Written by Amor Kool-AmorKoolis a Panel Member of National Building Code of India and Technical Committee Member to Bureau of Indian Standards and BEE ECBC.He's currently working as Environmental and Social Governance Lead at IIFL Home Finance Ltd.
There is a missing link of financial inclusion in affordability and sustainability. The development in line with the sustainability or green building requirement will ensure the quality of life through accessibility, ventilation, daylighting and flexibility in design. However, this approach may increase the cost of construction and can be quantified as an incremental cost for the green building. It is critical to establish, that the incremental cost is calculated against the contemporary practice of construction. In order to meet the sustainability requirements, an affordable housing design should be carefully worked out, that implies that a good architect or designer is required in addition to a better contractor is also needed to execute the designs. The incremental cost majorly applies to the soft cost of design and construction, as the consultancy charges will be higher than the contemporary designers. In its two introductory chapters in Ahmedabad and Indore, Kutumb connected affordable housing developers to industry expert Ar. Ashok B. Lall, who is known for sustainable and low-cost green building designs. This knowledge sharing with the developers was a revelation. Wherein, the methodology to reduce the cost of the project has been established making sure, that project meets the green building requirement.
The biggest takeaway from both of the events is the awareness among developers that by using low-cost techniques a sustainable and affordable housing can be developed. The event also connected the developers with rating agency which ensures that their soft cost of achieving green building rating remains minimal, and they get hand-holding in terms of approach towards acknowledging their project worldwide through these ratings. While following certain compliance system, it is apparent to increase the cost of project marginally. For that purpose, the financial institutions gave their assurance, in terms of offering a various financial mechanism to manage the additional cost they may occur.
The financial inclusion completes the chain, which is as of today broken. Kutumb has become a platform wherein all the stakeholders can communicate and resolve their potential issues. As a financial institution, IIFL is proud of creating an environment, which is neutral, unbiased and driven by knowledge.
Disclaimer: The information contained in this post is for general information purposes only. IIFL Home Finance Limited (including its associates and affiliates) ("the Company") assumes no liability or responsibility for any errors or omissions in the contents of this post and under no circumstances shall the Company be liable for any damage, loss, injury or disappointment, etc. suffered by any reader. All information in this post is provided "as is", with no guarantee of completeness, accuracy, timeliness, or of the results, etc. obtained from the use of this information, and without warranty of any kind, express or implied, including, but not limited to warranties of performance, merchantability, and fitness for a particular purpose. Given the changing nature of laws, rules, and regulations, there may be delays, omissions, or inaccuracies in the information contained in this post. The information on this post is provided with the understanding that the Company is not herein engaged in rendering legal, accounting, tax, or other professional advice and services. As such, it should not be used as a substitute for consultation with professional accounting, tax, legal or other competent advisers. This post may contain views and opinions which are those of the authors and do not necessarily reflect the official policy or position of any other agency or organization. This post may also contain links to external websites that are not provided or maintained by or in any way affiliated with the Company and the Company does not guarantee the accuracy, relevance, timeliness, or completeness of any information on these external websites. Any/ all (Home/ Loan Against Property/ Secured Business Loan/ Balance Transfer/ Home Improvement Loan/ NRI Home Loan/ Home Loan for Uniformed Services) loan product specifications and information that may be stated in this post are subject to change from time to time, readers are advised to reach out to the Company for current specifications of the said (Home/ Loan Against Property/ Secured Business Loan/ Balance Transfer/ Home Improvement Loan/ NRI Home Loan/ Home Loan for Uniformed Services) loan.