Self Redevelopment is a redevelopment done by society itself. In opting for self-redevelopment, housing societies can apply for loans from banks to finance the redevelopment of their homes and then, they can appoint an independent contractor to carry out the work to their specifications. This effectively cuts out developers from the process, thereby ensuring that the profits remain within the society and they are able to track the pace and quality of construction closely. Self-Redevelopment of Society buildings can be conducted easily & successfully, with proper planning and strategy, after keeping confidence and by taking help of experienced and relevant Professional Consultants of the field.

1. - Ar. Kirti Jain
M.Arch (Project Management)

2. ABSTRACT
• About 60% of all buildings in Mumbai are 50-60 years old and are in a
dilapidated state. Redevelopment becomes necessary for such societies and
sometimes inevitable due to BMC directions on Structural Safety and repairs
of old buildings.
• Over the last decade, it has been seen that redevelopment projects often face
problems; out of approximately 6,000 society buildings where redevelopment
is feasible, more than 70 per cent are stuck because of some unscrupulous
builders.
• To avoid such problem, one solution is Self-redevelopment, where the society
members take charge of the project, with the help of a project management
consultant.
DILAPIDATED STRUCTURE
DEMOLITION
REDEVELOPED

3. PROBLEM STATEMENT
• Most societies prefer to redevelop their buildings through the Builders so
that they can get temporary accommodation, corpus and peaceful and timely
possession. But the time has shown that said route possesses the following
problems :
1
• Builder selection and negotiation is time consuming.
2
• The best offer providing developers will not necessarily be a well financed and timely
executor.
3
• Allegations of Corrupt practices and underhand dealings.
4
• Builders take liberty and change Building Plans, for their vested interests.
5
• Original members remain at the mercy of Builders for completing their Building and
possession only stays a dream.
6
• Builders tend to usurp and sell common spaces like parking, terrace, etc.
7
• Sometimes the builders also stop paying rents to the tenants and quality of construction
is often substandard.

4. PROBLEM STATEMENT
• There were no Laid
down guidelines and /or
Firm procedures
declared.
• Builders took advantage
of the situation offering
unrealistic schemes.
• Many have lost precious
life time savings.
• Being Penny Wise and
Pound Foolish.

5. WHAT IS SELF – REDEVELOPMENT?
• Self Redevelopment is a redevelopment done by society itself. In opting for
self-redevelopment, housing societies can apply for loans from banks to
finance the redevelopment of their homes and then, they can appoint an
independent contractor to carry out the work to their specifications.
• This effectively cuts out developers from the process, thereby ensuring that the
profits remain within the society and they are able to track the pace and quality
of construction closely.
• Self-Redevelopment of Society buildings can
be conducted easily & successfully, with proper
planning and strategy, after keeping confidence
and by taking help of experienced and relevant
Professional Consultants of the field.

6. ADVANTAGES OF SELF - REDEVELOPMENT
1 • Permanent "Corpus Fund" in the Balance Sheet of a Society.
2 • Extra corpus also lowers down maintenance bills of the society members.
3 • Surplus sale area can be generated for sale in open market.
4 • Free Sale Flats can be purchased by the original members on actual cost.
5 • Merging of flats is possible if members want so.
6 • The building Plans will be as per members requirement and will not be changed.
7 • Issue of Free Parking spaces can be solved.
8 • Members may use their discretion to install in house facilities & amenities.
9 • Common Spaces cannot be sold and under-hand dealings can be avoided.

7. CHALLENGES OF SELF - REDEVELOPMENT
1
• Issue of Finance, for Construction Cost for Self-Redevelopment.
2
• Society need to deal with many departments.
3
• Needs Time, Inclination, Money & Energy (T.I.M.E.)
4
• Needs “24 x 7 x 365” Professional Back-up.
5
• Not all society members have the necessary expertise or the adequate time
to go and approach various agencies and appoint various consultants.

8. ROLE OF A PMC
• As a CHS initiates the process of redevelopment of its property, the first legal
requirement it needs to fulfill in terms of the relevant circular of the
department of co-operation (circular 79(a)) is the appointment of a PMC.
1
• Carrying out structural audit
2
• Preparation of financial feasibility report.
3
• Preparation of tender to invite offers from contractors.
4
• Preparation of comparative chart of contractors.
5
• Finalization of contractor on the basis evaluation of bids with the help
of society members
6
• Preparation of development agreement

9. ROLE OF A PMC
7
• Finalization of building plans as per members requirement
8
• Arranging for the funds from the Bank/ NBFC’S
9
• Vacating the building after the contractor obtains the necessary
permission.
10
• Supervision of demolition and reconstruction of the new building.
11
• Possession and occupation of the new building.
12
• Obtain as built drawings & original documents and hand it over to the
society
13
• Project closure and repayment of funds

10. • Mumbai District Central CO-OP Bank will provide funds and required
deposit amount to the flat owners.
• Loan sanctioned by Mumbai bank is 85% of the total project cost or
maximum 50 CR or as per techno economic viability.
• The financial participation of the society shall be necessary up to 15% of the
project cost.
• The project cost = cost of TDR, construction cost, architect, BMC, PMC fees,
rent payable, rent relocation charges, cost of fungible FSI, and reimbursement
of expenses required for various permissions from the government authorities,
interest amount of project loan calculated on the basis of cash flow, expenses
towards rainwater harvesting, installation of solar system, CCTV camera and
other costs related to the project.
• Interest rate of the loan is minimum 12.5% per annum further decided after
carrying out the risk assessment of the project.
SCHEME OF SELF REDEVELOPMENT IN MAHARASHTRA

11. • It shall be necessary for the society to execute English mortgage of all the
assets/properties, building, premises and the expenditure require for the same
shall be incurred by the society.
• For this reason, MHADA and BMC officials will form a single-window
system which will speed up the process of getting permissions & approvals.
• The flat owners can choose any architect, consultant & contractors as per their
choice.
• After doing compliance of documents regarding the loan after loan approval
as well as after mortgaging society property in the name of bank through
registered documents the Mumbai bank shall release the loan.
• The total tenure of the loan that the society takes from Mumbai bank shall be
for 7 years out of which 2 years shall be moratorium period.
• It is not mandatory to pay interest during the moratorium period.

12. Review by society, Economic analysis for rate of return,
Payback period, capital recovery
Society’s request for
further study of project
Society authorizes project, selects project delivery
method and appoints various consultants
Society abandons
project
Society’s need for redevelopment
Appoint PMC and request for project study
Conceptual configurations and alternatives for technical feasibility.
Development of cost and schedule for each alternative
Final design of project. Detailed drawing, written
specifications and preparation of contract document
Approvals, premiums and deposits.
Obtain IOD, C.C and register the project under RERA
PROCESS OF SELF REDEVELOPMENT

13. Procurement of bulk materials, special
equipment, construction contracts
Construction contractors administration
of contracts for physical work in place
Project closeout, quality testing, inspection,
as built drawings
Assisting society in encashment of sale flats
Repayment of funds borrowed
Obtaining finances for Self-redevelopment
Approvals, premiums and deposits.
Obtain IOD, C.C and register the project under RERA

15. THANK YOU
Ar. Kirti Jain, M.Arch (Project Management)
Email Id. ar.kirtijain@gmail.com / kirtijain3010@gmail.com