TNHB to undertake redevelopment projects

Chennai

The spurt in redevelopment of housing board projects across the city has taken a new twist with the housing board itself taking on the mantle to develop residential complexes. So far, private developers have clinched joint development deals with the resident associations. An estimated 10 projects across the city are under development while others are under varying stages of negotiation to arrive at mutually beneficial formula.

For the first time, the Tamil Nadu Housing Board itself has been approached by the people in Coimbatore to undertake development on their behalf. The TNHB is planning to take up the redevelopment of housing board tenement in Singanallur on a 12 acre land comprising 960 units ranging in size from 260 sq ft to 450 sq ft.

In Chennai alone, the TNHB had developed over 1000 acres of land over a period of three decades and most of the units are now awaiting an opportune moment for redevelopment. It is a Herculean task to bring all the apartment owners to the negotiation table as it took many years for the private developers to clinch deals, according to industry sources who have been monitoring the redevelopment for several years now.

While the strategic locations prompted private developers to undertake redevelopment, the warring groups and the stringent conditions imposed by the existing owners eluded a final solution in many projects, say industry sources.

The redevelopment got a boost due to enhanced FSI eligibility as a result of the liberalised development control norms in the second master plan. When the TNHB took the development years ago, the FSI was less than 1. Now the second master plan enables them to get increased FSI ranging from 1.5 to 2.5 depending on the road width, plot area frontage, etc. As a result of the redevelopment, the owners will be entitled to get extra built-up area at competitive prices.

The development by TNHB itself will generate more confidence among existing flat owners. In the changing scenario, the TNHB is keen to introduce modern amenities in keeping with the changing times and the growing needs of households. Besides, the board is also keen to enhance the quality of construction with the availability of a wide range of building materials at competitive prices, according to official sources.

The board is also keen to pay the rentals during the reconstruction period for all the flat owners just like the proposals being implemented by the private developers. In addition the TNHB is exploring the possibilities to develop the units through PPP model.

The redevelopment exercise by TNHB itself will be in direct competition with the private developers who have already stuck deals with associations in select projects in city areas. There has been mixed reaction to the joint development exercise with some land owners stuck with private developers over the inordinate delay in completing the project on time. But, TNHB’s initiative will herald a new era and people may feel more comfortable to deal with government agencies as it is a win-win situation for both. According to official sources, the response so far has been overwhelming from the housing board flat owners across the state.

V Nagarajan, Property Consultant

Source: http://content.magicbricks.com/tnhb-to-undertake-redevelopment-projects