Performance Evaluation of Development Authorities Regarding Private Housing Schemes: Case Studies of Lahore Development Authority & Rawalpindi Development Authority

Abstract

Adequate and affordable housing is one of the basic human rights. Although it is considered as the prime responsibility of state, it is beyond the financial capabilities of the public sector to address the ever increasing housing deficit in Pakistan. In the current era of market economy, the Private Sector is playing a vital role to fill the vacuum created by inadequate housing provision by the public sector. However despite the major contribution, there are many issues of plots which are also associated with the private sector housing as well. Delayed allotment and possession, especially in the case of cooperative housing schemes and low income private housing schemes, slow pace of development work, unauthorized and illegal use of sites originally reserved for public amenities, open spaces and graveyard, below standard development work, lack of attention (or no attention at all) to trunk infrastructure such as Road, Drain, Sewer, Water Sources etc. are some of the much neglected areas. Although the development authorities are regulatory and monitoring agencies, they are unable to address these challenges efficiently because of lack of adequate policy, weak institutional arrangement& legal backing, lack of human resource and logistics support, which resulted in the emergence of completely illegal, semi legal, but under developed schemes. Public at large is unaware of the guarantees which the developer submits with the authority to attain approval. Furthermore the low level of awareness on the part of residents regarding the on map and on site location of the mortgaged plots is the major reason for the problems associated with private housing schemes. Thus, due to weak legal structure, less coordination between the various line departments, un-clear implementation and enforcement mechanism, the developer in many cases is able to sell the mortgaged plots and transferred area (the area under parks, graye yards, public amenities which is in the name of authority in revenue department documents so that it may not be sold / encroached). Such phenomenon ultimately results in a situation where the developer carries out a little development work, even to the level of zero development after lapse of many years. This is a great risk and challenge which is faced by the allottees of plots in such schemes. The development authorities need to bring about changes in the policy, rules, regulations and institutional arrangement which have been framed for real estate sector. Some of the area where work has to be done is the control of the development authorities on the sale & purchase of plots. In this regard issuance of a no objection certificate by the authority, a pre requisite for the allotment / transference is extremely important. Furthermore development authorities need to 8 address the paradigm shift by incorporating technological advancement such as ICT in this very area. The capacities of the authorities are also to be enhanced, both in term of human resource, their training as well adequate logistic support. The awareness level of public regarding mortgaged plots, violation committed by developers may be enhanced by publicizing the same in print and electronic media. In the absence of such changes, the continuously growing real estate bubble may burst out in the near future which would result in irreparable losses to the common buyer of the plots in housing schemes