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What are the reasons for very few redevelopment schemes taking off in last 10 years inspite of incentive FSI being granted by State Govt. ?
The main reasons for slow pace of implementation of redevelopment schemes are as follows:
- Members/ Occupants are not taken into confidence in the process of Redevelopment either by the Society or by the Developer.
- Tender processes / negotiations are not transparent.
- State govt. does not have single window clearances as available in SRA schemes
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What happens if all occupants/ members do not agree for Redevelopment?
If redevelopment decision is genuinely arrived at by at least 70% of occupants or 70% members through General Body resolutions in a Society; then the concerned authorities will enforce the decision on rest of the occupants/ members |
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What are the reasons for dissent of some non-cooperating members?
- Some occupants/ members are enjoying illegal and unauthorized but exclusive benefits in their favor for long period such as covered terrace or enclosed additional spaces or commercial use of residential premises. They will tend to object redevelopment to prevent loss of such free benefits they are enjoying for long. Everyone knows that after redevelopment; all occupants / members shall be entitled to only same benefits and not any exclusive benefits free of cost.
- Sometimes the Committee does not conduct proceedings in a transparent manner leading to misunderstandings.
- Sometimes there is a genuine disadvantage to some occupants/ members by way of relocation of permanent alternative accommodation. For example a practicing Doctor or Consultant may not wish to be relocated at higher floor than ground floor. In redevelopment schemes due to additional parking requirements, generally one or more levels are consumed in parking area and actual occupation starts from higher floor. Hence, all ground floor occupants have to compulsorily accept relocation at higher floor.
- If entire existing ground floor coverage is of commercial (shopping) user and if the plot size is not adequate to construct basement / podium parking levels; a separate individual Redevelopment scheme will not be feasible. In such case, one has to compulsorily advocate and join in a cluster redevelopment scheme.
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Solutions
What type of redevelopment schemes are promoted by authorities and what incentives are available?
Types of Redevelopment Schemes
- Redevelopment of private cessed properties in Island City under DCR 33(7)
- Redevelopment of Municipal properties in Island City constructed before 1940 under DCR 33 (7)
- Redevelopment of properties acquired by MHADA under DCR 33 (9)
- Redevelopment of private properties in cluster admeasuring min. 4000 sq. mts. of land area under DCR 33(9)
- Redevelopment in suburbs with loading of TDR
- Redevelopment of MHADA colonies under new DCR 33 (5)
- Redevelopment for censussed slum dwellers (SRA) under DCR 33 (10)
Available Incentives
- DCR 33(7) Minimum 2.5 FSI or FSI required for rehab + 50% incentive whichever is greater. Minimum 2.50 FSI is recently proposed for 3.00 FSI
- Minimum 2.5 FSI or FSI required for rehab + 50% incentive whichever is greater. Minimum 2.50 FSI is recently proposed for 3.00 FSI
- Minimum 4.00 FSI
- FSI is 4.0. However, there is compulsory sharing of tenements with MHADA and BMC
- 2.00 FSI
- MHADA layouts receive 2.50 FSI out of which individual Societies to utilize additional buildable area upto individual upper limit of 3.50 FSI on subdivided plots based on their pro-rata share of tenements in MHADA colonies.
- Minimum FSI 3.00
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| Limitations In CRZ affected locations : The Redevelopment schemes are not becoming feasible at present. However state Government is working hard to find solutions in interaction with the Ministry of Environment of Central Government." |
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What is the procedure for undertaking redevelopment of tenanted property?
If you are an Occupant of tenanted property:
- Step (i)
You have to inspire your landlord to select and appoint a reputed Developer who has experience and track record of similar redevelopments.
- Step (ii) You have to finalize terms for redevelopment with the Developer appointed by your landlord
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Usual Terms involved:
- Compensation for Temporary Transit accommodation rent.
- Area of permanent alternate accommodation which is at least same as that of existing authorized accommodation or as per statutory limits of minimum & maximum size as prescribed by Authorities.
- Any corpus fund (one –time fund) for future increase in municipal taxes.
*Above mentioned terms vary as per location and (c) may not always be feasible.
- Step (iii) You have to give your Irrevocable Consent for Redevelopment in favour of the Landowner/ Developer so as to enable him to submit redevelopment proposal for approvals to authorities.
- Step (iv) The Developer to execute agreement for permanent alternate accommodation (Ownership Agreement) before vacating existing premises.
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What is the procedure of undertaking Redevelopment for Co. Op. Hsg. Societies?
If you are a member of a Co-operative Society (Ownership Premises) :
- Step (i) Conveyance in favour of the society should be completed first if not completed before.
- Step (ii) After thoughtful deliberations and by following due process of Co-Op. Society bye-laws; your society should resolve to redevelop the property through special general body resolution with 75% majority in presence of officer from Registrar of co-operative Society as an observer.
- Step (iii) The society will thereafter seek feasibility report with draft tender conditions from reputed professionals (Architect/ Project Management Consultant). Your tender conditions should provide minimum requirement in respect of area of alternative accommodation, transit rent/ compensation and consideration (corpus for inconvenience) for grant of Development Rights. Preferably your Tender form should annex a draft of agreement with Developer and incidental power of attorney. If society does not have the financial resources for this preliminary exercise; you may seek help of Housing Finance Institutions for the bridge loan or charge tender fees from Developers to recover this cost.
- Step (iv) The society will then invite tenders through public notice with reasonable amount of Earnest Money Deposit. Interest to be earned on E.M.D. retained of successful bidder which may be appropriated towards preliminary expenses incurred by the society as referred above.
- Step (v) Tenders to be opened in presence of bidders for better transparency.
- Step (vi) After assessing tenders, society has to prepare comparative chart of the tenders received and shortlist minimum three bidders and inform all bidders accordingly and return E.M.D. of bidders who are not shortlisted.
- Step (vii) Society to fix one day each for each of the shortlisted bidders and ask the interested members to visit the site of the shortlisted bidder and interact with them assessing their quality of work and organizational strength. Alternatively in special extra general meeting, the society may ask the shortlisted Bidders to give their presentation one after the other and request them to answer the questions of the members submitted to them three days in advance.
- Step (viii) In a Special General Body Meeting, society needs to select Developer through ballot if unanimous selection is not feasible. For ballot procedure, reputed external election officer has to be appointed preferably from Registrar’s office.
All the above procedure to be in camera with proper documentation and in presence of official observer from
Registrar Office to avoid allegations of non co-operating members.
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Step (ix) Society to give the 'Letter Of Intent' (LOI) to the Successful Bidder and invite suggestions from the Successful Bidder in respect of Agreement/ POA and execute Agreement / POA within one month of LOI.
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