Based on the Census data for the year 2001, as a Short Term 3 year plan NHDA drew up a programme to build 175,000 housing units commencing from 2005.

The NHDA has so far commenced work on 40,000 houses in 2005 and is confident of achieving the target of 70,000 housing units for the year.

Having identified the needs of the Housing market and the pattern of change in demand, NHDA has drawn up a modified Housing Programme for 2006, without drastically altering the number of units and the fund requirements.

2. Housing Programme for 2006

      2.1           “Sustainable Village”  - Cluster Housing Programme

                                       - Integrated District Development Plan

Thriving on the success of the programme in 2005, it is proposed to build 10,000 housing units in 2006 under this programme, whereby new cluster houses are being constructed with the active participation of the beneficiaries. Conducting awareness programmes, community action planning, design and provision of infrastructure facilities, layout planning, house plans,           technical advise and a financial package of Rs. 65,000/=     (Rs. 50,000/= @ 11% + Rs. 15,000/=@ 2%) are features of the programme.

The Integrated District Development Plan proposed by the Ministry of Housing has been approved by the Cabinet and the Infrastructure facilities up to the site required for these Cluster houses will be provided by the respective agencies. 

2.1.1  Common Amenities and Infrastructure

For provision of on site infrastructure facilities for the above new settlements a sum of Rs. 200 M. will be needed

2.2           Two New programme have been identified after critical assessment of the needs of the housing segment.

2.2.1        Serviced Land Plots at affordable Prices

The lower middle income wage earners are the worst affected due to the unabated increase in prices of land and building materials. NHDA proposes to provide serviced land plots at strategic locations to this segment under the programme.

It is proposed to provide 2,000 serviced land plots during the next 3 years as follows :

Year	No. of Plots	Acquisition Cost
2006	600	140.4
2007	800	187.2
2008	600	140.4
Total	2,000	468.0

The NHDA expects to acquire by purchase around 31,200 perches (195 Acres) at an averages price of Rs. 15,000/= per perch in all Districts for this purpose at a cost of Rs. 468 M. The District Managers of NHDA have been advised to explore the possibility of finding sites close to growth centres in each District.

The Provision of infrastructure facilities for these sites is estimated to cost Rs. 300 M.

A 12 perch land plot could be made available to lower middle wage earners at Rs. 400,000/= and this amount could be repaid at 4% p.a. interest over 10 years after an initial down payment of Rs. 100,000/=.

2.2.2        Entrepreneur  Development             

As a means of popularizing eco-friendly affordable building Technology, NHDA proposes to introduce a credit scheme to enhance and propagate such technology by introducing terra block and Pre-cost concrete manufacturing machines to local entrepreneurs. A loan of Rs. 125,000/= at an interest of 5% will be given. Initially 240 beneficiaries would be served under this credit scheme utilizing Rs. 30 M. Funds for the scheme would be drawn from the Sevana Grant of Rs. 100 M. proposed for 2006.

The cost of the machine will be recovered at 5% p.a interest over 5 years and will be utilized as a revolving fund for providing 12-15 machines annually after the first year.    

2.3  Settlement Development Programme – Rural and Urban

This programme too, introduced in 2005 has proved to be immensely successful. Nearly 5,000 housing units in existing     Rural settlements have been improvised this year.

It is further observed that the housing needs of peri-urban areas of the potential growth centres have not been adequately addressed. Our District Offices have already done a survey and the housing needs of Peri-Urban areas will be catered for in 2006.

NHDA plans to improve 6,800 units in 2006 under this programme.

2.4           “Sevana Piyasa” Tiles Programme

A tiled roof is an absolute necessity in most parts of the Island due to the climatic conditions and the geographical location of housing stock in the country. This programme would also give a boost to local industry and the economy. It is proposed to provide Roofing Tiles to 25,000 new housing units in 2006. Total cost would be Rs. 395 M.

2.5           Sevana Grant Programme

Under the Sevana Grant Programme 2,800 poorest of the poor families will be assisted with a grant of 25,000/= and building material assistance for roofing. Balance Rs. 70 M. receivable under the Sevana Grant Programme will be utilized for this programme.

2.6           Public Servants Housing

Due to the huge demand for the 400 units constructed under      Stage I at Jaltara, NHDA has finalized plans to build a further 256 units under Stage II in the balance land. For completion of Stage II, TEC is Rs. 576 M. and Rs. 200 M. is needed in 2006.

These 256 housing units could be made available to Public Servants and Semi Government employees. 25% of the sale price would have to be paid up front and the balance to be spread over 15 years. HDFC would finance the mortgage ensuring that NHDA investment is recovered early.

2.6.1        Relocation and Tsunami Housing

For completion of relocation housing projects and Tsunami housing projects in Nupewela and Kammalwatte. NHDA would require  Rs. 92 M. in 2006.

For completion of relocation housing projects and Tsunami housing projects in Nupewela and Kammalwatte. NHDA would require  Rs. 92 M. in 2006.

2.7                 Redevelopment of Condominium Properties

The physical environments of most condominium properties build by NHDA have deteriorated over the years due to high maintainace cost of these units against the low rentals collected and is an     eye-sore within the city of Colombo.

For redevelopment of these residential schemes NHDA has earmarked Rs. 50.0 M. in 2006.

District	No. of Lands	No. of Units
Gampaha	5	722
Colombo	1	25
Kandy	2	200
Matale	1	135
Nuwara Eliya	1	49
Puttlam	1	57
Polonnaruwa	1	25

3.             Initiatives Offered for Housing

Incentives offered for housing in the Budget proposals for the year 2005 have been given wide publicity and would be pursued with greater commitment during 2006.

3.1           Tax Exemptions on Rental Housing

HDFC would be the lead agency for promoting this proposal and the number of loans issued for new constructions of housing units has gathered momentum and a marked increase is observed compared with 2004.

3.2           Housing for Migrant Workers

The Ministry of Labour is handling this programme and already several meetings have been held to workout the methodology of granting loans.

3.3           Loan Scheme for Public Servants

The State Sector Banks, SMIB and HDFC are the main institutions handling this programme and HDFC has already granted more than 100 loans under this programme.

3.4           Lands for Public Servants

Lands available with NHDA and described in 2.2.1 above would be made available under this programme.  

4.   Achievements up to August 2005

NHDA has commenced work on nearly 40,000 houses so far this year and already completed 29,889 units by end of August 2005.

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