Maharashtra Housing and Area Development Authority (MHADA) under the affordable housing scheme strives to provide affordable, qualitative and sustainable housing to the last section of the society.
As per MHADA regulations any development of layout exceeding an area of 4000 sqm will require a reservation of 20% of the built-up area for EWS (economic weaker section) and LIG (low income group) households.
Incentive FSI of 20% will be provided to the developer and tenements will be handed over to MHADA at the ready reckoner rate.
There is an amendment by Urban Development Department that the builder now need not have to compulsory carve out 20% of their plots for affordable housing, instead they can construct these anywhere within the same administrative ward. There could be the case where developer may not have alternate plot in the same ward. As an incentive, the govt has offered 50% free FSI to the developers to build such tenements on alternative plots in the same ward.
- MHADA – Maharashtra Housing & Area Development Act.
- EWS – Monthly household income limit of Rs 16,000/- per month
- LIG – Monthly household income limit of Rs 16,000/- to Rs 40,000/- per month
- Tenement Area – 300 to 600 sqft (carpet area)
However, MHADA rules are not applicable in case of redevelopment of old cluster of up to 10,000 sqms
What Is MHADA Lottery?
As part of the government’s extensive housing initiative known as the Pradhan Mantri Awas Yojana, the Maharashtra Housing and Area Development Authority (MHADA) established the MHADA lottery to provide 7500 Indian households with affordable homes each year (PMAY).
Affordable housing is distributed using a computerized lottery mechanism, with applicants split up based on yearly income. These homes are made possible by buying lots and houses and will be made accessible through collaborations with other developers.
