MHADA – 20% reservation for affordable housing


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

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