Now on,you can get cheap MHADA house and rent it out from day one

Now,people who get houses at subsidised rates through the state housing board’s draw of lots will be able to let them out on rent on a leave-and-license basis immediately instead of having to wait for five years

Written by Express News Service | Mumbai | Published: August 7, 2013 12:47 am

Now,people who get houses at subsidised rates through the state housing board’s draw of lots will be able to let them out on rent on a leave-and-license basis immediately instead of having to wait for five years,as was the case earlier.

The Maharashtra Housing and Area Development Authority (MHADA) will collect a one-time fee from all the owners who want to let out their houses. The fee will be Rs 2,000 for houses of the economically weaker sections,Rs 3,000 for the lower-income group,Rs 4,000 for middle-income group and Rs 5,000 for higher-income group. The owners will also have to submit a copy of the leave-and-license agreement to MHADA.

“We decided to legitimise it because people let out their houses on rent without waiting for the five-year period to lapse. What happens unlawfully becomes a source of corruption. If the owner is not living in Mumbai,the only option before him/her is to keep the house closed,making it an unproductive asset,” said Satish Gavai,chief executive officer of MHADA.

The housing board,which is facing a severe land crunch in Mumbai,also approved a proposal to undertake the redevelopment of slums settled on its land under the Slum Rehabilitation Authority.

MHADA expects to generate a stock of about 15,000 to 20,000 houses by way of redeveloping slums on its land that it will sell through its annual draw of lots.

“Around 150 hectares of MHADA land stand encroached. We have identified 84 slum redevelopment proposals till now,” said a MHADA spokesperson.

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