New policy to bind Maharashtra's private builders for affordable housing

Q: The Maharashtra Govt. will soon come up with a new policy that will make it compulsory for private builders to transfer a certain housing stock to Maharashtra Housing and Area Development Authority.

Ramesk Polekar, Mumbai

19th August 2015

Real estate News in Mumbai

fsi

ready reckoner rates

mhada

maharashtra housing and area development authority

new policy of mhada for affordable housing

private builders

town planning and housing departments

urban development departments

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Replies (2)

It is because, MHADA and some other govt. agencies have a limit on construction of houses as it becomes financially not useful for them who are beyond a certain limit. Thereby, the govt. wants the participation of private builders to ensure affordable homes to a large number of people.

Shantanu Kumar, Mumbai

19th August 2015

Comment

Do you know Shantanu,????? As per the new ploicy, MHADA will able to purchase housing stock from the developer at a rate of 125%, more than the Ready Reckoner Rate of the area concerned. And State housing authority will sell such homes to economically weaker section of the society and the size of the flats will be around 30-50 sq-mts each.

Dhiraj,

19th August 2015

Yes, and a builder/developer who wants to construct a housing project on more than 4000 sq-mts of land has to surrender 20% of households from total flats to MHADA. And it is it mandatory for every private builders of Maharashtra to transfer a certain housing stock to Maharashtra Housing and Area Development Authority.

Shantanu Kumar, Mumbai

19th August 2015

I also heard that the Floor Space Index that will transfered to Maharashtra Housing and Area Development Authority through housing stock which will not be counted or subtracted from the total FSI sanctioned to the developer for his project.

Dwarkesh,

19th August 2015

Right Ramesk,
According to Urban Development Department, the draft of the policy is ready and it will be officially announced within a month.This policy is currently in place in Mumbai and it will make sure that economically weaker sections across the state are able to buy home at affordable prices.

Shantanu Kumar, Mumbai

19th August 2015

Comment

I read in Economic Times that the draft of the policy, which was directed by the state's Town Planning and Housing departments, in pending with the Chief Minister's office for approval. And soon, the Cabinet's nod is expected within a couple of weeks and an ordinance will later be issued as currently the state legislature session is not underway,

Dwarkesh,

19th August 2015