20% Homes For Poor Mandatory For Real Estate Developers : MHADA
Lending a boost to affordable housing, the Maharashtra government has made it mandatory for real estate developers to build 20 per cent affordable homes for poor if they are developing a plot measuring one acre or more.
Maharashtra Housing and Area Development Authority’s notification, issued on February 27, is applicable to all cities with a population of more than 10 lakhs, except Mumbai. This means the new rule will be applicable in Thane, Navi Mumbai, Pune, Nashik and Nagpur.
The notification states that the builders will have to build homes measuring 300 sq ft to 500 sq ft. Besides, the flats will have to be sold to people from Economically Weaker Section (EWS) and Low Income Group (LIG) identified by MHADA at the construction cost plus 20 per cent more.
However, companies developing housing scheme for its own employees is exempted from this rule. MHADA has been appointed nodal agency for the project. The builders will have to inform MHADA about the number of flats that will be available under the 20 per cent quota for poor after getting commencement certificate from the local planning authority. Within six months, MHADA will conduct the lottery and inform the builder the beneficiaries’ names.
The builders’ community has received the news with caution, seeking more clarifications and incentives from the government to implement the scheme.
Managing director of Marathon Group and president of CREDAI MCHI said, there is a need for more clarity on this policy as execution looks difficult. The developer must recover the cost as he starts construction of the 20 per cent component in instalments. Also MHADA and the state must assure the payment from the beneficiaries on time.
Managing director of Ruparel Realty, said, there is a need for incentives for developers like extra floor space index (FSI) as an incentive for the 20 per cent reservation for public housing. And if this is properly addressed by the government, it will be a good incentive for providing adequate affordable housing to the masses.
Source Link- https://mumbaimirror.indiatimes.com/.