Maharashtra Plans Major Rule Changes for Housing Societies - Here's All You Need To Know

Maharashtra is set to introduce revised co-operative housing society rules that could affect more than a lakh housing societies across the state. The rules are expected to be notified after the translation and gazetting process is completed. They will also bring clarity to maintenance charges, redevelopment procedures, membership transfers and society administration.

How Maintenance Charges Will Be Calculated

One of the biggest changes relates to maintenance charges. The proposed rules clearly separate expenses that must be shared equally by all residents from those that should be linked to the size of a flat.

Under the proposed framework, service charges, staff salaries, audit fees, legal expenses, common electricity bills, meeting expenses and administrative costs will be divided equally among all members. Lift expenses will also be shared equally, regardless of whether a resident uses the lift. Education, election, garden and playground maintenance expenses will similarly be collected on an equal basis.

But some charges will depend on the size or value of a flat. These include insurance charges, lease rent, non-agricultural tax, sinking fund contributions and major repair fund collections. Water charges will be calculated according to water connections and inlets, while parking charges will be determined by a society's general body.

The proposed rules also seek to reduce disputes over delayed payments. Interest on outstanding dues will be capped at 12 per cent simple interest per year. Non-occupancy charges, which apply when flats are rented out or not occupied by owners, will be limited to 10 per cent of service charges.

New Redevelopment Rules

Redevelopment procedures have also been revised. Housing societies' redevelopment projects will be allowed to borrow up to ten times the value of their land. The developer selection process must be video-recorded, and at least 51 per cent member participation will be required during decisions.

The rules will make clear the process for membership transfers. Registered family settlement deeds can now be used for transfers, while nominees can be admitted as provisional members following the death of a member. New provisions have also been introduced for society name reservation and registration procedures. The government is expected to issue the final notification in the coming months.