If your building is over 30 years old and in a dilapidated condition then a structural audit as per Bye-Law No.77 will help you make an informed decision on what to choose next. The audit report will inform all society members about the costs involved in major structural repairs and members will now need to consider if opting for redevelopment would be a better and safer option in the long run.
However, there are several steps to be followed in the path to redevelop your building before you can move into your new home. The correct process of redevelopment is as follows –
Convene a Special General Body Meeting
A special General Body Meeting now needs to be requested by at least 25 percent of society members by writing to the society Managing Committee or to the Secretary of the Society. The Secretary can then convene a Special General Body meeting within 8 days of receiving such a request. All society members will need to be informed about the agenda in writing at least 14 days before the meeting.
In addition, the society will also need to look around for qualified architects as well as project consultants and related professionals that can create a detailed redevelopment project report for redevelopment of the building. The society will require at least 5 quotations from Project Consultants that are on the government/local authority panel before choosing one during the upcoming General Body meeting. During these 14 days, society members can also forward their suggestions to the committee in writing so that they can be discussed during the meeting
Agenda of the Special General Body Meeting
There are two requirements that must be met to start the redevelopment process:
Firstly, 75% of society members must attend the Special General Body meeting. If it doesn’t take place, the meeting will need to be rescheduled within 8 days.
Secondly, at least 75% of the attending members must agree to the redevelopment of your building, for the process to begin.
The Managing Committee will need to provide to all members the structural audit report and quotes from various developers/builders/architects/project consultants and other professionals with all members before the meeting. Society members can provide suggestions, queries, and objections, and the Committee will discuss them. Then, they will select a competent builder/ developer, project consultants, architect, and related professionals from the received quotations. Reputed professionals in the real estate field can be roped into the project since they can help liaison with competent builders/developers. Some builders offer their services in the form of development managers and can handle the entire redevelopment project without taking any profits that are received from the sale of excess flats in the new building. Depending on market norms, they will take a service charge of around 10 to 15 percent of the total project cost, subject to terms and conditions. Such an option can be highly profitable for your society, and project management consultants can help locate such experienced builders for your project.
Additional Special General Body meetings can be conducted to choose the above professionals at a later date. All resolutions will need to be approved in writing during all Special General Body Meetings, and the minutes of the meetings will have to be provided to all society members.
Members will have to be informed about the benefits, like the increase in flat size that they might get after redevelopment and the additional modern amenities that can be expected after the redevelopment. They will also need to be informed about their alternate renting arrangements during reconstruction of the building as well as the proposed date of completion of the entire project.
The society can also form a Redevelopment Committee from within the society members or Managing Committee members that can specifically handle all decisions from start to finish of the project. In addition, an advocate that is well versed in housing society rules as well as redevelopment procedures can also be hired to handle all legal aspects related to the project. The society can then proceed to the next few steps in case of approval for redevelopment of the building by required society members.
Collecting all Required Documents
The Managing Committee will now need to collect all the required documents from each flat owner before proceeding to submit them to various authorities. These include Sale Deed, Title deed, Property Card, Index-2, 7/12 Extract, Construction Commencement/Completion Certificates/Occupation Certificate and Plan, Area Statement of Society Members such as total area used by Society Members, Number of Tenants, Unit Area of each Flat, Society Registration Certificate, Structural and Building Plans, and all payment proofs of various Electric/Water/Property Tax bills.
Inform all Concerned Authorities
Your housing society will now need to inform the Deputy Registrar of Co-Operative Societies in writing about the decision to redevelop your building. The Structural Audit report will also need to be submitted. Permission will also be required from the MCGM or MHADA, depending on the location of your society, and all other concerned departments.
Signing of Contracts
In case your society opts to select a builder/developer for the complete redevelopment project then a Development Agreement (DA) will need to be signed with them. Your society needs to select a builder or developer with a proven track record of constructing high quality buildings on time. All relevant documents including those mentioned above will also have to be submitted to the chosen builder/developer. The DA will need to specify the date of completion of the new building, sizes of all new flats based on available FSI and TDR, alternate housing arrangements of all residents, consent letters of society members, Power of Authority to the builder, and various other points that may be specific to your building. All residents will then need to vacate the old building by a specific date as mentioned in the signed agreement.
The builder too will need to provide several documents while signing the contract with the society. These include providing details of all Partners of the firm, all relevant PAN and GST numbers, and rights of all society members in the new building. The builder will also need to arrange temporary accommodation for all residents or specify the rent that he will pay until all residents are moved back into the new building. Reconstruction of your new building should not take more than 2 to 3 years based on specific conditions.
Vacating and Handing over your Old Building
All society members will need to vacate the building once all relevant contracts have been inked with the chosen builder/developer. Society members must ensure that the builder has obtained Intimation of Disapproval (IOD) from the municipal authorities for at least plinth level before they vacate the old building. Additional Special General Body meetings will need to be conducted at various steps of the redevelopment process to ensure that all documentation is as per the required format.
In case the Society opts for Redevelopment with the Development Manager (DM) model, several additional steps have to be taken. The DM takes charge of the project along with the Committee, and the progress of the project is managed and monitored by them together. Since the DM Model is Self Redevelopment with the guidance of a Development Manager, the Society has to get the Loan Sanctioned for the project cost from a Bank/FI/NBFC, and proceed accordingly. The DM and the Committees ensure the Quality, Progress etc. to deliver the best possible new homes to the members, as agreed upon, without any deviations.
Moving into your Brand New Abode
The Managing Committee or Redevelopment Committee should remain in constant touch with the builder/developer, or DM during all stages of redevelopment to ensure that the process remains on track and the new building is constructed within the stipulated time period.
The builder should ensure that water connection is provided to all new flat owners within 4 months of handing over the same. The builder should also provide Occupation Certificate to new flat owners as well as conveyance to the new residents.
Your old and dilapidated building can certainly be replaced with a brand new building brimming with several new amenities provided society members act decisively to opt for redevelopment. Instead of handling the formalities and searching for a capable builder/developer, consider hiring professional project management consultants. They can help you find the right team of experts and make the transition to your dream home smoother.