MHADA Plans to Increase FSI for Cessed Buildings It Acquired
The Maharashtra Housing and Area Development Authority (MHADA) is planning to increase the floor space index (FSI) of nearly 400 cessed buildings it recently acquired, in order to boost the redevelopment of these buildings.
The housing board has proposed to increase the FSI from 2 to 3, and is currently waiting for the chief minister’s approval. MHADA had recently conveyed rights of the recently acquired 400 cessed properties to the tenants from their land owners, allowing them to form cooperative societies.
Redeveloping cessed buildings in Mumbai
MHADA has currently identified houses built before 1970 on the island city and paying a cess to MHADA for their maintenance as cessed buildings. A majority of such buildings were built before 1940 and most of them are under dilapidated conditions, mostly due to ignorance of the land owners after freezing of rents. According to the tenants ownership scheme announced in 1980s under the MHADA Act, at least 70% of the tenants could come together and pay the landlord a hundred months’ rent. By doing this, the housing authority could acquire the property from the landowner and convey it to the tenants as a cooperative housing society.
The mininster of state for housing said that there were different options being considered for redeveloping these cessed buildings, such as redevelopment either through land lords, MHADA or private builders. MHADA had also considered revamping certain redevelopment rules such as giving a higher varying FSI for cluster redevelopment. For about 15,000-odd cessed and dilapidated buildings which were privately owned and not conveyed to tenants, the state government had promised an FSI of 3 for redevelopment.
Reasons for proposed increase in FSI
There are two main reasons for the planned increase in FSI. Firstly, the authority hopes to bring such buildings on par with other privately-owned cessed buildings, who have been assured an FSI of 3 for redevelopment purposes. The current FSI of 2 is not attractive to many developers to take up redevelopment projects. An FSI of 3 will encourage them to take up redevelopment of the cessed buildings. Secondly, an FSI of 2 will be insufficient for redeveloping almost 400 cessed structures considering the plot areas and density of societies in Mumbai.
The minister of state for housing has agreed to the proposal and would be sending it for the CM’s approval.
