MAHARASHTRA SOCIETIES WELFARE ASSOCIATION (REGD.)

1.1 INTRODUCTION

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Redevelopment means demolition of the old building structures and constructing new building structures with new style, design with advance technology as per modern techniques. These new building structures are constructed as per modern standard of architecture. As the building is reconstructed by demolition of an old structure, the life span of the building structures automatically increase, the expenses for major repairs are curtailed down to almost none as the building structures are new.



The structures of the building which are built long back, become old and in dilapidated state, or in such state where no person willingly consents to stay, or which face the risk of falling at any time, such buildings are to be reconstructed or redeveloped. The Societies which have balance Floor Space Index (FSI) remaining on the plot of land where the Building is situate can utilize the same at the time of redevelopment by which extra FSI can be used. The extra FSI/TDR can also be purchased by the Society or Developer/Builder which gives benefits to the existing members of the old building like extra area in the new building to be constructed and also extra flats/floors can be constructed in the same place with modern techniques.



Redevelopment or reconstruction of building structures help to make tremendous appreciation in the value of individual flats or the building as a whole. The flats and the entire complex are planned with the help of expert architects and advanced technology.  The materials, amenities used in the construction of the building makes it well modernized, such as earthquake & fire resistant, shockproof copper concealed wiring techniques, elevators, entrance foyer and other modern features.



The buildings are constructed as per the new Development Control Regulations which makes the Developer/Builder follow the authorities norms in which he is responsible to provide facilities to the members like drain water harvesting, storm drainage system, Fire prevention systems, rescue area in case of emergency, building to be earthquake resistant, fire proof, water proof etc.



The members of the Society are able to avail new flats with extra space and modern amenities free of cost which makes their living comfortable, and the feeling to shift to a new flat in a new building looks attractive. As the redevelopment takes place the infrastructure and other facilities around the new building so redeveloped automatically enhances, and therefore, it can be stated that there is an all round development of the area.



As population of the Cities, Metro Cities & Towns increase because of modernization and globalization.  Moreover, the population in the rural areas shift towards these town areas as their farm lands do not earn them any profits or very negligible amount of earnings. Therefore the cities and towns get saturated and space for housing in these places decrease as the area in these places remain the same but the requirement for dwelling boosts.  So the concept of redevelopment arose in those places where the area of land was less as compared to the demand for housing and therefore, the area was developed to occupy many housing blocks and commercial galas at a saturated space in a vertical manner, so as to accommodate large number of the population in a small area. As, the redevelopment takes place in saturated places with all facilities around it, like Shopping Complexes, Malls, Multiplex, Hotels, Plazas, Theatres, Schools/International Schools, BPOs, LPOs, Call Centres, Mind Space areas, it automatically brings good 'infrastructure and other facilities, which enhances the capacity, capability, structure, environment, hygiene and all other aspects essential to the inhabitants.  Therefore, it can be said that there is development of area as found in western countries through the idea of redevelopment.



1.2 ABOUT REDEVELOPMENT



“Redevelopment” means demolition of the old and existing structure and replacing it with a new structure having new dimensions and space. The prime advantage of such a transformation can be seen from the usual difference between the old and the new. Assuming the quality of material used in redevelopment is of a good standard, the Society can be assured that it need not bother for any major repairs or maintenance for the next 15 to 20 years. With the Re-development process being tested for the last 10 years and number of Court Rulings passed in favour of decision of the majority taken in the meetings of the Housing Societies, notification by the Government dated 3rd January, 2009 and circulars issued by the Government on Re-development, the Societies should now plan for the Re-development and reap its benefits which are listed in this article.



By the end of 2008, half of the world will live in cities while the percentage of the urbanized in India will be 29 according to a latest U.N. projection. The number of people living in urban areas would rise to 70 to by year 2050 as predicted in the report. Shri Vilasrao Deshmukh, Former Chief Minister of Maharashtra while speaking at the inaugural ceremony of the Malbar Hill to Cross Maidan underground Tunnel on 19th February, 2008, observed that "it has now become inevitable to devise plans to increase the FSI for old buildings in the city so that the common man can live in bigger houses". He further added – "There is hardly any space in the City and the only way for development would be to have taller buildings." A large number of buildings of housing societies, especially in Mumbai are in a dilapidated condition and for lack of resources - both financial and technical - there is no future for them except redevelopment through some builder. This is possible by availing of the additional potential offered to them by way of loading of TDR, FSI, Redevelopment and Reconstruction of existing buildings has assumed a greater significance in recent times. The size of the redevelopment industry in the mega cities is much larger than that of the development of new buildings. Typical models adopted for development are abandoned by the industry in preference for structural transactions motivated by the needs of parties to promote commerce. Each deal is a tailor made package involving complex and peculiar traits which in turn, requires special consideration under general and taxation laws.



The major players in the redevelopment activities are:

(a)   Society or landlord
(b)  Members or tenants or dwellers
(c)   Developer



2. MEANING OF REDEVELOPMENT



2.1 ISSUE – REDEVELOPMENT STARTED AS A NECESSITY, BUT IS NOW SEEN AS A MEANS OF RECREATING LIFE:



In the recent years with the ever growing need for space and the changes in the rules, the latest trend has been redevelopment of old and dilapidated buildings. This latest trend has been widely accepted as it seems to be the only alternative for accommodating the ever growing population, as also it is more viable in terms of achieving the end result.



As the term implies “Redevelopment” means demolishing the Old Structure and replacing it with a New Structure with new dimensions and space. Since this kind of a change is effected with a brand new building standing in place of the old building. The prime advantage of such transformation is evident – the usual difference between the old and the new. Assuming the quality of material used in redevelopment is of a good standard, the society can be assured that it need not bother for any major repairs or maintenance for the next 15 to 20 years.



The replacement of the old building with a new one is indeed a huge and arduous task. It might appear to be grueling at first but it is not at all complicated if the Society members keep their cool and undertake the correct procedure.



A prime question that arises at the very thought of redevelopment is whether the Society can itself undertake the activity. The answer is affirmative, if the Society is dominated by members who can devote their time and energy to oversee the redevelopment work. It is also easier if the Society has at least one civil engineer or some members who understand something about construction and managing people. However, most Society members hardly get time even to attend meetings. For such Societies it is better to appoint a reputed builder or a construction company who can undertake the redevelopment work on behalf of the Society.

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Where the Society has to appoint a builder or a construction company or a contractor for redevelopment, an agreement has to be executed. Such agreement is known as the ‘Redevelopment Agreement’. It is the basis of the redevelopment project and should be drafted meticulously keeping in mind the safety and advantages to be derived with mutual benefits. The original members could demand compensation in the form of extra space, compensation in cash or both in certain cases. It depends upon the kind of project to be undertaken.

There are many Societies which actually do not know whether they need redevelopment. The members or the committee of such Society are probably unaware of the byelaws and do not know the condition of the very building which house them. For them it is advisable to go through Bye-law no. 77 which specifically states that structural audit of the building is to be conducted. Also the structural audit is to be conducted by the architects from the panel of the Municipal Corporation. Where the Society is situated outside the Municipal limits, the structural audit is to be done by a Government Approved Architect. The report of such structural audit would reveal the condition of the building and indicate whether the Society needs redevelopment.