Based on the Maharashtra State Housing Policy of 2007, Government of Maharashtra (GoM) initiated the Rental Housing Scheme (RHS) with the participation of private sector. GoM has appointed MMRDA as the Project Implementation Agency for the Rental Housing Scheme. The private sector is offered incentive FSI in return for providing self-contained tenements of 160/320 Sq.ft. carpet area along with the appurtenant land to MMRDA free of cost which shall be allotted to eligible low income group households. Since year 2008, the RHS is being implemented in Urbanisable areas in MMR except in the limits of Navi Mumbai and Matheran Municipal Council. MMRDA grants Location Clearance while the concerned Planning Authority grants the development permission. Presently Rental Housing Projects are in progress in the urban local bodies of Thane, Mira Bhayander, Kalyan and in Panvel Taluka of Raigad district.
In August, 2014, the Government has replaced the ‘Rental Housing Scheme' by ‘Affordable Housing Scheme' in the Municipal areas and has discontinued the Rental Housing Scheme in the non-municipal areas of MMR.
Rental Housing Division was established based on Mumbai Metropolitan Region Development Authority's approval in the 25th meeting dated 03-10-2009.