Maha Government proposes housing fund for Mumbaikars

In a bid to make homes or apartments in Mumbai more affordable for the people of Mumbai, the Maharashtra Government has proposed a housing fund. This housing policy will majorly benefit middle and low-income groups in a great way, in owning a home in the city. In addition, with the introduction of the housing policy, the state government also aims at reaching the goal of ‘slum-free Mumbai and Maharashtra’ by 2022.

The Maharashtra Government is all set to make affordability into reality with this new housing fund. Any person can deposit a fixed amount in the housing fund for a particular period of time. The person can be a government or a private sector employee or even self –employed. The amount deposited in the fund will be managed by a manager chosen via competitive bidding. In another way, the membership count in the housing fund will help the government determine the required number of houses or apartments in Mumbai. And the contribution in the housing fund is intended to invest in the government securities specified by RBI.

The new policy also gives an option to the person employed in government or the private sector to make a contribution matching up to 50% of his or her PF account. This means if the person is regularly paying Rs 4000 to his PF account, then he can contribute Rs 2000 to the housing fund and the rest to the PF account. After contributing for 10 years, the person can opt to buy apartments in Mumbai through a government scheme. The fund will act as a savings account for the Mumbaikars meant only for buying or investing in property and also it will boost the housing finance.

Moreover, as a part of the new housing fund, the state government has proposed to offer interest equal to the Provident Fund account while making the contributions tax-free.  According to the fund, its members will also get priority in the Maharashtra Housing and Area Development Authority (MHADA) draw for the sale of apartments in Mumbai. Herein, when the member of the housing fund applies to buy a flat, he or she will not have to participate through the MHADA mandatory lottery process. He or she will not have to pay for the MHADA house because the amount will get adjusted from the person’s contribution in the housing fund. The use of funds is not only restricted to buying apartments in Mumbai from the government housing scheme, it can be utilized to buy homes in the private sector as well.

Therefore, the housing fund is a great step by the Maharashtra Government in providing affordable houses to the Mumbaikars. If the policy becomes a success then the same initiative should be encouraged by each state government, as it will boost the home seekers sentiments as well the real estate sector.