Make Policies Mandatory For Affordable Housing Says BMC
In order to provide more affordable houses in Mumbai, the BMC has suggested the state government for more policies making it mandatory for developers to provide affordable housing units as part of their projects. This inspiration has been taken from other countries such as Canada, USA, UK, France, Italy and Spain, where there are policies regarding the same.
The municipal body wants the “inclusionary housing” policy to be made an augmentation to other policies in the city, so that more affordable houses can be launched in Mumbai. Another reason for suggesting mandatory policies to make sure that units meant for lower income groups reached the intended beneficiaries and not regular buyers.
Inclusive housing policy
The Maharashtra state government had drafted the ‘Inclusive Housing Policy’. The notification made it mandatory for the builders to set aside at least 20% of the layout area in their new projects for LIG (low income groups). This would be applicable to a layout area of 2,000 sq.mt and more. Small flats were to be built in this designated area and then sold to the Maharashtra Housing and Area Development Authority (MHADA), which is the authority for developing affordable houses in Mumbai, at construction cost. MHADA would then sell it these flats to families of LIG based on lottery system.
The final policy however has made this mandatory for plots of size 4,000 sq.mt or more. The developer can hand over 20% of the designated plot either directly or built flats to MHADA. It also does not apply to the city of Mumbai.
Affordable housing in Mumbai
In Mumbai, the public sector provides about 7,000 to 8,000 housing units for the LIG and HIG (high income group) every year while the private sector provides about 15,000 housing units. About 3 lakh housing units are in different stages of approval under various slum rehabilitation schemes. Mumbai currently faces a deficit of approximately 10 lakh affordable housing units.
The average household income (post tax) in Mumbai is about Rs. 30,000 per month while the lowest price of a 1 BHK public housing unit is at least Rs. 15 lakhs. As such, a majority of the population in Mumbai is unable to afford a housing unit with the basic amenities.
Criticisms for the Inclusive housing policy
The Inclusive housing policy has come into effect this month in Maharashtra. Along with that, there are also certain criticisms for the policy. Some of the most important ones include:
The policy applies for plots with size 4,000 sq.mt and more. However, there are hardly any plots of this size within Mumbai. In effect, this means that the policy won’t be applicable to many private housing projects in Mumbai.
The scheme will also not apply to Mumbai. Ironically, this is the city which is in dire need of affordable housing, as the real estate prices are so high.
Certain clauses are prone to misuse. For example, one clause says that if MHADA does not claim the units designated for inclusive housing within six months, the builder is free to sell these units in open market. This can be misused by developers working with corrupt officials in the state housing agency.
