2.0 Self Redevelopment Bounced Back & This Time With 100% Self Finance

Yes, the heading is absolute true in case of Om Rameshwar Co-op Hsg Society Ltd., situated at Borivali (East). They have proved the old phrase right - “WHERE THERE IS WILL THERE IS WAY”.

2.0 Self Redevelopment Bounced Back & This Time With 100% Self Finance
(Representational Image)

Yes, the heading is absolute true in case of Om Rameshwar Co-op Hsg Society Ltd., situated at Borivali (East). They have proved the old phrase right - “WHERE THERE IS WILL THERE IS WAY”.

What makes this project unique is that it was executed by residents themselves under the self-redevelopment with self financed model. No builder or Development Manager (DM) is involved. The planning, funding, approvals, selection of building contractor, is entirely done by the 26 society members with the help and guidance of their PMC, Toughcons Nirman Pvt Ltd., having their office at Goregaon (East).

In today’s scenario for many societies taking the onus of redevelopment through builder is also challenging then how come Self redevelopment with self funding can be a cakewalk. If any societies feel such a way then they shall once meet this society’s members.

Initially the society wanted to start self redevelopment with Mumbai Bank Funding. But Reserve Bank of India’s stay on Mumbai Bank to finance the societies for self redevelopment was the first obstacle of many other obstacles for the society.

As per project feasibility report prepared by their PMC, Toughcons Nirman Pvt. Ltd., the project was unviable due to over consumption and found out that the society cannot avail additional area at free of cost. It was suggested by PMC that if members want additional area of their own Fungible FSI, then they have to pay for it. This was huge challenge to explain all the members.

Initially, the society didn’t had confidence and didn’t knew its own power - THE POWER OF COMMON MAN, that in this money driven industry and between the SHARKS (BUILDERS) OF THE INDUSTRY, how they will achieve this Hercules task but under our Mentorship, they have achieved 75% of their task.

We explained to the society that in any redevelopment project, the interest cost on the finance required is approx 15% of the project cost and profit of the developer is roughly 20%, thus if any society opt for self redevelopment with self finance, 35% is almost saved by the society. Therefore if they take small step initially with self finance then they can save this 35% of the project cost. Many societies’ committee members back out by self assuming that their society members will not contribute initially. The experience of Om Rameshwar society will be a case study for such thousands of housing societies who do not believe their own strength.

In normal scenario many fly-by-night developers offers the society 20-25% additional area without checking the facts of the project. Hence this was greatest obstacle for the 3k’s of the society who took initiative to accomplish the self redevelopment project of their old building. The 3K’s means Mr. Ramesh ‘K’elkar, Mr. ‘K’alpesh Patel & Mr. ‘K’alpesh Shimpi of the society who had worked very hard and still working harder to achieve their goal.

As PMC, we come across many societies in Mumbai whose mindset is such that in redevelopment, they should get everything for free. The society members think that why they shall pay for their own Fungible FSI without understanding the real fact of unviability of the project. Due to their such mindset today also many fly-by-night developers take benefit of it and give false promises by giving such an offer  which is not viable. Thus it is very difficult to explain all members who argue that if these developers can offer such offer, why our project is unviable. But they don’t understand the fact that many such developers have fled away over night in last 5 years and those projects are still stalled.

But in Om Rameshwar CHS, the 3K’s understood their own problem and trusted their PMC, Toughcons Nirman Pvt Ltd. that their project is unviable through developer. Hence they left with 3 options, either to spend heavy expenses on repairs and survive for 2-3 more years without any benefit, or don’t spend anything to wait for the building to become more old and get it dilapidated one day or last option was to do self redevelopment by contributing for purchase of their own additional area. As PMC, we guaranteed them that if they manage for only 20% of their project costs, the rest can be taken care with booking from sales proceedings.

Apart from contributing for compulsory Fungible area, Many of the society members agreed to purchase additional area as it was one time opportunity for them to add additional area to their existing flat. Thus the society members willingly came forward and contributed 100% down payment by purchasing additional area over and above compulsory purchase of Fungible FSI.

As PMC, in many societies, we face only one statement that self redevelopment through self funding is not possible in our society because majority all our members are senior citizens. But answer to all these societies is that majority of these society members are also senior citizens and still they succeeded over all odds.

One stop professional services provider cum PMC, we have successfully obtained IOD with full FSI loaded by availing premium discounts. Today on the bhumi pujan day, they have managed enough funds which can take care of their construction cost and rent for one year. They will get their bigger house in their proposed 12-storey building which will be ready in next 18 months.

Many a times, society who wish to take self redevelopment face challenges within their inside members but at Om Rameshwar society, all the members trusted and stood strongly behind the decisions taken by 3K’s which was the key to their success of self redevelopment. The society today is proud to announce that their self redevelopment project will be in true sense a self redevelopment as it is self financed also.

Om Rameshwar society members are also aware that in future, still there will be lot of challenges but now they are confident that they have put first step right and their base is strong so any hurdle which may come in future can be handled smoothly with the help of their PMC Toughcons Nirman Pvt. Ltd, their professional team & Multi Global Projects, their construction contractor.

Om Rameshwar society building was constructed in 1965. Over the years, the building was repaired for leakages and plastering. In 2020, the 21 flat owners and 5 shopkeepers decided to redevelop their three-storey building themselves and passed a resolution. The society will redevelop the property into a 12-storey tower with 42 flats, 3 commercial offices on 1st floor and 6 commercial shops on Ground floor.

With thousands of families left in the lurch by fly-by-night builders, a new model of AATMA NIRBHAR REDEVELOPMEMT implemented by Om Rameshwar society has emerged success with the help of Project Management Consultants, Architects, Professionals, Construction contractors and others taking full responsibility for successful execution of such projects.

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