Maharashtra Taps CSR Funds to Power Affordable Housing 

In a landmark move to tackle the state’s growing urban housing crisis, the Government of Maharashtra has introduced a transformative provision under its Housing Policy 2025, allowing Corporate Social Responsibility (CSR) funds to be utilised for building affordable, rental, and inclusive housing for economically weaker sections (EWS), low-income groups, migrants, women, and other vulnerable communities.

This initiative marks a bold shift in how housing development is financed, by enabling private sector participation through their mandated CSR contributions. The state is set to establish a dedicated CSR-Housing Development Board, which will serve as the nodal agency to facilitate, monitor, and scale such initiatives in collaboration with developers, companies, and NGOs.

A Shot in the Arm for Housing for All

Officials believe this will unlock a significant pool of untapped capital that can be directed towards housing for the underserved, especially in urban areas where slum redevelopment, rental housing, and inclusive housing projects often face funding hurdles. By integrating CSR capital into housing infrastructure, the government hopes to boost construction of safe, sustainable, and dignified homes at scale.

As part of this forward-thinking approach, the policy also proposes a series of incentives for green housing, such as fast-tracked clearances, land use relaxations, and tax benefits for companies and developers investing in eco-friendly, energy-efficient housing solutions. Rental housing and women’s hostels will also be encouraged under this scheme, ensuring broader inclusivity in urban development. This CSR-housing model is aligned with Maharashtra’s vision of “Housing for All” and aims to supplement public spending through socially responsible private investment. The policy encourages companies across industries—ranging from real estate and infrastructure to IT and manufacturing—to take an active role in building a more equitable urban future.

Experts view Maharashtra’s move as a potential game-changer that could inspire similar CSR-driven housing models across other Indian states. If executed effectively, this could become a national blueprint for bridging the housing gap through collaborative funding, policy innovation, and social inclusion. With housing demand continuing to rise and public resources limited, Maharashtra’s strategy to blend corporate conscience with community welfare offers a fresh and scalable path forward for urban transformation.

Realtors View 

Chintan Vasani, Partner, Wisebiz Developers. and Jt. Treasurer, NAREDCO NextGen National said, “I see this initiative as a transformative leap in tackling our urban housing crisis. It’s not just about constructing buildings; it’s about crafting communities and fostering hope. By utilizing CSR funds for affordable housing, we’re laying the groundwork for a more inclusive urban landscape.

He further added that this innovative approach merges corporate responsibility with community welfare, allowing businesses to fulfil their social commitments while enhancing the lives of economically weaker sections. Imagine a future where every slab poured ensures safe, dignified housing for all.

“This isn’t just a policy shift; it’s a call to action for all industries to unite in building a brighter tomorrow. After all, every great city is built on a foundation of community and compassion!”, said Vasani. 

Dr. Kettaki Kasbekar, Independent director & Property Consultant said, “The Maharashtra Government’s Housing Policy 2025, which integrates Corporate Social Responsibility (CSR) funding into affordable housing development, is a pioneering step toward inclusive and sustainable urban growth. By channelling CSR contributions into housing for the EWS, LIG, and MIG categories, the government is addressing both the housing deficit and the need for dignity in urban living.

This initiative reflects a progressive shift tapping private sector participation not just for profit, but for purpose. Establishing a dedicated CSR-Housing Development Board is a strategic move that will streamline collaboration between companies, NGOs, and developers while maintaining transparency and impact monitoring.

With special attention to slum redevelopment, women’s hostels, senior citizens, and green construction, the policy demonstrates a deep understanding of India’s evolving urban fabric. The inclusion of rental housing and incentives for eco-friendly projects is a welcome push toward long-term liveability and reduced environmental stress.

“As someone immersed in the real estate sector, I see this not just as a funding mechanism, but as a framework that invites us to co-create a better, more equitable future. It encourages developers to go beyond structures and invest in communities—fostering development that is humane, inclusive, and truly transformative,” said Kasbekar

Anshul Gujarati, Founder Director, ECO-SOLUTIONS, opined,  “A crucial step toward achieving equitable and sustainable urban growth is Maharashtra’s new housing policy. Strong governance and digital tools, such as SHIP, when combined with the 35-lakh home target, can have a significant impact. 

Using CSR funds for affordable housing is a brilliant way to address a critical need and leverage private sector resources.  I’m particularly interested to see how the new CSR-Housing Development Board will work in practice and the scale of impact it can achieve.  This is a model other states could learn from and adopt.

It is also progressive with emphasis on rental housing and vulnerable populations. Integration of sustainability components referencing green building standards, climate resilience, and circular design must transcend intention. The real measures of this policy’s effectiveness will be its implementation, openness, and community involvement. 

The policy offers several progressive touchpoints from the perspectives of sustainability and climate resilience; hence, the call for disaster-resilient structures, the potential integration of passive design principles, and the emphasis on green construction technologies reflect growing awareness of the need for housing that is ready for the future. These aspects must move beyond generic mentions and be tied to enforceable performance criteria—such as ECBC compliance, water positivity, and net-zero operational energy.”

Vikas Singh , Co-founder , Propango Strategic solutions Pvt. Ltd. said, “The Maharashtra government has taken an important and smart step through its Housing Policy 2025. This new move allows private companies to use their CSR funds to help build affordable homes. It’s not just about making more houses but about creating safe, better, and respectful living spaces for people who really need them. If this idea is carried out well then it can help solve many housing problems in cities with the combined efforts of both the government and private companies. Let’s hope the action is as strong as the plan.”