The scheme has failed to take off in various avatars over the past few years; the FSI has now been increased for such rental housing projects
The state government’s ambitious rental-housing scheme has made a comeback. Once again, the authorities want the MMRDA (Mumbai Metropolitan Region Development Authority) to implement the scheme via the public private partnership (PPP) mode.
UPS Madan, MMRDA commissioner
Last year, the MMRDA’s rental-housing scheme had failed miserably, with no takers from private developers. This time, the FSI has been increased for such rental housing projects and either a builder or MMRDA will construct the rental houses.
The draft housing policy, which will be released soon, goes into considerable detail over rental housing. This time, the other difference is that the government has asked MMRDA to focus more on connectivity with central business districts, while deciding the location of these proposed projects.
According to the policy, rental housing will be developed by the MMRDA by reviving its public-private partnership scheme for rental housing at strategic locations within municipal limits of all municipal corporations within the Mumbai Metropolitan Region (MMR) including the BMC, and also outside the MMR. Last time the projects were planned in places like Karjat and Ulhasnagar.
The onus of maintenance will be on the entity constructing the project, either MMRDA or the concerned builder.
MMRDA’s erstwhile scheme will be revised with emphasis on connectivity, livelihood opportunities and civic and social amenities. The FSI for such schemes will be decided by MMRDA, with a minimum of 3 and maximum of 4, on gross plot area.
The builder is free to construct other flats in these projects, but 25 per cent of the built-up area has to be reserved for rental housing.
In case a builder wants to exceed the FSI of 4 (and the area has a greater permissible index), MMRDA will charge a premium of 60 per cent of the Ready Reckoner rate for these flats.
Private developers willing to go ahead with the rental-housing scheme on their land in the MMR will be permitted to implement the scheme as per the modified MMRDA design of this scheme with extra FSI.
The draft housing policy states, “MMRDA shall notify within 90 days (of the housing policy being accepted) the details of the revised scheme, which will include the management and maintenance of the rental housing component by either the developer or other suitable agency for a period of 10 years.”
UPS Madan, MMRDA commissioner told mid-day, “The current status of the rental housing scheme is that we aren’t going ahead with it, but instead focusing on affordable housing. If the housing department asks us to construct or make a new policy on rental housing we will work on it.”