Special Window for Completion of Affordable and Mid-Income Housing (Swamih Investment Fund) Created . Swamih Investment Fund to Provide Last Mile Funding to Stressed Affordable and Middle-Income Housing Project
- In order to boost real estate sector, the Government has taken various initiatives such as reduction in Goods and Services Tax (GST) on under-construction Affordable Housing project from existing 8% to 1% without Input Tax Credit (ITC) and in case of other housing projects from 12% to 5% without ITC; increase in Priority Sector Lending for Affordable Housing Project from Rs. 28 lakh to Rs. 35 lakh in metros and from Rs. 20 lakh to Rs. 25 lakh in non-metros; Setting up of Affordable Housing Fund in National Housing Bank; additional Deduction of Rs. 1.5 lakh on account of Home Loan Interest in addition to the deduction of Rs. 2 lakh for affordable housing, Extension of 100% deduction on profits for construction of affordable housing projects under section 80-IBA of the Income Tax Act till 31.03.2021 and widening the scope of section 80-IBA from 30 to 60 square meters in metros regions and 60 to 90 square meters in non-metros cities.
- In order to give relief to homebuyers of stalled projects, a Special Window for Completion of Affordable and Mid-Income Housing (SWAMIH investment fund) has been created for funding stalled projects that are net-worth positive, including those projects that have been declared as Non-Performing Assets (NPAs) or are pending proceedings before the National Company Law Tribunal under the Insolvency and Bankruptcy Code.
- SWAMIH investment fund will provide last mile funding to the stressed affordable and middle-income housing projects in the country,
- Recently, in view of global pandemic of COVID-19, to protect the interest of all stakeholders, Central Government has issued the necessary advisory to all States/Union Territories and their Real Estate Regulatory Authorities for issuance of requisite orders/ directions under enabling provisions of Real Estate (Regulation and Development) Act, 2016 (RERA) to invoke force majeure clause to automatically revise / extend completion date for all real estate projects registered under RERA for a period of 6 months, where completion date expires on or after 25th March, 2020 and to allow further extension of 3 months, if the situation so demands, for the reasons to be recorded in writing and also extend concurrently the timelines of other statutory compliances under RERA.