Maharashtra to implement affordable housing policy

The Maharashtra government's affordable housing policy is set to be implemented from April 15. With a preliminary notification already out, the policy will be implemented after the final notification in a month's time. This was decided at a recent meeting between Additional Chief Secretary (Urban Development Department) TC Benjamin and representatives of Confederation of Real Estate Developers' Associations of India (CREDAI) from Pune, Nagpur, Kolhapur, Nashik and Aurangabad. The policy is aimed at promoting the concept of inclusive housing at a time when most developers are opting for luxury housing. The government in the notification has made it mandatory for all projects on more than 2,000 sq m land to reserve 20 per cent of the land or constructed space for small-sized housing. “The state has a dearth of such housing and this initiative will help bring about more such houses in residential projects. It will have to be implemented by the builders after April,” said Benjamin. As 20 per cent of the land should be reserved, builders expressed reservations about whether it should be in the same area. However, it was decided that they could have a little farther but in the same zone of classification. “They have to provide the housing with almost the same kind of infrastructure,” Benjamin said at the meeting. Pune CREDAI representative Satish Magar, who attended the meeting, said, “We are open to the policy but had some issues, which we discussed.” Pune builders were represented by Hemant Naiknavare, Kishore Wani and Suhas Mantri. Most of the builders had reservations about having the economical housing on the same campus but agreed to have it a little farther away from their projects. The rule clearly mentions that in case of sub-division of land measuring 2,000 sq m or more, a minimum of 20 per cent will be handed over to MHADA. For layouts of land more than 2,000 sq m, 20 per cent of the built-up area will be kept aside for affordable housing for the economically weaker sections and low-income groups. The affordable houses built for this purpose should not have a carpet area larger than 27.88-45 sq m. The rule would be applicable to the 26 municipal corporations and all municipal councils in the state. In a bid to prevent any misuse of the policy, the notification states that developers will not be allowed to amalgamate the smaller flats or land under any circumstances. “In case of the built-up space, it will be bought at the construction cost. In order to compensate the developer for the land cost, the affordable housing will be included in the floor space index computation,” said a senior official. To avoid delays, MHADA has to take a decision on buying the plot or flats within three months. Officials said if the housing board does not wish to buy the flats, the developer can sell it in the open market. Source: http://www.realtyplusmag.com/rpnewsletter/Fullstory_Newsletter.asp?news_id=19283&cat_id=1