Redevelopment
Redevelopment of properties of existing co-operative housing societies has been a subject of great interest over the years. Most buildings start to develop problems in their infrastructure due to weather, leakage, poor quality of materials etc. redevelopment helps build back these broken structures and put them back to life. There are also other issues, such as lack of adequate infrastructure (play area for children, lifts for elderly, car parking). Low resale value of the building etc, which need immediate attention and improvement. Over time, it becomes very dangerous to stay in such unsafe building, and therefore, the only option is to demolish and reconstruct them.
Redevelopment is the process of demolishing existing old society building and reconstructing it in a cost effective way. In short, redevelopment gives people and their families newer, more comfortable and bigger homes to stay in, with a better lifestyle.
There are several misconceptions that people have about redevelopment, due to which they hesitate to go in for it. In this section, we attempt to clarify these myths. Redevelopment is a very complicate, tedious and time-consuming process. On the contrary, it is a very systematic and planned process. The government has laid down strict guidelines that have to be followed by builders during the redevelopment process, so that the project is executed smoothly. In most cases, the builder takes care of all the legal and technical aspects of the process. Each step of the project, such as documentation, accommodation, etc., is carried out with the consultation and knowledge of the society members.
- Redevelopment is risky
- The society has no control over the redevelopment process
- Redevelopment is beneficial only to the builder
- Renovation vs. Redevelopment
The entire redevelopment process is safe and trustworthy. The development will only submit the plans that are pre-approved by society, after which it is submitted to the MCGM, which on scrutinizing the proposal, grants permission to start work. Developers also provide the society members with a bank guarantee on a case to case basis that is equal to the cost of construction the building, to ensure that they shall be rehabilitated in case of any eventualities.
From the transfer of development Right (TDR) to the developer, signing of titles for members to get their new apartments, everything is done with the written consent and knowledge of the committee members.
Redevelopment is mutually beneficial to both the developer and the society. Due to advancements in building technology, progressive laws and increased floor space index (FSI) numbers, the members of society get additional carpet area/room to their tenants, with facilities like space for car parking depending on the size of the area. On the other hand, the developer has the right to sell free sale area in the open market.
Though most people would prefer to renovate their society (rather than redevelop it), redevelopment benefits them more. In renovation, only the external appearance and a few internal systems of the building are changed, whereas in redevelopment, a completely new structure is build in place of the existing one. In addition, during renovation, the society pays at least 250-300 per sq. ft., only for a cosmetic change to the structure. On the other hand, redevelopment gives the society members a new, well-planned structure that is structurally and aesthetically sound and build, keeping their unique needs in mind.
Type of concern
- General
- Building and facilities
- Special privileges to society members
- Ownership
- Permission and approvals
The title of the property will always be held by the society. An undertaking will be given for acceptance of the same
Demolition of the old building and reconstruction of the new building will be done as per rules and sanctions from MCGM/State Govt. and various authorities. The developer will bear all these expenses and society shall not be charged for the same.
The developer will follow all labour laws and safety provisions. He shall also take a third-party insurance policy so that the society is absolved of all responsibility.
The redeveloped society shall have a fixed number of free sale apartments. However, these shall not be given into possession to any person/s until the existing members are given possession of their new apartments
The redevelopment work shall be completed within the period mentioned in the agreement
Design of building will be according to standard specifications. It will be earthquake proof, with the soil being investigated to capacity and type of foundation.
Branded fittings will be used in all new apartments.
A corpus fund shall be provided to the existing members. This shall be calculated as carpet area occupied by the member x amount per sq ft. as agreed upon.
The members will have to look for transit accommodation on own but we shall help in procuring the same. professional movers and packers shall be employed to pack, transport and shift the goods to their accommodation and while shifting back to original building after redevelopment.
Monthly rent shall be paid in advance through post-dated cheques or as per mutual understanding with the society.
Adequate car parking, society office, security cabin, bore well, paving as chequered tiles, 5-years guaranteed waterproofing of terrace
The members can opt to purchase additional area (over and above the area of their redeveloped apartment) if they wish to. This can either be done by buying a larger apartment (e.g. buying a 2BHK instead of the allotted 1BHK) or several small apartments (e.g. buying two 1 BHK apartments). Extra areas will be provided at concessional rates to the members as per mutual discussion between individual members and developers.
The title of the property will always be held by the society.
The society redevelopment proposal is submitted to the municipal authority (MCGM). Reconstruction of new building will be done as per rules and sanctions from MCGM / State Govt. and various authorities.