Amendment of Section 341

In Section 341 of the Principal Act, a new Section 341-A shall be inserted, namely:

"341-A. Reservation of Land for Housing to Economically Weaker Sections (EWS) and Low Income Groups (LIG): (1) Earmarking of land for urban poor" (1) (a) In all Area Planning schemes such as a Town Planning Scheme or Land Pooling Scheme or Land Readjustment Scheme, there shall be reservation of not less than ten per cent of the gross land area under each scheme for the purpose of providing housing accommodation to the members of EWS and LIG. (b) In all residential layouts of extent above 4000 square meters, not less than ten percent of the gross land area shall be earmarked for EWS and LIG. Provided that where the total extent of land is between 1000 square meters and 4000 square meters, either land may be reserved for EWS and LIG or shelter fee, as prescribed by the appropriate Government, may be collected as the case may be. (c) All residential layouts of extent below 1000 square meters may be exempted from reservation of land as well as payment of shelter fee. (d) The size of the plot reserved under (a) and (b) for EWS and LIG shall not be less than 30 square meters or higher as may be prescribed by the appropriate Government. (2) Earmarking of floor area for urban poor (a) In all residential buildings with total plot area above 1000 sq m and above reservation to the extent of 15% of residential FAR or 35% of the total dwelling units whichever is higher, will be provided, which will be allotted to EWS and LIG. Provided that where the total plot area is between 500 sq m and 1000 sq m, either floor area may be reserved for EWS and LIG or shelter fee be collected or as the case may be. (b) All residential buildings with plot area below 500 sq m may be exempted from reservation of floor area as well as payment of shelter fee. (c) The size of the unit reserved under (a) for EWS will not be less than 21 sqm and not more than 27 sqm and for LIG it should not be less than 28 sqm and not more than 40 sqm carpet area or as prescribed by the appropriate Government. (3) Earmarking of both land and floor area The earmarking in Sub-sections (1) and (2) of this Section shall be such that a minimum of 20% of developed land or 20% of Floor Space Index in all land development/ housing projects (both by Public and Private Agencies) is reserved for the EWS and LIG category taking into account the reservation at area plan/layout approval stage or group housing approval stages together. (4) Identification of Eligible Persons & Determination of Cost of Land/Houses: (a) A government department/agency of the appropriate Government shall maintain an inventory of all the plots or houses as the case may be, reserved for the EWS and LIG and ensure its protection from encroachment. (b) For the allotment of plots or houses to the EWS and LIG, the procedure for the selection of eligible persons and the determination of the cost of such plots or houses shall be such as may be prescribed by the appropriate Government. (5) Incentives to Developers Every developer who makes provision for earmarking of land or floor area as the case may be for EWS and LIG housing shall be incentivized through a scheme of cross-subsidization, which shall be such as may be prescribed by the appropriate Government (e.g. land use concessions through conversion of part of residential use for commercial use, higher Floor Space Index, Transferable Development Right, etc and/or higher prices charged from High Income Group etc.) (6) Non-residential Development The appropriate government shall consider levy of suitable fee e.g. Impact Fee on all non-residential land development/ buildings above 1000 square meters to generate resources for the shelter fund which may be used for provision of land, housing, basic service, etc. to the urban poor. (7) Limitation of Shelter Fee The Shelter Fee so collected shall be maintained in a separate account and be utilized as per guidelines for the acquisition of land, development of land and construction of houses and in such other ways so as to provide for housing EWS and LIG.