Affordable and Mid-Income Housing: The Foundation

Strategies to Boost Affordable and Mid-Income Housing

1. Enhancing Interest Subsidies and Housing Loans: Increasing the interest subsidy for housing loans to make homeownership more affordable and reduce financial stress on aspiring buyers. Expanding the scope of the Pradhan Mantri Awas Yojana (PMAY). 
2. Improving Credit-Linked Subsidy Scheme (CLSS): Extending and enhancing the CLSS to provide financial relief to mid-income homebuyers by raising income eligibility thresholds and subsidy amounts.
3. Streamlining Approvals with Single-Window Clearance: Implementing a single-window clearance system for budget home projects to simplify the complex approval process, reduce delays in possession, and lower overall costs.
4. Providing Tax Incentives: Offering tax breaks to alleviate the financial burden and make homeownership more accessible, while encouraging builders to undertake affordable housing projects. Raising the tax deduction limit under Section 24(b) of the Income Tax Act.
5. Reducing Stamp Duty: Urging state governments to lower stamp duty rates, which account for a significant portion of homeownership costs. Considering temporary stamp duty reductions or waivers on affordable and lower-middle-income housing to boost demand and sales.
6. Introducing Additional Incentives for First-Time Buyers: Providing sentiment boosters for first-time homebuyers, such as increasing deduction limits under Sections 80EE and 80EEA.
7. Adjusting GST Rates for Developers: Reforming GST rates on construction materials and services to help lower overall project costs for builders. Implementing reduced GST rates for affordable housing projects to attract more developers to this segment.
8. Accelerating Infrastructure Development: Continuing the government's commitment to developing infrastructure like roads and public transport to expand metropolitan areas and promote affordable housing in emerging areas with cheaper land and developing
infrastructure.

9. Simplifying Land Acquisition: Streamlining the land acquisition process to enable developers to accelerate the supply of new projects. Establishing an effective land records management system to reduce disputes and project delays.
10. Improving Access to Finance: Providing dedicated real estate investment funds and credit guarantees to smaller and medium-scale developers to improve their cash flow and address financing challenges.
11. Implementing Favorable Rental Housing Policies: Introducing policies and tax incentives to boost the rental housing segment for those unable to afford homes. Implementing a model tenancy law and offering tax breaks on rental income to support this segment.