What is the procedure for the redevelopment of a housing society?
Before opting for redevelopment, the society must complete a Structural Audit of the existing building. Once that is accomplished, you’d have to consider the below-mentioned steps.
1. Call a Special General Body Meeting (SGM)
As per the new rules of redevelopment of society the managing committee should convene a special meeting of the members to discuss the redevelopment project. The bye-laws state that 75% of the total number of members should be in agreement with the redevelopment project before it can be officially undertaken. (According to a redevelopment law amendment in Maharashtra, older and smaller buildings only need 51% of member approval). It is also recommended that a special redevelopment committee be set up to supervise the entire process.
2. Get quotations from Architects/Project Management Consultants (PMC)
The Committee should invite bids from at least 5 architects/PMC and present their quotes to the members before zeroing in on one of them in another SGM. They should be empaneled with the government or a legitimate authority and have a good reputation in real estate development. The members are allowed to give valid inputs and suggestions throughout the process.
3. Submit proposal for Building Redevelopment Project
After finalising terms and conditions, scope of work for the project with the architect/PMC, the committee must submit a proposal for the said project.
4. Receive Project Report
Within two months of their appointment, the architect/PMC will present to the committee a Project Feasibility Report. This report considers factors such as Floor Space Index (FSI) and Transfer of Development Rights (TDR) with respect to total residential area, common spaces, gardens, etc. The Report is made available to all members of the society and suggestions are invited before any approvals are made.
5. Invite Tenders from developers
The Architect/PMC prepares a Tender document to receive competitive bids from developers. One primary requirement is decided, which cannot be changed. This could be carpet area or corpus fund (an amount paid by the developer due to redevelopment). In a subsequent SGM attended by the officials of the developers, all the tenders are discussed in open in the presence of the members.
6. Choose a developer
The Architect/PMC makes a comparative study of the tenders considering factors such as financial expenses, market reputation, technical soundness, successful projects of each developer and shortlist at least five. In accordance with the redevelopment rules, one of them is selected by the 3/4th majority of the members and the project can be initiated after making an agreement with the selected developer.
