Mumbai: Now you redevelop your own building without falling prey to builders

Representational Image

If you're scared your old building will collapse on you, but are even more afraid of handing over your home to unscrupulous builders for redevelopment, the Maharashtra Housing Area and Development Authority (MHADA) has just the solution for you. The authority is launching a Self Redevelopment Cell next month to make it easier for residents to redevelop their homes without relying on a builder.

MHADA's new Self Redevelopment Cell will guide residential societies on the procedure of redevelopment if they choose to do it without a builder. The society will have to prepare a plan, appoint an architect, gather funds, and pay rent or arrange for alternate accommodation of residents who have to move out during construction.

Another major function the Cell will perform is to fast-track all the permissions for self-redevelopment, to make the process as smooth and easy as possible for citizens.

With self redevelopment, the residential societies can enjoy all the profits from the additional flats created out of higher FSI. File Pic for Representation

In the past, the city has been plagued with redevelopment horror stories, with builders defaulting on rent payments or delaying construction for years on end. To beat this issue, MHADA is now pushing for self-redevelopment with amendments made to DCR 1991 to streamline the process.

A senior officer connected to the Cell said, "MHADA developed the cell to help societies that don't believe in developers' model of redevelopment. We will extend full support and even help fast-track the permissions process. But the proposal will come from the societies based on the DCR 33 (5), and they will be responsible for the entire redevelopment. Officer from the Cell will offer special help to societies who are not aware of the procedure."

Not just MHADA
While the Cell will only assist residents of MHADA building, the state government has introduced a similar policy for other private buildings in the draft Development Control Regulations (DCR) 2034 as well. Politicians have long pushed for this, and had also promised easy loans for redevelopment.

As per the current draft DCR 2034, societies willing to redevelop on their own will have to approach banks for loans and create a fund on their own. When they project is complete, they will also get all the profits. Normally, when a builder is commissioned to redevelop a building, he bears all the expenses and then takes all the profits from selling the additional flats created with the higher floor space index (FSI).

Higher FSI, bigger profits
Self-redevelopment will offer not just peace of mind to residents, but is also a lucrative prospect for the societies, thanks to the higher FSI mentioned in amended Development Control Rules 33 (5). The policy allows FSI of 3 for plots less than 4000 sqm, and FSI of 4 for plots more than 4000 sqm. This will benefit over 88,000 households in MHADA buildings in the city as flat owners will now get more space. Before this amendment, as many as 104 layouts of MHADA remained stuck without redevelopment for seven years, because builders complained of unfair terms.

The housing authority has now received about 25 applications for redevelopment. According to MHADA sources, four proposals have been given an in-principle approval, but the final NOC is still to be issued.

There are a few societies who have also expressed interest in self redevelopment, said officials. Subhash Lakhe, chief officer of MHADA's Mumbai board, was not available for comment.

Also read: SRA, MHADA redevelopment to be brought under Maha RERA: Minister