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Maharashtra Govt Unveils Incentives to Promote Self-Redevelopment For Housing Societies

With an aim to revitalise old buildings and provide housing solutions to Mumbaikars, the government unveiled a comprehensive package of incentives to promote self-redevelopment.

Maharashtra Govt Unveils Incentives to Promote Self-Redevelopment For Housing Societies
SHARES

The Maharashtra government recently announced a series of benefits at an housing society convention organised by the Bharatiya Janata Party (BJP). They are intended for the housing societies in Mumbai. These benefits also aim to provide incentives and support to housing societies that choose to undertake self-redevelopment projects.

With an aim to revitalise old buildings and provide housing solutions to Mumbaikars, the government unveiled a comprehensive package of incentives to promote self-redevelopment.

The convention was attended by Deputy Chief Minister Devendra Fadnavis and Chief Minister Eknath Shinde, highlighting the government's commitment to address the housing needs of the city. The introduced measures seek to encourage housing societies to undertake the renovation of old buildings and streamline the process of self-redevelopment.

To incentivise the renovation of old buildings, the government offered tax rebates and discounts. This financial assistance aims to ease the financial burden on housing societies and encourage them to initiate redevelopment projects. Additionally, the government provided clearances for self-redevelopment, ensuring a smoother and more efficient process.

Recognising the importance of timely approvals, the government promised to issue the necessary "considered conveyance" for self-redevelopment within a month of application. Furthermore, it mandated the concerned officer to issue the certificate within four business days after receiving the application. These streamlined procedures aim to eliminate unnecessary delays and bureaucratic hurdles.

In a significant regulatory change, the requirement of 9 metres on two sides of the building for increased Floor Space Index (FSI) was reduced to 6 metres for societies pursuing self-redevelopment. This relaxation in the requirement enables housing societies to utilise their available space more effectively, encouraging them to undertake redevelopment projects.

To ensure a swift approval process, the government established a dedicated cell for self-redevelopment. This specialised unit will expedite the review and approval of applications, aiming to provide a decision within three months. This streamlined approach is expected to significantly reduce the waiting time for housing societies pursuing self-redevelopment.

Addressing the financial aspect of self-redevelopment, the Mumbai District Cooperative Bank and Maharashtra Central Cooperative Bank were designated as nodal organisations for financing such initiatives. These banks will provide financial support and guidance to housing societies undertaking self-redevelopment projects. Moreover, the government is considering the establishment of a self-redevelopment financial corporation to further facilitate the financing process.

To make self-redevelopment financially viable, interest subsidies will be provided to societies pursuing such projects. This support aims to alleviate the financial burden on housing societies and make the self-redevelopment programmes more attractive and feasible.

Recognising the importance of streamlined registration processes, the government is committed to expediting stamp duty adjudication, registration, and property card registration. Document registration will be completed within 10 days, while property card registration will be finalised in just four additional days. These efficient processes aim to save time and effort for housing societies involved in self-redevelopment.

In a bid to reduce costs, the government has also made key adjustments. The transfer premium, previously set at INR 1 lakh, has been reduced to INR 50,000. Additionally, self-redevelopment will be considered on par with redevelopments by private builders, where rent will be paid one year in advance. This initiative aims to reduce the financial burden on tenants during the redevelopment process and provide them with greater stability.

The CM also emphasised the government's commitment to reimbursing the monthly rent of tenants in societies whose redevelopment has been delayed for years. This gesture aims to provide relief to tenants who have faced prolonged uncertainty in delayed redevelopment projects. The scale of the housing challenge in Mumbai is evident from the fact that the city has over 34,000 housing societies, while the state of Maharashtra boasts over 1.2 lakh societies.

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