HUDCO’s New Scheme: Rent a House, Own it Later..!


Here's some good news for those who have been dreaming to own a house in the Chandigarh,city.

The Housing and Urban Development Corporation (HUDCO), a public sector company, is coming up with a ‘rent-to-own scheme’ under which it will finance the construction of affordable housing projects in major urban centres.

Paying Rent for 20 Years..!

The allottees will be paying rent for 20 years, which will be treated as EMI, after which the ownership will be transferred to them.

HUDCO, which is under the ministry of housing & urban poverty alleviation, will be doing this in partnership with local urban bodies & state governments, who will be providing the land for the project and undertake the implementation of the project.

 

Reduce the Cost & Construction time..!

 According to a senior Hudco official, HUDCO will be providing 90 % of the entire construction cost & the houses constructed would be prefabricated to reduce the cost & construction time.

The pilot project will be carried out in Mohali, near Chandigarh, for which Hudco has tied up with the local municipal corporation and the Punjab government.


 

Mr. Vinod Joshi, Chandigarh Chief, HUDCO said, “We will be financing the construction of about 15,000 flats with an investment of about Rs. 2,000 crore. The rents / EMI, which will be revised with time, would be nominal & the allottee would be able to own the house after 20 years of continuous payment of rent”
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According to the senior Hudco officials, the same model will be replicated in other major cities, including the national capital region (NCR), and they are in advance talks with the government of Haryana for the same project in Faridabad.

Shortage 1.8 Crore Homes..!

Now, there is a shortage of 1.8 crore houses and 90.5 lakh of these are in the low-income group (LIG) and economically weaker section (EWS).

“In phase one, the project will be for LIG and EWS housing, after which we will target the MIG (Middle - income group) shortage” the official added
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