14 March, 2024, New Society Redevelopment Rules On Maharashtra Housing
Latest Updates on Redevelopment Rules
March 14, 2024: The Maharashtra Cabinet has announced a significant reduction in premiums for housing society redevelopment in Mumbai, aiming to boost infrastructure and societal development. The move, slashing premiums from 15 per cent to 10 per cent for converting land ownership from leasehold to freehold, and further down to 5 per cent for self-redevelopment on government-owned leased lands, is expected to benefit over 8,000 housing societies, particularly those aged 50-60 years. This decision has been widely welcomed by residents and the real estate industry, anticipating a surge in redevelopment projects, which will not only rejuvenate infrastructure but also stimulate economic growth and generate revenue for the government.

Many housing societies in Maharashtra are opting for redevelopment to address ageing infrastructure and improve living standards. To ensure a smooth and transparent process, the state government has implemented new redevelopment rules offering greater protection to society members and streamlining the procedure.

The Maharashtra government has implemented significant changes to streamline the approval process for society redevelopment projects, enhancing its speed and efficacy. Here’s a breakdown of the key aspects of this streamlined process:

1. Reduced Approval Threshold: Previously, a 75 % majority vote from society members was mandatory to initiate redevelopment. Now, certain categories like MHADA colonies, ceased buildings, SRA buildings, and small societies can proceed with a 51% majority vote, easing the initial hurdle.
2. Single-Window Clearance: The government is transitioning towards a single-window clearance system, enabling societies to submit all required applications to a single authority, simplifying procedures, and reducing administrative delays.
3. Accelerated Approvals: Specific timelines have been established for various approvals, aiming to expedite the process, providing greater clarity and predictability for society members and developers alike.
4. Online Application System: The introduction of an online application system allows societies to electronically submit and track their applications, enhancing transparency and efficiency throughout the process.
5. Self-Redevelopment Option: New rules incentivize societies to undertake self-redevelopment projects without involving a developer, granting them more control over the process, and
   potentially leading to faster completion.

Potential Advantages of the New Society Redevelopment Regulations in Maharashtra
The revamped regulations for society redevelopment in Maharashtra promise several advantages for residents and the broader community. Here are some key benefits:

1. Enhanced Infrastructure: Redevelopment initiatives aim to upgrade existing infrastructure within societies,encompassing improvements to roads, sewage systems, and water supply networks.
2. Increased Property Value: With modernized amenities and upgraded infrastructure, properties within redeveloped societies often experience a significant increase in market value.
3. Improved Amenities: Redevelopment projects typically incorporate the addition of new amenities such as parks, playgrounds, and community centers, thereby enhancing residents’ quality of life.
4. Enhanced Safety and Security: Redeveloped society’s priorities safety and security measures, including the installation of CCTV cameras, gated entrances, and round-the-clock security personnel.
5. Sustainable Development: Many society redevelopment endeavors in Maharashtra emphasize sustainable development practices, such as rainwater harvesting and the integration of solar power systems, contributing to environmental conservation efforts.
6. Enhanced Transparency and Security:

   ● Registered Agreements: The development agreement with the builder and individual agreements for temporary accommodation must be registered under the Registration Act, 1908, for added legal weight.
   ● Clear Area Allocation: The carpet area offered to member’s post-redevelopment must be explicitly mentioned in the agreement, adhering to the Real Estate (Regulation and Development) Act, 2016 (RERA) guidelines.
   ● Non-Transferable Rights: The redevelopment rights assigned to the developer cannot be transferred to another party, protecting the society’s interests.
   ● Bank Guarantee: Developers are required to provide a bank guarantee equivalent to 20 % of the project cost, ensuring financial security for the society.

7. Streamlined Procedures:
   ● High-Rise Permissions: Construction of high-rise buildings is now permitted on narrower roads, subject to obtaining necessary approvals.
   ● Tenancy Rights: Tenants in non- ceased buildings are entitled to ownership flats after redevelopment.
8. Self-Redevelopment Option: The new rules encourage societies to undertake self- redevelopment projects without a developer, potentially leading to faster completion and greater control over the process.

Increased/Additional FSI and TDR Benefits:
● Increased Project Value: Developers can construct more built-up areas, potentially leadingto higher returns on investment and more housing units.
● Improved Living Standards: Increased FSI can allow for better amenities within projects, like larger apartments, green spaces, and recreational facilities.
● Economic Growth: Increased development activity can stimulate the local economy by creating jobs in construction and related sectors.

● Preservation of Open Spaces: Landowners in areas designated for open spaces or public infrastructure can sell their development rights (TDR) to developers in other areas. This allows for controlled development while preserving green spaces.
● Urban Renewal: TDR can incentivize redevelopment in congested areas by allowing developers to build more in exchange for purchasing TDRs. This can lead to improved infrastructure and living conditions.
● Compensation for Landowners: Landowners who lose land for public projects can receive compensation through the sale of TDRs.

Anticipated Challenges in Implementing the Revised Society Redevelopment Regulations in Maharashtra
The implementation of the new rules for society redevelopment in Maharashtra, likely to encounter several challenges, including:
● Unclear Property Titles: Many old buildings in Maharashtra have multiple owners,
complicating the process of obtaining unanimous consent for redevelopment due to unclear property titles.
● Infrastructure Limitations: Existing infrastructure such as roads, drainage systems, and utilities may not be equipped to handle the increased population density post- redevelopment, necessitating additional investments in infrastructure development.
● Financial Constraints: Banks and financial institutions may be hesitant to provide loans due to uncertainties surrounding redevelopment projects and the lengthy approval process,
posing challenges in securing necessary funding.
● Relocation and Rehabilitation: Finding suitable alternative accommodation for all residents during the redevelopment process presents a logistical challenge, requiring careful planning
and co-ordination.
● Regulatory Hurdles: Bureaucratic procedures and lengthy approval timelines can lead to significant delays and increased project costs, hindering the smooth execution of redevelopment plans.

In summary, while the new regulations aim to enhance living conditions for housing residents in Maharashtra, overcoming the aforementioned challenges is essential for successful implementation. Consulting with local real estate professionals can provide further insight into the intricacies of the new regulations and their implementation processes.

What do you mean by Redevelopment?
Redevelopment is the process of improving an area by replacing old buildings and roads with new ones, or by renovating blighted areas. It can involve physical planning and initiatives to make a society/apartment premises more livable for its residents. Redevelopment can have several benefits, including improved living of standard which can improve the physical, economic, and social fabric of a city and redevelopment can also increase property values, which allows local governments to levy higher property taxes. This revenue can be used to improve the area’s
infrastructure, public services, and education

Documentation for Society Redevelopment in Maharashtra
Redevelopment of societies in Maharashtra mandates the submission of specific documents to facilitate a smooth process. These documents are vital in upholding the legality and transparency of the redevelopment Endeavour.

The following are the essential documents typically needed:
● Certificate of Society Registration
● Development Agreement
● No Objection Certificate (NOC)
● Title Deed
● Approval of Building Plan
● Occupancy Certificate
● Resolutions of the Society
● Financial Statements
● Consent Letters