MHADA will review its 104 colonies

Recently, the Maharashtra State Government is in his effort to augment housing supply in Mumbai and in that process it asked to MHADA (Maharashtra Housing & Area Development Authority) to to review its all 104 colonies spread over 3,800 prime acres across the city. The Maharashtra State Government has also asked to MHADA to assess the quantum of fresh supply and demand through redevelopment of these colonies.

The housing authority of Maharashtra State Government is currently working on the report, to ascertain the additional housing supply which can be infused into the market in the next few years by redeveloping these colonies which was built between the ‘1960s and mid ‘1980s. According to the top officials of MHADA, “The assessment will be completed in the next three weeks. As now we have to consider the existing housing supply in these colonies which has already consumed FSI (floor space index), space needed to be used for rehabilitation of existing tenants and balance amount of FSI that can be used for fresh housing supply.” Floor space index (FSI) is the permissible development area on a land parcel and it can be estimated that around two lacs people are living in these 104 colonies and they are from middle-and lower-income group whereas; these colonies are located mostly in the central and suburban parts of Mumbai.

According to MHADA officials, “Out of total 104 colonies approx. 72 are such colonies where redevelopment can be undertaken. Of these 72 layouts, 56 complexes are in such a condition that they must be redeveloped soon.” Around 56 of these complexes should be redeveloped on larger layouts and almost not fit to be occupied because these complexes have been declared unsafe to live in by the MCGM (Municipal Corporation of Greater Mumbai).

The state had raised the Floor Space Index (FSI) for these colonies in 2013 to three from earlier limit of 2.5 in order to encourage the societies to come together under cluster development and from long time the efforts have been made to redevelop these housing colonies. Under the recently revised Floor Space Index (FSI), each existing tenant is expected to get a unit spread of over 405 square feet.

The government of Maharashtra has accepted the revised recommendations of Cluster Development scheme for Mumbai. This scheme predicts restoration of old buildings, extending the present restoration policy to all buildings which are about more than 30 years old. This new policy is also applicable to suburbs, with a lowest plot of 10,000 square meters (sq. m) in size. The new proposal has lowered the owner’s consent from 100% to 70%, whereas the government keeps its discretionary power of rejecting or approving redevelopment projects.

But what is not clearly said, however, is that the policy will not at all help in reducing the shortage of living space rather it will worsen it and further hike property rates and rentals.

 Cluster Development Policy- Is it flawed?

• First of all, more than 30 years old building that is in perfectly habitable condition creates a productive national asset and abolishing a rare national asset is a loss to the nation. Also, the cost of abolishing a fit for living building is too much. Thus, redevelopment should happen only if the building is unfit for living.

• Secondly, a housing project consumes a great amount of rare and expensive natural resources. So, it would be better to build housing on unused land using these resources in order to increase the total availability of living than spending them for redeveloping an existing living space.

• Thirdly, how much time the offered redevelopment of these clusters will take, nobody can predict. Families who are currently living in their own homes will have to vacate and move to rental homes. That will eventually raise the demand for rental accommodation and hence worsen the demand & supply scenario by raising rental rates. In fact, the very possibility of redevelopment causes property rates to increase; as the future worth of the property gets reduced in the current flat prices.

 Even if we assume that a project continues smoothly, at the same time how many such large scale projects can be accomplished in the city? What effects it will do to traffic and pollution situation of the city throughout the construction stage?