Main reason to go for Redevelopment - Utkarsh Jani

Redevelopment word is a buzz word right now and we see everywhere redevelopment is going on in Mumbai city, hence we wanted to find out what is the main reason to go for such redevelopment and we carried out a survey by asking 1000 society members to know their preference to go for redevelopment . each individual has separate needs and preference but surprisingly one preference of additional area was prominent factor for most of the members. Results of our survey are as follows:

What is the main reason to go for Redevelopment for housing societies?

TABLE NO 5.12: REASON FOR REDEVELOPMENT

Additional area (Extra bedroom)	650
Corpus for future maintenance	50
Amenities and modern planning	150
Existing Dilapidated building	150
TOTAL	1000

CHART NO 5.12: REASON FOR REDEVELOPMENT

INTERPRETATION:

Here, it has been clearly understood that the main reason of redevelopment is additional space for housing society members as 65% respondents think that they need additional space for their families, 5% respondents need Corpus for future maintenance and 15% respondent need amenities & modern plan and remaining 15% go for redevelopment as their existing building is dilapidated and cant sustain for long.

© 2014 Utkarsh Jani

All Rights Reserved by Utkarsh Jani.

Criteria for selection of a Builder for Redevelopment Project - Utkarsh Jani

Developer Selection is the most important thing as it is only the Developer/Builder, who will complete the project. we have asked this question to almost 1000 society members to know their pulse . We gave them four choices and asked them to suggest most important criteria according to them and the results are as follows:

What is the main selection criterion while selecting a developer for redevelopment project?

TABLE NO 5.11: SELECTION CRITERION

Financial standing	150
Reputation in the market	200
Experience of Redevelopment	150
Good offer	500
TOTAL	1000

CHART NO 5.11: SELECTION CRITERION

INTERPRETATION:

From above it clear that 50% respondents select  good offer as an important criteria while selecting a developer, 15% respondents prefer their financial standing and another 15% prefer Developer's Experience of redevelopment and 20% respondents do select a developer for their reputation in the market for redevelopment project.

© 2014 Utkarsh Jani

All Rights Reserved by Utkarsh Jani.

Redevelopment in Mumbai is more beneficial to builders- Utkarsh Jani

When any housing society goes for redevelopment, their members feel that it will be more beneficial to them but when redevelopment project starts , their perception changes, hence we asked almost 1000 housing society members a question, that who gets maximum benefits in any redevelopment project and their replies and its interpretation is as follows :

Redevelopment is more beneficial to developer than old members:

TABLE : BENEFICIAL TO DEVELOPER

Strongly agree	10%
Agree	30%
Neutral	30%
Disagree	20%
Strongly disagree	10%
TOTAL	1000

Sample size : 1000 members of housing societies 

CHART NO 5.9: BENEFICIAL TO DEVELOPER

INTERPRETATION:

From above it has been observed that 40% respondents Agree on the statement "redevelopment is more beneficial to developer" whereas, 30% respondents disagree with the same and 30% respondents are Neutral.

This is the general perception among housing society members that Redevelopment is more beneficial to Builders & Developers, as they are on the driving seat of the entire project and maneuver the directions as per own benefits and profits ..

Research work carried out by Utkarsh Jani

© 2014 Utkarsh Jani

All Rights Reserved by Utkarsh Jani.

Redeveloping: the Need of the Hour

REDEVELOPING: THE NEED OF THE HOUR

Madhya Pradesh

Century Golden Brick Awards 2011

COMMUNICATION FEATURE  /  APR 2011

Demolishing and reconstructing old buildings is commonplace today. Edifice Erection Pvt Ltd throws light on the process of redevelopment and the players involved.

Redevelopment typically involves collaborating with a developer who constructs and hands over the new building free of cost, and at the same time, makes profits by utilising the balance plot potential, where additional flats and shops can be constructed. Of course, such actions require the approval of the Municipal Corporation of Greater Mumbai (MCGM).

Durgesh Kothari, Architect, Edifice Erection Pvt Ltd comments, “With the scarcity of land in cities like Mumbai, existing constructions are dilapidating. Further, with the change in building designs and construction norms, redevelopment is becoming the need of the hour.”

The state co-operative department recently issued guidelines for societies under Section 79 (A) of the Maharashtra Co-operatives Act, 1960, thus ensuring transparency in societies seeking redevelopment. Accordingly, a redevelopment scheme must be approved by the general body comprising the co-operatives commissioner and CIDCO chairman, pursuant to a deep study of complaints, only if three-fourths of the society members are present. Also, according to an important feature in the guidelines, the special general body can approve a bid only in the presence of the registrar, and the entire proceedings must be video-recorded.

The agreement must be signed on a carpet-area basis, and once accepted, cannot be revised. The bidder must give a bank guarantee of 20 per cent of the total project cost and cannot leave the project incomplete. Most importantly, if for some reason, he is unable to complete it, he cannot sell the agreement to another developer. Otherwise, he must complete the project within two or three years. “Another player is the project management consultant who acts as the communicator between housing society members and developers,” says Utkarsh Jani, Project Management Consultant, Edifice Erection Pvt Ltd.

Burdened with bitterness and constant complaints of high-handedness and corruption against management committees, the government issued these guidelines in the interest of both society members and developers.

Redevelopment Guide - Mumbai . Free

Redevelopment Guide - Mumbai 2013

This is to inform all housing society office bearers and members, who are interested in gaining knowledge or information about Redevelopment of Mumbai, for such curious minds we shall give free hand book on Redevelopment worth Rs.300/-.

whoever is interested shall send us request email and we shall arrange for one handbook on redevelopment free of cost.

you can send us an email on info@edificeconsultants.in

you can also visit redevelopmumbai.com 

Selection of PMC - Criteria for selection of PMC

Criteria of selection of PMC 

Common things asked from PMC by society  

• Company profile 
• Details of on going or completed projects 
• Qualifications & Experience details 
• Other details such as license numbers, registration details etc.

But As a society member one should ask for following things from PMC other than above mentioned details

Following Documentary Evidences of Reports generated for other societies should always be asked for or should be checked in their office. 

PMC's Reports of Selection of Developer 

This will give you fair idea of their role in selection of developers and society can easily judge if they were biased or not . It will also give an idea to society how PMC's expertise helped society in selecting good Developer. 

PMC's Report of Approval of Plans

This will give clear idea of main points of Plans highlighted to society or all details of planning brought to the notice of society by PMC.

Site Visit Reports - Ask for any random monthly/weekly reports given by PMC to society 

This will give clear idea of PMC's actual role played in the project during the construction stage and approvals stage. From these reports you can easily understand how PMC made the difference to the project and drawn society's attention towards shortcomings by developer if any.

If society study such few reports of at least three/four different societies they can easily judge their capabilities. Ask for anything and everything from PMC , judge your PMC from their actual work done for other societies and not by only profiles . 

Utkarsh Jani 

Housing Society Redevelopment guidelines

 Points to remember for success of Redevelopment of housing society

Beware of dicey offers , The proposal received from the Developers should commensurate with the potential of the Plot taken for redevelopment as per PMC/Architect’s project report.

Many projects suffer later after getting finalized, the Builder should be strictly chosen on the basis of his Financial Capacity and Track Record and not on the basis of the highest offer received, builder's integrity is most important.

Selection of a developer should be done as per the 79(a) guidelines , through Tendering only,  Tenders received should be objectively evaluated by an experienced Architect of PMC appointed by the Society.

Members involvement is most important in redevelopment projects , All the members of the Society should give their irrevocable Consents to avoid disputes later.

 Avoid ambiguous offers of developers , Complete details of the offers made by the Developer should be clearly understood by all the members of the Society and there should be transparency in the dealings.

  More members should be involved in the entire process of redevelopment by forming redevelopment committee. Redevelopment Committee should be formed from among the other members of the Society by including two or three members from the Managing Committee to oversee the entire Redevelopment process to ensure that complete transparency is maintained by the Managing Committee of the Society. 

  competent lawyer/solicitor should be independent entity appointed by society and not a developer. All Agreements / Documents should be got scrutinized by a competent Advocate appointed by the Society to ensure that there is no lacuna. 

   Society must protect their interest by asking for irrevocable Bank Guarantee for the total cost of the Redevelopment Project should be obtained from the Developer covering the full period of construction. 

 Development agreement should be meticulously drafted by society, Penalty Clause should be inserted in the Redevelopment Agreement to ensure proper implementation of the Project by the Developer. 

Regular joint meetings should happen with PMC's Architect and developer, the Managing Committee and the Redevelopment Committee members should conduct regular inspection when the construction is in process to ensure that there are no deviations from the plans / offers. 

Fungible FSI

D.C.Regulation 35(4)

Compensatory Floor Space Index (FSI):-

Notwithstanding anything contained in the D.C.Regulations 32, 33 & 34, the Commissioner may, by special permission, permit fungible compensatory Floor Space Index, not exceeding 35% for residential development and 20% for Industrial/Commercial development, over and above admissible Floor Space Index,by charging a premium at the rate of 60%, 80% and 100% of the Stamp Duty ReadyRecknor Rate, for Residential, Industrial and Commercial development respectively.

Provided in case of redevelopment under regulation 33(7),33(9) & 33(10) excludingclause no.3.11 of Appendix-IV of Development Control Regulation 1991, thefungible compensatory F.S.I. admissible on rehabilitation component shall be granted without charging premium.

Provided further that redevelopment under D.C.regulations no. 33(5) and redevelopment proposal of existing buildings in suburbs and extended suburbs by availing TDR, the fungible compensatory F.S.I. admissible on F.S.I. consumed in existing structure shall be granted without charging premium.

Provided further that such fungible compensatory FSI for rehabilitation component shall not be used for free sale component and shall be used to give additional area over and above eligible area to the existing tenants / occupants.

Provided, that this regulation shall be applicable in respect of the buildings to be constructed or reconstructed only.

There are many myths about Fungible FSI, or some people interpret the definition differently in their calculations , my suggestion to all members of housing societies to calculate this Fungible FSI in Toto rather than on individual flats , at the same time the effect of 35% excluding 10% balcony area comes lesser than what people expect of pure 35% on their respective carpet areas. 

Redevelopment First Step Conveyance/ Deemed conveyance

List of Documents Required for Deemed Conveyance Procedure

    

Following documents are required to be submitted along with the Deemed    Conveyance Application in Form VII to the Competent Authority.

From Society Records

·Copy of Society Registration Certificate

·List of Members & their Share Certificate Details

·Copies of Registered Agreements (Chain of Registered Agreements in case of Re- Sale) for all Flats/ Shops with Stamp Duty, Registration Receipts & Index II details

·Title Devolution Statement of all the Flats/ Shops

·Registered Partnership Deed of the Partners of the Developer Firm

·Registered Development Agreement/ Conveyance Agreement between Land- Owners & Developer

·Registered Power of Attorney given by Land- Owners to the Developer

·Will & Probate Copy, in case the Development Agreement is signed by Legal Heirs of Land- Owners

·Death Certificate of Land- Owners, wherever necessary

Land Revenue Records

·7/12 Extract

·Village Form No.6

·Property Card

·City Survey Map

·N. A Order

·U. L. C Order

·Latest Property Tax Paid Receipt

·Latest N. A. Tax Paid Receipt

From BMC Records

·BMC Approved Plan

·BMC (IOD)

·BMC (Commencement Certificate)

·BMC (Building Completion Certificate)

·BMC (Occupation Certificate)

·BMC (Latest Property Tax Paid Receipt)

·Location Map

   

From Professionals

·Survey Report – From an Architect

·30 Years Search Report & Title Certificate – From an advocate

Following documents are required to be submitted along with application for deemed conveyance, by the society.

-  List of Flat Purchasers along with All the registered Agreements for sale entered into with the promoters or with previous members, along with Proof of payment of Stamp Duty.

-  7/12 Extract and Village form No.6 (Mutation entries) Property card,

-  Location Plan and Layout Plot plan approved by the local authority

-  City survey plan or survey plan from the revenue department.

-  Architect certificate about the constructed areas, FSI details of the entire Layout Plot, common areas and the facilities, structure constructed or to be constructed on land.

-  Latest Title and Search Report for last 30 years from an advocate,

-  N.A. Order

-  ULC Certificate under Urban Land Ceiling Act, 1976

-  Building Plans approved by the BMC and other authorities,

-  Commencement Certificate, Occupation Certificate and Completion Certificate,

-  Society Registration details,

-  Development agreement or power of attorney or agreement for sale executed by the landlord with the promoter/builders for development or for transferring the right, title and the interest in the land .

-  Legal notices reminders send to the builders Promoters and other interested parties to execute the conveyance deed in favor of the Society.

-  Draft conveyance deed / Declaration proposed to be executed in favor of Society.

Redevelopment , need of an Hour

WHAT IS REDEVELOPMENT?

Redevelopment is the process of demolishing existing old society building and reconstructing it by appointing a good developer who can construct and handover new flats to the society members free of cost with some additional benefits and make profit by utilizing balance plot potential by constructing additional flats and shops as per approval from M.C.G.M.

ADVANTAGES OF GOING FOR REDEVELOPMENT OVER REPAIRS

Today the societies are opting to go for redevelopment than repair for the following reasons:

Repairs                                               Redevelopment

1) The repair work can increase life     Redevelopment gives a new  building

of the building by 3 to 4 years and       for which no major repairs required for

the problems can reoccur after few      longer period.

years.       

2) The old buildings are designed         New building is constructed with new

with old construction norms and          construction norms and hence can

hence cannot withstand with new        withstand with new climatic and

climatic and geographic conditions.      geographic conditions.          

3) For repairs members have to            In redevelopment, members get

spend money.                                        benefits in terms of money as well as

                                                              additional area.

4) In old building the steel inside           As the building is new this issue does    

concrete beams and column starts        not arise.     

corroding after 15-20 years which          

cannot be treated in repairs.

       Thus in redevelopment, the members get new fresh building + additional area + monitory benefits without spending any money from their own pockets.