India: Inclusive, Resilient, and Sustainable Housing for Urban Poor Sector Project in Tamil Nadu

Water and other urban infrastructure and services / Urban housing

Tamil Nadu is among the large states with the most acute housing shortage because of both demand and supply factors. Demand side factors include (i) inaccessibility of existing housing programs to the poor because of inaffordability and qualification requirements; (ii) designs are not gender- and culturally sensitive; and (iii) low demand for or low occupancy because housing projects are located far from city centers. Supply side factors include (i) inadequate public resources, (ii) difficulty in attracting private investments due to low investment returns and lack of incentives; (iii) government's housing policies and procedures not matching capacity of the poor; and (iv) weaknesses in regional planning.

In Tamil Nadu, the large shortage of housing for the EWS and LIG result in limited housing options for the urban poor, and where available do not meet the needs of the urban poor including access to jobs and urban services. As such, the urban poor are forced to reside in hazardous areas or bear heavy transportation costs to access livelihoods. Unplanned urbanization and housing deficits have contributed to informal settlements and slum intensification. Tamil Nadu is among five states that host 62% of the country's slum population. The State has 5.8 million slum residents, which represents 17% of the urban population, and 8.9% of the total slum population in India. Most slum residents come from the EWS and the LIG. Informal settlements and slums are often situated in hazardous areas, are congested, and lack appropriate services (i.e., electricity, piped water supply, and sanitation/waste facilities). Slum areas are prone to disaster, environmental degradation, and health risks.

The proposed project builds on lessons from previous urban development projects and housing finance programs of Asian Development Bank (ADB) and the Government of India. In designing affordable housing, there is need for (i) balancing socioeconomic priorities, (ii) integrating regional perspectives and spatial considerations in development and economic planning, (iii) crafting and implementing appropriate policies and strategies, and (iv) ensuring inclusivity.

The rationale for the proposed project is stronger in view of the COVID-19 pandemic. There is recent literature documenting that addressing COVID-19 pandemic is more difficult in slum areas given deficiencies in water, sanitation, drainage, and waste collection in an environment constrained with space that makes social distancing and self-quarantine near impossible. A Brookings Institute study shows that slums are being disproportionately impacted in Mumbai, India. Slum conditions exacerbate already existing health issues in slum populations and containment sever slum dwellers from their income sources. Affordable housing and providing urban services to the urban poor and migrant workers will increase the resilience of beneficiaries to pandemics bringing further benefits to the wider community. In addition, the graduation program to be implemented in project housing sites will increase the resilience of the livelihoods of beneficiaries, and include behavior change required in maximizing benefits in the provision of sanitation and other urban services. The project will build-in required protocols in project design, particularly because the project has a participatory nature. The project is in-line with the recently announced special economic and comprehensive package which includes support for housing for migrants workers and the urban poor.

Affordable and improved housing for vulnerable communities constructed

Financing for affordable housing for urban poor and migrant workers increased

Integrated regional plan development supported