Mumbai : Maharashtra Housing and Area Development Authority MHADA) chairman Yusus Abrahani has announced plans to rationalize prices of tenements offered through the lottery system in the state. Abrahani also announced plans by the agency to foray into Slum Redevelopment Authority (SRA) projects in the coming days.
Addressing mediapersons on Tuesday, Abrahani added, “We intend to go in for the redevelopment of all the transit camps of MHADA. We do not have any fresh swathes of land that can be developed into tenements that may be then offered to the common public through the lottery system.”
The MHADA chairman claimed that while this calendar year will witness 2641 subsidized flats being offered to the common public by MHADA, “We hope to increase this to 5000 homes by next year.” Abrahani emphasized that the agency was able to offer housing tenements for allotment that was on average 15 to 30 per cent cheaper that the rates prevalent in the market.
“As part of this very initiative, aimed at increasing the housing stock available with MHADA, the state government has amended the norms for redevelopment, where by, fresh redevelopment proposals on land owned by the agency would result in housing stock being created in the said project. Instead of charging the premium from the developer, as is currently done, we will seek housing stock to shore up our stock,” Abrahani added.
The MHADA chief also clarified that the new ordinance would not have retrospective effect on proposals received earlier by MHADA for redevelopment projects. “The new ordinance will only impact fresh projects. Also keeping in mind the earlier trend where allotments of MHADA flats were made even before the project was completed, we decided that henceforth only flats that are completed and ready would be offered through the lottery system,” Abrahani said while commiserating with those allotted MHADA flats through the lottery, and who financed their homes with banking loans and start paying the equated monthly installments (EMIs) to the bank, only to find that their tenements were still to be completed.
The MHADA chairman also said that the rates of realty quoted for the state run agency’s housing projects in Virar (around Rs 4000) was not very much different from the existing market rates (around Rs 4500) existing in the market. “The subsidized rates of MHADA projects may be visible in regions like Powai where our properties are being allotted at rates of Rs 8000 per square feet, when the market rates prevalent in the region are around Rs 20,000 per square feet. However, in regions like Virar there is almost parity between the MHADA rate and market rates. This needs to be corrected,” he added.
The housing agency also intends to entice private land holders in Mumbai city into developing their land holdings through private developers, where the floor space index (FSI) would be shared between the land owner and MHADA receiving a lower FSI as housing stock.