More affordable homes in city soon | mumbai | Hindustan Times
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More affordable homes in city soon

mumbai Updated: Nov 30, 2011 00:54 IST
HT Correspondent
HT Correspondent
Hindustan Times
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In what could give a boost to the construction of low-cost homes in the city, a chief minister-appointed committee will submit its report next week recommending the construction of affordable homes for sale rather than rental houses, as planned by the Mumbai Metropolitan Region Development Authority.

The chief secretary on Tuesday discussed the findings of the report with committee members. In its October 19 edition, HT had reported that the committee favours the construction of affordable homes for sale rather than rental houses. It also recommended that the size of these tenements be increased to 300 to 400 sq ft from 160 sq ft.

The Maharashtra Housing and Area Development Authority’s (Mhada) joint venture plan with private developers, which had been set aside for the past two years, may also get approved next week.

Chief minister Prithviraj Chavan on Tuesday, in a review meeting, gave it an in-principle go ahead after suggesting minor changes to the scheme.

The scheme will enable the creation of affordable homes on privately owned lands by offering developers an incentive Floor Space Index of 2.5. FSI is the ratio of permissible built-up area to the size of the plot it is built on. The Mhada has already signed joint ventures with five developers in Thane city. The idea to rope in private builders came about as the Mhada’s land pool is scarce and demand for low-cost housing is high.

Under this scheme, developers, in exchange of incentive FSI, will build affordable houses for Mhada, for which it will bear the construction cost. Chavan has suggested that construction cost be dependent on the location of the building instead of fixing a blanket rate.