Uniform Housing Boards Act Sought

It has suggested that state housing boards should be restructured as companies with transparent accounting, professional management and minimum government intervention.

The suggestions were made by the Times Research Foundation, which was invited by Hudco to identify the policy options for reforms in the State Housing Boards Act.

The corporation suggested that a new State Housing Board Act be drafted. Under the present system, states have differing housing board policy with varying accounting systems, which is unacceptable to most financial institutions.

Hudco has proposed uniform accounting system in the new Act. This, it said, would help in appraising the financial performance of the boards and in the long run, make it easier for the corporation to allocate loans to the boards.

 

In 1994-95, Hudco had forwarded loans of Rs 700 crore to the state housing boards.

According to a senior Hudco official, a uniform accounting system would attract funds to the state boards from Hudco and other international institutions.

Under the existing accounting system, four out of 12 boards were audited by chartered accountant firms. In three cases, audits were conducted by state audit boards and in remaining five, the accounts were not subjected to audit at all. Besides, there is no provision in the Act to compel the boards to complete accounts within a prescribed time.

Regarding the structure of the housing agencies, a majority wants it to be incorporated as joint stock companies under the Companies Act. There is, however, no question of privatising the boards at present, considering the boards social objective.

Regarding finance, it has been proposed to discourage dependence on government funding, which the corporation felt should be limited to social housing schemes and subsidies for low-cost housing.