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Housing Schemes

Housing Board Flats: How State Boards Allot Homes

Housing boards sell flats by income group: you register with a deposit, winners are picked by lottery, and title passes after full payment.

PN

Written by Priya Nair

Published 1 November 2026·6 min read

On this page9 sections
Credsir Housing Schemes guide cover with a house icon

State housing boards sell flats, houses and plots under notified schemes, split by income group. You register for a scheme with a deposit, the board decides who gets a unit by computerised lottery (or first come, first served, or e-auction), and winners pay the price in instalments. Ownership passes by a sale deed or lease deed only after the full price is paid.

Key facts

Step What usually happens
Scheme notice Brochure with unit count, income groups, estimated price, deposit and dates
Who can apply Adults who meet the scheme’s income and category rules; companies are usually barred
Deposit A registration or initial deposit, larger for higher income groups
Selection Eligibility list, then a lottery; some leftover stock is sold first come, first served or by e-auction
Payment Cash (outright) or hire-purchase instalments, as the scheme allows
Title Sale deed, lease-cum-sale or conveyance deed after full payment
Unsuccessful applicants Deposit refunded, often without interest

Each board works under its own state law and regulations, so the details below are examples. Always read the brochure for the scheme you apply to.

What a state housing board does

A housing board is a state body that buys land, builds homes and sells them to the public at set prices. Rajasthan Housing Board, for example, was set up under a 1970 state Act to provide housing for all income groups, with a focus on weaker and low-income families. Other examples are the Karnataka Housing Board (KHB), the Tamil Nadu Housing Board (TNHB) and the regional boards of MHADA in Maharashtra. In Delhi, the Delhi Development Authority plays this role.

When a board sells flats or plots it builds on its own or government land, it counts as a “promoter” under Section 2(zk) of the Real Estate (Regulation and Development) Act, 2016. Board projects are therefore registered with the state RERA, and the RERA number appears in the brochure. Our guide to what RERA protects explains what that gives you.

Income groups and reserved categories

Boards sell units in bands such as EWS, LIG, MIG and HIG, and each board sets its own limits. The table shows Rajasthan Housing Board’s Gopalpura (Baran) scheme, open for applications from 17 August to 16 September 2026.

Group Annual income Estimated cost Total payable with form
EWS Up to ₹3,00,000 ₹16.50 lakh ₹8,014
LIG ₹3,00,001 to ₹6,00,000 ₹19.85 lakh ₹16,330
MIG-A ₹6,00,001 to ₹12,00,000 ₹28.33 lakh ₹54,034
MIG-B ₹12,00,001 to ₹18,00,000 ₹40.10 lakh ₹86,124
HIG Above ₹18,00,000 ₹61.00 lakh ₹1,28,714

The total is the registration amount plus a form fee and a non-refundable processing fee, with GST. In the same scheme, 16% of houses are reserved for Scheduled Castes and 12% for Scheduled Tribes. Other quotas cover state employees, serving and former soldiers, journalists and transgender persons. SC/ST applicants pay half the registration amount upfront.

Limits in Maharashtra and Delhi are quite different; see our page on EWS, LIG and MIG income limits.

Scheme notification and application

  1. Watch the board’s website and newspapers for a scheme advertisement.
  2. Download the brochure and check the income bands, reserved quotas, estimated price and dates.
  3. Register on the board’s portal, or buy the form where offline forms are still used.
  4. Enter your income group, category and payment option (cash or hire-purchase).
  5. Upload your photo, ID and address proof, plus any certificate or affidavit for a reserved category.
  6. Pay the registration amount and fees through the portal’s challan or payment gateway.
  7. Keep the acknowledgement and watch for the provisional eligibility list.

Rajasthan Housing Board accepts only payments made through the challan its portal generates; money sent directly by other routes is not accepted and the application is treated as cancelled. Its Gopalpura brochure also treats any form that does not state a payment option as a hire-purchase application.

Draw, allotment and payment

Rajasthan’s brochure provides for a provisional list of eligible applicants, a window for objections and a final list before the lottery. Karnataka Housing Board followed the same sequence for its Suryanagar Phase-II Extension (Rajapura) project, with the lottery held on 17 September 2026. KHB also sells some stock first come, first served and by e-auction.

After the Rajasthan lottery, winners pay a reservation amount in three instalments. They fall due within one, four and seven months of the demand letter, or at allotment if that comes first:

  • EWS: ₹5,000 three times, so ₹22,000 with the registration amount.
  • LIG: ₹10,000 three times, so ₹45,000 in all.
  • MIG and HIG: 10% of the estimated cost less the registration amount, paid in 35%, 30% and 30% parts.

Late instalments carry 12% a year interest. Unsuccessful applicants get their registration amount back without interest. If you withdraw after RERA registration, up to 10% of the cost can be forfeited. The final price is fixed when construction ends and can differ from the estimate.

Rajasthan Housing Board issues a no-objection certificate or a tripartite agreement so you can take a home loan against the allotment.

Hire-purchase vs outright sale

Feature Cash / outright Hire-purchase
How you pay Balance price in one go, by the allotment letter’s deadline Part of the price upfront, then instalments over a set term
Share of units (RHB Gopalpura) 45% 55%
Switching Cannot move to hire-purchase Can move to cash within 6 months of the allotment letter, before possession
Extra deposit (RHB) Not required by the brochure 5% of the house price, held till the hire-purchase term ends
Title After full payment After the last instalment

RHB also charges an annual lease rent of 2.5% of the land cost, outside the house price. TNHB’s allotment manual likewise covers both outright and hire-purchase allotment, using a lease-cum-sale agreement until the sale deed is issued.

Conveyance, use rules and resale limits

You own the home only when the board executes the sale deed or conveyance deed and it is registered. TNHB’s manual ties the sale deed to full payment and the period in the lease-cum-sale agreement. KHB lists “issue of draft sale deeds” among its Sakala services.

Until then, restrictions apply. Rajasthan’s brochure allows residential use only and bars any commercial use, which can lead to cancellation. The allottee also pays property and municipal taxes when asked. Boards generally do not recognise a sale made before the deed is executed; DDA, for example, can cancel such an allotment, as our DDA housing scheme guide explains. For Maharashtra’s rules, see the MHADA lottery process.

Before buying a resale board flat, ask for the registered sale deed and a no-dues certificate from the board, and check that any transfer permission has been recorded.

Frequently asked questions

Who can apply for a housing board flat?

Usually any adult Indian citizen who fits the scheme’s income group and, for quotas, its category rules. Rajasthan Housing Board lets people who already own a board house apply again.

How are housing board flats allotted?

Mostly by computerised lottery among eligible applicants. Boards also sell leftover units first come, first served and premium units by e-auction.

Is the registration amount refunded if I lose the lottery?

Yes, usually without interest. Processing fees are not refunded.

What is hire-purchase in a housing board scheme?

You pay part of the price upfront and the rest in instalments over a set term, on the board’s terms. The sale deed is executed after the last instalment.

Can I take a home loan for a board flat?

Usually yes. Rajasthan Housing Board, for example, issues an NOC or tripartite agreement so a lender can fund the allotment.

Are housing board projects covered by RERA?

Yes. A board selling homes it builds counts as a promoter under Section 2(zk) of the RERA Act, 2016, and its projects carry RERA registration numbers.

Can I sell a housing board flat right after allotment?

Generally no. Wait until the sale deed or conveyance deed is registered and any lock-in in your allotment letter has passed.

Sources

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