Redevelopment is a structured process that transforms aging or dilapidated buildings into modern housing complexes with better facilities and enhanced safety standards. However, such projects involve significant costs, which are usually beyond the financial capability of Co-operative Housing Societies (CHS). To execute the project efficiently, the society appoints an experienced and credible Developer who undertakes the entire redevelopment on a turnkey basis, bearing all expenses and risks.
Broadly, the redevelopment costs include:
Planning and Designing: Architectural planning, engineering design, and urban planning.
Government Approvals and Legal Permissions: IOD, CC, MHADA/NOC, Environmental Clearance, and other statutory approvals.
Construction Costs: Demolition of old structures, site preparation, and building new residential towers.
Relocation Costs: Temporary shifting of existing residents to transit accommodations or payment of rent and deposit.
Compensation to Members: Includes additional carpet area, corpus fund, hardship compensation, and rent for temporary accommodation.
Infrastructure Development: Internal roads, compound walls, parking, lifts, security systems, and utility upgrades (sewage, water, electricity).
Taxes and Duties: GST, stamp duty, premiums to municipal bodies, and other charges.
Professional Fees: Fees paid to Architects, Legal Advisors, Structural Auditors, and Project Management Consultants (PMC).
How the Developer Benefits:
To recover the costs and earn a reasonable profit, the developer constructs additional saleable area (as per FSI/TDR rules) and sells flats, shops, or commercial units in the open market. The proceeds help the developer recover the investment and generate returns.
What the Society and Members Gain:
New, spacious homes with modern layout and design
Improved amenities such as gym, clubhouse, CCTV, landscaped garden, elevators, fire safety systems, etc.
Better infrastructure like waterproofing, concealed wiring, earthquake-resistant structure, rainwater harvesting, solar systems, etc.
Corpus fund and rent during construction
Increased property value and long-term appreciation
Enhanced lifestyle and safety with legally compliant and structurally sound housing
Win-Win for All Parties:
This model offers mutual benefits to all stakeholders:
The CHS and its members receive upgraded homes, financial benefits, and long-term value.
The Developer earns profits through the sale component.
The new buyers who purchase flats or shops become additional members of the CHS.
Role of Project Management Consultant (PMC):
To ensure transparency, quality, and timely completion, the CHS appoints an independent Project Management Consultant who:
Assists in technical and financial evaluations
Prepares and reviews feasibility reports
Helps in tendering and developer selection
Monitors construction quality, timelines, and legal compliance
Acts as an advisor to protect the society’s interest at every stage
