REDEVELOPMENT OF CESS STRUCTURE / MUNICIPAL ACQUIRED PROPERTY REGULATION 33(7) OF DCPR 2034
What is DCR 33(7)?
Redevelopment of Cessed Properties in the Island City of Mumbai.
What is the essence of DCR 33(7)?
  • • The concept of cross-subsidy
  • • New, bigger, hygienic homes for existing tenants
  • • Increase in Housing stock of Mumbai
  • • A win-win situation for all stakeholders
Inception of DCR 33(7)
1) The Problems prior to DCR 33(7) :
- Existing cessed buildings
  • • Getting old and dilapidated - Fire hazards
  • • Unsanitary and unhygienic
  • • Prone to collapse in monsoons
  • • Inefficient planning and lack of basic amenities such as lifts.
- Landlords
  • • Got very poor rent compared to outgoings such as property taxes and repair cess bills.
- Tenants
  • Unwilling to repair buildings which did not belong to them.
  • • Large families living in cramped rooms.
- FSI Permissible
  • • FSI in City was only1.33 which had already been consumed in most Wards
  • • Most existing buildings in City Wards had in fact consumed more than 1.33 FSI, sometimes up to 3.00 and 4.00 FSI
The Need for DCR 33(7):
  • • The housing problems of Mumbai needed to be addressed urgently
  • • Redevelopment was NECESSARY
  • • Till then, the D.C.Rules had fixed FSI, which were meant for a different time and age.
  • • Revolutionary thought in DCR 1991 included Regulation33(7) – specifically for the tenanted chawl / cess types of buildings
  • • For the FIRST TIME, Additional FSI (more than 1.33) was considered, as an incentive; to subsidize the cost of construction of the existing Building / chawls
  • • The earlier CHAWL system housed one family in one room and kitchen, which doubled as a shower. Water closets were common for the entire building
  • • DCR 33(7) ensures that each tenant gets a modern hygienic apartment of minimum 300 sq.ft. with one room, one kitchen and an individual water closet, on ownership basis, free of cost!
3) New Horizons, New Beginnings :
  • • For the FIRST TIME, Additional FSI (more than 1.33) was considered, as an incentive; to subsidize the cost of construction of the existing chawls.
  • • This new rule made it possible for AUTHORIZED tenants, of CESSED buildings to get permanent new houses, free of cost.
  • • The earlier CHAWL system housed one family in one room and kitchen, which doubled as a shower. Water closets were common for the entire building.
  • • DCR 33(7) ensures that each tenant gets to own a modern hygienic apartment of us minimum 300 sqft with one room, one kitchen and an individual water closet.
Map of cessed buildings in Mumbai Island City

Source : http://103.23.150.206/mhada.html

Mumbai Building Repairs and Reconstruction Board (MBR&R) Cess Building Database website

WHAT IS REDEVELOPMENT
Redevelopment is the process of demolishing existing old society-building and reconstructing it by appointing a good developer who can construct and handover new flats to the society members free of cost with some additional benefits and make profit by utilizing balance plot potential by constructing additional flats and shops as per approval from M.C.G.M.
ADVANTAGES OF REDEVELOPMENT OVER REPAIR
Today the societies are opting to go for redevelopment than repair for the following reasons :
Repairs Redevelopment
  • • The repair work can increase life of the building by 3 to 4 years and the problems can reoccur after few years. Redevelopment gives a new building for which no major repairs required for longer period.
  • • The old buildings are designed with old construction norms and hence cannot withstand with new climatic and geographic conditions. New building is constructed with new construction norms and hence can withstand with new climatic and geographic conditions.
  • • For repairs members have to spend money. In redevelopment, members get Benefits in terms of money as well as additional area.
  • • In old building, the steel inside concrete beams and column starts corroding after 15-20 years which cannot be treated in repairs. As the building is new this issue does not arise.

Thus in redevelopment, the members get new fresh building + additional area + monitory benefits without spending any money from their own pockets.

New Horizons. New Beginnings
  • • For the FIRST TIME, Additional FSI (more than 1.33) was considered, as an incentive; to subsidize the cost of construction of the existing chawls.
  • • This new rule made it possible for AUTHORIZED tenants, of CESSED buildings to get permanent new houses, free of cost.
  • • The earlier CHAWL system housed one family in one room and kitchen, which doubled as a shower. Water closets were common for the entire building.
  • • DCR 33(7) ensures that each tenant gets to own a modern hygienic apartment of minimum 300 sqft plus 5% additional carpet area + 35% Fungible with one room, one kitchen and an individual water closet.
Buildings Eligible for 33(7) scheme
  • • When any building is being charged the CESS TAX, the age of the building decides the CATEGORY of CESS of the building.
  • • When cess has been paid for a tenanted building, the proposal becomes eligible for redevelopment under DCR 33(7).
  • • Cess Category A, B or C= Building built prior to 1969
  • • Non-Cessed Category = Building built after 1969.
What does DCR 33(7) say?
  • • Every Residential tenement is entitled to a permanent re-accommodation of Min 300sft (Carpet) and Max 120 sq mt (Carpet) for incentive cases and no upper cap for 3.00 FSI.
  • • Every Non Residential tenement is entitled to permanent re-accommodation of the carpet area that they enjoy in the old building (irrespective of size)
  • • All tenancies that existed prior to 1995 are authorized. Any additional tenancy created post-1995 is NOT authorized.
What is Permissible FSI in DCR 33(7)

In DCR 33(7) cases, the permissible FSI is calculated as follows:

3.00 FSI on Gross Plot Area OR Area Required for Rehabilitation of existing tenements + Incentive FSI*** WHICHEVER IS MORE

  • *** Incentive is based on no. of plots under redevelopment
  • • 50% Incentive for Single Plot
  • • 60% Incentive for composite development of 2 to 5 nos. of plot
  • • 70% Incentive in case of a composite development of more than 5 plots.

So what we are in effect saying is that in DCR 33(7), the FSI is UNLIMITED.

Evolution of Regulation 33(7)
Procedural Safeguards for DCR33(7)
  • • 51% of tenants (by number) have to be agreeable for redevelopment with a landlord/developer of their choice.
  • • Application for redevelopment has to be made to MHADA.
  • • Post tenant certification by MHADA Engineers, the proposal is presented to the MB R&R board, who is the authority to approve the same.
  • • After receiving the MHADA NOC, a regular proposal has to be submitted to Building Proposals department of MCGM

In spite of additional FSI being available for cessed building, why have only 3500 buildings got redeveloped in 23 years?

Several Reasons:
  • • Difficulty in getting 51% consent from tenants.
  • • Plot sizes were too small.
  • • Developers found it difficult to operate at cramped sites.
  • • With the available permissible FSI, the projects were just not economically viable.

To incentivize the developers, several sops were offered.

Perm. FSI for 33(7) proposals has increased over the years.:
  • i) what started out as 2.00 FSI (1991)
  • ii) became 2.50 FSI, (amended in 1994)
  • iii) was increased to 3.00 FSI (2011)
  • iv) With Fungible FSI, perm. Was now 4.05
The government realized that this was necessary, because proposals were just not economically viable, till entire permissible FSI is consumed since cross-subsidy is the ESSENCE of DCR 33(7).
The normal DCR Regulations were diluted for 33(7) proposals:
  • i) Required open spaces were reduced.
  • ii) Required R.G. was reduced.
  • iii) Room dimensions were permitted to be non-standard.
  • iv) Fire norms were diluted.
  • v) Open Space Deficiency is permitted.
  • vi) NOC from the Heritage Committee is not necessary.
  • vii) The list is exhaustive

All this, simply to give an impetus that is badly needed to encourage all stakeholders to opt for redevelopment under DCR 33(7).

Since MOST cessed buildings of the island city of Mumbai STILL need to get redeveloped, a certain amount of compassion and large-heartedness by way of granting approvals is necessary.