The Housing Fund for people in Maharashtra

What is Housing Fund? What are the possible results of having a housing fund for people in Maharashtra in India? These would be some of the questions that must be coming to your mind at this particular moment! However, to begin with, we all know that Maharashtra is the nations and also the world’s second most populous sub-national entity. This state’s population accounts for over 110 million people.

Parksyde Homes Nashik 

Thus, this implies that the state has a huge population where majority of the people are in search of homes that raise their standard of living. Keeping in mind the increasing population of the state, the state government is planning to start a ‘housing fund’ in which people can contribute a fixed amount of their monthly earnings for certain duration of time so as to make homes more affordable for people.

The yet to be implemented housing policy will enable the self-employed people or government or private employees who desire to become a member, to contribute a fixed amount of their salary in this fund, which will be managed by a fund manager chosen through competitive bidding. Also, if a person is a government employee or a private employee then the person will have an alternative to make a combined contribution from his/her Provident fund (PF) account up to 50% as the suggested housing fund policy reads. Hence, this will encourage people to save some money for a home and also will boost the housing finance to some extent. The housing fund policy also recommends giving interest equivalent to that applicable to PF account and the state government is planning to approach the Centre to make these contributions as tax-free.

For example, if a person is contributing Rs 2000/- to the Provident Fund normally, then he would be contributing Rs. 1000/- for the Housing Fund and the remaining Rs. 1000 to the Provident fund thereby reducing the PF contribution and depositing the equal amount to the Housing Fund Policy, thus, saving for housing finance for later years.

According to an official from the housing department, the membership count of the housing fund will represent the number of people who are in need of house and the contribution for these shall be invested in RBI specified government securities. As per the policy terms, the members of this fund will be having higher priority in eligibility in Maharashtra Housing And Area Development Authority (MHADA) draw for sale of flats. In case the members of the housing fund are willing to buy a house from private sector, the fund proceeds can be utilized for that as well.