Chief Minister Prithviraj Chavan has ruled that builders will have to give one-third of the housing stock to MHADA after redevelopment on housing board land. This will lead to the redevelopment of 56 MHADA colonies, comprising 3,701 buildings. By getting one-third of the housing stock, MHADA will have around 1 lakh houses that could be sold at prices lower than market rates.
Chavan’s decision ends builders’ hopes of getting additional floor space index (FSI) against premium - pitched as an alternative to housing stock. Builders say giving housing stock to MHADA will lead to construction of smaller houses. A builder said, “Agreed, the redevelopment will take place on the MHADA lands, but if we were to give the agency our housing stock, then residents will not get the extra space.”
Even residents favour the FSI against premium system. A few months ago, residents of 91 societies submitted proposals to MHADA, demanding additional FSI against premium, but without MHADA asking them to share the housing stock.
MHADA also wants all existing housing board colonies, going in for redevelopment, to hand over houses in exchange of extra open spaces.
The MHADA top brass said the agency needed houses, and it will be able to get them only through redevelopment. With only five acres of land in its kitty, building new houses is out of question for MHADA. A senior MHADA official said, “The housing stock option will get us around 1 lakh houses. It will also lead to a price fall in real estate market.”
MHADA vice-president and CEO Satish Gawai said that agency was keen on housing stock, and not premium on FSI. “We are a housing agency and our concern should be creation of affordable homes. We are not too bothered about the premium earned on FSI,” he said.
With the chief minister’s approval, the notification asking builders to give housing stock to MHADA should be issued
In the island city, there are more than 17,000 dilapidated buildings built before 1960, called cessed properties as they pay a cess to MHADA for repair and maintenance. They are redeveloped under Section 33 (7) of Development Control Regulations, according to which MHADA gives the redeveloper an FSI of 3.
The builder first constructs the rehab property and hands over the flats to occupants.
As an incentive, he is allowed to keep 50 per cent of this as saleable component so he may recover construction costs and make a certain profit.
The rest of the FSI is divided between MHADA and the builder in a ratio of 2:1.
(info from various sources)
Chavan’s decision ends builders’ hopes of getting additional floor space index (FSI) against premium - pitched as an alternative to housing stock. Builders say giving housing stock to MHADA will lead to construction of smaller houses. A builder said, “Agreed, the redevelopment will take place on the MHADA lands, but if we were to give the agency our housing stock, then residents will not get the extra space.”
Even residents favour the FSI against premium system. A few months ago, residents of 91 societies submitted proposals to MHADA, demanding additional FSI against premium, but without MHADA asking them to share the housing stock.
MHADA also wants all existing housing board colonies, going in for redevelopment, to hand over houses in exchange of extra open spaces.
The MHADA top brass said the agency needed houses, and it will be able to get them only through redevelopment. With only five acres of land in its kitty, building new houses is out of question for MHADA. A senior MHADA official said, “The housing stock option will get us around 1 lakh houses. It will also lead to a price fall in real estate market.”
MHADA vice-president and CEO Satish Gawai said that agency was keen on housing stock, and not premium on FSI. “We are a housing agency and our concern should be creation of affordable homes. We are not too bothered about the premium earned on FSI,” he said.
With the chief minister’s approval, the notification asking builders to give housing stock to MHADA should be issued
In the island city, there are more than 17,000 dilapidated buildings built before 1960, called cessed properties as they pay a cess to MHADA for repair and maintenance. They are redeveloped under Section 33 (7) of Development Control Regulations, according to which MHADA gives the redeveloper an FSI of 3.
The builder first constructs the rehab property and hands over the flats to occupants.
As an incentive, he is allowed to keep 50 per cent of this as saleable component so he may recover construction costs and make a certain profit.
The rest of the FSI is divided between MHADA and the builder in a ratio of 2:1.
(info from various sources)