Many societies in Mumbai are decades old. Some are dilapidated and some are in need for large scale repairs. In both such eventualities, very large sums of money are needed to redevelop such buildings. Such Societies may not have provision of funds for Major repairs and society residents continue living in dilapidated and structurally weak buildings. Redevelopment becomes necessary for such societies and sometimes inevitable due to BMC directions on Structural Safety and repairs of old buildings when orders are given under the discretionary authority available with BMC.
The residents have to redevelop their buildings either through a Builder /Developer due to financial reasons. With the help of experienced and Professional Consultants of the field like Civil Consultants, Financial Consultants, architects, legal advisors marketing professionals etc they can also consider the self-redevelopment of their buildings.
Self redevelopment means that the society resolves to redevelop its own building and the entrusted committee of the society assumes the management functions of a builder. The resources are mobilized like any other developer and with the help of experts, the society optimizes its revenues or gains for the benefits of its members. Self or contract redevelopment is possible through appropriate planning, guidance, patience, trust, mutual understanding and help of experienced advisors and consultants.
The self redevelopment translates into substantial savings and earnings for the Society Members Including,
- Revenue Surplus results into permanent "Corpus Fund" in the Balance Sheet of a Society, which can be 3/4 times more than builder's offer.
- The additional corpus out of 'self redevelopment' results in lowering down maintenance bills of the society members.
- Lots of surplus sale area can be generated for 'free sale' in open market or for the members of the society. Free Sale Flats can be purchased by the original members on actual cost which may be very much lower than the market price. Also, Merging of flats is possible if members want so.
- Free Sale Flats can be sold and entry for members can be restricted to certain categories as per society's discretion.
- Building will be designed & developed by the members themselves and under their supervision; the plans will not be changed like builders do for their benefits.
- Members may use their discretion to develop their residential buildings into residential cum commercial buildings, which has its own advantages, in terms of Financial benefits and facilities.
- Issue of Free Parking spaces can be solved.
- Building will be developed on time, unlike the builders who usually delay the project for his own vested interests or due to unavailability of finances. The redevelopment by the builders is also delayed when they rely on market demand and bookings to complete their project and real estate market is weak.
- Since the members will develop the buildings as per approved plans, the occupancy certificate shall come on time and will save lots of overheads and rents for alternate accommodation of the member.
- Members may use their discretion to install Mobile Towers, Advertisement Hoardings, Solar Systems, Wind-Mills, Club House, and STP, Swimming Pools and other inhouse facilities & amenities.
Redevelopment By Builder
Typically most societies prefer to redevelop their buildings through the Builders so that they can get temporary accommodation, some corpus and peaceful and timely possession. But the time has shown that said route possesses following problems,
- Builder selection and negotiation poses a big problem and is time consuming.
- The best offer providing developers will not necessarily be a well financed and timely executor. The project is developed at the whims and fancies of the builder and possession only stays a dream. Mumbai itself has has thousands of cases of delayed and painfull redevelopment
- Sometimes the builders also stop paying rents to the tenants and quality of construction is often substandard.
- Builders take liberty and change Building development Plans for their vested interests and Occupancy Certificates are often delayed resulting in unnecessary hardship for the displaced members.
- Builders tend to sell common spaces like parking, terrace Etc.