Redevelopment
While the traditional redevelopment methods like:
Developer-led Redevelopment
Where the society appoints a developer who invests his funds into the redevelopment project and takes his profit after giving extra area, rent/shifting/ brokerage charges and corpus or hardship allowance to the existing members.
Self-Redevelopment
Where the society under the guidance of Architect/Consultants decides to redevelop their society by generating the funds by themselves through self-funding or by taking loans from Mumbai District Co-op Bank.
Society or consultants manage their funds and in turn, they get extra area and surplus amount (saving after selling the additional flats).
SCS introduces an innovative and empowering approach – The Development Management Model.
Comparison of Development Management Model vs Redevelopment vs Self-redevelopment
| Activity | Redevelopment | DM Model | Self-redevelopment |
|---|---|---|---|
| ACTIVITIES | REDEVELOPMENT | DEVELOPMENT MANAGEMENT (DM) MODEL | SELF-REDEVELOPMENT |
| APPOINTMENT OF | Developer | DM Partner | Self-redevelopment Consultant/Architect |
| CONTROL OF | Developer | Society | Society |
| DESIGN/EXECUTION ASPECTS | Developer, Society is not fully aware | Society is aware of everything | Society is aware of everything |
| RESPONSIBILITIES | Developer | DM Partner | Consultant to some extent & Society |
| FUNDS GENERATION | Developer | DM Partner | Society, with the help of Consultant |
| FUNDS ACCOUNTING | Developer | DM Partner transparent with Society | Society appoints a CA/Financial consultant |
| BUSINESS MODEL | Developer Invests | DM Partner takes Fees | Fees to various Consultants |
| PROFITS | Developer | Surplus to Society | Surplus to Society |
| FUNDING OPTIONS | Developer's Credit/his self funds | Banks, NBFCs, AIFs, HNIs, other personal sources | Mumbai District Credit Coop Bank (MDCC) |
| EASE OF REDEVELOPMENT FOR SOCIETY | Easy, but no incentives except extra area/corpus/rent etc | Easy, and can get surplus funds, in addition to more extra area than developer | Difficult, as dependency on inexperienced society members |
| APPROVALS/ PERMISSIONS | As per Developer's wish | To be decided jointly, interest on funds to be considered | 100% in advance, more interest to be compulsorily paid |
| FEES TYPE | No fees, but profit belongs to the Developer | Moderate Fees after all expenses in Project account, balance to the society | Less Fees after all expenses in Project account, balance to the society |