LESSON 11.2 — Slums, Low-Income Housing, Typologies, Densities & Institutions

A. Standard Map

Topic	Governing Source	Exam Focus
Slum — types and definitions	Notified / recognised / identified; Census; Slum Act 1956	Definitions + India data
Slum drivers	Poverty, migration, housing shortage, land market failure	Causal logic
Low-income housing typologies	Sites-and-services; in-situ redevelopment; relocation; core housing; incremental	Type → use case
Densities in low-income housing	High density appropriate; controlled by FSI + planning	Numbers + trade-offs
Slum improvement vs clearance	Improvement (in-situ); clearance (relocation)	Trade-offs
Development control regulations	FSI / FAR; setbacks; height; mixed use	Application in low-income housing
Housing institutions	HUDCO; NHB; state Housing Boards; Housing Finance Companies	Role
Special-context housing	Disaster-resistant; hill housing; coastal; desert; refugee	Adaptations

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B. Why It’s Used

Paper II §11 of the TGPSC syllabus continues with “Slums and squatter settlements, Housing for low-income groups. Housing typologies in various contexts, Residential densities and development control regulations. Public and private sector housing, Role of different institutions in housing.” This lesson covers the operational reality of urban housing in India — most urban Indians live in informal housing, informal settlements, or affordable housing segments that the planner designs and regulates. The exam tests slum classification, low-income housing typologies (sites-and-services vs in-situ vs relocation vs incremental), density trade-offs, and housing institutions (HUDCO, NHB, state Housing Boards). Telangana-specific: Hyderabad’s notified + un-notified slums (1,400+), the old-city slums along the Musi, the 2BHK scheme delivery, the role of TSHC.

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C. Mechanism in Words

1. A slum is a contiguous settlement where the dwellings are structurally inadequate, services are inadequate, and the residents suffer multiple forms of deprivation — covered in detail in Lesson 2.2 (definition: Census threshold 60 households). The Census of India 2011 classified slums into three types: Notified slums — areas formally notified as slums by state/ULB governments, eligible for all statutory slum improvement benefits. Recognised slums — areas identified in surveys but not formally notified; eligible for some benefits. Identified slums — areas that meet the demographic criteria (compact settlement of 60+ households in inadequate structures) but have not been notified or recognised. India’s Census 2011 counted about 68 million slum dwellers in urban areas — roughly 17% of urban households. The geographic distribution is concentrated in the largest cities — Mumbai, Delhi, Kolkata, Chennai, Hyderabad, Bangalore — but smaller cities also have significant slum populations, often under-reported.

2. Slums form through a combination of poverty, migration, housing shortage, and land market failure. Poverty — households cannot afford formal-sector housing at market prices; the gap between what they can pay and what formal housing costs forces them into informal arrangements. Migration — rural-to-urban migrants arrive with limited capital and need immediate accommodation near workplaces; informal settlements fill this gap. Housing shortage — when formal supply lags demand, informal supply (slums, squatter settlements, unauthorised colonies) absorbs the gap. Land market failure — formal land markets often fail to deliver small, affordable plots with secure tenure; the informal sector fills the void with small plots, leased rooms, and insecure tenure. The planner’s challenge: address these root causes, not just the symptom (slums themselves).

3. Squatter settlements are a specific type of informal housing where occupants have no legal title to the land. Squatting typically happens on public land — railways, road margins, riverbanks (the Musi in Hyderabad), park edges, government land reserved for future use — because private landowners evict squatters faster than the state does. Squatter settlements are distinct from slums in that the legal status (unauthorised occupation of land) is the principal problem, not necessarily the housing quality. Many squatter settlements have well-built houses (incrementally improved over years) but no legal tenure. Regularisation — the policy of granting formal tenure to existing squatters after some cutoff date — is a common but contested response.

4. Low-income housing typologies reflect different approaches to the affordability-tenure-quality trade-off. Sites-and-services (World Bank-promoted in the 1970s–80s) — government provides a serviced plot (water, sanitation, electricity connections) but the family builds the house incrementally; affordable and tenure-secure, but slow. In-situ slum redevelopment — slum demolished and replaced with on-site multi-storey housing for original residents (often with private developer participation using land as a resource); preserves residents’ location and livelihoods, but slow and contested. Relocation to peripheral colonies — slum residents moved to peripheral housing colonies (often multi-storey); cheap land but breaks livelihoods and social networks. Core housing — government provides a “core” unit (one room + kitchen + toilet) and family expands incrementally. Incremental housing — formal housing designed for staged expansion (e.g., Aranya in Indore by B.V. Doshi, a celebrated example). Each model has trade-offs — affordability, tenure security, livelihood preservation, social cohesion, and time-to-delivery differ.

5. Housing typologies vary by context. Urban multi-storey apartments — high density, land-efficient, suitable for metros with high land prices. Urban row houses / duplexes — medium density, ground-related, suitable for small plots. Plotted housing — low to medium density, ground-related, dominant in Indian suburban development. Cluster housing — shared courtyards, social cohesion, common in low-income housing (e.g., the Indore Aranya site). Slum rehabilitation authority (SRA) tenements — typically 4–7 storey walk-ups, 225 sq ft per family, in Mumbai. Hill housing — terraced forms, light foundations, retaining walls, suitable for slopes; the hill towns of Uttarakhand and Himachal use these. Coastal housing — elevated plinths, cyclone-resistant construction (deep foundations, tied roof structures), suitable for cyclone-prone east coast. Desert housing — thick walls, small openings, courtyards, suitable for hot-dry Rajasthan. Disaster-resistant housing — seismic-resistant (IS 1893 + IS 13920 detailing), flood-elevated, cyclone-resistant (cross-bracing, deep roof anchorage). Planners must know these typologies to recommend the right form for each context.

6. Residential density is the planner’s principal lever for balancing land consumption against infrastructure efficiency. Density is expressed several ways: gross density — population (or dwelling units) per total land area including roads, parks, facilities; net density — population per residential land area only (excluding non-residential uses); habitable density — persons per habitable room; floor space index (FSI) / floor area ratio (FAR) — built-up area / plot area (a proxy for density). For low-income housing, high gross density (200–400 pph or higher) is usually appropriate — it minimises land cost (the dominant cost), supports public transport feasibility, and allows for the central locations that preserve livelihoods. However, high density must be matched by adequate infrastructure (water, sanitation, ventilation) — otherwise overcrowding results. Density and overcrowding are not the same: Manhattan and central Paris have densities of 250–400 pph but are not slums because infrastructure matches density; many Indian slums have similar densities but inadequate services.

7. Development Control Regulations (DCRs) operationalise density policy at the plot scale. The principal DCRs: Floor Space Index (FSI) / Floor Area Ratio (FAR) — the ratio of built-up area to plot area. Typical Indian urban FSI ranges from 1.0 to 4.0 depending on zone and city; Hyderabad is among the more permissive (typical residential FSI 2.0, with premium FSI available in some zones). Building height — often limited by FSI, fire-safety norms, and airport regulations. Setbacks — minimum open space around the building (front, side, rear), scaled with plot size. Coverage — maximum % of plot that can be covered by the building footprint (typical 50–75%). Parking requirement — number of parking spaces per dwelling unit or per 100 sq m built-up. Mixed-use allowance — which non-residential uses are permitted in residential zones. Low-income housing often requires relaxations (higher FSI, reduced parking, smaller setbacks) to be financially feasible — most Indian states have such relaxations as part of affordable housing policy.

8. Housing institutions in India include both finance and development bodies. HUDCO (Housing and Urban Development Corporation, 1970) — central public-sector NBFC, finances housing and urban infrastructure projects, primarily for EWS/LIG segments; channels international funds (World Bank, ADB) into Indian housing. NHB (National Housing Bank, 1988) — the regulator and supervisor of Housing Finance Companies (HFCs) in India, set up under the NHB Act 1987; also refinances HFCs. State Housing Boards — every state has one (Maharashtra Housing and Area Development Authority — MHADA; Andhra Pradesh / Telangana State Housing Corporation — TSHC; Karnataka Housing Board — KHB; Delhi Development Authority’s housing wing); they plan, build, and allot affordable housing. Housing Finance Companies (HFCs) — LIC Housing Finance, HDFC (now merged with HDFC Bank), ICICI Home Finance, PNB Housing Finance; provide retail home loans. Private developers — increasingly active in affordable housing post-PMAY-U. Cooperative housing societies — a long-standing model where members jointly own land and buildings; common in Maharashtra and Gujarat. NGOs / CBOs — Mahila Milan (SPARC-NSDF), SELCO, Saath, and many others work on housing for the urban poor. The planner interacts with all of these institutions when processing affordable housing projects.

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D. Core Concept Explanations

C1. Slum types

Type	Status	Eligibility
Notified	Formally notified by state/ULB	All statutory slum benefits
Recognised	Identified in surveys	Some benefits
Identified	Meets demographic criteria but not notified/recognised	Limited benefits

C2. Low-income housing typologies

Typology	Mechanism	Strength	Weakness
Sites-and-services	Serviced plot; family builds incrementally	Affordable; tenure-secure	Slow; demands household capacity
In-situ redevelopment	Demolish + rebuild on site	Preserves location/livelihoods	Slow; contested
Relocation (peripheral)	Move residents to peripheral colony	Cheap land; mass delivery	Breaks livelihoods
Core housing	Govt builds core unit; family expands	Quick; affordable	Limited customisation
Incremental	Designed for staged expansion	Family-driven	Long completion

C3. Density types

Type	Definition
Gross density	Persons (or DUs) per total land area including everything
Net density	Persons per residential land area only
Habitable density	Persons per habitable room
FSI / FAR	Built-up area / plot area

C4. India’s principal housing institutions

Body	Year	Role
HUDCO	1970	Finance housing + urban infrastructure for EWS/LIG
NHB	1988	Regulate + supervise Housing Finance Companies (HFCs)
State Housing Boards (MHADA, TSHC, KHB, etc.)	Various	Plan, build, allot affordable housing
HFCs (LIC HF, HDFC, ICICI HF, etc.)	Various	Retail home loans
Cooperative societies	Various	Joint ownership model

C5. Special-context housing adaptations

Context	Adaptation
Hill / slope	Terraced; light foundations; retaining walls
Coastal / cyclone	Elevated plinth; deep roof anchorage; cross-bracing
Hot-dry / desert	Thick walls; small openings; internal courtyard
Seismic zone	IS 1893 + IS 13920 detailing; ductile design
Flood-prone	Raised plinth; flood-resistant materials

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E. Worked Numericals and Parameter Tables

E1. Density computation

A 2-hectare low-income housing project has 200 dwelling units at 4.5 persons/household. Gross density = (200 × 4.5) / 2 = 900/2 = 450 pph — very high per URDPFI. Net density (excluding 20% non-residential land) = 900 / (2 × 0.8) = 562 pph — extremely high; infrastructure planning must match.

E2. FSI computation

A 200 sq m plot has FSI 2.0. Maximum built-up area = 200 × 2.0 = 400 sq m. If ground coverage is 60%, ground floor area = 120 sq m; to reach 400 sq m requires ~4 floors. Setbacks apply per state building byelaws.

E3. Sites-and-services affordability

A 30 sq m serviced plot costs ₹1.5 lakh (govt-subsidised land + services). A family earning ₹15,000/month can save ₹3,000/month for construction. Over 5 years, savings = ₹3,000 × 60 = ₹1,80,000 — enough to build a basic 25 sq m room (₹1,800/sq ft construction cost). The family builds the room incrementally over the next 5–10 years.

E4. Relocation cost-benefit

A slum of 500 families on ₹100 crore worth of inner-city land. Option A: in-situ redevelopment — demolish, rebuild 500 flats on 30% of plot, sell remaining 70% to private developer for ₹70 crore (cross-subsidising the construction). Option B: relocation to peripheral colony — sell the inner-city land for ₹100 crore, build peripheral flats at ₹20 lakh each = ₹100 crore (no net cost to government). Trade-off: in-situ preserves livelihoods (Option A); relocation breaks them but is cheaper (Option B). Planners must weigh both.

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F. Design Criteria

Parameter	Standard / Typical value	Source
India urban slum share	~17% of urban households (Census 2011)	Census
Slum household threshold	60 households (Census)	Census
HUDCO founded	1970	Statute
NHB founded	1988	Statute
Typical Indian FSI range	1.0 to 4.0 (varies by city/zone)	State DCRs
Hyderabad typical residential FSI	2.0	HMDP 2031 / GO 86
Typical ground coverage	50–75%	State DCRs
Typical low-income housing density (gross)	200–400 pph	URDPFI
PMAY-U 2BHK carpet area (Indore-style site)	Varies	PMAY-U guidelines
NBC minimum room height	2.75 m	NBC
NBC habitable space	9 sq m per person	NBC

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G. Application Zones

1. Slum improvement vs redevelopment decisions — ULB-level choices driven by density, location, livelihoods.
2. Affordable housing projects — PMAY-U; Telangana 2BHK; private AHP.
3. Layout plan approval — FSI, setbacks, parking, density per DCRs.
4. Housing finance — ULB partnership with HUDCO, NHB-regulated HFCs.
5. Special-context housing — disaster-resilient typology selection in hazard-prone areas.

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H. Common Confusions

Confusion	Reality
“Density and overcrowding are the same.”	No — density is persons per area; overcrowding is persons per room. Manhattan has high density without overcrowding.
“Relocation always improves slum dwellers’ welfare.”	No — peripheral relocation breaks livelihoods and social networks; in-situ redevelopment often outperforms.
“Sites-and-services are quick.”	No — they are slow because households build incrementally over years.
“FSI is the same as FAR.”	Functionally yes — both = built-up area / plot area; FSI is the Indian term, FAR the American.
“HUDCO is a Housing Finance Company.”	No — HUDCO is a public-sector NBFC financing housing projects; NHB-regulated HFCs provide retail home loans.
“Slum = informal housing.”	No — slum is defined by structural inadequacy and services; informal housing is defined by tenure. Many slums are formally owned; many informal houses are non-slum.
“NHB lends to retail borrowers.”	No — NHB regulates + refinances HFCs; retail lending is done by HFCs themselves.

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I. Compare & Contrast

I1. In-situ vs relocation vs sites-and-services

Dimension	In-situ redevelopment	Relocation	Sites-and-services
Land tenure	Secured on site	Secured at peripheral site	Secured plot
Livelihoods	Preserved	Disrupted	Location-dependent
Time to deliver	Slow (5–10 yrs)	Faster	Slow (incremental)
Cost	Cross-subsidised via land	Cheaper (cheap peripheral land)	Lowest (govt-subsidised)
Best for	Central, dense slums	Peripheral / land-deficit cities	Greenfield expansion

I2. HUDCO vs NHB

Dimension	HUDCO	NHB
Year	1970	1988
Type	Public-sector NBFC	Regulator + supervisor
Role	Finances projects	Regulates Housing Finance Companies
Borrower	ULBs, state housing boards, developers	HFCs (LIC HF, HDFC, etc.)

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J. Memory Hooks

• “Notified-Recognised-Identified” — three slum types.
• “60 households = slum” — Census threshold.
• “S-I-R-C-Inc” — Sites-and-services, In-situ, Relocation, Core, Incremental — 5 low-income typologies.
• “Gross-Net-Habitable-FSI” — 4 density measures.
• “HUDCO 1970; NHB 1988” — two principal housing institutions.
• “Density ≠ overcrowding” — the critical distinction.
• “FSI = FAR” — Indian vs American term.

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K. Revision Ladder

Order	Item	Time
1	Memorise the 3 slum types with eligibility	20 min
2	Memorise the 4 drivers of slum formation	20 min
3	Memorise the 5 low-income housing typologies with trade-offs	45 min
4	Memorise the 4 density types (gross/net/habitable/FSI)	30 min
5	Memorise the 5 special-context housing adaptations	30 min
6	Memorise HUDCO + NHB + state housing boards	30 min
7	Practise FSI and density arithmetic	30 min
8	Map Telangana housing institutions (TSHC, 2BHK, GHMC slum wing)	30 min

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L. Exam Traps

Trap	Correct response
Question pairs density with overcrowding.	False — density is per area; overcrowding is per room.
Question lists relocation as always welfare-improving.	False — relocation often breaks livelihoods and social networks.
Question lists FSI and FAR as different concepts.	False — same concept, different terms (Indian vs American).
Question pairs HUDCO with retail lending.	False — HUDCO finances projects; NHB-regulated HFCs lend retail.
Question lists 2 slum types.	False — 3 types: notified, recognised, identified.
Question pairs sites-and-services with quick delivery.	False — sites-and-services are slow (incremental household construction).
Question lists NHB as founded in 1970.	False — NHB 1988; HUDCO 1970.

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M. Answer-Writing Cues

• For slum questions, give type + definition + Census data: “Per the Census of India 2011, slums are classified as notified, recognised, or identified; India had approximately 68 million urban slum dwellers — roughly 17% of urban households.”
• For low-income housing questions, give typology + trade-offs: “In-situ redevelopment preserves livelihoods and social networks but is slow and contested; relocation to peripheral colonies is faster and cheaper but breaks livelihoods.”
• For density questions, distinguish density types: “Gross density is persons per total land area; net density excludes non-residential uses; FSI/FAR is built-up area per plot area.”
• For institution questions, give body + year + role: “HUDCO (1970) is a public-sector NBFC financing housing projects for EWS/LIG; NHB (1988) regulates and supervises Housing Finance Companies.”

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N. PYQ Integration

Pattern questions only:

Pattern question 1 — Slum types

Q. As per the Census of India, slums are classified into how many types?
– (A) 2
– (B) 3 ✓
– (C) 4
– (D) 5

Ans: (B). Notified, recognised, identified.

Pattern question 2 — Density

Q. Which of the following measures is “gross residential density”?
– (A) Persons per habitable room
– (B) Persons per total land area (including roads, parks, facilities) ✓
– (C) Persons per residential plot only
– (D) Built-up area per plot area

Ans: (B). Option (A) is habitable density; (C) is closer to net density; (D) is FSI/FAR.

Pattern question 3 — Housing institution

Q. HUDCO, founded in 1970, is primarily a:
– (A) Retail home loan provider
– (B) Public-sector NBFC financing housing and urban infrastructure projects ✓
– (C) Regulator of Housing Finance Companies
– (D) State-level housing board

Ans: (B). (NHB regulates HFCs; HFCs do retail lending; HUDCO finances projects.)

Pattern question 4 — MSQ

Q. Which of the following are low-income housing typologies?
– (A) Sites-and-services ✓
– (B) In-situ redevelopment ✓
– (C) Relocation to peripheral colonies ✓
– (D) Luxury high-rise condominium

Ans: (A), (B), (C). Luxury condominiums are not low-income housing.

Pattern question 5 — Numerical

A 500 sq m plot has FSI 3.0. Maximum built-up area allowed is:
– (A) 1,000 sq m
– (B) 1,500 sq m ✓
– (C) 2,500 sq m
– (D) 3,000 sq m

Ans: (B). 500 × 3.0 = 1,500 sq m.

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O. Mini-Check — Lesson 11.2

1. List the three types of slums per the Census of India.
2. State the household threshold for slum identification per the Census.
3. State the approximate urban slum share in India per Census 2011.
4. List four drivers of slum formation.
5. List five low-income housing typologies with one strength each.
6. State the difference between in-situ redevelopment and relocation.
7. State four measures of density.
8. State the difference between gross and net density.
9. Name HUDCO, its founding year, and its role.
10. Name the regulator of Housing Finance Companies in India.

Answers:
1. Notified, recognised, identified.
2. 60 households in a compact settlement with inadequate structures/services.
3. ~17% of urban households (about 68 million slum dwellers).
4. Poverty; migration; housing shortage; land market failure.
5. Sites-and-services (affordable, tenure-secure); In-situ redevelopment (preserves livelihoods); Relocation (cheap land); Core housing (quick); Incremental housing (family-driven). Any five with strengths.
6. In-situ demolishes and rebuilds on the same site, preserving livelihoods and social networks. Relocation moves residents to peripheral housing colonies, breaking livelihoods but using cheaper land.
7. Gross, net, habitable, FSI/FAR.
8. Gross includes all land (roads, parks, facilities); net excludes non-residential uses, considering only residential land.
9. HUDCO (Housing and Urban Development Corporation, 1970) — a public-sector NBFC financing housing and urban infrastructure projects for EWS/LIG.
10. NHB (National Housing Bank, 1988).

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