Hsg Stratgy for Thimphu,Bhutan

7/26/2019 Hsg Stratgy for Thimphu,Bhutan

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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:

a. National Development Context

. ! National Housing Polic" #rame

c. Housing and shelter plan for Thimphu.

d. $and and #inance Policies

e. %inimum Planning & 'uilding Standards

(. )ran %anagement


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T A B L E S

*. Permanentl" inhaited dwellings

+. Period of construction of dwellings

,. !verage age of dwellings -"ears

/. Size of dwellings -0itchen 1 no.of rooms

2. 3ross 4oor area per apartment

(. $iving area per apartment

5. $iving area per person

6. Persons per apartment

7. Dwelling amenities

a running water inside toiletc inside athroom

*8. Housing expenditure of households of emplo"ees living in rentalhousing

**. !verage construction costs of a new 4at as against annual nethousehold income

*+. !verage costs per m+ in completed residential uildings

*,. Dwellings condemned each "ear.


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1 NATIONAL DEVELOPMENT CONTEXT

'hutan had a *77* population of (889888 of which aout *2-789888 is classi;ed as uran. !out two


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1.0( Re)ion!% De$e%o&men'

The Household ?ncome and @xpenditure Surve" -*77+ indicatedincome ineualit" as well as low average monetar" incomes. Howeverimproving access to potale water9 sanitation9 free education and health

facilities alleviate manifestations of low incomes. Housing conditions9though generall" good9 are stretched " rural ins small size in a usiness


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environment traditionall" dominated " the state. This gives rise to ashortage of entrepreneurial s0ills. Private sector development is alsohampered " wea0 ;nancial institutions.

There is a need to develop a national housing polic" to ensure

development of aFordale housing= full cost recover"9 limit susidies9identif" uran land reuirements9 develop a land an0 for future housingneeds9 create long


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". A NATIONAL HOUSING POLIC- RAME/OR

B!c)ro#n2

".01 Ho#3in) in M!cro4Economic Con'e5'

@Fects of housing polic" on emplo"ment9 income9 consumption9savings and investment9 prices9 in4ation9 and the alance of pa"ments=relationship with the ;nancial sector G institutions providing housing;nance G demand and suppl" of housing= government contriutionthrough tax and susid" polic"= impact on socio


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ProBected average annual )ro'9 r!'e o &o%!'ion; estimated9o#3e9o%239 average household size9 single people and average newhousehold formation annuall". ate of #r+!ni

".0( Ho#3in) Con2i'ion3; E5i3'in) Ho#3in) S'oc !n2 R!'e oS#&&%7

@stimates of9 uran 9o#3in) +!c%o)9 -re4ected in overcrowding9suatter settlements9 increasing land invasions in uran areas9 and pooraccess to services in rural areas9 households having secure 'en#reownership estimates of uran households living in orm!% 9o#3in)9 totalformal housing stoc09 rate of formal housing provision for low


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M!>or Con3i2er!'ion3 in r!min) A N!'ion!% Ho#3in)Po%ic7

! national housing polic" and strateg" has to e a multi


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The land deliver" polic" should ensure eFective land developmentand land use control= land registration and Tenure s"stems= infrastructure9services standards and tariFs. ?t should ensure= identi;cation of land forhousing9 and legitimize all valid housing processes9 including formal and

informal housing deliver"9 new residential settlements9 upgrading ofexisting settlements in


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and haitat.

)sing technolog" for modernising the housing sector toincrease eIcienc"9 productivit"9 energ" eIcienc" and ualit".

This would reuire the National 3overnment to9

ta0e steps to ring in legal reforms9

devise macro economic policies to enale 4ow of resources tothe housing sector9

develop a det mar0et for housing full" integrated with the;nancial mar0ets in the countr"9

set up a National Shelter #und to meet the reuirement of lowcost funds for the housing needs of the poor9

promote research and development and transfer of technolog"for construction of houses9

evolve parameters for optimal use of availale resources9

provide ;scal concessions for housing9 infrastructure9innovative and energ" saving construction materials andmethods9

develop and enforce appropriate ecological standards toprotect the environment9

promote the creation of a secondar" mortgage mar0et9

T9e Loc!% A#'9ori'7 'o;

promote private sector and cooperatives in underta0ing

housing construction for all segments in uran and rural areas9

underta0e appropriate reforms for eas" access to land9

identif" speci;c housing shortages and prepare Housing!ction Plans for all areas9

devise programmes to meet housing shortages and augmentsuppl" of land for housing9


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plan expansion of uran infrastructure services9

enforce eFectivel"9 regulator" measures for planneddevelopment.

T9e P#+%icPri$!'e Ho#3in) !n2 in!nce Com&!nie3 'o;

rede;ne their role and move awa" from their traditionalapproach to housing ;nance9

develop and expand their reach to meet the needs of people9

moilise resources from provident funds9 insurance funds9

mutuall funds etc. for house uilding activities9

develop innovative instruments to moilise domestic savings9

ta0e the lead role in land asseml"9 construction of housesand development of amenities9

forge partnership with State 3overnments and local authoritiesfor construction of houses9

collaorate with the State 3overnments to wor0 out schemes

for slum reconstruction on cross susidization asis9

direct research eForts to locall" availale raw materials9

standardise the new technologies for eas" adoption " variouspulic and private construction agencies9

promote energ" eIcienc" in uilding materials andconstruction methods9

promote disaster mitigation techniues for new constructions

as well as strengthening of existing houses to preventcontinuing loss of housing stoc0 and human lives from naturalhazards li0e earthua0es9 c"clones and 4oods9

disseminate information aout new technologies and providetraining to construction wor0ers in the use of newtechnologies.


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The Housing and Shelter Polic" #ormulation Process is depictedgraphicall" in the chart.

".0 S9e%'er S'r!'e)7

Housing strateg" should e directed towards identi;cation ofhousing reuirements of the intended target group and providing anopportunit" for achieving these within the pa"ing capacit" of ever" famil".

".0 Go!%3 o '9e 3'r!'e)7 o#%2 +e

a time ound programme to alance Housing reuirements withavailailit"=

adeuate provision in the national plan9 investment for HousingSector=

tax exemptions9 incentives= institutional ;nance for private uilders9mortgage insurance and developing secondar" mortgage mar0et=

social housing schemes for the least privileged sections of thesociet"=

provision of pulic funds for housing directl" in proportion to thenumer of families in diFerent income groups=

large scale sites and services programmes=

large scale repairs and renewal programmes to conserve existinghousing stoc0=

uilding materials production integrated with targets of Housingproduction=

industrial training scheme to train uilding laour for specializeds0ills=

strengthening of co


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extension of research and development activities to ;eld proBects todemonstrate positive results=

".10 Ro%e o P#+%ic Sec'or

Pulic housing agencies should la" emphasis on facilitating andpromoting housing through development of infrastructure facilitiesaFecting the level and pattern of activit" in private sector to meet thedemands of the current situation. The site and services programme suitedfor least advantaged sections of the societies should e an importantelement of pulic housing in uran areas9 while in rural areas emphasisshould e on facilitating self help and provide resources mainl" in theform of uilding materials. !solute external susidies in uran socialhousing schemes should e generall" avoided. ?nstitutional procedures

should e streamlined to ensure that intended ene;ciaries9 receive thelargest possile share of resources and ene;ts.

".11 Ro%e o Pri$!'e Sec'or !n2 Coo&er!'i$e3

Due to asence of institutional frame wor09 the greater part of theprivate investment generall" caters onl" to the needs of middle and upperincome families. To stimulate investment local authorities should ma0eavailale developed land at suitale locations having transportation lin0s9to private individuals and co


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and higher income group housing should e underta0en on self ;nancingasis.

".1( B#i%2in) M!'eri!%3

! maBor impediment to the execution of shelter programmes is thescarcit" of various uilding materials9 their unreliale suppl" andincreasing cost aFecting costs and time schedules of housing proBects.Proposals for utilizing pulic funds for housing should e lin0ed up with aprogramme of uilding materials productions. ?ncentives extended toindustries in general should e extended to industries concerned withproduction of uilding materials.

".1* S'!n2!r23 !n2 S'!n2!r2i3!'ion

The seriousness and realism of an" 3overnment commitment to itssocial oBectives are re4ected in the standards it sets for shelter9infrastructure and services. ealistic standards compatile with theaFordailit" of population and "et 0eeping the environmental ualit" at anacceptale level are a 0e" to the success of a Housing strateg".

".1, S're!m%inin) o Proce2#re3

Housing cost are a composite of the cost of land9 utilities andshelter. ! hidden cost is the cost of deliver". To reduce incidence ofoverheads and cost of loan servicing9 an eFective extension mechanismshould e introduced to evaluate existing organizational structures andregulate existing procedures and practices. Streamlining of existingorganizational structures will help in elimination of irritant procedurescoming in wa" of speed" deliver" of housing services.

".1? Pricin)

The inherent de;ciencies in a s"stem of susidized Housing activit"can result in dr"ing up of housing funds. Hence9 social housing schemesshould e designed to e within the pa"ing capacit" of the target group.!solute external susidies9 where unavoidale should e in the form ofinfrastructural facilities so as not to create a large diFerences etweenthe mar0et value and the susidized price tempting the ene;ciar" to sellout the plothouse. @ven a low rate of interest on ;nance for low income


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groups can e avoided " increasing the repa"ment periods9 insteadmonthl" instalments remaining the same.

".1@ Ho#3in) Or)!ni3!'ion3 !n2 M!n!)emen'

There should e institutions at National9 District and local levels of3overnment9 responsile for the implementation of Housing polic" andstrateg". ?nstitutions should e restructured to e more relevant tocommunit" needs and changing social pattens9 legislation9 administrativeprocedures and ;scal arrangements. The management and maintenanceof housing proBects is essential process of housing development.

".1 Comm#ni'7 Or)!ni3!'ion !n2 De$e%o&men' o Vo%#n'!r7A)encie3

?n rural areas local involvement and participation in construction ofhouses or provision of house sites suited to the needs of the localinhaitants is necessar". The village administrative s"stem should estrengthened for this purpose. The rural housing programme should eessentiall" in the nature of Jan aided self


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for Bointco


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sanitar" facilities9 storm water drainage and receptacles for collection ofsolid waste9 improving ph"sical access and circulation within the slum9street lighting9 facilitating investment in shelter improvements "granting securit" of land tenure9 improving maintenance of environmentalfacilities " devolving the responsiilit" of maintenance of cooperatives of

slum household= and improving access to asic social facilities "providing multi


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(. THIMPHU : HOUSING AND SHELTER PLAN

(.01 Ho#3in) !n2 S9e%'er P%!n or T9im&9#

The purpose of this Housing and Shelter Plan is to set forth the cit"Msframewor0 for the provision of aFordale housing to all the citizens and tola" down guidelines for residential development.

#our maBor factors have in4uenced the development of the shelterPlan:

-i The limited amount of developale land availale forresidential use due to the topographical and environmentalconstraints in Thimphu9

-ii great scarcit" of aFordale residential units9 particularl" forthe lower income groups and new "oung settlers in the cit"9

-iii high cost of construction and little access to ;nance for newhousing9 and

-iv the desirailit" of wor0ers to live in close proximit" to their

places of emplo"ment.

The maBor thrust of an aFordale Shelter Plan for the cit" should thereforee:

Preservation of the existing suppl" of aFordale housing units in theCit" which primaril" serve households with incomes at or elow themedian income.

Development of new aFordale housing opportunities forhouseholds who live and wor0 in the Cit" and who have incomes at

or elow the median income.

(.0" Comm#ni'7 Pro6%e

Thirt" "ears ago9 the Cit" was a simple communit" composed ofhomogeneous middle class families. Toda"9 the Cit" can claim to e themost auent uran centre of the countr". Aet9 the numer of Cit"residents - particularl" foreign immigrants living in povert"9 thecomplexit" of prolems the" face9 and the need for aFordale housing


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even for the resident nationals9 has increased signi;cantl" over the last,8 "ears.

(.0( Po%!'ion C9!r!c'eri3'ic3

(.0* A)e Se5 Com&o3i'ion

(.0, R!ci!% !n2 E'9nic Com&o3i'ion Loc!'ion

The racial and ethnic ma0eup of the communit" has also changeddramaticall" over the past ,8 "ears. Since *7589 signi;cant increaseshave occurred in the numer of ethnic minorities -immigrants living inthe Cit". %inorities represent of the total population ut accountfor of the low


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(.0 Ho#3in) AFor2!+i%i'7/i%%in)ne33 'o P!7

House hold income and expenditure surve"s in some !sian

countries indicate that housing can e considered as aFordale whenhouseholds pa" no more than ,8 of their gross income for shelter9 asrent or installment for purchase of a house. !cute scarcit" of shelteravailailit" could ma0e a famil" OwillingO to pa" more for housing reducingexpenditure on other essential items li0e food9 resulting in health hazards.. The cost of rentalsale housing availale in the Cit" has ecome so highthat it has made housing inaccessile to man" people. Tales elowillustrate this.

T!+%eAFor2!+i%i'7 4 Ren'!%

Eccupation %onthl" ?ncome !Fordale ent !verage cit" rent

@mplo"ed -3ovt

@mplo"ed -Private

'usiness ?ndustr"

Dl" $aour

T!+%eAFor2!+i%i'74Homeoner3

T"pe !veragePrice Aearl" ?ncome

$arge House

Small House

ow house

!partment

Tales indicate that esidents need an annual income of Nu. torent u" an apartment and an annual income of Nu. or moreto rent u" a two edroom detached house9 ta0ing ,8 of income as theaFordailit" limit.


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Ho#3in) Nee23: C#rren' Nee23 !n2 #'#re Pro>ec'ion3

(.0 C#rren' G!&3

There are signi;cant shortages in the suppl" of aFordale housingaccording to *778 data.

There was a gap of units of housing aFordale to extremel"low


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ii site and services programs for existing suatter colonies9

iii rehailitation of the existing old housing stoc09

iv improving access to ;nance for homeuilders and privateuilders9

v low rise high densit" development of ,


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neighorhoods9 as well as integrated into new areas to e designated formixed!ddress supportive service needs of families and individuals9elderl" households9 and special needs populations.

ehailitate aging and deteriorated housing stoc0 and addressissues of overcrowding and sustandard housing development.

%inimize involuntar" displacement of population.

,.*, Le)!% A#'9ori'7

The authorit" for an aFordale housing strateg" will e derived fromthe National Housing Polic" which will empower the cit" Corporation toengage in or assist in development or operation of housing for all itscitizens. ?n addition9 Section


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ii To estalish goals and set forth strategies for the preservationand development of aFordale housing=

iii To de;ne the roles to e pla"ed " the pulic sector9 theprivate developers and non


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the cost of the OCore )nitsO or the asic unit eing priced withintheir pa"ing capacit".

%iddle


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To develop policies and initiatives that speci;call" addressaFordale housing needs

To encourage inclusion of moderate cost residential units in mixedec'i$e: Pro$i2e 9ome oner39i& o&&or'#ni'ie3 or9o#3e9o%23 i'9 income3 !' or !+o$e #& 'o ,0J me2i!n incomeor '9e T9im&9# C!&i'!% Re)ion

Home ownership initiatives should e designed to produce a high

home ownership rate for the cit" " the "ear +8+8. $ower interest ratesand eas" access to ;nance can ma0e home ownership an option for moremoderate income families. ith increased home ownership9 home ownersma"9 get more involved in local communit" organizations9 maintain theirpropert" at a higher standard9 and move less freuentl". Thimpu has ahome ownership rate of Q among persons aged ,2 and "ounger. #orthis purpose the cit" shall:

ma0e home ownership more aFordale and the home u"ingprocess more accessile to minorities and moderate


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wor0 with ;nancial institutions and the State Housing#inance !uthorit" to ;nd and promote solutions to arriers in thereal estate ;nance process that inhiit the development of modestsingle


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consider opportunities for the development of modest9 singleec'i$e : 'o cre!'e 3#&&or'i$e 9o#3in) or 3&eci!% nee23&o%!'ion3.

There are currentl" no Cit"


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elderl" and disaled households9 ased on the lower traIc andpar0ing impacts this t"pe of housing generates9

develop a continuum of housing opportunities9 ranging fromemergenc" shelters to transitional housing to permanent housing9

conduct periodic reviews9 and amend as necessar"9 all land andhousing development regulations to ensure accessiilit" to housingfor all.

(."? O+>ec'i$e: Pro$i3ion o e=#!% 9o#3in) o&&or'#ni'ie3 in '9eCi'7. 444 KK J

!n anal"sis of impediments to fair housing indicates that theprolems facing low


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people living there and also to safeguard the ph"sical ualit" and amenit"of the neighourhoods and the value of near" properties.

Loc!% '!5!'ionaFects the aFordailit" of housing. The ineuitalepropert" tax urden paid " rental housing vis


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con;guration of shelters and other facilities that lead to the creation ofthe total environment for living.

(." Ho#3in) Conce&'3

The concepts of housing are conditioned " the culture9 social andeconomic ac0ground9 upringing9 haits and values of the people. hatis necessit" for one9 could e luxur" for the other. ?t ma" e claimed thatthe reuired Uminimum> can e de;ned in terms of U'iological> andU!nthropometric> considerations.

?f resources for housing are meagre9 and not adeuate even to meetthe ac0log9 should these not e invested in creation of ph"sicalinfrastructure that can help and stimulate private and pulic saving andinvestment in construction of housesQ ?n most shelter programmes9 land

and infrastructure constitute aout /8 of the total costs. ?f pulichousing agencies were to invest onl" in land and infrastructure the" couldattract pulic participation and resources in the total eFort.

Development of infrastructure facilities li0e ma0ing availaledeveloped plots9 providing social9 health and cultural amenit" uildingsand emplo"ment centers ma" e a more prudent wa" of investing thandirect construction of houses. ?t is in fact possile to do so9 particularl"for the poorest of the uran households in order to give them a securit" oftenure and a health" living environment.

Programmes li0e provision of sites and services9 where onl"developed sites can e made availale in a health" and congenialenvironment9 are of great relevance in this context. En such developedsites9 the uran poor can uild ma0e


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as ?.'. 66669 are a landmar0 in evolving realistic standards for low incomehousing in ?ndia.

(.(1 Hi)9 Ri3e Re3i2en'i!% De$e%o&men'

High rise development in this context means residential loc0s ofdwelling units having ;ve or more store"es. !n important arguments infavour of high


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T A B L E S

*. Permanentl" inhaited dwellings

+. Period of construction of dwellings

,. !verage age of dwellings -"ears

/. Size of dwellings -0itchen 1 no.of rooms

2. 3ross 4oor area per apartment

(. $iving area per apartment

5. $iving area per person

6. Persons per apartment

7. Dwelling amenities

a running water inside toilet

c inside athroom

*8. Housing expenditure of households of emplo"ees living in rentalhousing

**. !verage construction costs of a new 4at as against annual nethousehold income

*+. !verage costs per m+ in completed residential uildings

*,. Dwellings condemned each "ear.


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*. LAND AND INANCE POLICIES

*.01 Ur+!n L!n2 Po%ic7

T9e +!3ic r&o3e o #r+!n %!n2 &o%ic7 i3 '9e 3#&&%7 o 3er$ice2%!n2

i in adeuate uantit"=ii at the right locations=iii at the right time= andiv at the right price.

Pulic authorities can intervene indirectl" in the mar0et to cur

speculation and directl" " ma0ing availale increased volumes ofdeveloped land. ?nstruments of indirect intervention are:

*.0" Pro&er'7 T!5 !n2 Be''ermen' Le$7

! well administered propert" tax can regulate the land mar0et. ?fproperties are valued freuentl"9 speculation will e dampened asunrealized gains will get taxed9 increasing suppl" of private vacant landsat the right time and also raise revenue for the pulic authorit". Pulicinvestment in infrastructure causes appreciation in the value of land9 that

accrues to the land owner as Uunearned income>. @Forts have een madeworld over to recoup such land value gains " charging a etterment taxor lev".

*.0( Inr!3'r#c'#re Im&!c' ee3 De$e%o&men' C9!r)e

?nadeuac" of tax revenues to ;nance capital investment in pulicinfrastructure has een a common prolem even for !merican cities . The!merican cities particularl" in California have adopted a scheme ofinfrastructure impact fee. ?n this polic" the infrastructure impact of

proposed development is assessed and fees to recover such cost arecharged.

*.0* Ur+!n L!n2 Recor23 !n2 A&&ro$!% Proce33

#or the eIcient operation of mar0et oriented land polic"instruments= proper and up to date land records is a prereuisite.Success of town planning schemes9 land readBustment9 guided landdevelopment and transfer of development rights depend upon eIcac" of


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land records G cadastres and cadastral maps. )ncertaint" fuelsundesirale speculation and land prices increase conseuentl". !tightening up of approval process of land development9 clarit" of rulesand predictailit" of approvals can reduce uncertaint" and speculation.

*.0, L!n2 Price P#+%ic!'ion S73'em

?t is important that s"stematic data is collected to help in collectionof propert" taxes9 capital gains taxes as well as wealth tax. !rea wise datain the cit" aout the prices of land can e pulished " the3overnment%unicipal Corporation which can form the asis for taxationand other levies related to land values.

In3'r#men'3 o 2irec' in'er$en'ion !re:

*.0? L!n2 Ac=#i3i'ion

The current pattern is for pulic authorities to notif" large pieces ofland for acuisition on the peripher" of the cit". $and so noti;ed ma"often e acuired man" "ears later and developed still later. The result is9overall shortage of land accompanied " an unwarranted rise in prices.The poor farmers whose lands are reuired are the net losers while thelargel" etter oF uran settlers get the ene;t of otaining land ateFectivel" susidized prices. $arge scale suatting can also resultecause of pulic ownership of such lands. Hence9 innovative schemes

need to e tried to speed up land development at low costs to the pulicexcheuer.

*.0@ Anno#nce2 S'!n2!r2 Price S73'em

!n alternative to land acuisition is predetermination of price for theland to e acuired. ! JstandardK price is announced for each area in aase "ear. ?n4ation adBustments can e announced ever" "ear along withother JrealK price rises that are oserved occuring around the noti;edareas. $and is then acuired onl" when it is needed at the prevailing

announced standard price. ?n such a s"stem9 the original landowners arenot exploited in favour of the etter oF suseuent uran dwellers9 thepulic authorit" has incentives -as well as pressures to develop land earl"in the face of increasing acuisition costs9 and land prices get controlledunder some regular s"stem of increases.

*.0 L!n2 Re!2>#3'men'


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$and readBustment is a process in which a pulic authorit"assemles numerous small parcels of raw land without initiall" pa"ingmonetar" compensation to the owners. ?t then develops it9 and retains apart -aout ,8 for pulic uses li0e streets9 drains9 par0s etc. and part-aout +8 for sale to recover all the development costs incurred " it.

The rest9 -28 is returned to the owners in proportion to their originalcontriutions. $and readBustment is thus a temporar" form of pulicownership to achieve orderl" uran development over large areas and;nd means of ;nancing it. Such a scheme has man" advantages. Thereis no dislocation of original owners9 the gains the" ma0e from theremaining land more than oFset their losses9 large amounts of land cane developed without initial capital ;nance9 there is no loc0ing of scarcepulic capital9 there are fewer legal disputes and land development isspeeded up. ?t has een proved in Vapan and South Worea9 underconditions of rapid uranization9 that it is a practicale procedure.

*.0 Ton P%!nnin) 3c9eme3

The oldest method to ring aout planned development "reconstitution of large agricultural plots into serviced uran plots withminimum of compulsor" acuisition is the UTown Planning Schemes> aspracticed in ?ndia. The asic rationale of TPS is that9 with thereconstitution of plots and provision of roads and open spaces the landprice consideral" appreciates. The total value of the land thereforeincreases even if some land is lost for roads and open spaces. The landowners are therefore expected to Boin the scheme. The cost of the TPS is

to e ;nanced " recouping 28 of the JettermentK which is de;ned asthe diFerence etween the value of U#inal Plot> after TPS implementationand value of original plot efore TPS implementation. The concept ofTown Planning Schemes is emodied in some of the state town planningacts in ?ndia.

*.10 S#mm!r7

! review of various approaches to land polic" in ?ndia and !siancountries indicates that9 heav" reliance on intervening in the land mar0et

" empowering the state to ma0e large scale compulsor" land acuisition9has not een particularl" successful. The general approach to land polic"therefore has to e mar0et oriented with a view to manage the landresources in an eIcient and euitale manner. ?n this regard9 allocationof development rights instead of compulsor" acuisition of ownershiprights9 could e used as an important instrument of land polic".

#or mar0et oriented land polic"9 information on ownership9 prices9zoning and other restrictions must e readil" availale. Computerisation


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of cadastre and zoning and land use information therefore deserves highpriorit".

I N A N C E:

*.11 L!n2 B!nin)

! State -or national level land an0ing authorit" can e formed toadminister lands acuired under an enaling legal provision. ?t can 4oatdeentures to ;nance land development operations9 u"developedundeveloped sites9 and plough ac0 pro;ts made from such

an activit". ?t can issue Jland asedK deentures lin0ed to a speci;c pieceof land. hen the land an0 develops it9 the investor can either cashhis deenture in the form of a piece of land or ta0e cash plus a portion ofthe land value increments that have occured. Thus9 the land an0 otains;nance for development and investors can either otain a safe return ontheir investment or actuall" otain serviced land for housing or otherpurposes. The land an0 can issue mortgage guarantees in respect ofmortgages held " other ;nancial institutions and the guarantees canthemselves e used as collateral for further loans. This would help inimproving the availailit" of capital for housing purposes.The idea is asicall" to use land as a ;nancial resource in order to aid the

development of land for housing purposes and without maBor claim on thepulic excheuer.

*.1" Ho#3in) in!nce Com&!n7

! Housing and )ran Development #inance Compan" as a3overnment


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and internal resources. ?t should function as a techno


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involvement of commercial an0s in housing ;nance directl" or indirectl"9promotion of ase level ;nancial institutions and removal of constraints tohousing activit".

*.1* Ho#3in) #n2

! Housing #und could e estalished at the level of local %unicipal!uthorities in the )ran Centres ":

a ma0ing udgetar" provisions in the %unicipal 'udget. charging special housing fund contriution to all housing

development permissions=c allocating certain proportion of all fees charged for approval of

la"outs9 uilding permissions=d voluntar" contriutions from private institutions9 organizations9

individuals or philanthropic institutions.

These funds must e speci;call" used for low income housing onl" witha separate revenue and expenditure head in the municipal udget.

*.1, Ho#3in) S!$in)3 Cre2i' B!n

Support for housing saving to stimulate housing consumption can egenerated " such a 'an0. @ach citizen can deposit monthl" or annuall"a certain amount of savings to the housing saving an0. The state can

give a contriution eual to +2 per cent of the annuall" deposited sum ofmone". !fter ;ve to six "ears9 credit eual in value to the savings can emade is availale at low rate of interest. These functions can also edischarged " the State 'an0 " increasing accessiilit" to the scheme atall uran centres.

*.1? Ur+!n Rene!% M#'#!% #n2

Such a fund can e estalished " euit" participation of ownersand tenants of dilapidated properties for the speci;c oBective of uran

renewal. The modalities of the fund need to e wor0ed out in detail inconsultation with the municipal corporation9 the State 'an0 and the3overnment.


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,. MINIMUM PLANNING AND BUILDING STANDARDS

Im&%ic!'ion3 o S'!n2!r23

,.01 Den3i'7

?ndividual plotted development can e ta0en up in the conventionalmethods of construction and self


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,.0, O&en S&!ce Re=#iremen'3

Higher provision of open spaces will aFect the densit" and will result inhigher per dwelling unit>s cost. ?t will also increase cost of maintenance. Thereshould e Bust adeuate provision for creating acceptale living environment.

The standards for open spaces could e reduced " allowing multiple use ofspace.

,.0? Room 3i


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S


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e. Comined toilet< Comined C and athroom should have clear usale

area of *.62 suare metres with a minimum clear widthof * metre.

S


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provided to haveeFective going of ++.2cm

Ri3er +8 cm maximum *+.2cmminimum

Head room +.* clear

S


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4atted development9 the following land utilization indices should eachieved.

a. $and utilization as percentage of the la"out area:

L!n2 #3e or %!7o#'3 o !+o$e 0.,

Hec'!re Are!

or %!7o#'3 o%e33 '9!n 0.,Hec'!re Are!

esidential (8 to (2 (2 to 58

oads & pathwa"s )p to +8 +8 to +2

Epen space 6 to *8 2< Compulsor" common / to 2

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Hsg Stratgy for Thimphu,Bhutan