New rules for redevelopment of society
- Reduced Approval Threshold:
Previously, a 75 per cent majority vote from society members was required to initiate redevelopment.
The new rules have lowered this threshold to 51 per cent for specific categories like:
MHADA (Maharashtra Housing Area Development Authority) colonies
Cessed buildings (buildings constructed on government land with a lease)
SRA (Slum Rehabilitation Authority) buildings
Small societies
- Enhanced Transparency and Security:
Registered Agreements: The development agreement with the builder and individual agreements for temporary accommodation must be registered under the Registration Act, 1908, for added legal weight.
Clear Area Allocation: The carpet area offered to members post-redevelopment must be explicitly mentioned in the agreement, adhering to the Real Estate (Regulation and Development) Act, 2016 (RERA) guidelines.
Non-Transferable Rights: The redevelopment rights assigned to the developer cannot be transferred to another party, protecting the society’s interests.
Bank Guarantee: Developers are required to provide a bank guarantee equivalent to 20 per cent of the project cost, ensuring financial security for the society.
- Streamlined Procedures:
High-Rise Permissions: Construction of high-rise buildings is now permitted on narrower roads, subject to obtaining necessary approvals.
Tenancy Rights: Tenants in non-cessed buildings are entitled to ownership flats after redevelopment.
- Self-Redevelopment Option:
The new rules encourage societies to undertake self-redevelopment projects without a developer, potentially leading to faster completion and greater control over the process.
Increased FSI And TDR: Benefits And Considerations
new rules for redevelopment of society
Increased FSI Benefits:
Increased Project Value: Developers can construct more built-up areas, potentially leading to higher returns on investment and more housing units.
Improved Living Standards: Increased FSI can allow for better amenities within projects, like larger apartments, green spaces, and recreational facilities.
Economic Growth: Increased development activity can stimulate the local economy by creating jobs in construction and related sectors.
TDR Benefits:
Preservation of Open Spaces: Landowners in areas designated for open spaces or public infrastructure can sell their development rights (TDR) to developers in other areas. This allows for controlled development while preserving green spaces.
Urban Renewal: TDR can incentivise redevelopment in congested areas by allowing developers to build more in exchange for purchasing TDRs. This can lead to improved infrastructure and living conditions.
Compensation for Landowners: Landowners who lose land for public projects can receive compensation through the sale of TDRs.