Govt wants your views on low-cost housing scheme

Mumbai: The state government has issued a notification inviting public objections and suggestions to its decision to make builders compulsorily reserve 20% of a plot measuring more than 2,000 sq m for public housing. Such tenements will be used to house the economically-weaker section (EWS) and the low-income group (LIG). 

    Under the proposed regulation, developers will hand over 
plot/ready flats to the Maharashtra Housing and Area Development Authority (Mhada) at construction cost. The houses built for this purpose should not be over 27.88-45 sq m in carpet area. Both the land and the builtup area will be sold to Mhada or any other designated public authority at an affordable rate. 
    "In case of built-up area, it will be bought at the construction cost. In order to compensate the developer for the land cost, affordable housing will be included in the floor space index (FSI) computation," said a senior state government official. 
    To avoid delays, Mhada has decided to buy the plot or flats within three months. If the housing board doesn't wish to buy the flats, the developer can sell them in the open market, said officials. 
    The proposed scheme is expected to be opposed by developers, who argued that it is not a feasible option. "The policy is lopsided. As per civic planning norms, we are not required to provide a recreation ground if the plot area is less than 2,125 sq m. Now, if the plot area is 2,000 sq m, we have to compulsorily etch out 20% for EWS/LIG housing," said a developer. 
    According to developers, the proposed rule will pose major implementation problems. "On one hand, the government wants us to submit comprehensive rule-proof building plans for approval. How can developers finalize building plans when there is no guarantee under the proposed rule that Mhada will purchase this flats," asked a Maharashtra Chamber of Housing Industry member. 
    Developers further pointed out that combining low-income projects with luxury apartments will not be commercially viable as low-income buyers will find it hard to pay for high maintenance charges. "The developer will get stuck if there is no market for these single room flats," he added. 
    The proposed regulation does not allow developers to amalgamate affordable tenements or land to prevent any misuse of the policy.