For residents of many aging societies, opting for the redevelopment of their societies can be a tiresome proposition. Builders are notorious for making false promises to only to renege on them, leaving property owners stranded. Fed up of being short-changed by the developers, housing societies are increasingly opting for self-redevelopment of the property structures. Here, housing society keeps the developers out of the equation and instead appoint a contractor or consultant to help execute the project as per their requirements.
Housing redevelopment refers to the process of re-building of a residential premise by the demolition of the existing structure and development of the new one as per approvals from the Municipal Corporation of Greater Mumbai. The concept works ideally with structures that are 25+ years old as the repair work will only increase the life of the building by 3-4 years. Dilip Shah (Senior Counselor and Analyst for Redevelopment of Housing Societies) says, “Structural repair is not economically feasible to take care of seepage, weak walls and foundations, leaking water pipes, etc."
Benefits of Self-redevelopment
Redevelopment projects attract builders, as there is a huge potential of profit from selling the extra inventory left after allocating space to original members. The developer earns extra from the saleable area. However, under a self-redevelopment project, any surplus amount from the sale of the extra inventory is retained by the society and distributed amid the members. The society also holds control over all aspects of the redevelopment of the property. It can decide the type of amenities- pool, parking, etc. – to be included in the project and reserve the choice of new members for the saleable area. While the builder takes an irrevocable power of attorney from the members, whereas all the property rights remain in the hands of the society in case of self-redevelopment.
Before thinking of self-redevelopment, society must discuss it with its members. The best way to do so is to call a meeting and ask members to fetch proposals from the developers, who they consider fir for taking up the redevelopment project. This move will make the process more transparent and other members will feel their involvement in the redevelopment of the society.
Majority plays a vital role in revamping of older society/ property by the society itself. Guidelines under the section 79(A) of Maharashtra Co-operative Societies Act and recently court rulings state that if 75 % of the members of a society agree to redevelopment in writing, the proposal about redevelopment can be implemented. Next, an important step is to appoint an architect or project management consultant, who can review the proposals and pick the best deal. The job of a PMC is to advise the society at different phases of the redevelopment, manages legal intricacies and other formalities. Appointing a PMC is must as in case legal case crop up later and the project is delayed, the society will not be able to file suit against the developer as it failed to follow the needed norms of appointing a PMC. It is advised to ensure that the developers’ claims are true and check if the developer has successfully completed the redevelopment projects in the past.
Talreja Advisory & Consultancy Services is a Mumbai (Maharashtra, India) based entity that can be reached anytime for a detailed discussion pertaining to the property self-redevelopment and related operations. With an in-house team of advisors and consultants, we assure to assist you with the best.
With our project management consultancy services, we make proactive dictions, keep a strict eye on the entire redevelopment process to ensure that the project is completed on time and in synchronization with the clients’ requirements. Right from planning, coordination, monitoring to controlling the project, we ensure that every task is carried out with utmost transparency, and as per the stated industry norms.