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From Khar Colony to statewide impact, here's all you need to know about MHADA’s journey in Mumbai's affordable housing

Since 1977, MHADA has played a key role in affordable housing across Maharashtra. Through lotteries and slum redevelopment, it has built thousands of homes, reshaping communities and addressing the growing housing demand in Mumbai and other urban centres. This article explores the growth and history of MHADA and its significance in reshaping Mumbai's housing sector.

All you need to know about Maharashtra Housing and Area Development Authority. (Representative image)
All you need to know about Maharashtra Housing and Area Development Authority. (Representative image)
| Updated on: Jul 08, 2025 | 04:20 PM

Mumbai: For millions of people in Maharashtra, owning a home in the ever-expanding urban sprawl has often seemed like a distant dream. Yet, for decades, one institution has been quietly shaping the state’s housing landscape, making affordable homes a reality, the Maharashtra Housing and Area Development Authority (MHADA). 

From its inception, MHADA has played a pivotal role in addressing the region’s housing challenges, bringing stability and security to countless families. MHADA’s roots can be traced back to post-independence India, a time when rapid industrialisation led to an unprecedented influx of people into Mumbai and surrounding regions. 

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With an urgent need for affordable housing, the Bombay Housing Board was established in 1948 under the leadership of then-Housing Minister Gul sarilal Nanda. Its first major project which was a residential colony in Khar offered 350-square-foot compact homes. Though met with skepticism initially, the demand for such housing soon skyrocketed, affirming the necessity of such initiatives.

As urbanisation surged, multiple specialised boards emerged to tackle housing concerns. The Bombay Building Repairs and Reconstruction Board, formed in 1971, focused on restoring dilapidated structures, ensuring safe living conditions. In 1974, the Bombay Slum Improvement Board was established to enhance slum areas with basic amenities like clean water, drainage systems, pathways, and street lighting.

Recognising the need for a centrali sed approach, the Maharashtra government consolidated these efforts under a single entity. On December 5, 1977, MHADA was formally established under the Maharashtra Housing and Area Development Act of 1976, streamlining housing initiatives across the state.

Bridging housing gap for Mumbaikars

At its core, MHADA’s mission is to provide affordable homes to lower and middle-income groups. This vision is executed through multiple initiatives:

  • Housing schemes: MHADA regularly rolls out housing projects at subsidi sed rates, making homeownership possible for economically weaker sections (EWS), low-income groups (LIG), and middle-income groups (MIG).
  • Lottery system: To ensure fairness, homes are allocated through a lottery system, providing equal opportunities to all applicants.
  • Slum rehabilitation: Large-scale slum redevelopment projects aim to improve living conditions, replacing makeshift settlements with well-structured housing.
  • Building repairs and reconstruction: The Mumbai Building Repairs and Reconstruction Board works to maintain and restore aging buildings, preventing ha sardous living conditions.
  • Regional development: Operating through seven regional boards including Mumbai, Konkan, Pune, Nashik, Nagpur, Amravati, and Aurangabad, MHADA tailors projects to the unique needs of each region.

Changing lives, one home at a time

The impact of MHADA’s work is evident in Maharashtra’s housing landscape. To date, the authority has constructed approximately 7.5 lakh (750,000) housing units, with 2.5 lakh (250,000) in Mumbai alone. But MHADA’s contribution goes beyond just constructing buildings, it has created self-sustaining communities, complete with essential infrastructure and services that enhance the overall quality of life.

As Maharashtra continues to expand and urban housing demands rise, MHADA remains steadfast in its mission. With ongoing projects and ambitious future initiatives, the authority is committed to ensuring that thousands more find a place to call home, carrying forward its legacy of affordable housing and hope.

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