MUMBAI: Redevelopment of dilapidated colonies of the Maharashtra Housing and Area Development Authority (MHADA) is set to gain pace with the authorities planning to offer developers both options of paying premium and offering housing stock to MHADA for projects spread over less than 2,000 sq metre.
However, for redevelopment of colonies spread over more than 2,000 sq metre, developers will have to provide ready housing stock in these projects to get permissions from the authority.
“MHADA has already forwarded a proposal to this effect to the state government. The new proposal will offer flexibility to developers in order to push the redevelopment of these dilapidated colonies,” said a MHADA official.
Mumbai has a total of 104 MHADA layouts, of which 56 colonies are old and dilapidated, and most of them are spread over less than 2,000 sq metre. The proposed change is expected to result in more developers coming in to undertake redevelopment of these old buildings.
“The proposal put forth right now with MHADA being comfortable accepting premium for the much-needed redevelopment of these old buildings. This will prompt more developers to consider redevelopment proposals as standalone composite buildings command better pricing. With this, it becomes more attractive for developers already working in this segment and new entrants as well,” said Raj Gala Shah Partner, Zara Habitats, that has been carrying out MHADA redevelopment projects in Mumbai.
Until 2008, MHADA used to charge premium for no-objection certificates and additional FSI (Floor Space Index) for redevelopment of dilapidated colonies under Development Control Regulations 33(5). In April 2013, the state government increased the FSI for MHADA buildings to 3 times from 2.5 times on the entire layout.
The authorities have changed the model a few times from premium to housing stock and vice versa. The process and permissions for these projects, as a result, have slowed down in the past 12-18 months. With the new proposal, larger layouts will require developers to provide housing stock to MHADA. Through this, the authority is looking to augment its housing stock that would be used to cater to economically weaker section (EWS) and LIG through lotteries.
Most of the 56 MHADA housing colonies in Mumbai were built in the 70s and 80s, and several have already been declared as dilapidated and waiting to be redeveloped as they are unsafe to reside in.