In a first of its kind in the country, the Housing and Urban Development Corporation Limited (HUDCO), is contemplating a scheme for economically weaker section (EWS), where owning a house could soon be a reality for them. The scheme christened as 'rent to own' will allow the beneficiary to own the house after paying rent for 15 to 20 years.
The rent amount will be decided depending upon the cost incurred in building the project.
The scheme has been specifically targeted for slum dwellers where a one bedroom house will be allocated to them. Also, as there has been a practise in the past, where the beneficiary sells his property after being allocated one and starts living in the slums again, a clause has been inserted that specifies the beneficiary will be the owner of the property only if he stays in the house for consecutive 15 to 20 years and pays the required rent for the stated period.
In the 'rent to own' scheme if a beneficiary vacates or stops giving rent for his flat before the completion of the term, then that property will be allocated to some other person and the money given by him will be treated as the rent of the house.
According to the chief regional manager of HUDCO, Chandigarh division, Vinod Kumar Joshi, Punjab government, Greater Mohali Area Development Authority (GMADA) and HUDCO have already held consultations in this regard.
HUDCO will be providing loans at a low rate of interest to GAMADA and in turn GAMADA will procure land and build houses for this project. HUDCO has already given its consent for the consultancy of this project.
Apart from Punjab government and GAMADA, Haryana government has also shown interest in this project for Faridabad city.
The rent amount will be decided depending upon the cost incurred in building the project.
The scheme has been specifically targeted for slum dwellers where a one bedroom house will be allocated to them. Also, as there has been a practise in the past, where the beneficiary sells his property after being allocated one and starts living in the slums again, a clause has been inserted that specifies the beneficiary will be the owner of the property only if he stays in the house for consecutive 15 to 20 years and pays the required rent for the stated period.
In the 'rent to own' scheme if a beneficiary vacates or stops giving rent for his flat before the completion of the term, then that property will be allocated to some other person and the money given by him will be treated as the rent of the house.
According to the chief regional manager of HUDCO, Chandigarh division, Vinod Kumar Joshi, Punjab government, Greater Mohali Area Development Authority (GMADA) and HUDCO have already held consultations in this regard.
HUDCO will be providing loans at a low rate of interest to GAMADA and in turn GAMADA will procure land and build houses for this project. HUDCO has already given its consent for the consultancy of this project.
Apart from Punjab government and GAMADA, Haryana government has also shown interest in this project for Faridabad city.