Self-Redevelopment To Ease Mumbai Residents' Woes

Many housing societies across Mumbai have been facing delays for years after these were handed over to biulders for redevelopment, leaving behind a bitter experience for residents.

To ensure a timely delivery of a redeveloped homes, housing societies are now considering to self-redevelopment where no developer will be involved while the society will appoint its architect, contractor and project management consultant to execute the project.

In the past two weeks, the Maharashtra Housing and Area Development Authority (Mhada) has already issued offer letters to three societies in Mumbai – one each in Ghatkopar, Mulund and Chembur. The Mhada will be clearing more proposals soon to redevelop properties on their own with funding from Mumbai Cooperative Bank. So far, societies developed on Mhada land have applied for the procedure, which will get Floor Space Index (FSI) of 3, as decided by the state government. Moreover, the self-redevelopment will offer bigger units to the residents as compared to the builder-operated project.

For instance, flats in Purvrang society are less than 400 square foot (sqf) each. Under self-redevelopment, each member will get 800 sqf carpet area in a new 22-storey tower with extra amenities whereas the developer is offering only 600 sqf in the locality. Another locality in Pantnagar, Ghatkopar, too received Mhada’s green signal last week. The low-income group (LIG) three-storey building has 32 members, each possessing a 323 sqf home. Builders were offering 484 sqf flats, but under self-redevelopment, the units are as big as 1,000 sqf flats.

According to an estimate, around 150 housing societies have applied for self-redevelopment because of the trust-deficient in the sector. According to housing activist Chandrashekhar Prabhu, 5,800 builder-driven schemes have been stalled in Mumbai, affecting 1.20 lakh families. At this time, the self-development schemes is being converted into movement.

However, societies would have to register project with the Real Estate Regulatory Authority and appoint project consultants to prepare plan. The development report will have to be submitted to the bank which will then scrutinise it and manage the finances required for permits from the Brihanmumbai Municipal Corporation (BMC) and the Mhada, rents for temporary shifting, broker fees besides 100 per cent loan.

While there would be aplenty of challenges, there would be number of advantages, too.

These are:

*Single-window clearance from various authorities as it is a joint scheme of Mumbai bank with the Mhada and the BMC.

*Quantum of additional sale component will be decided by the residents.

*FSI rights will rest with the society, which can decide on utilisation for maximum gain.

*Commercial area, elevation design, structure will be decided by members.

*If extra FSI is sold in the market, the society maintenance cost will be zero.

Funding

There are almost 10,000 societies in city that needs redevelopment and can get funding from the Mumbai District Bank. Societies can act as developers, appoint consultants and contractors. Each project can get nearly Rs 50 crore loan from the bank, which has put aside nearly Rs 1,000 crore for the first phase of the programme. While the loan will be given the post-commencement certificate, the bank has accounts of many societies and will help societies in implementing projects.