It is estimated that roughly six lakh dwelling units would be constructed across the state using the funds thus collected, of which about 1.5 lakh units would be in Chennai and surrounding areas.
This will see an increase in the cost of flats, to the tune of Rs.26 per sq.ft. for multi-storey residential projects and Rs.52 per sq.ft. for multi-storey IT, commercial, industrial and institutional projects. In short, it amounts to a flat 75% of infrastructure and amenities charges levied on buildings. Any new development falling under the Chennai Metropolitan Development Authority and Directorate of Town and Country Planning will be required to contribute towards the shelter fund in order to get a building approval.
The government has issued an order that developments up to 3000 sqm will be exempt from paying this fund, as will also be residential EWS projects up to 50 sqm or 538 sq.ft. carpet area per unit.
Meanwhile, the state government has, with the help of Slum Clearance Board and State Industries Promotion Corporation of Tamil Nadu (SIPCOT) begun to earmark lands where pilot projects under affordable housing for rentals and ownership, can be taken up.