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MHADA Redevelopment

This document outlines the process, costs, and financial strategy for the redevelopment of a 24-year-old MHADA building. The building occupies a total area of 1000 sq. mtr. and houses 16 members, with 10 members having 850 sq. ft. built-up area and 6 members having 650 sq. ft. built-up area.

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nikhilcgst
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54 views

MHADA Redevelopment

This document outlines the process, costs, and financial strategy for the redevelopment of a 24-year-old MHADA building. The building occupies a total area of 1000 sq. mtr. and houses 16 members, with 10 members having 850 sq. ft. built-up area and 6 members having 650 sq. ft. built-up area.

Uploaded by

nikhilcgst
Copyright
© © All Rights Reserved
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
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MHADA Redevelopment Detailed Project Report

Introduction

This document outlines the process, costs, and financial strategy for the redevelopment of a 24-
year-old MHADA building located in Kandivali West near Oscar Hospital. The building
occupies a total area of 1000 sq. mtr. and houses 16 members, with 10 members having 850 sq.
ft. built-up area and 6 members having 650 sq. ft. built-up area. Two redevelopment options are
considered:

 Normal Course (FSI: 3x of existing area).


 Vice-President (VP) Quota (FSI: 5x of existing area).

Redevelopment Process

1. Preliminary Phase

1. Society Consensus:
o Conduct General Body Meeting (GBM) to discuss redevelopment.
o Secure 100% written consent from all society members.
2. Feasibility Study:
o Appoint a redevelopment consultant or architect to analyze the feasibility of both
options.
o Prepare detailed reports on potential built-up area, saleable area, and financial
viability.
3. Tender Process:
o Float tenders and invite proposals from reputed developers.
o Evaluate offers based on construction quality, additional built-up area offered to
members, and financial terms.
4. Developer Selection:
o Finalize a Development Agreement (DA) with the selected developer.
o Include clauses for rent, timelines, penalties, and profit-sharing.
5. Legal Clearances:
o Verify land title.
o Obtain a No-Objection Certificate (NOC) from MHADA.
o Draft legal agreements under RERA guidelines.

2. Approval and Permissions Phase

1. Plan Approval:
o Submit redevelopment plans to municipal authorities (BMC).
o Obtain approvals for layout, building design, and additional amenities.
2. Environmental and Safety Approvals:
o Obtain permissions for fire safety, environmental clearance, and parking norms.
3. VP Quota Application (if applicable):
o Submit an application for fungible area conversion under VP Quota.
o Ensure compliance with MHADA and municipal guidelines.
4. Bribe Costs: (While not legally condoned, these are market realities):
o VP Quota approval: ₹10–₹20 lakh.
o MHADA clearances: ₹5–₹15 lakh.
o Completion Certificates: ₹2–₹5 lakh.

3. Construction Phase

1. Relocation of Members:
o Provide temporary accommodation or monthly rent to existing members.
2. Demolition:
o Secure demolition permits.
o Safely demolish the old structure.
3. Construction:
o Build the new structure as per approved plans.
o Incorporate amenities based on the selected category (Basic, Premium,
Luxurious).

4. Post-Construction Phase

1. Handover of Flats:
o Allocate flats with increased area to members.
o Ensure timely possession with Occupancy Certificates (OC).
2. Sale of Saleable Flats:
o Market and sell additional flats to recover costs and generate profit.
3. Completion Certificates (CC):
o Finalize the project by obtaining CC from municipal authorities.
4. Society Re-Registration:
o Form a new housing society for the redeveloped building.

Cost Estimation

Construction Costs

 FSI Calculation:
o Total Existing Area: 10,750 sq. ft.
o Normal Course (3x FSI): 32,250 sq. ft.
o VP Quota (5x FSI): 53,750 sq. ft.

Category Normal (FSI 3x) VP Quota (FSI 5x)


Basic ₹6.45 crore ₹10.75 crore
Premium ₹11.29 crore ₹18.81 crore
Luxurious ₹16.13 crore ₹26.88 crore

Revenue from Saleable Flats

 Sale Price: ₹20,000/sq. ft.


 Normal Course Saleable Area: 17,737.5 sq. ft.
o Revenue: ₹35.47 crore.
 VP Quota Saleable Area: 37,625 sq. ft.
o Revenue: ₹75.25 crore.

Funding Strategy

1. Developer Partnership:
o Developers finance construction in return for saleable rights.
2. Pre-Sale of Flats:
o Sell part of the saleable flats to generate upfront funds.
3. Bank Loans:
o Secure construction loans against future saleable revenue.
4. Member Contributions:
o Collect contributions from members if required (rare for redevelopment).

Summary

1. Steps:
Feasibility study, legal clearances, construction, and sales.
o
2. Capital Required:
o Basic: ₹6.45–10.75 crore.
o Premium: ₹11.29–18.81 crore.
o Luxurious: ₹16.13–26.88 crore.
3. VP Quota:
o Offers higher revenue but involves additional permissions and informal costs
(₹10–25 lakh).

For further assistance with agreements, permissions, or financial structuring, please specify the
next steps.

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