Seeing the term 'affordable housing', an elaborate number of various home schemes and housing programs come to mind. There is a bundle of misconceptions around what precisely constitutes affordable housing. Various types of affordable housing not only deliver housing for lower-income households but also serve a broader range of people, including moderate and middle-income households, seniors, students, and more. This article will shed light on the different types of affordable housing, the options available for low-income residents, the details of subsidised and public housing, and the advantages and practicality of rent-to-own homes and cooperative housing models. It will also touch on affordable housing initiatives in India, like the projects and programs of habitat for humanity.
Types of affordable housing
To start with, let us explore the various types of affordable housing. Specific types of affordable housing include public housing, subsidised housing, low-income housing tax credits, and multifamily affordable housing, among others. Each type of affordable housing serves a different purpose and is targeted at diverse demographics.
Public housing overview
Public housing is owned, operated, and managed by the government, which is either local, regional, or national. These are typically apartment complexes or tower blocks, located in areas containing a concentration of poverty and usually offered to people and families who can prove income eligibility.
Subsidised housing explained
Subsidised housing comes under a broad term that refers to housing that is supported in any way by government funds or subsidies. There are several forms of subsidised housing, including housing vouchers and direct rental assistance. The goal of subsidised housing is to provide a safe, decent, and affordable place to live for those who cannot afford market-rate housing.
Rent-to-own homes: A viable option
Rent-to-own homes, on the other hand, are a unique type of affordable housing, providing an alternative to traditional homeownership. In a rent-to-own agreement, tenants agree to rent the property for a set time before having the option to purchase it before the lease expires. This provides time for tenants to build credit and save money while living in the home they plan to purchase. These are quite a viable option for those who are unable to get a traditional mortgage.
Cooperative housing models
Cooperative housing models present another type of affordable housing, where residents either own shares (proportional to the relative size of their apartment) in a corporation that owns the whole structure; or they form a co-op, a corporation where they are both tenants and landlords. This model not only provides affordable housing but also generates social benefits like community development and empowerment.
Affordable housing with Bajaj Finserv Home Loan
For those seeking a home loan to facilitate their affordable housing plans, Bajaj Finserv Home Loan serves as a favourable option. With attractive interest rates, flexible repayment options, and a simplified application process, Bajaj Finserv Home Loan ensures accessibility and affordability for those who need it the most. It stands as a leading home finance provider in the country, catering to the needs of Indian citizens irrespective of their socio-economic status.
In India, many affordable housing initiatives aim to tackle the housing crisis. The Pradhan Mantri Awas Yojana (PMAY) is one such initiative bringing a significant focus on affordable housing. It aims to provide a 'Pucca house' for every Indian citizen, especially catering to the Economically Weaker Sections (EWS) and Low-Income Groups (LIG), bringing them closer to fulfilling their dreams of owning a home.
Habitat for Humanity programs and projects
Moreover, the nonprofit organisation Habitat for Humanity runs several programs throughout India to eradicate poverty through affordable housing. It has so far helped over one million people in India to build or improve a place they can call home. Their projects cover disaster risk reduction and response, housing microfinance, advocacy for decent housing, and technical assistance for housing market transformation.
To sum up, affordable housing is not just about providing shelter to lower-income households but about creating sustainable and inclusive communities. From public housing, subsidised housing to initiatives like PMAY and Habitat for Humanity's programs, affordable housing has many faces. Through professional financial services, like Bajaj Finserv Home Loan, dreams of homeownership can become a reality, considerably improving the need for affordable, secure, and comfortable homes for everyone.
