MUMBAI: The state government will soon come up with a new policy that will make it mandatory for private builders to transfer a certain housing stock to Maharashtra Housing and Area Development Authority (MHADA).
The policy, which is currently in place in Mumbai, will ensure that economically weaker sections across the state are able to buy homes at affordable rates.
According to an official from the Urban Development Department (UDD), the draft of the policy is ready and it will be officially announced within a month.
"MHADA and other government agencies have a limit on construction of houses as it becomes financially inviable for them beyond a certain limit. Thus, the government wants the participation of private builders to ensure affordable homes to a larger number of people," he said.
The draft of the policy, which was supervised by the state's Town Planning and Housing departments, in pending with the Chief Minister's office for approval, he said.
The Cabinet's nod is expected within a couple of weeks and an ordinance will later be issued as currently the state legislature session is not underway, he said.
"A developer who wants to construct a housing project on more than 4,000 sq metres of land has to surrender 20 per cent of households from total flats to MHADA," he said.
"The floor space index (FSI) that will be transferred to MHADA via the 20 per cent housing stock will not be counted or subtracted from the total FSI sanctioned to the developer for his project," he said.
"MHADA will purchase housing stock from the developer at a rate of 125 per cent, more than the Ready Reckoner rate of the area concerned. For instance, if RR rate of any city is Rs 1,000, MHADA will buy it at Rs 1,250," he said.
The state housing authority will sell such homes to economically weaker sections of the society and the size of flats will be around 30 to 50 sq metres each, he said.
The previous Congress-NCP government had brought a policy for the economically weaker sections where developers had to transfer a certain housing stock to MHADA for affordable housing. However, it was limited to Mumbai only, he added.