With FSI being raised from 2.5 to 3, builders will no longer shy away from redeveloping MHADA buildings
With the redevelopment of 56 MHADA societies, Mumbai will get 1 lakh affordable homes. u00a0According to government sources, the FSI for MHADA societies will go up to 3 from the existing 2.5. There are a total of 3,071 buildings in the 56 MHADA societies. According to MHADA’s data, redevelopment of these societies will result in nearly 1 lakh homes, which it will sell at affordable rates. This figure does not include the number of homes existing tenants would get.u00a0
According to the MHADA Housing Stock scheme, introduced in September 2010, any builder redeveloping a MHADA society has to house the existing tenants. Two-thirds of the remaining flats would go to MHADA and one-third to the builder. Many builders claimed that this wasn’t feasible, as one share was too little to recover construction cost, let alone make profits. The government, however, is attempting to woo them back with the added incentive of extra FSI.
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The extra FSI would mean builders get more space, too. Even if they spend nearly 2 FSI in rehabilitating the tenants and giving away housing stock to MHADA, they would still have between 0.75 to 1 saleable FSI left.
At a property event held on Thursday, Housing Minister Sachin Ahir announced that concrete steps in terms of MHADA redevelopment has been approved but were at the policy stage. u00a0“We don’t want people to suffer under redevelopment. We want them to get bigger homes. Things are being discussed and finalised on the same. I cannot comment on this, as the assembly is on, but the outcome will be a positive one,” said the minister.u00a0
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