House Building Advance Rules (HBA) 2017

House Building Advance Rules 2017

House Building Advance Rules (HBA)  2017

I.17011/11(4)/2016-H-III
Government of India
Ministry of Housing & Urban Affairs
Housing-Ill Section

Nirman Bhawan. New Delhi.
Dated 09.112017.

OFFICE MEMORANDUM

Subject: House Building Advance Rules (HBA) — 2017.

The following House Building Advance Rules is in supersession of existing rules on the subject:

1. Introduction

Grant of House Building Advance for Central Government employees is regulated in terms of rules and regulations laid down from time to time by the Ministry of Housing & Urban Affairs (erstwhile Ministry of urban Development). These rules are as under:

2. Purpose

House Building Advance (HBA) is admissible to an employee for only one of the following purposes:-

i. Constructing a new house on the plot owned by the employee or spouse, either jointly or…. Read More

3. Eligibility 

i. All permanent government employees. i. All permanent government employees.

ii. All other employees with at least 5 years of Continuous Service, provided they do not hold permanent appointment under … Read More

HBA Cost Ceiling Conditions

i. Cost of the house to be built /purchased (excluding the Cost of plot) should not exceed 139 times of the basic pay of the employee subject to a maximum of Rs. 1.00 crore (one crore) only. In individual cases, if the Administrative Ministry is satisfied on the merits of the case, the cost ceiling may be relaxed up to a maximum of 25% by the Head of the Department.

Amount of Advance eligible for HBA

1. Only one advance shall be sanctioned to the government servant during his/ her entire…Read More

HBA Repayment Capacity

For the purpose of Calculating the admissible loan amount, the repayment capacity of the Central government employee shall be calculated as …. Read Mor 

7. Applicable Rate of Interest and Methodology of Recovery of House Building Advance

I. The Interest on Housing Building Advance for the financial year 2017-18 onwards shall be ..Read More  

8. Disbursement

I. Advance for purchase of ready built house can be paid in One Lump Sum as Soon as the applicant executes an agreement in the prescribed form. The employee should ensure that the house is purchased and mortgaged to the Government Within 3 months of draw of the advances.

II. Advance for purchases/construction of new flat may be paid either in One lump sum or in convenient instalments at the discretion of the Head of Department. The employee should execute the agreement in prescribed form before the advances/first instalment of advance is paid to him/her. The amount drawn by the employee should be utilized for the purchase/ construction of the flat within one month.

III. Advance for Construction/ expansion of living accommodation, etc., shall be payable in two instalments of 50% each. The first instalment will be paid after the plot and proposed houses/existing house is mortgaged and the balance on the Construction-reaching plinth level.

IV. Advance for expansion to be carried out on the upper storey of the house will be disbursed in two instalments, first instalment on executing the mortgage deed and the second instalment on the construction reaching roof-level. In the case of advance for purchase of plot and construction of house, the advance Will be disbursed as below:

a) Single Storeyed House. After agreement in prescribed form is executed on production of Surety bond, 40% of the advance or actual cost will be disbursed for purchase of plot. The balance amount will be disbursed in two equal instalments, first after the mortgage is executed and second on the Construction reaching plinth level.

b) Double Storeyed House: 30% of advance for cost of plot will be disbursed On executing the agreement. The balance amount will be disbursed in two equal instalments, the first on executing the mortgage deed and the second On Construction reaching plinth level.

9. Mortgage and Creation of Second Charge

a) House shall be mortgaged on the behalf of President of India. However, the employee, if he wishes to take a second charge to meet the balance Cost of the houses plot or flat from recognized financial institutions, then he/ she may declare the same and apply for NOC at the time of the applying for HBA. NOC for second charge will be given along with sanction order of HBA. The total loan form HBA and from all other Sources Cannot be beyond ceiling cost of the house as defined under para 4 above.

In case if HBA is availed by both husband/ wife jointly,

i. HBA Mortgage paper, insurance paper and other papers regarding property shall be submitted to one of the loan sanctioning authorities Of their choice.

ii. A No Objection Certificate may be obtained from the 2nd loan sanctioning authority.

iii. The property mortgaged to behalf of President of India, shall be reconvened on the prescribed form to the central government employee concerned (or their successors in interest, as the case may be), after the advance together with interest thereon, has been repaid to Government in full and after obtaining No Demand Certificate in respect of HBA loan sanctioned by the 2nd loan sanctioning authority.

10. Insurance

a) Immediately on completion of construction/purchase of house/flat, the employee shall insure the house with the recognized institutions as approved by Insurance Regulatory and Development Authority (IRDA), for not less than the amount of advance and shall keep it so insured against damage by fire, flood and lightning till the advance together with interest thereon is repaid in full and deposit the policy documents with the Head of the Department (HoD). Renewal of insurance will be done every year and premium receipts produced for inspection of the HoD regularly.

b) Penal interest of 2% over and above existing rate of interest will be recovered from the employee for those periods which are not covered by insurance of the house.

11. Migration

For existing House Building Advance beneficiaries who wish to migrate, a separate Order for migration to the revised House Building Advance rules will be issued shortly.

12. Extant rules

Apart from above stated changes in relevant sections in the earlier version of House Building Advance rules, all other extant rules shall continue to apply till further Orders.

13. This issues in consultation with Comptroller& Auditor General, in so far as the persons working in the Indian Audit & Accounts Department Concerned.

14. Hindi Version Will follow.

15 This Comes to the effect from the date of issue.

(Shailendra Vikram Singh)
Director
Ministry of Housing & Urban Affairs

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3 thoughts on “House Building Advance Rules (HBA) 2017”

  1. As you have already availed Housing Loan from LIC HFL for purchasing a House, LIC HFL will not allow you to avail HBA from your dept for the same house

  2. I have purchased a ready build house from a private Individual after taking a loan of rs. 23 lakh from LIC Housing Finance. Can I repay the loan after taking HBA from Deptt. My basic is Rs. 64100/-

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