Promised crores of funds under the urban renewal mission, the state had to present a liberal housing policy and incorporate reforms.
Though a year late, it was inevitable. Promised crores of funds under the Jawaharlal Nehru National Urban Renewal Mission (JNNURM), the Maharashtra government had to present a liberal housing policy and incorporate reforms.
Though planned by the Urban Department, the thrust of the policy is clearly defined by big names in the finance and housing industry, not to mention the World Bank.
Also, with the Special Rental Housing Zone, yet another demand of the developers will see implemented in this policy.
Amending the FSI legislation has been a highly controversial issue in past years. Higher FSI is now eyed as an incentive for redevelopment and will now come in form of an area plan, instead of a plot plan to ensure merging of land with common amenities. With 1.8 crore people choking in 436 sq km of land, more FSI is seen as a vehicle to bring down property prices in the city.
The repeal of the much-debated Urban Land (Ceiling and Regulation) Act is now real. A mere 50 hectares of land acquired by the state government for low-cost housing, out of 6,500 hectares locked under ULC, has tilted the argument in favour of repeal.
The proposed changes in the Bombay Rent Control Act, by incorporating the concept of limited period tenancy as existing in the Delhi Act, would be significant for the island city property prices.
Significantly, for the first time, the buyer as well developer has been offered massive incentives to jump the low-income house stock. While buyers can have income tax rebate till the tenancy period, reduced stamp duty (5 per cent) and a whopping 50 per cent relief in the property tax and other charges, developers are offered more FSI, ie 2.5.
Besides, land under existing No-Development Zone and ULCA will be made available for low-cost housing projects. Efforts are also made to get income tax relief for such schemes by hectic lobbying with Centre. To sum up, buying that dream house would be well made easy for Mumbaikars. But the policy needs to be backed by a tough implementation plan.
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