ashram presentation
TRANSCRIPT
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Streamlining the Affordable
Housing Eco-systemDRAFT FRAMEWORK FOR BEST PRACTICES & RATING SYSTEM
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Shop talk
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DBS Communities
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• 2 Projects launched
o Umang Lambha (792 units) – 100%
booked
o Umang Narol (810) – 86% bookings
• Moraiya (400 homes) & Kudasan (600 homes),
Narol expansion – phase 3 & 4 (2000 homes),
Surat (1200 homes) being considered
www.dbscommunities.com
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Griha Pravesh – empowering buyers
• Griha Pravesh equips potential buyers to make the right choices
& hand-holds them through the process of buying a house
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ASHRAM
• The Academy for Sustainable Habitat Research and Management
(ASHRAM) intends to work with practioners of affordable housing to
add value, build relationships and disseminate knowledge in the
affordable housing space.
• ASHRAM’s activities include Research & Development, Training,
Advocacy, Interaction platforms, etc.
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Setting the Context
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Affordable Housing - A Composite
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Supply Side
Production of right sized and right priced housing
Affordable housing finance
Demand Side
Customer facilitation
• For upward socio-economic mobility
• Preparedness for home ownership
Demand aggregation
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Affordable Housing Space in India - Developers
• 30 developers in 12 cities
• A housing stock of about 25,000 to 50,000 units to enter the market
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SOURCE: MONITOR GROUP’S STUDY
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Affordable Housing Space in India - HFIs
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SOURCE: MONITOR GROUP’S STUDY
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Demand Aggregation/Facilitation
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Discourse & debate still
very primitive
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Objectives of Best Practices & Rating System
Encourage more DEVELOPERS, HOUSING FINANCE INSTITUTIONS and CBOs to
• Enter into the space of affordable housing provision & facilitation
• Work in partnership
Ensure home buyers get a fair deal
Strengthen quality of process and products both on supply side and demand side
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Standards or Certification or Rating ???
Standards
• Highly prescriptive & control oriented
Certification
• Puts a few on a pedestal & excludes the rest
Rating
• Flexible and open to innovation
• Every one is included
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…. a rule or principle
that is used as a basis
for judgment
… the act of certifying
or state of being
certified
… classification
according to grade or
rank
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Best Practices to Rating System
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• Overall objectives
• Structure of Best Practices
• Structure of Rating System
Preparation of Framework
• Sector wise documentation
• Web based
• Open source contribution, etc.
Documentation of International Best
practices
• Norms
• Forms and formats
• Operations strategy
• Strategic tie-ups
Rating System
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Rating for whom?
Developer
HFC
CBO
Affordable Housing Project
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What’s in it for them?Developers
Stamp duty relaxation
Fast approvals
Service tax??
?
HFC
Better terms & rates for refinancing
Better terms for Provisional
Rates for recovery
?
CBO
Access to philanthropic
funding
?
?
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Who will use the rating?
RATING SYSTEM
Government
Donor/ funding agencies
Impact investors
Developers
HFC
CBO
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Characteristics of the System
Prescriptive or Output
based
Quality driven or balanced
Objective assessment
or subjective assessment
Absolutely required or desirable
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At what point in time?
Project development/ APF
Booking & sales/ loan
process
Construction/ Loan
disbursement
Handing over
Post occupancy
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Pitfalls• Adapting existing systems like LEED will lead to complexity
• New constraints
• Opportunities for arbitrage
• Sabotage by vested interests
• ?
• ?
• ?
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Draft Sector-specific
Framework
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Pre-qualification criteria• Secondary Factors
o Marketing & sales strategy
o Maintenance strategy
o Customer facilitation
offerings
o Financial health??
o Track record??
• ??
• ??
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• Primary Factors
o Urban
o Dwelling Unit size up to 550
sq ft carpet area???
o Price per unit up to `. 10
lakhs???
o MoU between 3 Key
stakeholders – developer,
HFC, CBO
o Project specific SPV
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Construction• Mechanical, electrical,
plumbing
• Construction technology &
Structural design
• Specifications
• Construction/project
management
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• Site Characteristics
• Status of approvals
• Master planning
• Site and Services
• Design – typology, units,
clusters, common spaces,
community areas
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Energy & Environment• Planning for site services
such as
o Water supply – rain water,
fresh water
o Waste water
o Solid waste
• To evaluate
o health & safety
o Reduce, reuse & recycle
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• Construction technology &
embedded energy
• Energy requirements – unit,
building, campus
o Lighting & ventilation
o Mechanical, electrical,
plumbing
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Housing Finance • Debt consolidation
• No double counting of
customers/cannibalism
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• Informal vs formal sector
lending
• Rates
• LTV
• Exposure
• Margin money terms
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Community Interaction/Customer
facilitation• Post-occupancy services
• Services wrt upward
mobility
o Livelihood
o Health
o Education
o Access to credit
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• Information/ disclosure
• Facilitation with loans,
margin money
• Problem resolution
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Cost to customer
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One time cost
Recurring costs
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Format for Deliberation
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Step 1
• What are the goals and objectives of the rating system?
o Overarching
o Sector specific
• Enhance supply in market driven solutions in the affordable
housing space
• Ensure value for customer
• Strengthen process & outputs
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Step 2• What are the key parameters that must be evaluated?
o Site characteristics
o Loan terms
o Customer facilitation
• What ‘verifiable indicators’ will help measure these
parameters?
o Loan terms – interest, tenure, LTV, margin money, etc.
o Site characteristics – access to public transport, access to health and
education facilities, etc.
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Step 3
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Objectives/Parameters
for evaluation Indicators Objective 1 Objective 2 Objective 3 Objective 4
Parameter 1
1.1. xxxxx
1.2 xxxx
1.3 xxxx
Parameter 2
2.1 xxxxx
2.2 xxxx
2.3 xxxx
Parameter 3
3.1. xxxxx
3.2 xxxx
3.3 xxxx
DESIRABLE CRITICAL
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