PM Naya Pakistan Housing Program - Solution for Affordable Housing in Punjab – Sample operational model
For the development of five million low-cost and affordable housing units across the country under the Prime Minister’s Naya Pakistan Housing Program, the Government of Punjab, in collaboration with PHATA has identified various optimal sites for the development of housing schemes all over the province. One such site has been identified along the Faisalabad-Sargodha road in district Chiniot. The 56- acre site is located at the Chiniot Ring road intersection. The Punjab Housing and Town Planning Agency has assigned the Urban Unit to conduct the pre-feasibility of the Chiniot site for the development of an affordable housing scheme. The team assessed the topographic features of the site, transportation, and connectivity, water quality, surrounding land uses, major industries, housing demand and supply analysis, private housing scheme survey, conducted stakeholder interviews, land value assessment, and public engagement. Below the table shows the connectivity of site to major roads.
|Road||Distance||Approx drive time (Minutes)|
The Urban Unit also proposed a preliminary housing design and financial model through which affordable housing may be developed on the site. Currently, the projected housing shortage in Chiniot district stands at 36,258, which is expected to increase to 49,032 by 2023 PSS. Although housing shortage in Chiniot is low relative to other districts in Punjab, the provision of suitable housing options in the district has the potential to absorb some of the housing shortage prevalent in Faisalabad.
In their survey of the site area, the Urban Unit team sought out the community aspirations and needs of the community towards whom this housing project is targeted. The low income of Punjab earns a household income of below PKR 15,000 per month. The majority of the low-income residents the team interacted with wanted ownership of a constructed house, as opposed to that of an empty plot. For housing to be affordable, it is expected to cost less then 30% of the household monthly income. With respect to this, the purchasing power of residents in Chiniot is significantly low . A family earning PKR 15,000 a month cannot afford to spend more then PKR 3,750 on housing per month. The majority of the population in Chiniot cannot afford to pay more then PKR 6,000 a month towards housing.
Keeping the affordability constraints in mind, the Urban Unit proposes that development on this site be done through a Public-Private Partnership model whereby a private developer will be incentivized to construct affordable housing on the selected area of the site in return for the provision of land (on the same site or elsewhere) and additional tax subsidies/credits on their private ventures. Affordable housing will be offered at subsidized rates for middle and lower-middle-income households by the government executing agency. The private party will have ownership of their section of land where they may sell plots at the market rate. Additionally, their will be a commercial belt where the developer may sell plots at the commercial market rate. The urban unit has also prepared the conceptual layout of the individual house and preliminary Master plan of scheme incorporating both low-income housing and market-rate plots.