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Shelter Fund comes into being

Charges to be levied on buildings whose floor space index area exceeds 3,000 sq. m

Published - February 07, 2020 01:04 am IST - CHENNAI

With the Tamil Nadu government recently constituting the State Shelter Fund to rehabilitate the urban poor, all new construction of commercial, residential, industrial and institutional buildings across the State, whose floor space index (FSI) area exceeds 3,000 sq. m, will attract shelter charges between 1% and 3%, based on their guideline value per sq. m.

Though shelter charges have been levied earlier too, it was calculated as a blanket earlier and was not equitable. “Earlier, it was not equitable and all areas were charged equally. As a result of this notification, development of posh areas will be charged more and not-so posh areas will be charged less, explained a senior official.

The State Shelter Fund is levied to rehabilitate the urban poor in the State and to fund affordable housing projects for the economically weaker sections, through the Tamil Nadu Slum Clearance Board and the Tamil Nadu Housing Board.

Date for levy

The Tamil Nadu Town and Country Planning (Levy of Shelter Charges and State Shelter Fund) Rules, 2020, notified recently, will be applicable to areas covered by the provisions of the Tamil Nadu Town and Country Planning Act, 1971.

“The crucial date for levy of shelter charges, in respect of the Directorate of Town and Country Planning area, is the date of issue of technical clearance by the Directorate of Town and Country Planning, where it is required,” the notification stated.

In all other cases, including in respect of the Chennai Metropolitan Planning area, the same is the date of raising demand notice for payment of development or infrastructure and amenities charges, it stated.

On receipt of the final assessment order, the shelter charges are liable to be paid to the planning authority or the local authority.

The State Shelter Fund is also meant to meet the State government’s share of the grant component of centrally-sponsored housing schemes for the urban poor and other purposes related to affordable housing units. The fund has two components — Tier-I and Tier-II.

While Tier-I will be administered by an eight-member Tamil Nadu State Shelter Fund Committee, the Tamil Nadu Infrastructure Fund Management Corporation Limited will manage the Tier-II component.

In cases of non-approval of planning permissions or withdrawal of applications or non-commencement of the project, shelter charges shall be refunded after deducting a scrutiny fee of ₹5,000. In case of grievance over charges, appeals can be preferred in 30 days from date of receipt of the order.

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