Ministry of Housing and Urban Poverty Alleviation, Government of Conference on Rental Housing

Presentation by

Shri. S. C. Deshpande Chief, Rental Housing Division Metropolitan Region Development Authority

23rd September 2011

1 M M R D A

Established in 1975 under MMRDA Act,1974 for

Planning, coordinating and supervising the proper, orderly and rapid development of the areas in the region and executing plans, projects and schemes for such development, and to provide for matters connected therewith.

2 MUMBAI METROPOLITAN REGION

Area 4355 sq.km. Population 1.92 Cr (2001) -Vir ar Districts in MMR 1. Mumbai 2. Suburban Dist. 3. Thane 4. Raigad Corporations in MMR 1. Greater Mumbai Mira-Bhayander 2. Thane Sub- Thane 3. urban 4. Ulhas Nagar Dist. Ambernath 5. Kalyan-Dombivali 6. Mira Navi Mumbai 7. Bhiwandi - Nizampur 8. Vasai- Municipal Councils in 1. Ambernath Mumbai MMR 2. Kulgaon-Badlapur 3. Alibaug 4. Pen Raigad Dist. 5. Uran 6. Matheran Hill Station 7. Panvel 8. Karjat 9. Khopoli Pen

Alibag Villages 1000 Urbanisation 94% Urban Population 6% Rural Population

3 MMR – Population and Employment

Base Year (2005)

Total population : 20.80 millions

Total Employment : 07.60 millions

Pop (m) Employ (m)

Mumbai 12.86 4.7

Restofregion 7.94 2.9

4 Regional Plan 1966-2011 Land-use

------Use Area in sq.km. % age Vasai ------U1 Zone 791 19 U2 Zone 217 5 Thane Kalyan I Zone 129 3 G1 Zone 1350 323232 G2 Zone 303 777 Navi Mumbai Forest 976 23 Wetlands 116 333 Mumbai Others 231 5 ------Total Area 4355 100 ------

5 5 Role of MMRDA

Regional Planning Authority for MMR

Special Planning Authority for certain notified areas within

MMR.

Development Financing Agency for ULBs within MMR.

Nodal Agency for Centrally Sponsored Schemes.

Co-ordination Agency for Infrastructure Projects implemented by different agencies.

Implementing Agency for various infrastructure projects within

MMR with Transport Infrastructure as the primary focus.

6 Special Planning Authority

In Mumbai Dist. :  - Complex  Backbay Reclamation Scheme  District Centre  Truck Terminal  International airport

In Thane Dist. :  Ambernath-Badlapur surrounding area,  27 villages excluded from KDMC,  51 villages notified around Bhivandi,  -Manori- notified area

7 Mumbai : the ‘Financial Hub’ of India

• Commercial and financial capital of India • Generates 5% of India’s GDP • Contributes over 1/3rd of India’s tax revenues • 2 ports in Mumbai handle 1/3rd of the country’s total foreign trade • Caters to about 38% and 26% of international and domestic air traffic respectively • Contributes over US$ 111 m annually as taxes to Central Government

8 MMRDA - Constitution Authority (1- Chairman,16 Members and 11 invitees) Chairman : Minister for Urban Development Department Members Invitees Members 1. Minister of Housing 1. Mayor, Thane Municipal Corporation 2. Minister of State for Urban 2. Mayor, Navi Mumbai Municipal Development Corporation 3. MLC 3. Mayor, Kalyan Dombivali Municipal 4. Mayor of Mumbai Corporation 5. Chairman, Standing Committee, 4. President, Khopoli Municipal Council MCGM 5. President, Karjat Municipal Council 6. Councillor, MCGM 6. President, Pen Municipal Council 7. Councillor, MCGM 7. President Thane Zilla Parishad 8. Councillor, MCGM 8. President, Raigad Zilla Parishad 9. M.L.A. 9. Secretary, UDD 10. M.L.A. 10. Managing Director, MSRDC 11. Chief Secretary, Government of 11. Secretary, General Administration Department 12. Principal Secretary, UDD 13. Municipal Commissioner, MCGM 14. Secretary, Housing Department 15. Managing Director, CIDCO 16. Metropolitan Commissioner, MMRDA 9 MMRDA - Constitution

Executive Committee ( Chairman – 1,Members - 8 and 4 invitees) Chairman : Chief Secretary, Government of Maharashtra

Members Invitees 1. Expert Member 1. Secretary, UDD 2. Expert Member 2. Principal Secretary 3. Expert Member (Industries) 4. Principal Secretary, UDD 3. Secretary, Environment 5. Municipal Commissioner, 4. Secretary (Special Project), MCGM G.A.D. 6. Secretary, housing Department 7. Managing Director, CIDCO 8. Metropolitan Commissioner

10 Projects under MMRDA

Sr No Name of the Projects

1 RAIL PROJECT 2 MUMBAI MONO RAIL PROJECT 3 RENTAL HOUSING 4 INNOVATION PARK 5 MUMBAI URBAN TRANSPORT PROJECT – (MUTP) Rail and Road Component, BEST Component, ATC, Pedestrian Subways 6 MUMBAI URBAN INFRASTRUCTURE PROJECT – (MUIP ) Road, Flyovers, Pedestrian Subways & FOBs, ROBs, Elevated Road 7 REDEVELOPMENT OF 8 SKYWALKS 9 MUMBAIL TRANS HARBOUR LINK 10 MULTI MODAL CORRIDORS

11 Projects under MMRDA

Sr No Name of the Projects

11 REGIONAL LANDFILL SITES & E-WASTE 12 NIRMAL MMR ABHIYAN 13 WATER TRANSPORT CELL (RO-RO) 14 WATER RESOURCES 15 POWER GENERATION 16 FUNICULAR RAILWAY AT MATHERAN 17 GORAI-MANORI-UTTAN NOTIFIED AREA 18 TREE PLANTATION & WATER CONSERVATION 19 MITHI RIVER DEVELOPMENT PROJECT – (MRDP ) 20 WADALA TRUCK TERMINUS & ISBT 21 NATIONAL MASS TRANSIT TRAINING & RESEARCH INSTITUTE 22 RESETTLEMENT & REHABILITATION

12 Projects under MMRDA

Sr No Name of the Projects

23 REFURBISHING MARINE DRIVE 24 GROWTH CENTERS 25 BACKBAY RECLAMATION 26 MUMBAI INTERNATIONAL AIRPORT NOTIFIED AREA 27 BANDRA -KURLA COMPLEX 28 OSHIWARA DISTRICT CENTER 29 PROJECTS UNDER JNNURM 30 HERITAGE & ENVIRONMENT 31 COMMUNITY FACILITATION CENTRES 32 COMPREHENSIVE TRANSPORTATION STUDY 33 ISSUES FOR CONSIDERATION

13 URBANISATION – GROWTH PROJECTION

2001 2031

India  Total Population - 102.7 Cr. 144.98 Cr.  Urban Population - 28.53 Cr. 51.70 Cr .  % Urban to Total - 27.78% 35.60 %

Maharashtra  Total Population - 9.67 Cr. 13.81 Cr.  Urban Population - 4.10 Cr. 9.20 Cr .  % Urban to Total - 42.39% 66.61 %

MMR  Total Population - 1.92 Cr. 3.40 Cr.  Urban Population - 1.80 Cr. 3.20 Cr.  % Urban to Total - 93.50% 98 -100%

14 HOUSING IN MMR : SHORTAGE , DEMAND & SUPPLY

 In Mumbai, an estimated 60% of pop lives in slums .  Slum pop in MMR (2011) - 1 Cr.  No of houses required - 20,00,000 (Family size - 5 )  Slumless MMR : 2011- 2031 - 20 years (Backlog Removal )  Slumless MMR : Housing demand - 1 lakh/ year

 Total Housing Demand : MMR Slumless MMR : - 100,000 / year POP Growth + Migration : - 50,000 / year (EWS/LIG) Total : - 150,000 / year  Rental Housing: (MMRDA) - 1 lakh / year

15 HOMES FOR ALL

 Mah Chamber of Hsg Industry (MCHI) and GoM signed Joint Declaration on 28.4.2010 to construct 5 lakh houses in 5 years.

 Govt constitutes committee under Chairmanship of Hon’ble Chief Secretary to supervise the set objectives such as single window clearance etc.

 Immediate target of MMRDA - 1 lakh houses /year ( for 5 years)

16 MAHARASHTRA STATE HOUSING POLICY 2007

Objective : To facilitate affordable housing to the poor on ownership or rental basis.

Relevant Features :  Role of private sector in Rental Housing.  Incentivize Rental Housing through higher Floor Space Index (FSI).

17 RENTAL HOUSING - GOM DIRECTIVES

 MMRDA - Project Implementing Agency (PIA)  Metropolitan Commissioner, MMRDA - Chief Executive Officer (CEO)  Rental Housing - Vital Public Purpose Project  Slum Prevention Program as against Slum Rehabilitation Scheme

 Directives - for ULB’s - Aug 2008 onwards  Notification - for U1 & U2 zones of MMR - Nov 26 ,2008

18 RENTAL HOUSING SCHEME - OBJECTIVE

To make available a self-contained dwelling unit

of 160 sq.ft. (14.86 sqmt ) carpet area on leave and license

basis in the Mumbai Metropolitan Region within the

financial reach of Economically Weaker Section (EWS) and

Low Income Group (LIG) i.e at an affordable rent of Rs. 800

to 1500 per month and thus achieve inclusive growth in

the region.

19 RENTAL HOUSING - ELIGIBILITY CRITERIA

1. The allottee under the project shall have employment / self employment business within MMR and minimum family income of the allottee shall be Rs. 5000/- per month. 2. The allottee and his family member shall not own any house in Mumbai Metropolitan Region . 3. The allottee shall be continuously residing in the State of Typical Maharashtra for at least 15 years RENTAL HOUSING UNIT before the date of application for rental housing. (as per modification in respect of rental housing DCR for MMR dated 04/06/09) Carpet Area: 14.86 sq.m (160.00 sq.ft) 4. The allotment shall be made in the Built-up Area: 18.00 sq.m (193.00 sq.ft) joint name of spouse if married . 20 DEVELOPMENT MODELS

Sr Applicable to ULBs Type of Total Componen Component for No Model FSI t for Rental Developer Housing

1 Municipal Councils of Karjat, Pen, Uran, Model-1 4 FSI 1.00 FSI with 3.00 FSI Alibagh and Khopoli. Municipal Corporations (FSI 25% appt. (15 % commercial ) of Thane, Kalyan-Dombivali, Mira-Bhayander, MODEL) Land Bhiwandi-Nizampur, and Special Planning (15 % (Private commercial ) Authority Areas at Vasai-Virar Subregion, and Land) Ambernath, Kulgaon, Badlapur and Surrounding Notified Area, and Municipal Council of Panvel and Urbanisable Zone-1 (U1) and Urbanisable Zone -2 (U 2) within Mumbai Metropolitan Region

2 Municipal Corporations of Greater Mumbai, Model-2 3 FSI 3.00 FSI* of TDR $ equivalent to plot Thane, Kalyan-Dombivali, Mira-Bhayander, (TDR total land area for land/ Land TDR Bhiwandi-Nizampur, and Special Planning MODEL) (100% + Authority Areas at Vasai-Virar Subregion, and land) (Private Construction TDR of 1.33 X Ambernath, Kulgaon, Badlapur and Land) Surrounding Notified Area, and Municipal 3 (FSI of Rental Housing) - Council of Panvel Construction TDR 3 Construction of Rental Housing on any Model-3 4 FSI 3 FSI: Rental Housing unencumbered lands vested with MMRDA # in (MMRDA 1 FSI: Commercial Mumbai Metropolitan Region LAND) (to be developed by MMRDA) (100% land) Note: FSI*-Floor Space Index, TDR $ - Transferable Development Right, MMRDA # -Mumbai Metropolitan Region Development Authority 21 MODEL-1: TDR is applicable ( FSI 3.00 )

1 Area of land in sq.m. A 10,000

2 FSI for Rental Housing B 3.0 FSI

3 Built-up Area of Rental Housing in sq.m. AXB=C 30,000 (1667 units)

4 Total built-up area of Rental Housing in sq.m. including 1.3XC=D 39,000 balwadi, amenity, staircase, passage etc.

Costing

5 Rate of Construction of Rental Housing E Rs.10,000/sq.m.

6 Cost of construction DXE=F Rs .39 ,00 ,00 ,000

7 Rate of land (Assumed Rs 930/Sq.ft.) G Rs.10,000/sq.m.

8 Cost of land AXG=H Rs. 10,00,00,000

9 Cost to developer F+H=I Rs. 49,00,00,000

Recovery

10 Total TDR (Land TDR + Construction TDR) A+1.33D=J 61870 sq.m

11 Market Rate of TDR K Rs.10000/sq.m.

12 Value of TDR JXK=L Rs.61,87,00,000

Surplus L-I=M Rs.12,87,00,000

22 MODEL-2: TDR not applicable ( FSI 4.00 )

1 Area of land in sq.m. A 10,000 2 FSI for Rental Housing (Minimum 25% land) B 1.0 FSI

3 Built-up Area of Rental Housing in sq.m. AXB 10000 (555 Units) 4 Total built-up area of Rental Housing in sq.m. including 1.3XAXB=C 13,000 balwadi, amenity, staircase, passage etc. 5 FSI for Private Housing (Maximum 75% land) D 3.0 FSI 6 Total built-up area of Private Housing in sq.m. including, 1.3XAXD=E 39,000 amenity, staircase, passage etc. Costing 7 Rate of Construction F Rs .10 ,000 /sq .m. 8 Cost of construction of Rental Housing CXF=G Rs.13,00,00,000 9 Cost of construction of Private Housing EXF=H Rs.39,00,00,000 10 Rate of land (Assumed Rs 150/Sq.ft.) I Rs.15,00/sq.m. 11 Cost of land AXI=J Rs. 15,00,00,00 Cost to developer G+H+J=K Rs. 53,50,00,000

Recovery 12 Rate of sale of Private Housing (Assumed Rs 1394/sq.ft) L Rs.15000/sq.m. 13 Sale Recovery EXL=M Rs.58,50,00,000 Surplus M-K Rs (50,000,000)

Viability gap may be required to make project viable in certain locations 23 MODEL-3: MMRDA LAND ( FSI 4.00 )

1 Area of land in sq.m. A 10,000

2 FSI for Rental Housing B 3.0 FSI

3 Built-up Area of Rental Housing in sq.m. AxB 30,000 (1667 Units)

4 Total built-up area of Rental Housing in sq.m. including 1.3XAXB=C 39,000 balwadi, amenity, staircase, passage etc. 5 FSI for Commercial D 1.0 FSI

6 Total built-up area of Commercial including, amenity, staircase, 1.3XAXD=E 13,000 passage etc.

Costing

7 Cost of land Government land

8 Rate of Construction F Rs.10,000/sq.m.

9 Cost of construction of Rental Housing CXF=G Rs.39,00,00,000

10 Cost of construction of Commercial EXF=H Rs.13,00,00,000

11 Cost to developer G+H=I Rs. 52,00,00,000 Recovery

12 Rate of sale of Commercial Area (Assume Rs.4648/sq.ft) J Rs.50,000/sq.m.

13 Sale Recovery EXJ=K Rs.65,00,00,000

Surplus K-I Rs.13,00,00,000

24 RENTAL HOUSING PROPOSALS - CURRENT STATUS

Total Rental Housing Proposals 204 894,360

Active Proposals 151 472,454 1 In Principle Locational Clearance Granted by MMRDA 50 255,493 I LC Alive 37 85,646 ii LC Cancelled by MMRDA 10 166,735 iii LC Stayed by MMRDA 2 2,946 iv LC Granted but Proposal Withdrawn by Applicant 1 166 2 Proposals Under Scrutiny at MMRDA 8 7,673 3 Document Asked by MMRDA 43 109,487 4 ULC Affected proposals to be cleared as per Govt. GR dated 25/08/2011. 21 51,174 Proposals from 27 Villages in Kalyan at MMRDA SPA: 5 28 47,976 Awaiting DP Publication Proposals from 51 Villages in Bhiwandi at MMRDA SPA : 6 1 651 Awaiting DP Publication

Closed Proposals 53 421,906

25 SUMMARY – LC Granted till date

Sr. Status Total No.

Proposals RHUs Proposals RHUs Proposals RHUs

1 CC Granted 12 15,659 5 16,756 17 32,415

2 CC Pending 22 142,070 7 26,856 29 168,926

3 Not applied for CC 3 38,369 1 15,783 4 54,152

TOTAL 37 196,098 13 59,395 50 255,493

• VVMC • SRZ & LDZ

26 RENTAL HOUSING PROPOSALS – Location spread

Sr. No. of No. of Name of ULB No. Cases RHUs

1 RaigadDistrict 13 58,301

Vasai-Virar Municipal 2 4 113,598 Corporation

3 CIDCO (SPA) 1 10,115

Kalyan Dombivali 4 2 36,029 Municipal Corporation

Thane Municipal 5 17 22,177 Corporation

6 MMRDA (SPA) 5 8,278

Mira Bhayendar 7 7 5,036 Municipal Corporation

Ulhasnagar Municipal 8 1 378 Corporation

TOTAL 50 255,493

27 RENTAL HOUSING - ASSET VALUATION Asset Creation from 2.55 Lakh RHU Sr. No. Particulars Rental Housing Free Sale Housing i. F.S.I. 1 3 ii. Size of Each Unit 20 sq.m. each 60 sq.m. each. iii. Locational Clearance 50 Nos. Granted proposals iv. No. of Housing units. 2,55,493 Nos. 2,53,142 Nos. v. Construction Rate : a. For U1 U2 area Rs. 10,000/ sq. m. Rs. 15,000 / sq. m. b. For Corporation areas Rs. 15,000/ sq. m. Rs. 20,000 / sq. m. vi. Const Cost: a. For U1 U2 areas 20 sq. m(i.e. 1 unit) x Rs. 10,000 60 sq. m(i.e. 1 unit) x Rs. 15,000 Rs. 2,00,000/- per unit Rs. 9,00,000/- per unit 67,476 RHUs x 2,00,000 66,855 RHUs x 9,00,000 Approx. Rs. 1,349Crores Approx. Rs. 6,017 Crores b. For Corporation areas 20 sq. m(i.e. 1 unit) x Rs. 15,000 60 sq. m(i.e. 1 unit) x Rs. 20,000 Rs. 3,00,000/- per unit Rs. 12,00,000/- per unit 1,88,017 RHUs x 3,00,000 1,86,287 RHUs x 12,00,000 Approx. Rs. 5,640Crores Approx. Rs. 22,354 Crores Total Const Cost Approx Rs. 6,988 Crores Approx Rs. 28,356 Crores vii. Market Value: a. For U1 U2 limit 20 sq. m ( i.e. 1 unit ) x Rs. 25,000 60 sq. m ( i.e. 1 unit ) x Rs. 35,000 Rs. 5,00,000 /- per unit Rs. 21,00,000 /- per unit 67,476 RHUs x 5,00,000 66,855 RHUs x 21,00,000 Approx. Rs. 3,373 Crores Approx. Rs. 14,039 Crores b. For Corporation areas 20 sq. m ( i.e. 1 unit ) x Rs. 35,000 60 sq. m ( i.e. 1 unit ) x Rs. 50,000 Rs. 7,00,000 /- per unit Rs. 21,00,000 /- per unit 1,88,017 RHUs x 7,00,000 1,86,287 RHUs x 21,00,000 Approx. Rs. 13,161Crores Approx. Rs. 39,120Crores Total Market Value @ Market rate Approx Rs. 16,535 Crores Approx Rs. 53,156 Crores 28 RENTAL HOUSING : Rent collection

Rent collection from 2.55 Lakh RHU’s

Particulars Rent Collection Projected Rent Collection

For Corporation areas 12 x 1500 x 1,88,017 = Appx. Rs 338.43 Cr (Unit Rent – Rs 1500/- Month)

For U1 U2 Zone within Thane District. 12 x 1500 x 8081 = Appx. Rs 14.54 Cr (Unit Rent – Rs 1500/- Month)

For U1U2 Zone within Raigad District. 12 x 1000 x 59,395 = Appx. Rs 71.27 Cr (Unit Rent – Rs 1000/- Month)

Total 2.55 Lakh RH Units Appx. Rs. 424.25 Cr / year

At 80 % Occupancy the Rent Collection is Appx.Rs. 339.40 Cr/year 29 RENTAL HOUSING - INFRASTRUCTURE CHARGE

Sr. GR Details Infrastructure Charges in Rs/sq. mt for surplus No. BUA Private Land MMRDA Land 1 GR dated 6 th August, 2008 for 1000/- 900/- Greater Mumbai-Suburbs (MMRDA to forward 90% (MMRDA to pay amount to MCGM and retain MCGM) 10% amount) 2 GR dated 21 st August, 2008 for 500/- 450/- Municipals Council’s of Karjat, (MMRDA to forward 90% (MMRDA to pay Pen, Uran , Alibagh and Khopoli amount to Concerned Concerned Planning Planning Authority and retain Authority i.e. 90% of GR dated 4 th November, 2008 for 10% amount) Rs. 500/-) Thane, Kalyan-Dombivali, Mira- Bhayander, Bhiwandi-Nizampur and Special Planning Authority areas at Vasai-Virar subregion and Ambernath, Kulgaon, Badlapur & surrounding notified area and Municipal Council of Panvel 3 GR dated 26 th November, 2008 250/- NA for U1 and U2 Zones in MMR.

30 INFRASTRUCTURE CHARGES - COLLECTION

Infrastructure charge collection from 2.55 Lakh Rental Housing Units

FSI Permis Total BUA BUA Off Site sible Addl. BUA Net Plot Permissibl under Off site Infr. Sr. Infra No. of as per 40 % Location area e as per Rental Diff In BUA Amount No. Charges Proposals MMR Exempted MMR DCR / Housing Rs/ Sq. Mt. DCR / in FSI Local DCR Scheme Local DCR

Areas in sqmt

1 U1, U2 250/ Sq. mt . 18 1331585 0.4 532634.06 5326341 6657925.80 6125291.74 153.13 Crores

Corporation 2 500/ Sq. mt. 32 3734788 1 3734787.671493915118673938.35 14939150.68 746.95 Crores limit

Council 3 500/ Sq. mt. 0 0 1 0 0 0 0 0 limit

Total 50 900.09 Crores

MMRDA shall arrange for offsite infra in U1 U2 areas and within ULB’s to the extent possible and feasible 31 QUALITY CONTROL AND MAINTENANCE

 QUALITY CONTROL – Specifications of rental hsg. prescribed by MMRDA , MMRDA engineers supervise construction , PMC in place shortly.

 MAINTENANCE – Assuming Rs 3 per sqft as maintenance cost the total maintenance cost per unit will be about Rs 500/month and for 2.55 lakh rental units whose applications are cleared in principle by MMRDA  The rent collection projected is Rs 424.25 cr ( Rs 339.40 cr at 80 % Occupancy )  While maintenance cost is Rs 147 cr .  It is modest surplus assuming vacancy and rent evasion , moreover  The market value of the asset is Rs 16,535 crores which could be leveraged in several financial models in management  As on date offsite infra collection by MMRDA is Rs 3 cr . 32 EMPANELLED LIST OF PMCs FOR RHS

PANEL-I PANEL-II PANEL-III (Upto 1,000 RHUs or (For 1,001 to 5,000 RHUs or (Above 5,000 RHUs or BUA upto 20,000 Sqmt.) BUA 20,001 to 100,000 Sqmt.) BUA more than 100,000 Sqmt.) Sr. Name of Consultant Sr. Name of Consultant Sr. Name of Consultant No. No. No. 1 Master & Associates 1 M/s Mukesh & Associates 1 Shrikande Consultant Pvt. 2 M/s Wapcos Limited 2 Master & Associates Ltd 3 Magus Consulting Pvt. Ltd. 3 Shrikande Consultants 2 Mukesh and Associates pvt.Ltd. 4 Frischmann Prabhu (India) 3 Wapcos Limited Pvt. Ltd. 4 Wapcos Limited 5 Shashi Prabhu and 5 Epicons Consultants Pvt. 4 Louis Berger Group Inc. Associates Ltd. 5 Frischmann Prabhu (India) 6 C.N. A. Architects 6 Patwardhan and Associates Pvt. Ltd. 7 The Louis Berger Group Inc. 7 Frischmann Prabhu (India) 6 Pentacle Consultants (I) 8 Patwardhan and Associates Pvt. Ltd. Pvt. Ltd 8 ShashiPrabhuand 7 ShashiPrabhuand 9 Kalayojan Architects Associates Associates 10 M/s SGS India Pvt. Ltd 9 SNC - Lavalin Infrastructure 11 Ar/En. Vijay B. Sambrekar 8 SNC - Lavalin Pvt. Ltd. infrastructure Pvt. Ltd. 12 SC Techno Consultants Pvt. 10 The Louis Berger Group Inc Ltd. 9 Consulting Engineering 11 C.N.A. Architects 13 Urban Pandit Architects & Services (India) Pvt. Ltd. 12 M/s SGS India Pvt. Ltd. Consultants LLP. 10 Magus Consulting Pvt. Ltd. 13 Magus Consulting Pvt. Ltd 14 Dipak D. Kulkarni 14 Monarch & Surveyors & 11 SGS India Pvt.Ltd. Engg. Consultant Pvt. Ltd. 33 ALLOTMENT AND MANAGEMENT

 ALLOTTMENT – MMRDA will adopt online lottery system and success stories of MHADA will be replicated and improvesided to make it applicant friendly

 MANAGEMENT – VARIOUS MODELS INCLUDING PPP, OUTSOURCING , JV , NGOs, ASSET MANAGEMENT COMPANIES, SPV , SECTION 25 COMPANY , ALMO (ARMS LENGTH MANAGEMENT ORG ) WILL BE FOLLOWED

34 PROJECTS

M/s Neelkamal Realtors Suburban Pvt. Ltd. M/s Ackruti M/s Lucina Land Dev. Ltd. Mahajanwadi, Thane (2675 RHUs) Majiwade, Thane (1114 RHUs) Kon , Panvel (5274 RHUs)

M/s Dosti Corporation M/s Friends Development 35 Panch Pakhadi, Thane ( 1448 RHUs) Chitalsar Manpada , Thane (1211 RHUs) PROJECTS

M/s Cheda and Cheda Enterprises M/s Magestic Premises Pvt. Ltd. Naupada, Thane (113 RHUs) Panchpakhadi, Thane (105 RHUs)

M/s Cow Town Land Pvt. Ltd. M/s Supreme Parivaar ( 5 Acre ) M/s Adhiraj Construction Pvt. Ltd. , Thane ( 635 RHUs) , Panvel (1019 RHUs) Rohinjan , Panvel (4958 RHUs) 36 RENTAL HOUSING SCHEME: YEAR WISE COMPLETION PROGRAM

Total Sr. Name and Location of Rental 2011 2012 2013 2014 2015 No. of No. Housing Scheme RHUs Dec Jun Dec Jun Dec Jun Dec Jun Dec

1 M/s Neelkamal Realtors Suburban Pvt. Ltd, 600 840 520 385 330 - - - - 2675 Mahajanwadi, Thane (8 bldgs.) 2 M/s Ackruti (M/s Asiatic Gases) Majiwade, - 300 329 250 235 - - - - 1114 Thane (5 bldgs.) 3 M/s Lucina Land Dev. Pvt. Ltd. 215 2511 2050 498 - - - - - 5274 Kon, Panvel (12 bldgs.) 4 M/s Dosti Corporation 1448------1448 Panchpakhadi, Thane (4bldgs.) 5 M/s Friends Development - 400 811 ------1211 Chitalsar Manpada, Thane (5 bldgs.) 6 M/s Chedaand Cheda Enterp. - - - 113 - - - - - 113 Naupada, Thane (1bldgs) 7 M/s Magestic Premises Pvt. Ltd. - - 105 ------105 Panchpakhadi, Thane (1 bldgs) 8 M/s Cow Town Land Dev. Pvt. Ltd. - - - 300335 - - - - 635 Mira Road, Thane (1 bldgs) 9 M/s Supreme Parivaar ( 5 Acre ) - - - 500 519 - - - - 1019 Rohinjan, Panvel (1 bldgs) 10 M/s Supreme Parivaar ( 15 Acre ) ------10001000 776 2776 Rohinjan, Panvel 11 M/s Adhiraj Constructions Pvt. Ltd. - - - 700 800 1000 1000 1000 458 4958 Rohinjan, Panvel (8 bldgs) Total 2263 4051 3815 2746 2219 1000 3776 1000 458 21328

37 Sample Rental Unit : M/s Dosti Corporation, Panchpakhadi, Thane

38 Sample Rental Unit : M/s Neelkamal Realtors Suburban Pvt. Ltd, Mahajanwadi, Thane

39 FORMATION OF COMMITTEE FOR IMPLEMENTATION OF RHS

 Urban Development Department vide Notification dated 08/09/2011 has constituted committee to look into the issues in detail addressed by MMRDA vide its letter dated 03/06/2009 and to submit its report to Govt.  The members of the Committee are as follows :-

Metropolitan Commissioner, MMRDA Chairman Addl. Metropolitan Commissioner, MMRDA Member Vice President, MHADA Member Chief Executive Officer, SRA, Mumbai Member Municipal Commissioner, Thane Municipal Commissioner Member Municipal Commissioner, Mira Bhayandar Municipal Member Commissioner Chief Engineer, (DP) Brihan Mumbai Municipal Member Commissioner Dy. Director of Town Planning, Kokan Division Member- Secretary 40 CLARIFICATIONS /MODIFICATIONS

1 Nomenclature to be changed from “Rental” 13 Development Charge, infrastructure charge, to “Affordable” 14 scrutiny fee 15 Parking 2 Definition of Rental Housing Unit 16 Property tax 17 Deemed NA conversion Stamp Duty 3 Release of FSI 18 Relocation of reservations within layout 4 Procedures for Developing Rental Housing 19 Scheme Tree cutting permission

5 Development of Amenities 20 Environmental Clearance ( SEAC) (SEIAA) 6 Gross Plot Area 7 Clubbing of the Land Parcels of the same 21 Concessions in open space and Height owner relaxation 8 Development in NDZ Areas 22 Local DCR Applicability 9 Residual Plot to have 3 FSI 10 Application of scheme in NMMC Area and MIDC Area 23 Staircase/Passage to be counted in FSI for RH but to be exempted in Free Sale 11 Issue of Ordinance to empower MMRDA – Single Window Clearance 15% commercial of MMRDA to be cancelled 12 In U1 U2 areas FSI 1:3 to have an 24 alternative of UPTO 4

41 Options

for

Managing Rental Housing Stock

42 MUMBAI RENTAL MANAGEMENT OPTIONS

WHO IS HOMELESS INTERNATIONAL?  UK based Non-profit agency founded by UK Housing Social Housing Sector in 1987 to improve housing conditions for poor communities internationally.  HI’s focus is to support the development of local institutions to achieve this  HI Has been supporting Indian partner since 1988

WHAT ARE THE INTERESTS OF HOMELESS INTERNATIONAL?  HI seeks to encourage rental housing in India and other countries  HI has access to a wealth of experience and expertise in the development and management of rental housing  HI considers the MMRDA rental initiative as a strategic and desires to provide support  HI has no commercial interest 43 MUMBAI RENTAL MANAGEMENT OPTIONS

PURPOSE OF THE MOU

To develop and pilot a Special Purpose Vehicle (SPV) suitable to Mumbai for managing and maintaining affordable rental housing for low income families currently living in informal settlements, in rental stock currently being constructed for the MMRDA

KEY CONSIDERATIONS Homeless International is support the MMRDA in the following areas:  Legal  Business Planning  Housing Management  Policy Regulatory Matters  Housing Finance and Viability  Organisational Development, Capacity Building and Training

44 MUMBAI RENTAL MANAGEMENT OPTIONS

SPV MODEL ASSESSMENT AREAS :

Legal Aspects: Business Planning:  Corporate non-profit Status  Target Setting  Contractual Agreements with  Service Planning MMRDA  Outline initial costs and benefits  Tenure Arrangements/ Agreements  Information Flows  Enforcement Regulations  IT models and systems  Allocations Procedures  Co-ordination Housing Management:  Allocations Policy/Regulatory Matters:  Rent collection  Delegated Authority/ Reporting to  Day to day and planned maintenance Regulator  Disputes  Regulator responsibilities  Services  Rent Setting  Contract Enforcement/ Evictions  Arrears management  Allocations  Service Standards Housing Finance/ Business Viability  Maintenance Procedures  Financial Models  Insurance  Budgeting & Cashflow  Housing Finance Organisational Dev. and Training  Banking  Competency Areas  Job Descriptions  Recruitment and Training  Governance Procedures  Conflict of interest regime 45 MUMBAI RENTAL MANAGEMENT OPTIONS

UK MODELS BE CONSIDERED Discussions in Mumbai and London considered the following models operational in the UK for adaptation to Mumbai:

1. Facilities Management Model : Independent, private, for Profit Company provides management, maintenance and rental collection services for Local Authority on tendered/contract basis 2. Arms Length Management Organisation: Not-for-profit company set up/owned up by Local Authority to manage housing stock . Ownership of stock stays with Local Authority 3. Housing Association (Management): Non-Profit (Section 25) Company managed by independent board of directors leases stock from Local Authority and manages and maintains independently/ under regulated conditions 4. Housing Association (Management + Development): Same as above except HA purchases stock from Local Authority and develops new stock with bank finance (Dominant UK Model)

46 Developer

Housing Units built Management For Profit Company and transferred to Contract secured providing management, MMRDA through Public maintenance and rental Tender to manage collection Stock and Collect Rents Facilities MMRDA Management Company

Rental Payments collected by FMA for MMRDA

Allocations Agency Tenants Tenants selected through Lottery Process MODEL 1 FACILITIES MANAGEMENT CONTRACT 47 Developer Regulatory Agency Housing Units built and transferred to MMRDA Monitoring and scrutiny

ALMO = Not-for-profit company set MMRDA ALMO up/owned up by MMRDA to manage housing stock. Ownership of stock stays with MMRDA

Rental payments made to ALMO

Allocations Agency Tenants Tenants selected through Lottery Process MODEL 2 ARMS LENGTH MANAGEMENT ORG (ALMO) 48 Developer Regulatory Agency Housing Association = Non- Housing Units built and Profit/Section 25 Company Monitoring and transferred to MMRDA managed by independent Scrutiny Board subject to MMRDA consent

HOUSING MMRDA ASSOCIATION

MMRDA Leases Units to Housing Association Rental with conditions of lease premium , rent fixation Payments to etc ** Housing Association for maint. Units Allocations Agency Tenants Tenants selected through Lottery Process MODEL 3 HOUSING ASSOCIATION (LEASE) 49 Developer BANK Regulatory Agency Housing Units built and Bank finances transferred to MMRDA Monitoring and purchase of Scrutiny Units from MMRDA

HOUSING MMRDA ASSOCIATION

MMRDA Sells Units to Housing Rental Payments Association with conditions ** to Housing Association for maintaining units Allocations Agency HA uses rental Tenants Tenants surpluses and selected loans to construct through Lottery additional units for Process low income ** Regulator can reclaim housing units if there families is breech in use conditions MODEL 4 HOUSING ASSOCIATION (SALE) 50 UK SUPPORT FOR HOMELESS INTERNATIONAL MOU WITH MMRDA:

UK Governmental Regulatory Housing Management and Representative Bodies: Organisations and Expertise:

Government Agency for Developing Social Housing Largest and Oldest (100 Years + Housing Group

Government Agency for Large Housing Group Regulating Social Housing Organisations

Trade Body representing 1300 Large Housing Group Housing Associations

Chartered Institute Housing Large Housing Group representing 22000 Housing Professionals Pre-eminent Legal Trade Body firm in UK representing responsible for ALMOS Housing Policy and Regulation HOMELESS INTERNATIONAL 51 SUPPORTING ORGANISATIONS THANK YOU 52