The developers apex body CREDAI has expressed strong disapproval with the Union government’s proposal for compulsory reservation of 35 per cent of dwelling units for economically weaker sections.
The organisation sent a note to Union Minister for Housing and Poverty Alleviation Ajay Maken saying that without any incentives to the developer community, the scheme would burden open market buyers, who would be forced to cross-subsidise the scheme.
In a press release, CREDAI president Lalit Kumar Jain said reservation would not be possible in every project across the board as lower income families might not be able to bear the high maintenance costs that come with multi-storeyed buildings.
CREDAI called for creating special housing zones with tax exemptions on the lines of SEZ.
These zones should reserve 75 per cent of space for units below 80 sq. mt in size. The special housing zones could be ten acres in dimension with a minimum FSI/FAR of 4 to allow large-scale construction to meet demand.