10 (Ten) Point Highlights
Important Resolutions, Office Memoranda and Circulars with regard to eligibility, purpose, amount and procedure for sanction of house building advance are available in this page towards the end.
Eligibility:
(b) Permanent AIS officers allotted to the State;
(c) Permanent AIS officers allotted to the State but on a Central deputation for not more than six years;
(d) Permanent Judges of Odisha High Court;
(e) All regular State Government employees who have rendered at least five years of service. In case both the husband and wife are State Government servants and eligible for grant of advance, it shall be admissible to only one of them. The above officers are eligible subject to the condition that:-
the applicant must not avail any loan from any Government source; Neither the applicant nor his wife/ husband/ minor child is an owner of a house. However, house in a village will not be counted.
Purpose :
The advance is admissible in following cases:
(a) Purchase of land and construction of house;
(b) Construction of house on existing land;
(c) Purchase a ready built house, if
the house is a newly built one; the house has not been lived in; the agency offering it for sale is a Government/ Semi Government or autonomous institution.
(d) Additional enlarging the existing accommodation and for complition of the incomplete building owned by the employee.
Amount of Advance:
The maximum limit of HB advance and mode of the release amount in different cases has been laid down in Finance Department Office Memorandum No 17502/F, dated 13.07.2022.
(a) 50 months’ basic pay subject to maximum of 40.00 lakhs or cost of land and construction of house or repaying capacity whichever is the least is admissible in the following manner;
- Purchase of land and construction of building, in two installments, 60% for purchase of land, 40% after submission of sale deed, plan & estimate, counter signed by the Executive Engineer concerned;
- Construction of building on the existing land (in two installments and mortgage of 60% on submission of sale deed, plan & estimate counter signed by the Executive Engineer concerned, 40% after submission of utilization certificate);
- Purchase of ready built house (in two installments), 60% on submission of allotment/ consent letter and registration of the draft agreement deed , 40% after submission of payment receipt from the seller.
(b) 50 month’s pay or 10.00 lakhs or cost of enlargement or repaying capacity for
enlarging the living accommodation of existing house (one installment); Completion of incomplete building (one installment).
Rate of Interest:
- The advances carry simple interest from the date of advance at the prescribed rates issued by Finance Department from time to time. The current rate of interest for the advance is fixed at 8% per annum.
- The amount of interest shall be calculated on the balances outstanding on the last day of each month.
- However, before completion of recovery of principal installments, the Accountant General shall be moved to intimate the amount of interest.
They use the following formula for calculation of interest.
Where,
n = number of installmentsA = Amount of each installmentR = Rate of InterestP = Principal amount of advanceL = Last balance on which interest is due (i.e lump sum amount)
Repayment of Advance:
The advance together with the interest thereon shall be repaid in full by monthly installments within a period not exceeding 25 years. The maximum number of installments for repayment of Principal and payment of Interest is 225 and 75 respectively. There shall be a moratorium period of 18 months for repayment of advance.
(a) Unless the moratorium period is availed, the recovery of advance shall commence from month following the drawal of the advance. Where moratorium period is is availed, the repayment will begin after its expiry.
(b) For a Government servant, who, is due to retire within 20 years and willing to repay from DCRG may be permitted to repay the advance with interest in suitable installments.
(c) In case the Government servant does not repay the balance of the advance due to Government on or before the date of his retirement, it shall be open to the Government to enforce the security of the mortgage at any time thereafter, and recover the balance of the advance due together with the interest and cost of recovery, by sale of the house or in such other manner as may be permissible under the Law.
Procedure for processing of applications:
A. Each eligible employee shall submit application in the prescribed form along with Annexure I and II (in duplicate) available in Finance Department website. Following documents are to be enclosed along with the application:
- Negotiation letter from the owner of the land for purchase of the land.
- Declaration relating to ownership of property, if any, in the name of wife/ husband/ minor child.
- For enlargement of living accommodation, an attested copy of sale deed, site plan in support of title of the property.
- Having a land, attested copy of sale deed/ site plan in support of the title of land.
B. After receipt of the application and related information in prescribed format from the employee, the concerned authority/ officer shall:-
- Scrutinize it and be satisfied about the correctness of the facts including authenticity of the sale deed/site plan;
- Consult with the Law Officer/ Revenue/ Registration authorities, if necessary;
- Forward the application to the Public Works Executive Engineer of the locality so as to seek his views/ recommendations in terms of plan and estimate, quantum of advance;
- Obtain approval of the competent authority, issue sanction order for grant of advance to applicants incorporating provisions like:-
Execution of an agreement, Mortgage deed, Surety Bond, Undertaking in the prescribed forms as the case may be; On the basis of availability of funds allotted by Finance Department, appropriate amount shall be disbursed to the applicant. For purchase of land or a ready-build house seeking an undertaking to the effect that negotiation is at concluding stage along with price;
C. Before the advance is disbursed, submission of surety from a permanent State Government servant from a Govt. Employee of equivalent or higher rank in prescribed form(OGFR Form no 18) may be ensured in following cases :-
Applicants who are not permanent Government servants;
Applicants who are due to retire from service within a period of eighteen months;
D. On receipt of the recommendations of the Public Works Executive Engineer of the locality, the formal sanction to the grant of the advance may be accorded, or if necessary, the original sanction order issued (in cases where the advance is required partly for purchasing a plot of land) may be amended suitably.
At the time of release of first installment, an agreement shall be executed by the applicant to repay the advance; Before, subsequent release, the applicant should mortgage the land, building in favour of the Government till completion of repayment of advance along with accrued interest; The prescribed format of application, annexure, agreement, mortgage are available in Finance Department official website. The safe custody of such agreement, mortgage etc should be ensured.
Utilization of the advance for a purpose other than that for which it is sanctioned shall render the employee liable to disciplinary action under the OCS(CCA) Rule.
Relevant Circulars : HOUSE BUILDING ADVANCE (HBA)
| Category ⇅ | Letter ⇅ | Date ⇅ | Subject ⇅ | Level ⇅ |
|---|---|---|---|---|
| FDOM. | 32622 | 26.12.2024 | Revision of admissibility limit of House Building Advance in respect of State Government employees | HBA |
| FDOM. | 32344 |
24.11.2023 | Revision of admissibility limit of House Building advance in respect of State Government Employees | HBA |
| FDOM. | 32344 |
24.11.2023 | Revision of admissibility limit of House Building Advance in respect of State Government Employees | HBA |
| FDOM. | 22901 | 14.08.2023 | Delegation of power for sanction of House Building Advance in respect of AIS officers | HBA |
| FDOM. | 22901 | 14.08.2023 | Delegation of power for sanction of House Building Advance in respect of AIS officers. | HBA |
| FDOM. | 17502 | 13.07.2022 | Revision of admissibility limit of House Building Advance in respect of State Government employees. | HBA |
| FDOM. | 17502 | 13.07.2022 | Revision of admissibility limit of House Building Advance in respect of State Government employees. | HBA |
| FDOM. | 32996 | 29.11.2021 | Admissibility of Long Term Advances such as HBA, MCA, etc in respect of Government employees covered under NPS | HBA |
| FDOM. | 00000 | - | Calculation Sheet of HBA | HBA |
| FDOM. | 763 | 12.01.2015 | Advance to Government Servants – Rate of Interest on House Building Advance | HBA |
| FDOM. | 763 | 12.01.2015 | Advance to Government Servants – Rate of Interest on House Building Advance | HBA |
| FDOM. | 1497 | 13.01.2012 | 2nd phase allocation of funds under the House Building Advance to Government Servants during 2011-2012 | HBA |
| FDOM. | 17564 | 13.04.2011 | Delegation of power to Head of Office to refund the wrong credit/excess recovery of Special House Building Advance. | HBA |
| FDOM. | 42109 | 30.09.2010 | Second phase allocation of funds under the HBA to Government Servants during 2010-2011 | HBA |
| FDOM. | 12306 | 20.03.2010 | First phase allocation of funds under the HBA to Government Servants during 2009-2010 | HBA |
| FDOM. | 9659 | 03.03.2010 | Appearance of adverse balances (Excess Recovery) under special HBA during 2008-09 and 2009-10 | HBA |
| FDOM. | 8845 | 24.02.2010 | First phase allocation of funds under the HBA to Government Servants during 2009-2010 | HBA |
| FDOM. | 8849 | 24.02.2010 | First phase allocation of funds under the HBA to Government Servants during 2009-2010 | HBA |
| FDOM. | 4470 | 02.02.2010 | Enhancement of maximum limit for sanction of House Building Advance in respect of State Government Servants inside the State | HBA |
| FDOM. | 4470 | 02.02.2010 | Enhancement of maximum limit for sanction of House Building Advance in respect of State Government Servants inside the State | HBA |
| FDOM. | 4470 | 02.02.2010 | Existing Provision for grant of HBA, 2010 | HBA |
| FDOM. | 16186 | 17.04.2006 | Clarification on calculation of interest in respect of HUDCO assisted Spl. H.B.A. | HBA |
| FDOM. | 32514 | 06.07.2002 | Clarification of applicability to waiver of interest in case of death of a Government servant | HBA |
| FDOM. | 01 | 01.01.2000 | Grant of HUDCO assisted special House Building Advance to the State Government employees belonging to the cyclone/flood affected areas. | HBA |
| FDOM. | 8399 | 06.03.1999 | Relaxation of the relevant provision of FD O.M.43825/F dt.15.10.98 | HBA |
| FDOM. | 16311 | 03.05.1994 | Grant of House Building Advance – Clarification thereof | HBA |
| FDOM. | 24065 | 24.05.1993 | Sanction of House Building Advance – Principles thereof | HBA |
| FDOM. | 16455 | 16.04.1988 | Watch on Recovery of House Building Advance | HBA |
| FDOM. | 40704 | 30.07.1987 | Govt Servants for house building advance and provision under Rule 8 | HBA |
| FDOM. | 4445 | 06.02.1987 | Sanction of House Building Advance – Purchase of ready built house instead of purchase of land and construction of building thereon | HBA |
| FDOM. | 17325 | 22.04.1985 | Amendment of Orissa General Financial Rules 217 | HBA |
| FDOM. | 45557 | 21.11.1984 | HBA | |
| FDOM. | 37294 | 05.09.1984 | Sanction of House Building Advance – Recovery from the D.C.R.G | HBA |
| FDOM. | 35421 | 21.08.1984 | Sanction of House Building Advance – Principles thereof (Three Year time gap relaxed) | HBA |
| FDOM. | 28981 | 06.08.1983 | HBA | |
| FDOM. | 25328 | 04.06.1981 | Delegation of power under Rule 2(b) of the House Building Advance Rules to Departments of Government and Heads of the Departments | HBA |
| FDOM. | 27532 | 25.05.1977 | Clarification regarding applicability of rate of interest on House Building Advance | HBA |
| FDOM. | 53322 | 15.12.1970 | Sanction of House Building Advance to Government Servant – Authority competent to accord such sanctions | HBA |
| FDOM. | 42738 | 17.09.1970 | Sanction of House Building Advance – Authority competent to accord such sanctions | HBA |
| FDOM. | 13612 | 20.04.1968 | Execution of the agreement bond of House Building Advance – and Clarification thereof | HBA |
| FDOM. | 28725 | 22.09.1964 | Rules regulating the grant of House Building Advances to Government servants – Modification thereof (Ref : Resolution 21246 Dt.22.06.1959) | HBA |
| FDOM. | 6251 | 04.03.1960 | HBA | |
| Resolution | 21246 | 22.06.1959 | Rules regulating the grant of House Building Advances to Government servants | HBA |
| Form | 00000 | - | HBA Application Form | HBA |
| Form | 00000 | - | HBA Form-II | HBA |
| FDOM. | 00000 | - | HBA Form-III | HBA |
| FDOM. | 00000 | - | HBA Form-IV | HBA |
| FDOM. | 00000 | - | HBA Form-V | HBA |
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