Maharashtra Government innovative scheme to boost Public Housing

The Maharashtra state government has issued a notification inviting public objections and suggestions to its decision to make builders compulsorily reserve 20% of a plot measuring more than 2,000 sq m for public housing. These tenements will be utilized to provide decent housing to the economically-weaker section (EWS) and the low-income group (LIG).

According to the proposed regulation, developers are to hand over plot or the ready flats to the Maharashtra Housing and Area Development Authority (Mhada) at construction cost. These flats should not exceed 27.88-45 sq m in carpet area. Both the land and the built-up area will be sold to Mhada or any other designated public authority at an affordable rate.

"In case of built-up area, it will be bought at the construc­tion cost. In order to compensate the developer for the land cost, affordable housing will be included in the floor space index (FSI) computation," said a senior state government official. Mhada has decided to purchase the property within next three months. “If the housing board doesn't wish to buy the flats, the developer can sell them in the open market”, adds the official. 

The proposed scheme is expected to be opposed by developers, who argued that it is not a feasible option. According to developers, the proposed rule will pose major implementation problems. Developers find it hard to finalize on the building plans without any assurance that Mhada will purchase those flats. Developers also pointed out that having a low-income project with luxury apartments will create problems as far as maintenance charges are concerned.