated into an institutional mechanism
that can bring in professional management and financial resources from
capital market. One alternative could be to set up an Urban Renewal
Mutual Fund.

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3.

THIMPHU : HOUSING AND SHELTER PLAN

3.01 Housing and Shelter Plan for Thimphu

The purpose of this Housing and Shelter Plan is to set forth the city's
framework for the provision of affordable housing to all the citizens and to
lay down guidelines for residential development.
Four major factors have influenced the development of the shelter
Plan:
(i)

The limited amount of developable land available for

residential use due to the topographical and environmental
constraints in Thimphu,

(ii)

great scarcity of affordable residential units, particularly for

the lower income groups and new young settlers in the city,

(iii)

high cost of construction and little access to finance for new

housing, and

(iv)

the desirability of workers to live in close proximity to their

places of employment.

The major thrust of an affordable Shelter Plan for the city should therefore
be:
Preservation of the existing supply of affordable housing units in the
City which primarily serve households with incomes at or below the
median income.
Development of new affordable housing opportunities for
households who live and work in the City and who have incomes at
or below the median income.
3.02 Community Profile
Thirty years ago, the City was a simple community composed of
homogeneous middle class families. Today, the City can claim to be the
most affluent urban centre of the country. Yet, the number of City
residents ( particularly foreign immigrants) living in poverty, the
complexity of problems they face, and the need for affordable housing

19

even for the resident nationals, has increased significantly over the last
30 years.
3.03 Population Characteristics
3.04 Age & Sex Composition
3.05 Racial and Ethnic Composition & Location
The racial and ethnic makeup of the community has also changed
dramatically over the past 30 years. Since 1970, significant increases
have occurred in the number of ethnic minorities (immigrants) living in
the City. Minorities represent
% of the total population but account
for
% of the low-income population. Thus, they comprise a greater
than proportional percentage of the City's low-income households and
are disproportionately affected by lack of affordable housing and
concentrated mostly in "Bagos" in areas like Changzemtog and
Langjophakha (1990).Unless the ethnic local population is attracted
towards learning of those skills provided by the immigrants, dependence
on immigrant labour may continue. The immigrants will therefore
continue to look for cheap rental accomodation.
3.06 Income
The City ranks highest among the urban centres in median family
income. Yet, the number of residents living below the median income level
in 1990 ( Nu.
) increased by
percent. The City's overall poverty
rate rose from
to
percent between 1980 and 1990.
3.07 Analysis
These demographic changes have several implications for local
housing needs. These include the following:
The issue of housing affordability takes on greater importance as
the proportion of the City's population with less than median income
level increases.
Minority residents of the City are disproportionately affected by the
lack of affordable housing and its concentration in a few locations.
The need to monitor development of these concentrations
increases to avoid "pockets of poverty."
Because they live on fixed incomes, older residents may have less
disposable income to spend on home maintenance and repairs, and
may be more burdened with property taxes.

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3.08 Housing Affordability/Willingness to Pay

House hold income and expenditure surveys in some Asian
countries indicate that housing can be considered as affordable when
households pay no more than 30% of their gross income for shelter, as
rent or installment for purchase of a house. Acute scarcity of shelter
availability could make a family "willing" to pay more for housing reducing
expenditure on other essential items like food, resulting in health hazards.
. The cost of rental/sale housing available in the City has become so high
that it has made housing inaccessible to many people. Tables below
illustrate this.
Table
Affordability - Rental
Occupation

Monthly Income Affordable Rent

Average city rent

Employed
(Govt)
Employed
(Private)
Business
Industry
Dly Labour
Table
Affordability-Homeowners
Price

Type
Yearly Income

Average

Large House
Small House
Row house
Apartment
Tables indicate that Residents need an annual income of Nu.
to
rent/ buy an apartment and an annual income of Nu.
or more
to rent/ buy a two bedroom detached house, taking 30% of income as the
affordability limit.

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Housing Needs: Current Needs and Future Projections

3.09 Current Gaps
There are significant shortages in the supply of affordable housing
according to 1990 data.
There was a gap of
units of housing affordable to extremely
low-income renters in 1990. (Extremely low-income: Nu.
p.m. for a
family of five .)There were no affordable homes available for them. They
were paying more than 30 percent of their income for housing.
There was a gap of
units of affordable housing available to lowincome renters in 1990. (Low-Income: Nu.
p.m. for a family of five )
There were no affordable homes available for them.They were paying
more than 30 percent of their income for housing in 1990.
There were
affordable homes for moderate-income owners.
(Moderate-Income: Nu.
p.m.for a family of five ). Hence
% of the
City's moderate income homeowners were paying more than 30% of their
income for their housing.
3.10 Projections
From past trends and the data provided by the 1990 Census, a
number of clues are evident as to the trends in the City's population and
housing market. It is estimated that about 350 new housing units will be
required every year for the next 5 years in Thimphu to take care of the
demand for new housing.
---------- percent of all households in the City were low-income in
1990.The number of persons living in poverty increased by almost
percent between 1980 and 1990.
The City's housing stock is among the oldest and the most
expensive . While there may be some redevelopment and new
development over the next five years, it is unlikely that the situation will
change significantly, given the fact that at the current low density
development, the City has very little developable vacant land.
If the forgoing trends continue over the next five years, minorities
will continue to suffer as the housing available to them continues to age
and increase in cost. These market and demographic factors indicate that
attention over the next five years should be directed to:
i)

Squatter area up gradation programs for the lowest income

households,

22

ii)

site and services programs for existing squatter colonies,

iii)

rehabilitation of the existing old housing stock,

iv)

improving access to finance for homebuilders and private

builders,

v)

low rise high density development of 3-4 storied walk ups

nearer to city centre,

vi)

assessment of all new residential development to identify

specific affordable housing development opportunities.

3.11 Housing for People with Special Needs

Older adults, people with disabilities, single parents, unmarried
males/females and youth are those among the population that have
special housing needs. The city housing strategy should strive to provide
a range of housing options for them, preferably in low rise high density
housing nearer the city centre so as to be within easy reach of work,
childcare and health facilities. Families living in substandard housing, in
overcrowded conditions and low-income families who spend a
disproportionate amount of their household income on shelter are also in
need of similar low rise high density housing near to the centre of the city.
3.12 Affordable Housing Strategy
This Shelter Strategy is designed to establish benchmarks and
propose mechanisms to enable the City to achieve its housing goals. It
should be the policy of the City to promote, develop, and preserve
housing affordable to low- and moderate-income residents, including
young families, older adults, people with disabilities, single parents, and
other residents of modest means. The City should seek to provide
residents with safe and sanitary housing and facilitate diversity of
housing types and costs.
The Shelter Strategy should envision a City that promotes safe, fair
and affordable housing opportunities which will maintain the unique
character of the City and its culture.
This Shelter Strategy should be articulated in the City plans. The
Structure Plan - a blue print to guide the City's policy on land use
implementation - should meet the housing needs of its current and future
population by encouraging a variety and mix of housing types and price
levels, which will be integrated with and complement existing

23

neighborhoods, as well as integrated into new areas to be designated for

mixed-uses. Existing housing should be preserved and fair housing
opportunities should be promoted.
The Structure Plan is a community blueprint for meeting the housing
and community development goals of Thimphu. The Plan provides
information on which to develop public policy, offers an action plan for
future efforts and serves as an instrument for application of city funds. It
should include the following strategies to achieve the City's Shelter Policy
goals:
Encourage the preservation and production of affordable housing,
particularly for low-income households.
Pursue interministerial cooperation in the national Government
towards fulfilling National Housing Policy Goals to promote
affordable and fair housing opportunities.
Promote innovative (planning-Architectural-Engineering) solutions to
increase access to shelter for all.
Address supportive service needs of families and individuals,
elderly households, and special needs populations.
Rehabilitate aging and deteriorated housing stock and address
issues of overcrowding and substandard housing development.
Minimize involuntary displacement of population.
3.13 Legal Authority
The authority for an affordable housing strategy will be derived from
the National Housing Policy which will empower the city Corporation to
engage in or assist in development or operation of housing for all its
citizens. In addition, Section ---- of the Bhutan Municipal Act 1999, gives
the City certain powers relative to community development and housing
for low and moderate income households. The City is authorized, in
carrying out these powers to use City, State or private funds.
3.14 Purpose
The purpose of this plan is:
i)

To define affordable housing for the City of Thimphu

24

ii)

To establish goals and set forth strategies for the preservation

and development of affordable housing;

iii)

To define the roles to be played by the public sector, the

private developers and non-profit organizations concerned
with housing.

iv)

The goals and strategies contained in this plan shall be

periodically updated to reflect current and projected
information.

3.15 Definition of Affordability

The definition of affordable housing is, housing that a household can
afford without paying more than 30% of income for rent or mortgage
payments. The application of the affordable housing definition for the
income groups covered by this plan is as follows:
Extremely low-income ( up to 50% of the median income for the
Thimphu Capital Region): Households in this income range could be
eligible for subsidized rental housing which allows them to pay no
more than 30% of their income. Without a rent subsidy, households
at 50% of median (currently Nu. --------- ) can afford market rate
rental units at or below Nu.
per month.
Alternatively they can be eligible for environmental up gradation
capital cost subsidy resulting in their shelter environs meeting the
minimum environmental standards; the maintenance cost of which
should be recoverable from them by way of service taxes.
Low-income ( from 50% to median income): Households in this
income range should also be eligible for subsidized rental housing
which allows them to pay no more than 30% of income. Without
rent subsidy, households at 50% of median (currently Nu.
)
can afford market rate rental units at or below Nu.
per
month.
Alternatively they can be given access to low interest rate finance
for shelter improvements on full cost recovery basis and capital cost
subsidized environmental improvements with taxes charged for
maintenance of services.
Moderate-Income or median income: Households in this range
(currently Nu.
) can afford rents of Nu.
per month.
This income group may be able to afford to purchase units priced at
or below Nu.
.For such households "sites and Services"
projects could be undertaken on full cast recovery basis subject to

25

the cost of the "Core Units" or the basic unit being priced within
their paying capacity.
Middle-Income( up to 50% above median income): This income
range ( Nu.
to Nu.
) can afford rents of Nu.
or
more. Most of the City's current rental units are at or above these
levels. This group can also afford to purchase units priced as much
as Nu.
. For these Households a low rise high density
housing program (Row housing, Apartments etc.) should be
undertaken in partnership with private developers on full cost
recovery basis.
Upper Middle Income: For this group the city can make available
Govt. land on long lease so that plotted development for small
detached or Row houses can be undertaken with participation of
private developers and mortgage financing from banks or
specialized Housing Finance Institutions.
Upper Income: The private developers or "Saving and Credit"
societies of these groups should be allowed to develop bungalow
plots/ houses with infrastructure services made available by the city
on full cost recovery basis.
3.16 Affordable Housing Objectives and Related Policies
The market and demographic factors identified in the Community
Profile suggest that over the next five years attention should be directed
to; programs such as rental assistance and tax relief that will reduce the
burden of housing costs for low-income households,
rehabilitation
programs for existing single and multifamily housing, supportive housing
for special needs population, assessment of all new development to
identify specific housing development opportunities, and addition of
affordable units to the City's permanent housing stock.
3.17 Objective: Ensure that the City's policies and regulations
are consistent with and promote the City's affordable
housing goals.
The Structure Plan should strive to meet the needs of all people
who live, work and do business here. To achieve the overall future vision
for Thimpu, the City administration must create an atmosphere
conducive to creation, expansion and preservation of affordable housing.
The objectives will be :
To implement strategies to address negative effects of existing
policies identified as barriers to affordable housing.

26

To develop policies and

affordable housing needs

initiatives

that

specifically

address

To encourage inclusion of moderate cost residential units in mixeduse developments in the City Centre
To achieve these objectives the City Administration shall,
establish a housing trust fund to provide a reliable source of funding
to help finance the provision of affordable housing,
consider committing its resources to affordable housing on an
annual basis as a component of the budget process (i.e. an annual
allocation to a housing trust fund),
seek voluntary financial contributions for affordable housing from
community entities such as religious and, service organizations,
foundations,
employers,
financial
institutions,
business
organizations, foundations and individuals and adopt a standard of
?
per square foot on all new commercial and/or residential
development as the basis for voluntary contributions to housing
trust fund,
design programs and solicit the participation of private developers
and financial institutions in the provision of affordable housing and
support public-private partnerships that provide affordable housing,
modify land use regulations and permit processes that make project
approval quick, higher densities achievable and minimize the time
taken to process residential land use and building permits, through
an ongoing review of the process and the adoption of a more
efficient regulatory and permitting process,
conduct periodic reviews of existing land development regulations
and consider, before adoption those policies, procedures,
ordinances, regulations, or plan provisions that have an impact on
the cost of housing,
maintain the definition of affordable housing in the Zoning
Ordinance for the
purpose of identifying affordable housing projects that are eligible
for design (low rise high density terraced housing) and financial
incentives,
examine any sale or transfer of City property to identify affordable
housing development opportunities,

27

consider, over time, reductions to minimum residential parking

requirements for housing located along the proposed mass transit
corridor
encourage and support housing development by the private sector,
the public sector and housing developers, encouraging employers
located within the City to develop employer-assisted housing
programs,
survey vacant or underused City lands and real property at intervals
no greater than three years to determine which land can be
declared surplus land available to stimulate the development of
affordable housing,
adopt an affordable dwelling unit regulation that applies to
developments which yields, 50 (?) or more dwelling units at a
density greater than
?
per acre to negotiate for mandatory
provision of affordable housing units in such development,
encourage equity in the geographical distribution of assisted
housing by targeting resources to development sites that are widely
distributed throughout the city,
design a mix of housing programs that make available some
resources to all household types by a built-in cross subsidy concept.
3.18 Rental Housing
This section addresses the goals and strategies for publicly assisted
and private market rental housing. Publicly assisted rental housing may
include low-income housing with or without State subsidy; privatelyowned units with or without State rent subsidy; privately owned units
and locally-financed housing units. Private market rental housing includes
privately owned below market rate units, units in private market, new
construction and rehabilitation projects.
3.19 Objective: Encourage preservation of the City's existing
affordable rental housing stock.
Of the ? multifamily rental units in the City, % are subsidized
through state programs. The 1990 census identified a total of ?
extremely low- and low-income households and only ? affordable rental
units to house the households in that income category. The City must
maintain the current subsidized units in order to avoid a widening of the
affordable housing gap for extremely low- to moderate-income
households. The objectives will be:

28

To maintain the current stock of publicly-assisted rental housing in

the
City ( ? units) by encouraging residents and owners to
maintain their properties.
To achieve these objectives the city administration shall:
purpose a plan for the operation and maintenance of units of
publicly assisted housing through the year 2020. The plan should
address financial resources, operating and capital needs and
expenses, and proposals for future use of those properties,
work with the Department of Urban Development and Housing
and and owners of privately owned rental property to maintain
those units in the market by assisting owners in making repairs to
properties which provide affordable housing and help them
undertake property improvement programs,
encourage production of rental units with 2 or more bedrooms with
state housing subsidies, when available,
increase the availability of additional forms of affordable housing,
such as working singles hostels
3.20 Objective: Encourage a mix of residential housing types that
enhance the Urban character of the City.
The City's Structure Plan envisions that it will remain attractive to
a wide range of family types, cultures, and generations, including singleperson households, those with children, and citizens in retirement,
embracing the City's varied ethnic and cultural diversity. A diverse
housing stock will provide opportunities to all income levels and family
types. The established housing stock will be complemented by new
housing, harmonious in scale to the existing neighborhoods. This will also
include innovative low rise high density terrace housing designs in the city
centre to enhance the Urban Design of the core and lend it a special
character. To achieve this goal the city shall:
encourage developers of new construction projects to provide a mix
of units sized for elderly, small and large households. The majority
of the units should have two or more bedrooms, where possible,
encourage the construction of mixed-use developments that allow
multifamily residential and office or retail uses on the same site in
areas designated for mixed-use in the Structure Plan,

29

provide an economic mix by having affordable rental units in

tandem with development projects (new construction and
substantial rehabilitation) in the City,
support the renovation of existing underutilized upper floor space
and the creation of upper floor space within new buildings in the
City's commercial areas for use as apartments and encourage walk
up apartments for single persons and small families,
give first priority to families with at least one member who works
within the mixed use development, in units associated with mixed
use developments subsidized by the City.
3.21 Free Sale Housing
Free sale housing, for the purpose of this plan, is defined as housing
with an effective sale price, equal to or greater than the level affordable
by a middle income household with housing costs limited to 30% of
income.
Objective: Provide home ownership opportunities for
households with incomes at or above (up to 50%) median income
for the Thimphu Capital Region
Home ownership initiatives should be designed to produce a high
home ownership rate for the city by the year 2020. Lower interest rates
and easy access to finance can make home ownership an option for more
moderate income families. With increased home ownership, home owners
may, get more involved in local community organizations, maintain their
property at a higher standard, and move less frequently. Thimpu has a
home ownership rate of ? % among persons aged 35 and younger. For
this purpose the city shall:
make home ownership more affordable and the home buying
process more accessible to minorities and moderate-income
households,
raise awareness that home ownership is an achievable goal for
moderate- income households in Thimphu,
provide purchase subsidies as a means of providing affordable
housing in conjunction with development projects,
devise regulations to keep sales units provided under this policy
affordable upon resale,

30

work with financial institutions

and the State Housing
Finance Authority to find and promote solutions to barriers in the
real estate finance process that inhibit the development of modest
single-family houses and condominium projects,
reserve the right to place a deed of restrictive covenants against an
affordable housing unit,
work with the State Housing Finance Authority to pursue the use of
tax exempt financing to provide mortgages at below market interest
rates to first time homebuyers.
3.22 Owner Occupied Housing
This section addresses the goals and strategies for single family
housing that is currently occupied by low- to moderate-income
homeowners.
3.23 Objective:
Encourage the creative preservation and
rehabilitation of owner-occupied housing affordable to lowand moderate-income persons.
The 1990 census reported that almost one-third of the City's
housing was built prior to ? . Approximately 75% of the City's housing
stock was built in or before ? The City defines "substandard units" as
structures that do not meet minimum standards These standards are
based on basic plumbing facilities, light, heating, ventilation, sanitary
maintenance, weather proofing, water proofing, Using this definition, the
City had ? rental units and ? owner units that were substandard in
? According to the City's Assessor, all but a few of these substandard
units are suitable for rehabilitation. Therefore, the city shall:
develop a system for identifying deteriorating housing and requiring
and assisting owners to make necessary repairs,
encourage residents and owners to maintain their properties and
develop housing rehabilitation assistance options for owneroccupants,
develop a rehabilitation, home maintenance and repair loan and
grant programs using state and/or local resources to assist low and
moderate income homeowners,
survey housing conditions city-wide as necessary or in selected
areas at intervals of no greater than 5 years, prior to and in
coordination with the five year update of the City's Structure Plan,

31

consider opportunities for the development of modest, single-family

homes on small lots as well as strategically located vacant plots,
encourage home sharing and dividing existing large homes into two
or more units.
3.24 Housing for special needs populations
This section addresses the objectives and strategies for older adults,
people with disabilities and youth who are among the populations that
have specialized housing needs. The City will strive to provide residential
services to people with special needs so that there is a range of housing
options from rental accommodation in hostels to self-contained
residential houses/apartments.
3.25 Objective :
populations.

to create supportive housing for special needs

There are currently no City-sponsored programs or facilities in the

City for persons with mental illness, single parent/unmarried persons
requiring small compact one bed room accommodation near the city
centre.
The City should seek to promote partnership with nonprofit
institutions, N.G.O.s etc. to develop affordable housing and residential
programs for these populations. There is also a lack of housing that meets
the needs of senior citizens in terms of access and affordability. Singlefamily dwelling units with master bedroom suites on the first floor in Row
Houses are one option for providing accessibility to seniors. The City
should continue to seek these types of facilities along with more
affordable assisted living facilities. Towards this end the city shall:
encourage the creation of supportive and accessible housing for
persons
with
disabilities
and
senior
citizens,
single
parents/unmarried persons.and utilize state monies for programs,
such as working men/women's hostels etc,
allow and encourage a range of housing types for the elderly
throughout the city in order to give the elderly an opportunity to
remain in their own neighborhood as their housing needs change,
encourage housing types and designs which enable the concept of a
growing house by way of horizontal or vertical expansion,
allow higher residential development densities in moderate density
multifamily zones for housing limited to occupancy by low-income

32

elderly and disabled households, based on the lower traffic and

parking impacts this type of housing generates,
develop a continuum of housing opportunities, ranging from
emergency shelters to transitional housing to permanent housing,
conduct periodic reviews, and amend as necessary, all land and
housing development regulations to ensure accessibility to housing
for all.
3.26 Objective: Provision of equal housing opportunities in the
City. --- ( ?? )
An analysis of impediments to fair housing indicates that the
problems facing low-income households in Thimphu present a higher
burden for minorities than for locals, since minorities comprise a greater
than proportional percentage of the City's low-income households.
It shall therefore be the policy of the City to provide for fair housing
throughout the City to all persons, regardless of race, religion, national
origin, and to that end to prohibit discriminatory practices with respect to
residential housing by any person or group of persons, in order that the
peace, health, safety, prosperity, and general welfare of all the
inhabitants of the City may be protected and insured.
In order to prevent over concentration of low-cost housing, the City
may use public funds to provide subsidized housing units in otherwise
market-rate housing developments.
3.27 The Municipal Role
The Bhutan Municipal Act has described municipal governments major
responsibilities as regulation, taxation, infrastructure, program delivery,
needs evaluation, facilitation, or financial support.
Thimpu Municipal Corporation has an important regulatory role to
play in housing. Land use regulation, including zoning, interacts with
market forces to determine housing type and price. The land use role is
also a broad planning tool, particularly in areas of new urban growth.
Regulation affects the cost of housing. Tools such as inclusionary zoning
or bonus zoning can be used as incentives for private developers to
provide more affordable housing. Development standards and the land
use approval process also impose costs on developers. Land use powers
can be used to encourage a mix of housing types in areas of new
development. Property standards can be used to regulate the
maintenance and repair of rental housing, to ensure quality of life for

33

people living there and also to safeguard the physical quality and amenity
of the neighbourhoods and the value of nearby properties.
Local taxation affects the affordability of housing. The inequitable
property tax burden paid by rental housing vis--vis home owners can be
redressed and development charges can be kept low for moderatelypriced units. Municipal decisions on hard infrastructure such as roads,
transit, water and sewers largely determine the availability of land for
development or redevelopment. Direct delivery of housing will enable the
municipal corporation to use state programs to meet community needs.
The municipal corporation is best placed to undertake housing needs
assessments to identify the required housing types and facilitate
community partnerships in meeting housing needs. Leasing municipal
land or buildings for housing at low cost, tax concessions and/or
favourable policies on levies and development charges can provide
municipal financial support for the affordable housing programme.
In sum the municipal corporation can play a significant role in
affordable housing.
3.28 Shelter Options
The housing shortage in Thimpu has been placed at
dwelling
units and projected to increase by 350 units per annum. As against
this, the present rate of supply is ______ units per annum (or _______
percent of the total demand). The housing problem has been getting
worse in regard to both the supply and the deterioration of existing stock.
To be effective, the citys housing programme has to be in line with
its income level. Since the resources for creating new houses are very
limited and are unlikely to increase in near future, it worthwhile
prolonging the life of the existing housing stock as it is cheaper than
providing new housing? For this purpose, the city should undertake
studies to collect data on housing which needs improvement and also
evaluate the advantages and drawbacks of repair operations. Problems
relating to the renewal of old housing stock are not entirely of an
engineering nature. There are certain legislative and administrative
directives, which discourage repairs of old buildings.
It would be
necessary to modify the existing laws and procedures to help, improve the
maintenance of existing housing. The existing housing stock, thus can
continue to give shelter to a large number of families who would
otherwise require new houses.
Equally important is a view of housing in its wider perspective of the
living environment. In itself, Housing cannot be viewed as mere
construction of shelters but as a determinant of the texture and quality
of citys life. This objective can be achieved only by an imaginative

34

configuration of shelters and other facilities that lead to the creation of

the total environment for living.
3.29 Housing Concepts
The concepts of housing are conditioned by the culture, social and
economic background, upbringing, habits and values of the people. What
is necessity for one, could be luxury for the other. It may be claimed that
the required minimum can be defined in terms of Biological and
Anthropometric considerations.
If resources for housing are meagre, and not adequate even to meet
the backlog, should these not be invested in creation of physical
infrastructure that can help and stimulate private and public saving and
investment in construction of houses? In most shelter programmes, land
and infrastructure constitute about 40% of the total costs. If public
housing agencies were to invest only in land and infrastructure they could
attract public participation and resources in the total effort.
Development of infrastructure facilities like making available
developed plots, providing social, health and cultural amenity buildings
and employment centers may be a more prudent way of investing than
direct construction of houses. It is in fact possible to do so, particularly
for the poorest of the urban households in order to give them a security of
tenure and a healthy living environment.
Programmes like provision of sites and services, where only
developed sites can be made available in a healthy and congenial
environment, are of great relevance in this context. On such developed
sites, the urban poor can build make-shift shelters and improve upon
them in time if they are assured of good and well lighted roads, potable
water and sanitary conditions with open spaces and parks, health facilities
and teneur of land.
3.30 Housing Standards
A greater part of the success or failure in solving the problem of
housing will depend upon how realistically we fix standards for housing.
For the time being at least, it would be prudent to be satisfied with only
improving upon the existing conditions rather than fixing idealistic norms
which cannot be achieved and ultimately will result in building for a few
people and leave the majority in their present sorry state. The decisions
about housing standards cannot be taken at the level of the municipal
bye-laws but must form part of overall housing strategy. The author was
actively involved in formulating special guidelines for low income housing
in India. These guidelines, published by Indian Standards Institute in 1978

35

as I.B. 8888, are a landmark in evolving realistic standards for low income
housing in India.
3.31 High Rise Residential Development
High rise development in this context means residential blocks of
dwelling units having five or more storeyes. An important arguments in
favour of high-rise development is that , more intensive use of land results
in economy in the cost of land. In an urban area, land under residential
development does not normally exceed 60 per cent. Recent trends in
town planning have further reduced this percentage. For example, in
Hook, a new town between London and Southampton, which has the
highest design density amongst the new towns in England, the
percentage of land under residential use is only 35. In Tapiola, Finland,
the percentage of land under residential use is further reduced to 24.2 per
cent and the area under recreation is 55.9 perecent.
Clearly, new trends in town planning are laying more and more
emphasis on more land for recreation and uses other than residential use.
Though vertical development may result in reduction in cost of land, the
land under this particular use is at best only 50 percent of the total
developed land and hence it has to be examined as to how much
weightage should be given to this aspect.
3.32 Cost of Development and construction
Economy in cost of services can be effected in case of high rise
development. However, a high level of efficiency has to be guaranteed in
the functioning of all services like; the vertical movement, supply of
electricity, individual arrangements for storage and pumping of water,
which would all add towards its initial as well as maintenance cost and in
the ultimate analysis outweigh the advantages gained by way of initial
economy in the cost of overall development. Vertical development
beyond 5 storeys with the present day technology would mean adopting
of Reinforced Cement Concrete frame structures requiring two costly
building materials, - Steel and cement.
3.33 Density
The argument that vertical development can help people to be in
close proximity of their places of work is valid. However concentration of
people near work places through high density highrise development may
not be necessary in the context of the proposed structure plan of Thimpu
where a public transport system is envisaged as the spine of the city.
Higher densities can be achieved in low rise development as well.

36

TABLES
1.

Permanently inhabited dwellings

2.

Period of construction of dwellings

3.

Average age of dwellings (years)

4.

Size of dwellings (kitchen + no.of rooms)

5.

Gross floor area per apartment

6.

Living area per apartment

7.

Living area per person

8.

Persons per apartment

9.

Dwelling amenities
a)
b)
c)

running water
inside toilet
inside bathroom

10. Housing expenditure of households of employees living in rental

housing
11.

Average construction costs of a new flat as against annual net

household income

12.

Average costs per m2 in completed residential buildings

13.

Dwellings condemned each year.

37

4.

LAND AND FINANCE POLICIES

4.01 Urban Land Policy

The basic purpose of urban land policy is the supply of serviced
land
i)
ii)
iii)
iv)

in adequate quantity;
at the right locations;
at the right time; and
at the right price.

Public authorities can intervene indirectly in the market to curb

speculation and directly by making available increased volumes of
developed land. Instruments of indirect intervention are:
4.02 Property Tax and Betterment Levy
A well administered property tax can regulate the land market. If
properties are valued frequently, speculation will be dampened as
unrealized gains will get taxed, increasing supply of private vacant lands
at the right time and also raise revenue for the public authority. Public
investment in infrastructure causes appreciation in the value of land, that
accrues to the land owner as unearned income. Efforts have been made
world over to recoup such land value gains by charging a betterment tax
or levy.
4.03 Infrastructure Impact Fees & Development Charge
Inadequacy of tax revenues to finance capital investment in public
infrastructure has been a common problem even for American cities . The
American cities particularly in California have adopted a scheme of
infrastructure impact fee. In this policy the infrastructure impact of
proposed development is assessed and fees to recover such cost are
charged.
4.04 Urban Land Records and Approval Process
For the efficient operation of market oriented land policy
instruments; proper and up to date land records is a prerequisite.
Success of town planning schemes, land readjustment, guided land
development and transfer of development rights depend upon efficacy of

38

land records cadastres and cadastral maps.

Uncertainty fuels
undesirable speculation and land prices increase consequently.
A
tightening up of approval process of land development, clarity of rules
and predictability of approvals can reduce uncertainty and speculation.
4.05 Land Price Publication System
It is important that systematic data is collected to help in collection
of property taxes, capital gains taxes as well as wealth tax. Area wise data
in the city about the prices of land can be published by the
Government/Municipal Corporation which can form the basis for taxation
and other levies related to land values.
Instruments of direct intervention are:
4.06 Land Acquisition
The current pattern is for public authorities to notify large pieces of
land for acquisition on the periphery of the city. Land so notified may
often be acquired many years later and developed still later. The result is,
overall shortage of land accompanied by an unwarranted rise in prices.
The poor farmers whose lands are required are the net losers while the
largely better off urban settlers get the benefit of obtaining land at
effectively subsidized prices.
Large scale squatting can also result
because of public ownership of such lands. Hence, innovative schemes
need to be tried to speed up land development at low costs to the public
exchequer.
4.07 Announced Standard Price System
An alternative to land acquisition is predetermination of price for the
land to be acquired. A standard price is announced for each area in a
base year. Inflation adjustments can be announced every year along with
other real price rises that are observed occuring around the notified
areas. Land is then acquired only when it is needed at the prevailing
announced standard price. In such a system, the original landowners are
not exploited in favour of the better off subsequent urban dwellers, the
public authority has incentives (as well as pressures) to develop land early
in the face of increasing acquisition costs, and land prices get controlled
under some regular system of increases.
4.08 Land Readjustment

39

Land readjustment is a process in which a public authority

assembles numerous small parcels of raw land without initially paying
monetary compensation to the owners. It then develops it, and retains a
part (about 30%) for public uses like streets, drains, parks etc. and part
(about 20%) for sale to recover all the development costs incurred by it.
The rest, (50%) is returned to the owners in proportion to their original
contributions. Land readjustment is thus a temporary form of public
ownership to achieve orderly urban development over large areas and
find means of financing it. Such a scheme has many advantages. There
is no dislocation of original owners, the gains they make from the
remaining land more than offset their losses, large amounts of land can
be developed without initial capital finance, there is no locking of scarce
public capital, there are fewer legal disputes and land development is
speeded up.
It has been proved in Japan and South Korea, under
conditions of rapid urbanization, that it is a practicable procedure.
4.09 Town Planning schemes
The oldest method to bring about planned development by
reconstitution of large agricultural plots into serviced urban plots with
minimum of compulsory acquisition is the Town Planning Schemes as
practiced in India.
The basic rationale of TPS is that, with the
reconstitution of plots and provision of roads and open spaces the land
price considerably appreciates. The total value of the land therefore
increases even if some land is lost for roads and open spaces. The land
owners are therefore expected to join the scheme. The cost of the TPS is
to be financed by recouping 50% of the betterment which is defined as
the difference between the value of Final Plot after TPS implementation
and value of original plot before TPS implementation. The concept of
Town Planning Schemes is embodied in some of the state town planning
acts in India.
4.10 Summary
A review of various approaches to land policy in India and Asian
countries indicates that, heavy reliance on intervening in the land market
by empowering the state to make large scale compulsory land acquisition,
has not been particularly successful. The general approach to land policy
therefore has to be market oriented with a view to manage the land
resources in an efficient and equitable manner. In this regard, allocation
of development rights instead of compulsory acquisition of ownership
rights, could be used as an important instrument of land policy.
For market oriented land policy, information on ownership, prices,
zoning and other restrictions must be readily available. Computerisation

40

of cadastre and zoning and land use information therefore deserves high
priority.

F I N A N C E:
4.11 Land Banking
A State (or national) level land banking authority can be formed to
administer lands acquired under an enabling legal provision. It can float
debentures
to
finance
land
development
operations,
buy
developed/undeveloped sites, and plough back profits made from such
an activity. It can issue land based debentures linked to a specific piece
of land. When the land bank develops it, the investor can either cash
his debenture in the form of a piece of land or take cash plus a portion of
the land value increments that have occured. Thus, the land bank obtains
finance for development and investors can either obtain a safe return on
their investment or actually obtain serviced land for housing or other
purposes. The land bank can issue mortgage guarantees in respect of
mortgages held by other financial institutions and the guarantees can
themselves be used as collateral for further loans. This would help in
improving the availability of capital for housing purposes.
The idea is basically to use land as a financial resource in order to aid the
development of land for housing purposes and without major claim on the
public exchequer.
4.12 Housing Finance Company
A Housing and Urban Development Finance Company as a
Government-owned company can be established (on the Model of HUDCO
in India) to finance and undertake;
urban and rural housing
sites and services programmes
squatter upgradation
repairs and renovation of buildings
cooperative housing projects
city level infrastructure schemes
building materials projects
private developer projects
commercial and institutional projects.
The resources of the company can be derived from equity,
government guaranteed debentures, borrowing from financial institutions

41

and internal resources.

It should function as a techno-financial
development agency, and not just a lender of resources. The loans can
be given to housing agencies, development authorities and nongovernmental organization on terms geared to generate housing and
services within the affordable capacity of different income categories.
The lending terms should include parameters for:
all inclusive cost
ceilings on housing units,
graded scale of loan assitance, differential
interest rates, differential repayment period, and differential security
requirements
The terms should be revised periodically to take note of cost escalation
and differing programme needs of implementing agencies.
The policy of cross-subsidisation by such a financial institution
should have three components. Firstly, the rate of interest should be
charged on a progressive basis with reference to the income category and
ceiling cost, so that income from units for higher income groups and nonsubsidised purposes helps to subsidise the loss on account of lending to
lower income group housing. Secondly, the period of repayment should
be progressively reduced alongwith an increase in the income category or
cost of the house. The period can range from 20 years for low income
housing to 7 years for high income housing. The loan component can be
reduced with an increase in the income of the beneficiary, ranging from
90% for sites and services projects to 50% for the higher income group
housing.
4.13 Apex Housing Bank
A National Housing Bank could be established to transact all or any
of the following kinds of business:
a)
promoting, establishing or supporting housing finance
institutions;
b)
making of loans and advances and rendering other assistance
to banks and housing finance institutions;
c)
subscribing to or purchasing shares and debentures of private
development companies;
d)
guaranteeing the financial obligations of housing finance
institutions and regulating their working;
e)
formulating schemes for the purpose of mobilization of
resources and extension of credit for housing;
f)
coordinating with other financial institutions to raise
resources.
The operations of the National Housing Bank have to be consistent
with all aspects of National Housing Policy. It should concentrate on; the
mobilization of additional domestic resources for housing finance, larger

42

involvement of commercial banks in housing finance directly or indirectly,

promotion of base level financial institutions and removal of constraints to
housing activity.
4.14 Housing Fund
A Housing Fund could be established at the level of local Municipal
Authorities in the Urban Centres by:
a)
b)
c)
d)

making budgetary provisions in the Municipal Budget.

charging special housing fund contribution to all housing
development permissions;
allocating certain proportion of all fees charged for approval of
layouts, building permissions;
voluntary contributions from private institutions, organizations,
individuals or philanthropic institutions.

These funds must be specifically used for low income housing only with
a separate revenue and expenditure head in the municipal budget.
4.15 Housing Savings & Credit Bank
Support for housing saving to stimulate housing consumption can be
generated by such a Bank. Each citizen can deposit monthly or annually
a certain amount of savings to the housing saving bank. The state can
give a contribution equal to 25 per cent of the annually deposited sum of
money. After five to six years, credit equal in value to the savings can be
made is available at low rate of interest. These functions can also be
discharged by the State Bank by increasing accessibility to the scheme at
all urban centres.
4.16 Urban Renewal Mutual Fund
Such a fund can be established by equity participation of owners
and tenants of dilapidated properties for the specific objective of urban
renewal. The modalities of the fund need to be worked out in detail in
consultation with the municipal corporation, the State Bank and the
Government.

43

5.

MINIMUM PLANNING AND BUILDING STANDARDS

Implications of Standards
5.01 Density
Individual plotted development can be taken up in the conventional
methods of construction and self-help but will lead to low density. It is possible
to achieve considerably higher density in low rise development if row housing
with frontage upto 12.0 ft. is permitted and acceptable. The present standards
of 10/20 units per acre increase the cost of buildings by giving only 40% net
saleable area for residential use out of the total area.

5.02 Floor-Space-Index (FSI)

Low FSI will promote low rise buildings two/three-storeyed housing.
Higher FSI will result in high rise multi-storeyed construction.
If larger ground coverage is permitted in plotted development particularly
on small plots, it will effect economy in construction and self-help can be induced
using unskilled labour/local materials and conventional technology. Where low
ground coverage is provided, high rise construction may have to be resorted to.

5.03 Plot Sizes

If there is a restriction on plot sizes, it affects the overall density of
development and in turn the cost per dwelling unit. Low cost housing can be
achieved if smaller plots are permitted. Particularly the frontage affects the
length of services and a low frontage of even 12 ft. could be allowed to reduce
service costs.

5.04 Marginal Open Spaces and Set Backs

If set back/open space is required on 3-4 sides of the dwelling, it reduces
the ground coverage/built-up area and results in low density and more number
of storeys. If the set back is restricted only in front and rear, higher density in
row housing can be achieved which will reduce the cost of construction by
having common walls etc.
It is relevant to point out here that in order to build at low cost, the use of
timber technology would be viable proposition. But in order to get over the
problems of fire hazard, it would be necessary to build such houses as
independent units in each lot. In such cases the requirements of side set backs
could be reduced to 30 on either side in each lot so as to restrict the cost of
services.

44

5.05 Open Space Requirements

Higher provision of open spaces will affect the density and will result in
higher per dwelling units cost. It will also increase cost of maintenance. There
should be just adequate provision for creating acceptable living environment.
The standards for open spaces could be reduced by allowing multiple use of
space.

5.06 Room sizes

Room sizes should be related to the functional utility of spaces. Smaller
sizes are more amenable to conventional systems of construction/self-help
construction or on-site small scale/partial prefabrication. Large room sizes may
reduce the utility of space and need more skilled technology of construction.

5.07 Room Heights

Providing larger room heights than scientifically needed for human living
comfort will involve higher costs.
It has been established by scientific
experimentation that reduction in room height in hot humid climate from 100
to 90 does not make appreciable difference to the comfort conditions.

5.08 Height of Buildings

Low-rise buildings can be constructed by conventional/unskilled
labour/self-help. High rise buildings will require more skilled technology of
construction and mechanical circulation systems and will also involve
provisions/maintenance of services.

5.09 Structural Requirements

Structural requirements per se need not be stipulated in building by-laws
and should be left to the discretion of designers depending on the availability/
quality of material. The building by-laws should therefore be performance
oriented and not specification oriented. If there are some restrictions on
structural provisions, it will prevent the use of new materials/construction
technology which help in reduction in cost of construction.

5.10 Model Building Standards

S-1. Type of Development : The type of development allowed should be
plotted development as row housing or flatted development as group
housing, not exceeding three storeys. In either case each individual
tenement, as a minimum, should have one room with an attached bathing
space and a cooking alcove.

45

S-2.

Plot Size : Minimum 25 square metres for plotted development.

S-3.

Frontage : Minimum four metres for plotted development.

S-4.

Marginal Open spaces:

Plotted Development

Flatted
Development

open

Plots themselves should

be
set
back
from
pathway by 1.0 metre.

3
metres
for
buildings with height
upto 10 metres

Side and rear

open
spaces
(minimum
distance
between
two
adjacent
buildings)

3 metres for habitable

rooms in three-storeyed
buildings

4.5
metres
habitable rooms

Front
space

for

1.5 metres for

toilets
S-5.

Size of Rooms:
a.
Habitable room
minimum 6.25 square metres in plotted development
minimum 9.5 square metres in case of flatted
development
minimum clear width of 2.5 metres in both the cases.
b.

Cooking alcove
2.5 square metres minimum clear usable area with a
width of 1.25 metres.

c.

Water-closet
1.10 square metres as minimum clear usable area with
7 metres clear width; and, WC pan of a minimum of 46
centimetres in length.
Shared WCs for up to a maximum of four tenements
should be allowed.
In the case of plotted development, a WC without
flushing cistern should be permitted if a septic-tank is
provided.

d.

Bathroom
1.2 square metres with a minimum clear width of 1
metre as individual bathing space.

46

e.

Combined toilet
Combined WC and bathroom should have clear usable
area of 1.85 square metres with a minimum clear width
of 1 metre.

S-6

Lighting and Ventilation : Total opening area through windows,

ventilators, grills etc. should be one-eighth of the room floor area.

S-7

Minimum Heights:
a Plinth
.
b
.

S-8

Habitable
Rooms

30 cms. From surrounding ground level

and in any case above the high-flood
level.

-with flat roof

:
-with
sloping :
roof

2.6 metres clear height

2.5 metres average height with minimum
2.0 metres at eaves.

c
.

Kitchen/cookin
g alcove

2.4 metres clear or average height

d
.

WC/bath

2.2 metres clear height

e
.

Corridor/passag :
e

2.1 metres clear height

Staircase:
a.
Common circulation area including staircase should not
exceed two square metres per tenement on any floor.
b.

Minimum dimensions for staircases should be as follows:

Number
Floors

of
Two

Type of Stairway
Clear
width
Tread

Three

Straight
Winding

usable 60 cm
cm

Straight
Winding
75

75 cm

90

22.5 cm; also 20 cm

25 cm
clear
between cm
perpends
if
open
riser,
nosing
or
inclined
riser
is

25

cm

47

provided
to
have
effective going of 22.5
cm
Riser

20 cm

maximum

12.5cm
minimum

Head room

S-9

2.1 clear

External Walls : 115 millimetres thick external walls without plaster

should be permitted.

S-10 Septic Tank : Septic tank should be provided where the municipal
services are likely to be available within four to five years or so.
Pour-flush water seal latrines (Neeri type) should be permitted
where the municipal sewerage system is not available and the
water-table in the area permits. Per capita liquid capacities of the
specific tanks should be provided as given in
Table A-1.
Table A-1 : PER CAPITA LIQUID CAPACITIES FOR SEPTIC TANK
No.of users
per Septic
Tank

5
10
200

No.of
Dwelling
Units

1
2
40

No.of WCs
per Septic
Tank

Per Capita Liquid

Capacity in
litres*

1
1
40

130
90
70

Note: The septic tank should be designed and constructed as per

Rule [76] of the Madhya Pradesh Bhumi Vikas Rules, 1984, by using
the per capita liquid capacities mentioned.
*Recommended by the Builders Association of India.
S-11 Layout of Plots and Buildings : In the subdivision of land for the
purpose of plotted development or for group housing in the form of

48

flatted development, the following land utilization indices should be

achieved.

a.

Land utilization as percentage of the layout area:

Land use

For layouts of
above 0.5
Hectare Area

For layouts of
less than 0.5
Hectare Area

Residential

60 to 65

65 to 70

Roads & pathways

Up to

20 to 25

Open space
- Compulsory common
Open space at one place

8 to 10
4 to 5

20

5
-

to 5

Commercial (on ground floor

only, abutting layout main
roads with a minimum setback of 3 metres)

Public amenities (day care,

school, health centre etc.
adjoining open space)

2 to 3

- Cluster-level open space

b.

Ancillary structures such as underground water-tank,

overhead tank, electric substations, common garages for
scooters and cars etc. should be permitted on the corner of
the compulsory open space of 500 square metres or more
area, only up to 10 per cent of the open space area and upto
maximum of 200 square metres.

c.

Special Requirements for Open Spaces

49

Community open space in the plotted development for

low-income groups should be spread as extended street
areas with the standard of 0.2 hectare per 1000
persons.

In the case of layouts above 0.5 hectare area and

having less than 5000 population, an open space of at
least 700 square metres should be provided at one
place, adjoining community facilities such as a nursery
school, community welfare centre etc.

In the case of layouts with more than 5000 population,

an open space of a minimum of 3000 square metres
should be provided at one place.

S-12 Residential Densities :

A.

The gross densities for different

developments should be as follows:
Type of Development

types

of

Gross
Density
Units/Hectare

Housing for Low Income Groups

:
Plotted development or sites
and services schemes

Minimum 110
Maximum 200

Plotted development in less

than 0.5 hectare layout area
and two-storeyed development

Maximum 225

Multi-family residential plots of

above 125 square metres area
with up to three storeyed
development.

Maximum 260

Housing for middle-and highincome groups :

residential

Dwelling

50

Plotted
development
and
group-housing blocks up to
three storeys and 50 per cent
plot coverage
b.

Maximum 360

The maximum gross densities mentioned may be reduced by the

concerned authorities to suit the urban context, and the
surrounding development as existing or proposed in the
development plan and the zoning plans.

S-13 Approach Road : Minimum widths of approach roads should be as

follows :
Type
Development

of Distance from Developme

a
nt
Other Road (m)
Main
Up to 10
10 to 20

Plan
or

Road

Above 20

Up to 11 plotted units

2.0

3.0

4.0

More than 11 plotted

units

4.5

5.5

6.0

Plotted development

5.5`

6.5

8.0

S-14 Layout Road:

a.

The minimum widths of layout road should be as follows:

Plotted Development
:
5.5 metres
Flatted Development
:
7.5 metres

b.

The minimum specified road widths should be developed

completely up to the plot boundaries by providing all the
required infrastructure networds: sidewalks, street lighting,
trees etc.

S-15 Pathways:

51

a.

b.

In the case of plotted development the widths of paved

pathways should be as follows :
Width of Pathway
(m)

Maximum
Length
(m)

Maximum No.of
plots to be served

1.5

20

2.0

32

3.0

52

12

The maximum length of paved pathway measured from the

layout road up to the farthest plot should in no case exceed
52 metres.

5.11 On site Slum Improvement and Rehabilitation Standards

S-16 The Type of Development : The type of development allowed should
be one or more rooms with an attached bathing space. These
dwellings may be either row housing up to two storeys or flatted
development of three storeys.
S-17 Plot Size :
Minimum plot size should be as exists on the site, equal to the
built-up area of the dwelling unit, but should not be less than
eight square metres per household after readjustment of the
excess plot areas wherever possible.
-

Maximum plot areas up to 50 square metres per household

should be permitted.

Plot of more than 50 square metres area should be used for

flatted development on the basis of minimum 25 square
metres plot area per tenement.

Refer Table 5.1 of this report for plot size requirements as per
the city size.

52

S-18 Plot Frontage : The minimum plot frontage should be 3.6 metres for
plots of 25 square metres and more area. But in general the plot
depth to width ratio should be as follows :
Plot size ranges (in
sq.m)
Plot depth to width ratio

8 to 24

25 to 50

1.0 to 1.6

1.5 to 2.0

S-19 Marginal Open Spaces

Plot size ranges
: 8 to 24
25 to 50
Above 50
(sq.m)
Front
open Plots
themselves The structure should be set-back
space:
should be set back from plot boundary by :
from the patyway by:

No.of floors
One
Two
Three

0.5 metre
1.25 metre
-

0.5 metre
1.25 metre
-

2.25 metre
Distance
between
two
structures of
three floor should
be a minimum
4.5 metres and
1.5 metres for
toilets

Side
space

open

Rear
space

open

2.0 metres

S-20 Size of Rooms :

a.
Habitable Room
Clear usable area should be a minimum of 6.25 square metres
in plotted development, with a minimum width of 2.5 metres.
Minimum dwelling unit size with one room of 6.25 square
metres would be 8 square metres built-up area which can be
equal to the plot size itself in a slum.
In the case of flatted development, minimum area of a
habitable room should be 9.5 square metres.
b.

Cooking alcove

53

It is not compulsory, but if provided, the cooking alcove

should have 1.85 square metres minimum clear usable area
with a width of 1.2 metres.
c.

Water closet
1.10 square metres as minimum clear usable area with one
metre clear width, and a WC pan of minimum 46 centimetres
in length. Shared WCs for up to maximum of six tenements
should be allowed but the preferable ratio is only four
tenements per WC.
The WCs should not have flushing
cisterns, if only septic-tanks are provided.

d.

Bathing place
An individual bathing place for women with 1.5 metre high
walls around a paved area open to sky and a door, with a
minimum clear usable area of 1.2 square metres and 1.0
metre width attached to the room should be allowed.

S-21 Lighting and Ventilation : The total opening area through windows,
ventilators, grills etc. should be one-tenth of the room floor area.
S-22 Minimum Heights :
a.
Pinth

b.

Habitable
rooms
-with flat roof
:
-with sloping :
roof

15 centimetres from surrounding

level and in any case above the high
floor level.

2.6 metres clear height

2.5 metres average height
minimum 2.0 metres at eaves.

with

c.

Cooking
alcove

2.4 metres clear or average height

d.

WC / bath

2.2 metres clear height

e.

Corridor/lobby

2.1 metres clear height

S-23 Staircase :
The minimum dimensions for staircases should be as follows:

54

Clear
width

usable :

60 centimetres for straight flight

75 centimetres for winding flight

Tread

22.5 centimetres effective going

with
20
centimetres
clear
between the perpends with either
open riser, inclined riser or
nosing

Riser

20 centimetres maximum and

12.5 centimetres minimum

Head room

2.1 metres clear

S-24 Circulation Corridor : In case of structures with two or three floors

having access through a common corridor, the minimum clear width
of the corridor should be 1.5 metres.
S-25 External Walls : 115 millimetres thick external walls without plaster
should be permitted.
S-26 Septic Tank : Common septic tanks for groups of WCs should be
provided where the municipal services are likely to be available
within four to five years or so, with capacities as given in the Table
B-1:
TABLE B.1 : PER CAPITA LIQUID CAPACITY OF SEPTIC TANKS
No.of Users per
Septic Tank

No.of
Dwelling
Units

No.of WCs
per Septic
Tank

Per Capita
Liquid Capacity
in litres*

5
20
40
60
80
200

1
4
8
12
16
40

1
1
2
3
4
10

130
90
85
80
75
70

Note : The design and construction of the septic tanks should be as per
the Rule [76] of the Madhya Pradesh Bhumi Vikas Rules, 1984, by using
the per capita liquid capacities mentioned.

Recommended by the Builders Association of India.

S-27 Residential Density :

55

a.

A minimum density of 110 dwelling units per hectare should

be attained after readjustment of plots sizes up to a maximum
50 square metres area during on-site rehabilitation.

b.

In the case of the rehabilitation exercise, which would enable

subdivision of the large plots to smaller plots of 25 square
metres or more, the maximum gross density should not
exceed 250 dwelling units per hectare.

c.

Where the existing densities are already more than 250

dwelling units per hectare, the existing densities should be
considered as the maximum permissible and in no case
should they be allowed to increase further.

S-28 Approach Lane :

a.

The minimum widths for approach lanes should be as follows:

Type
Development

of Distance from Development Plan Road or

Other City Road (m)
Up to 10
10 to 20
Above 20

Only ground floor

2.0

3.0

4.0

Ground
floor

3.0

4.5

4.5

b.

plus

one

In the case of rehabilitation schemes where a mix of ground

floor structures and ground plus one structures are to be
developed, the approach should be as specified for ground
plus one floor structures.

c.
In case the required minimum widths are not available, the
standards should be relaxed depending on site conditions.
S-29 Pathways : The minimum widths of paved pathways to be provided
in case of on-site rehabilitation of slums should be as follows :
Width of pathway :
(m)
Maximum
(m)

length :

0.9

1.2

1.5

2.0

2.5

3.0

10

20

35

50

100

S-30 Slum Upgradation:

Community extension workers of the concerned municipal
council/corporation, or non-government organizations, should encourage

56

slum co-operative groups to conduct upgrading programmes utilizing the

following frameworks :
S-31 Plot size
:
As indicated in the cadastral survey or as exists
on the site as a result of subdivision of large plots.
S-32 Size of Room
: It could be one full plot area but should not be
less than five square metres.
S-33 Lighting and Ventilation :
At least one window of one square
metres and one ventilator or grill of 0.25 square metres should be
provided.

S-34 Minimum Heights :

a. Plinth

b.

15 centimetres from the surrounding

ground level and in any case above highfloor level.

- with flat roof

:
- with slopping :
roof

2.6 metres clear height

2.5 metres average height with minimum
2.0 metres at eaves.

Habitable Rooms

S-35 Pathways :
The minimum widths of paved pathways to be
provided in case of slum upgradation should be as follows:
Width
of
(metres)

pathway :

0.
9

1.
2

1.5

2.0

2.
5

3.0

length :

10

20

35

50

100

Maximum
(metres)

S-36 Basic Amenities :

a.

Latrines
One WC of 1.1 square metres clear usable area for six
households, who would be responsible for its maintenance
should be avoided. A group of maximum four such latrines
should be located amongst the houses and not in a
segregated public space.
b.

Bathing space

57

One bathing place among a maximum of three households

provided in front of the houses, having a minumum area of
1.2 square metres.
c.

Water taps
One tap for siz households assuming water supply for one
hour with moderate pressure.

d.

Storm drains
The sizes of drains should be as per surface run-off
calculations for storm water influxes. These can be a network
of earthern ditches which can be upgrated incrementally.

e.

Street lighting
A hundred-watt incandescent bulb on a simple bracket fitted
on houses at about 15 metre intervals on one side of the
street or an alternate sides of the street.

TRANSFER OF DEVELOPMENT RIGHTS : SALIENT

FEATURES
In certain circumstances, the development potential of a plot of land
may be separated from the land itself and made available to the owner of
the land in the form of Transferable Development Rights (TDR) subject to
certain regulations.
The owner of a plot of land which is reserved for a public purpose in
the development plan and for additional amenities, deemed to be
reservations, is eligible for the award of Transferable Development Rights
(TDRs) in the form of Floor Space Index (FSI). Such award entitles the
owner of the land to FSI in the form of a Development Rights Certificate
(DRC) which he may use himself or transfer to any other person. The
owner is eligible for Development Rights (DRs)
after the land is
surrendered free of cost to a designated Authority. Development Rights
(DRs) are granted to an owner only for reserved land.
The built-up area for the purpose of FSI credit in the form of a DRC is
equal to the gross area of the reserved plot to be surrendered and will
proportionately increase or decrease according to the permissible FSI of

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the zone where from the TDR has originated. (Normally, as per F.S.I.
regulations, deduction of
% of compulsory open space is made to
determine the extent of T.D.R. available.)
When an owner also develops or constructs the amenity on the
surrendered plot at his cost, as may be prescribed by the appropriate
authority, and hands it over to the appropriate authority, free of cost, he
may be granted a further DR in the form of FSI equivalent to the area of
the construction/development done by him.
Irrespective of the location of the land in which they originate, DRCs
cannot be used in the city centre. They can be used on any plot in the
same municipal ward as that in which they have originated (neither ward
being in the city centre), or on any plot lying to the south of the plot in
which they have originated (but not in the city centre).
A DRC is not
valid for use on receivable plots in certain areas that can be listed in the
Development Control Regulations Central Railway (Main line).
DRCs may be used on one or more plots of land, whether vacant or
already developed, by erection of additional storeys, or in any other
manner consistent with Development Control Regulations, but not so as to
exceed in any plot, a total built-up FSI higher than that prescribed in D.C.
Regulations. The FSI of a receiving plot is allowed to be exceeded by not
more than 0.4 in respect of a DR available of the reserved plot and upto a
further 0.4 in respect of a DR available of land surrendered for roadwidening or construction of new roads.
DRs are granted and DRCs issued only after the reserved land is
surrendered to the Appropriate Authority, or to the State Government as
the case may be, free of cost and free of encumbrances. A DRC is issued
by the Municipal Commissioner as a printed certificate. Such a certificate
is a transferable negotiable instrument after due authentication. The
Commissioner maintains a register of all transactions, etc. relating to
grant of and utilization of DRs.

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