Developers to reserve 20% homes for the poor | mumbai | Hindustan Times
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Developers to reserve 20% homes for the poor

mumbai Updated: Jan 03, 2012 01:02 IST
HT Correspondent
HT Correspondent
Hindustan Times
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If the state government gets it right this time, Mumbai will get more affordable homes and see inclusive housing complexes. According to a notification cleared by the government, all developers constructing on more than half an acre of land will have to reserve 20% homes for the economically backward and low income groups.

Preempting the code of conduct to be announced soon for the municipal corporation polls, chief minister Prithviraj Chavan said on Monday that his government had cleared the notification for this policy.

Chavan said: “The private developer will have to reserve 20% of the total plot or 20% of homes in a project for the economically backward, by constructing them in the range of 27 to 45 sq metres. MHADA will buy these houses at cost-of-construction rates and then distribute them through lottery.’’

The state’s urban development department had cleared this notification last year, but it had to be reworked after the high court struck it down this year on technical grounds.

The rule will soon be applicable to all construction over half an acre in the state, including redevelopment projects.

In exchange, the developers will get incentive FSI in the ratio of the low cost houses built. In cases where the developer is offering land, he stands to get FSI and Transferred Development Rights (TDR), additional development rights that could be sold or used on another plot.

“So far, we have created only ghettos and vertical slums, like in Mankhurd. This is a landmark decision. For the first time it will pave way for inclusive housing, where the urban poor can live in the same building with the super rich,’’ said a senior official, who did not wish to be named.