MHADA likely to auction cessed buildings
A day after Hussaini building crashed on its residents, killing 33, the state government is racking its brains to work out a solution to promptly renovate the most rickety and unsafe cessed buildings in the island city: there are 16,000 of them and 3,000 need to be mended urgently. One of the four redevelopment options the state is looking at is picking a builder by conducting an auction of cessed buildings or by floating a tender.
Under the arrangement, state’s development agency the Maharashtra Housing And Area Development Authority (MHADA) will give 90 days to the landlord of a cessed building to initiate redevelopment. If this time period is breached, then MHADA would step in and invite bids from developers to take on the project while monitoring the redevelopment. A typically old building whose tenants pay cess — a form of tax — to MHADA for structural repairs is termed as a cessed building.
To execute the scheme, under which the landlord, tenants and the developer would be assured of a share, the state is mulling over amending the Mhada Act, 1976, or modifying regulations.
Alternatively, the agency is considering providing a floor space index (FSI) of 3, permissible under Development Control Rule …read more