1. Urban Planning Counterintuitive Outcomes to Enabling Framework Vidyadhar K. Phatak Presentation at the Conference on Affordable Housing and Housing Finance January 27-28, 2010 New Delhi

2. Content 1 Conventional Urban Planning 2 Counter-intuitive Outcomes 3 Need for Enabling Framework 2

3. Conventional Urban Planning Housing Health & Safety Public Health Building Codes Good Living Land Use Zoning Density, FAR Zoning Designation of land for public purposes Green Belts Parks New Towns / City Beautiful Public ownership of land

4. Axioms of Planning India lives in villages Small and Medium Towns be promoted Cities be organised in self contained neighbourhoods Ideological Land for public purposes will be acquired Those who cannot afford compliance with the plan will be taken care of by State Public finance Land and Real Estate market will follow the plan Compliance with the plan will be scrupulously ensured Enforcement

5. Counterintuitive Outcomes TechniqueAvowed GoalOutcome Conservation Zones Protect vulnerable areas: River Beds, Unstable Hill Slopes, Land below power lines Unauthorised occupation by the poor Green BeltsPrevent sprawlIncreased land prices. Unplanned peri-urban development Designation of land for Public purposes Provision of physical and social infrastructure Non acquisition -Scarcity led price increase -Unauthoriseddevelopme nt

6. Counterintuitive outcomes TechniqueAvowed goalOutcome Max Density FARInfrastructure match Quality of life Scarcity of development rights > increased prices Min. Plot / Room Sizes Quality of lifeUnaffordable shelter Building materials, water and sanitation norms Health and SafetyIncreased cost > unaffordable shelter

7. Urban Plans: Enabling Frameworks Finance Urban development needs finances for land acquisition & provision of services Increases land values Challenge of capturing land value gains Capturing land value gains Mis-match between short term finances and long term plans Challenge of overcoming the dilemma Short term finances vs. Long Term Plans Differential pricing Differential norms and standards Well functioning land and real estate market – for subsidies to work Helping the Poor

8. Urban Plans: Enabling Framework Land Market Zoning, density and FAR should not create scarcity of land and development rights. Artificial scarcity causes unwarranted price rise Avoid scarcity Min legal house should not raise the affordability barrier to make houses unaffordable to non-poor. Avoid affordability barriers In a market that has no artificial scarcity and no affordability barriers, introduce inclusionary zoning to help poor in mixed communities. Inclusive zoning

9. Affordable Housing: Land & Finance 81-100 61-80 41-60 21-40 0-20 Improved access to Finance Interest Subsidies Interest Subsidies & Preferential Land allotment Subsidised Public Housing Capital MarketLand Market

10. Thank You