User:Wedevelopment/sandbox

Self Redevelopment is a type of redevelopment where the entire process is executed by the society members. Self Redevelopment has many advantages and is fast gaining recognition among housing societies in Mumbai. In opting for Self Redevelopment, societies can avail financial loans for the development and can then appoint consultants and contractors to carry out the work as per their requirements. This effectively cuts out Real Estate Developers from the process, thereby ensuring that the profits remain within the society and they are able to monitor the pace of construction closely. Additionally, Self Redevelopment means getting extra FSI & TDR, without having to give it up for a Real Estate Developer, which makes up for 1. a good extra area for each society member, 2. reduced maintenance costs and also 3. an option of being able to sell extra flats to buyers.

Need for Self Redevelopment

1. Majority of the residential buildings, in Mumbai, are decades old. While some are literally dilapidated, the others are in dire need for large scale repairs. For both such eventualities, very large sums of money is needed. Further, in most of such society’s Balance Sheets, there are hardly any funds accumulated over the years towards Major repairs. This leaves the society residents with no choice but to continue living in such dilapidated and structurally weak buildings.

2. The residents when they had purchased the flats, had a smaller family. With the second generation growing up and extending families, the size of the flats becomes a challenge to cope up with. And with the rising cost of rentals and new flats, the choice of redevelopment becomes a much more viable choice.

3. Typically most societies prefer to redevelop their buildings through Real Estate Developers. Redevelopment through Real Estate Developers is a tug of war where both the parties strive to get maximum benefits for themselves.

4. In the case of Redevelopment through Real Estate Developers, there have been many issues raised in the past: Mismanagement of the entire project Allegations of corrupt practices and underhand dealings Real Estate Developers changing building Plans, for their vested interests, without informing the society members Using the funds in multiple projects leading to projects going on hold Projects getting delayed to take the real estate price advantage or to avail the requisite investor funds Real Estate Developers tend to usurp and sell common spaces

5. In Self Redevelopment the society appoints an independent contractor who is conscious of the society's plan and work as per society's specifications.

6. Making things easier are professional services and advice being offered by financial institutions to help societies deal with the process of self-redevelopment.

7. While these may be good enough reasons for every society to consider this option, if executed well, Self Redevelopment has the potential to radically change the pace of development in Mumbai, where thousands of societies are usually at the mercy of developers who more often than not delay projects, escalate costs and renege on agreed upon terms. The authorities have started taking steps to encourage such processes, which will help solve the city’s massive housing shortage in the long run.