Mhada’s housing stock may diminish

In a move that could result in the state losing a major chunk of housing stock in the island city, the Maharashtra Housing Authority and Development Association (Mhada) has sent a proposal to the government saying it seeks to opt for premiums from builders for redeveloping its colonies where the plot’s size is less than 2,000 sq m, and for housing stock where the area of the plot is more than 2,000 sq m.

But around 80 per cent of the plots in the Mhada colonies don’t measure more than 2,000 sq m, which would result in the state losing a major chunk of homes in terms of housing stock.

“The state has already prepared a new draft pro rata floor space index (FSI) policy. According to the draft, developers will be able to opt for both premiums as well as housing stock. Mhada plans to charge a premium from developers for smaller projects and it will ask developers to give housing stock in projects where a particular unit measures more than 2,000 sq ft,” said a Mhada official.

Earlier, in 2008, Mhada would charge a premium from the developer in exchange for granting a no-objection certificate (NOC) and developers would get additional FSI for the redevelopment of dilapidated colonies. Under that policy, developers would get additional FSI against the payment of a premium, which is 40 per cent. On the basis of the FSI, a developer identifies the permissible area on which construction can take place in a particular plot.

“Taking a premium would result in Mhada having less housing stock. But the redevelopment of various Mhada colonies has been stuck for years as the developers were not ready to give housing stock to the state. This move will now facilitate the redevelopment of these colonies,” said the Mhada official.