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.
