Tamil Nadu- My Home Scheme to Build 1 Lakh Affordable Houses

Tamil Nadu has announced a new affordable housing scheme under which one lakh homes will be developed over seven years for middle-income families and economically weaker sections.

Finance Minister N Marie Wilson announced the “My Home” scheme as part of the state’s 2026-27 Budget. The programme will use a public-private partnership (PPP) model, with the government announcing ₹15,000 crore of investment through PPPs and ₹3,500 crore in viability-gap funding to improve project viability and attract private investment.

The announcement comes as Tamil Nadu allocates ₹8,852 crore to the Housing and Urban Development Department for 2026-27. The department’s budget includes several housing and urban-planning initiatives alongside the new affordable housing programme.

Under the My Home scheme, the government plans to construct one lakh houses over seven years. The programme is aimed at both middle-income households and economically weaker sections, according to the Budget announcement reported by the Times of India.

The government said 24,131 affordable housing units are currently under construction across Tamil Nadu. Work on another 14,194 units is scheduled to begin during the current year, according to the report.

The use of viability-gap funding is intended to make affordable housing projects more financially viable for private participants. The ₹3,500-crore allocation is therefore separate from the ₹15,000 crore of proposed PPP investment announced for the My Home programme.

The Budget also included ₹1,253 crore for the redevelopment of dilapidated tenements. The measure forms part of the state's wider housing programme and comes alongside the new affordable housing initiative.

Tamil Nadu also announced measures aimed at changing how urban development is planned and approved. The government has allocated ₹40 crore for SPEED — Single Platform for Efficient Expedited Development — an AI-based integrated governance platform intended to make digital planning permissions faster, transparent and automated.

Another ₹25 crore has been earmarked for preparing a Comprehensive Master Plan for the expanded Chennai Metropolitan Area. The proposed plan will cover 5,904 sq km and is intended to guide the region's long-term growth.

The announcement comes as the Chennai Metropolitan Development Authority prepares the Third Master Plan for 2027-2046 for the existing metropolitan area of 1,189 sq km.

For Tamil Nadu's housing sector, the immediate significance of the My Home scheme is its scale and its reliance on private participation. The government has set a seven-year target of one lakh homes and earmarked viability-gap funding to help make the projects financially workable.

The eventual pace of construction will depend on how the PPP projects are structured, approved and implemented across the state. The Budget announcement, however, sets out a clear target: one lakh affordable homes over seven years, backed by ₹15,000 crore in proposed PPP investment and ₹3,500 crore in viability-gap funding.

Sources https://timesofindia.indiatimes.com/city/chennai/tn-govtunveils-affordable-housing-scheme-for-middle-income-families/articleshow/132900077.cms