Can Maharashtra's New Redevelopment Rules Benefit Housing Societies?
The building collapse in Ghatkopar took 17 lives while the tragedy in Bhendi Bazaar resulted in loss of 12 lives so far and many are trapped. Another building in Vikhroli witnessed same fate last week for which the death toll is yet not confirmed. The dilapidated condition of many buildings in Maharashtra is not unknown. To curb this and give a fresh lease of life to the aged infrastructure, the government has finally come out with new redevelopment rules that would benefit thousands of societies across the state.
New redevelopment rules
According to new redevelopment rules, now housing societies would need consent of 51 per cent of the members only to undergo redevelopment. Earlier, 70 per cent of the buyers' approval was mandatory. Moreover, the Brihanmumbai Municipal Corporation (BMC) will allow 40 per cent of the built-up area as the incentive to the societies. The proceeds from the sale of this component can be used to finance the project construction on which no premium would be charged. However, the clause is valid only for construction which is more than 30 years old. Apart from this, the permission for renovation and repairs can be obtained online. For applications which are attested by an architect or a structural engineer, the permission will be given within 24 hours. The new rules also suggest that the tenants can appoint builder for redevelopment if the owner doesn't.
For those societies where there is no occupancy certificate, the department would give deemed conveyance to fast track redevelopment projects. “This is expected to benefit 5,000 housing societies in Mumbai,” said Devendra Fadnavis, Chief Minister, Maharashtra to the media.
Redevelopment rules for non-cessed building
The Maharashtra government has announced changes in the redevelopment policy for non-cessed, tenant-occupied dilapidated buildings of MHADA. According to the new rules, developers redeveloping such properties in the Mumbai suburban and extended suburbs will get 50 per cent more floor space index (FSI) or floor area ratio (FAR) . This means, if the required FSI for rehabilitating the existing tenant is 4, the developer will be liable to get an additional FSI of 2 as a sale component. Moreover, if the plot being redeveloped also consists of the cooperative housing society, the developer will get the FSI consumed by the society building and transfer of development rights in some cases. However, the developer will require the consent of at least 70 per cent of the tenants. The new units so developed will be spread in an area of 300 sqft minimum.
Impact of new redevelopment rules
Mumbai and Pune are major cities of Maharashtra where decades-old housing societies were suffering because of crumbling infrastructure and lack of funding for redevelopment. However, with changes in redevelopment rules, these housing groups can undergo redevelopment without any delay, extra permission or premium. According to an estimate, Pune alone has 3,000-5,000 housing societies out of which 60 per cent needs immediate redevelopment. Majority of these societies are in Kothrud and Bibewadi and are over 30 years old. The same estimation suggests that Maharashtra has 75,000 housing societies and with this decision, the crumbling infrastructure will be renewed. Apart from this, experts are of the view that new redevelopment clauses will be more beneficial for Mumbai where rebuilding stands for more FSI, ultimately more space and funds to finance the entire project.
Also read: Maharashtra Keen To Regularise Unauthorised Constructions