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

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

Suhashini Bose, Guwahati

9th September 2015

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Replies (3)

It's true that Congress - NCP Government had brought this policy for the economically weaker sections where developers had to transfer a certain housing stock to MHADA for affordable housing. However, it was limited to Mumbai only.

Piyush Khoche, Pune

9th September 2015

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Yes, MHADA and other government agencies have a limit on construction of houses as it becomes financially inviable for them beyond a certain limit. Thus, the government wants the participation of private builders to make sure affordable homes to a larger number of people.

Lewin G,

9th September 2015

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Now, a developer who wants to construct a housing project on more than 4000 sq-mt of land has to surrender 20% of households from total flats to MHADA, The floor space index that will be transferred to MHADA via the 20% housing stock will not be counted or subtracted from the total FSI sanctioned to the developer for his project,

Ananya,

9th September 2015

@Ananya,
The draft of the policy, which was supervised by the state's Town Planning and Housing departments, in pending with the Chief Minister's office for approval.

It is expected that the Cabinet's nod will come within a couple of weeks and an ordinance will later be issued as currently the state legislature session is not underway.

Lewin G,

9th September 2015

After getting approval from the concerned department, MHADA will purchase housing stock from the developer at a rate of 125%, more than the Ready Reckoner rate of the area concerned. For example, if Ready Reckoner rate of any city is Rs 1000, MHADA will buy it at Rs 1250.

Ananya,

9th September 2015

It means that the state housing authority will sell such homes to economically weaker sections of the society. Somewhere, i read that the size of flats will be around 30 to 50 sq-mt each. Am i right Ananya?

Vikash V, Ahmedabad

9th September 2015

As per Urban Development Department, the draft of the policy is ready and it will be officially announced within a month. This policy will ensure that economically weaker sections across the state are able to buy homes at affordable rates.

Javed,

9th September 2015

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