The Maharashtra Housing and Area Development Authority (MHADA) has worked out a proposal which will benefit both tenants and builders alike: incentivising the redevelopment of cessed buildings in the island city.
Earlier, even if tenant had more than one room in a cessed buildings, she or he was entitled to get a maximum of one 450-sq-ft flat after redevelopment.
If the proposal is passed, builders are also likley to benefit because they will get a 50 per cent incentive FSI over and above the FSI used to rehabilitate tenants in cessed buildings. So, even if they have to give an increased number of flats or more area to tenants, they will be compensated by a higher incentive FSI.
“We have sent a proposal to this effect to the state government, and the state government’s final approval is awaited,” said Sumant Bhange, chief officer of MHADA’s Mumbai Repairs and Reconstruction Board.
“If MHADA is bringing this rule, it will benefit tenants – but we want to know when they will implement it, because our experience with MHADA tells a different story. They simply don’t act on the assurances they give,” Pradeep Prabhudesai, vice president, Kherwadi Residents’ Association, told Mirror.
Rajan Bandelkar, vice president, National Real Estate Development Council, said: “This is a welcome decision as it benefits both tenants and builders. It specifically sorts out the problem of housing for large families. Earlier, due to differences in such families over who would get the flat in a redeveloped building, such projects used to get delayed.”
The city has 16,000 cessed buildings
• Cessed buildings are buildings in the island city that are protected by the Rent Control Act.
• Most were constructed in the first half of the 20th century and are in a dilapidated condition.
• As rents for these buildings are frozen, their owners have lost interest in maintaining them.
• To address the problem of maintenance for these buildings, MHADA created the Mumbai Repairs and Reconstruction Board in the 1970s.
• In lieu of carrying out repairs and maintaining these buildings, MHADA collects a cess on the rent paid by tenants.
• There are about 16,000 such cessed buildings in Mumbai, housing about 10 lakh tenants.