5 Government Housing Schemes in Mumbai That Are Perfect for Affordable Housing

Mumbai is one of the most populous and expensive cities in India, where finding a decent and affordable place to live can be a challenge. However, there are some government housing schemes that aim to provide low-cost housing options for the urban poor and middle-income groups. 

Each housing scheme in Mumbai has its merits and targets a specific group of people looking to own a dream home. What are they, and how can the common man benefit from them? We’ll walk you through the entire process in the following blog.

• Pradhan Mantri Awas Yojana (PMAY)

PMAY is a flagship scheme of the central government launched in 2015 with the vision of providing "Housing for All" by 2022. The scheme offers subsidies on home loans for eligible beneficiaries who want to buy or construct their own houses. The scheme covers two categories of beneficiaries: Economically Weaker Sections (EWS) and Low-Income Groups (LIG), who can avail of a subsidy of up to Rs. 2.67 lakh on their home loans, and Middle-Income Groups (MIG), who can avail a subsidy of up to Rs. 2.35 lakh on their home loans. The scheme also incentivises developers to build affordable housing projects under the Public-Private Partnership (PPP) model.

• Maharashtra Housing and Area Development Authority (MHADA)

MHADA is a state government agency responsible for creating and managing public housing in Maharashtra. MHADA conducts regular lotteries for allotting flats to applicants from various income groups at subsidised rates. The flats are located in various parts of Mumbai, such as Andheri, Goregaon, Mulund, Mankhurd, etc. The eligibility criteria and application process for the MHADA lottery vary depending on the income group and the scheme. The applicants must pay a registration fee, an earnest money deposit (EMD), and their application form.

• Slum Rehabilitation Authority (SRA)

SRA is another state government agency that works to improve the living conditions of slum dwellers in Mumbai. SRA implements the Slum Rehabilitation Scheme (SRS), which involves relocating slum dwellers to new buildings constructed by private developers on the same or nearby land. The developers get additional floor space index (FSI) and other incentives for undertaking such projects. The slum dwellers get free flats of a minimum 269 sq ft carpet area with basic amenities such as water, electricity, sanitation, etc.

• Rajiv Gandhi Awas Yojana (RAY)

RAY is a central government scheme that was launched in 2009 with the objective of making India slum-free by 2022. The scheme provides financial assistance to state governments and urban local bodies to undertake slum redevelopment and upgradation projects. The scheme also supports community participation and empowerment of slum dwellers through self-help groups (SHGs) and cooperatives. The scheme covers two components: Basic Services to Urban Poor (BSUP), which focuses on providing basic infrastructure and services such as water supply, sewerage, drainage, roads, etc.; and Integrated Housing and Slum Development Programme (IHSDP), which focuses on providing housing and social amenities such as schools, health centres, community halls, etc.

• Affordable Rental Housing Complexes (ARHCs)

ARHCs is a new scheme announced by the central government in 2020 as part of the Atmanirbhar Bharat Abhiyan package in response to the COVID-19 pandemic. The scheme aims to provide affordable rental housing options for migrant workers, urban poor, students, etc., who face difficulties finding suitable accommodation in cities. The scheme involves converting existing vacant government-funded housing complexes into ARHCs and incentivising private or public entities to develop and operate ARHCs on land or land taken on lease from the government. The ARHCs will offer single or double-bedroom units with attached kitchens and bathrooms at a reasonable rent for a fixed tenure.

Conclusion

If you think you are the perfect fit to benefit from any above-mentioned housing schemes in Mumbai, then it is recommended to research it in more detail before applying. These housing schemes fall under the larger vision of Housing for All by the central government, and you and your loved ones can truly make the most of them as more and more flats and residential areas in Mumbai come up.