Union Cabinet on 6th November approved a ‘Special Window’ fund to provide priority debt financing upto Rs. 10,000 crore for the completion of stalled housing projects that are in the Affordable and Middle-Income Housing sector.
Crux of the Matter
The fund will be set up as a Category-11 AIF (Alternate Investment Fund) debt fund registered with SEBI.
For the first AIF under the Special Window, it is proposed that SBICAP Ventures Limited shall be engaged to be the Investment Manager.
This fund is set to provide relief to developers that require funding to complete unfinished projects and is expected to have a positive effect on the real estate sector.
This decision has been taken after a number of Inter-ministerial consultations and several consultations were held with Housing Finance Companies, Banks, NBFCs, Investors, and Real Estate Developers.
Curiopedia
Middle-income housing affordability is affordable access to quality housing which is pivotal to the democratisation of prosperity that occurred in the last century in most high-income nations. Middle-income is different from low – income housing as it relies on public subsidies to serve the needs of households unable to afford the house prices or rents prevailing on the open market. More the housing affordability means fewer households seeking housing subsidies through affordable housing programs.
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