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Sravan Kumar   27 February 2022

Request guidance on hybrid maintenance model - how to breakthrough traditional fixed or per sqft

Dear Esteemed Legal Advisors,
We, Ramky Apartments in Hyderabad is a newly formed Residents Welfare Association.
There are total of 360 flats, Out of which
116 Flats of 2BHK   - 1168 SFT - i.e. ~ 26% of total undivided area.
 94  Flats of 2.5BHK - 1368 SFT - i.e. ~26% of total undivided area.
150 Flats of 3 BHK  - 1620 SFT - i.e.  ~48% of total undivided area.

Our Association is newly registered and has decided to implement per SQ.FT maintenance model.
We, 3BHK residents are opposing right from the beginning on SQ.FT Model, as
Common purpose usage/expenses/amenities like Security, Lifts, Facilities Management, Common electricity, Gardening etc. should be charged equally for all. 
Whereas, Water, DG Power Backup, STP etc should be on per SFT basis
(considering opportunity of usage).

For the amenities/facilities which are common for all, Why there should be a burden for larger flats? 
As the common facilities are used by all, there should be Common maintenance fee for all such Cost Heads.

Hybrid approach:
1.Equal Maintenance Rates for all common purpose use like Security, GYM, Facilities Management, Common Electricity, Lifts etc.
2.Secondly, Water DG Power Backup, Building funds/sinking funds if any in future should be Per SQ.FT wise
Overall, the maintenance model should be sum of both 1 & 2. 
Out of 360 Flats, all the 3BHK owners i.e. all the 150 flat owners declined the Per SQFT model 
and shared our proposal of HYBRID model to association.

The most common argument is 
a. Most communities are following Per SFT model and why should we follow Hybrid.
b. Undivided Land share is more for 3BHK. 
As a 3 BHK, Our response is 
Having Monthly Fixed Maintenance for all flat variants is unfair as well as per SQFT maintenance.
i. Proposing Hybrid because, No One should be paying more or less - Pay as per the consumption and opportunity of usage. 
ii. If the Undivided Land share is more for 3BHK, the same extra land/area is shared, used and ENJOYED equally by all variants of flats. 
Also, for that matter the Corpus fund paid is more in which case the Interest earned/contributed is also more.

There were several discussions with Association, letters &emails, internal subcommittees between 2, 2.5 and 3bhk, 
However, the 2BHK residents are adamant towards the Hybrid model
and the association is inclined towards the 2BHK and proposing per SQ FT model now. 
Most of the 2.5 BHK owners are nuetral. 

Are there any gated communities as per above model/Hybrid Model?
How should we, the 3BHK owners take it forward further to implement HYBRID model?
And What should be our approach?

Note: Our Bye-Laws are not yet registered and none of the 3BHK owners are accepted/signed so far.

Thank you!

Sravan
 



Learning

 7 Replies

Dr. MPS RAMANI Ph.D.[Tech.] (Scientist/Engineer)     27 February 2022

This is a difficult question to answer. In Mumbai there are Model Bylaws for co-operative societies. The Model Bylaws give in detail how each item of expenditure is to be shared among members. Some are based on per sq.ft,, whereas others are to be equally shared. In Tamilnadu there is Tamilnadu Ownership Flats Act. According to the Act all expenses are to shared on per square foot basis. You find out whether there is any law in this matter in Telengana and follow that. If you do not have all you members have to come to an understanding and adopt that. It is difficult to have unanimity in this matter. If you decide by voting, you will have to first decide whether voting rights would be equal or to be based on sq.ft.

1 Like

Sravan Kumar   27 February 2022

Thank you for taking time and sharing your thoughts on this.  I have read the "Model Byelaw of the Telangana Mutually Aided Cooperative Housing Society Ltd., Hyderabad under MACS Act, 1995" and "BYE-LAWS OF ______________ FLAT OWNERS CO-OPERATIVE MAINTENANCESOCIETY LTD., UNDER TCS ACT, 1964"  there is nothing as such regarding maintenance or how maintenance should be collected.  

I was just browsing the https://mysocietyclub.com/bye-laws/maharashtra-cooperative-housing-society-bye-laws/society-other-fund-creation - For some of it, it is clear.  But, for maintenance it states like (Security, Housekeeping etc) is decided by General Body.

Can you shed some more light on this?  

Dr. MPS RAMANI Ph.D.[Tech.] (Scientist/Engineer)     28 February 2022

Secrurity and house-keeping will come under 'service charges' as they will be mainly salaries of personnel. Service charges are to be shared equally by all members irrespective of the size of the flat. Please let me know if there is any other specific thing not covered by the Model Byelaws of Maharashtra.

Sandip Das   08 February 2023

We are a newly formed society at Hyderabad, Telangana and have a similar problem as mentioned by shravan at Ramky Apts, Hyderbad. Our Association is newly registered and has decided to implement per SQ.FT maintenance model. However we want to implement the hybrid model. Any suggestions . Please guide. Thanks

Dr. MPS RAMANI Ph.D.[Tech.] (Scientist/Engineer)     16 February 2023

Whether you follow the per sq. ft model or the so called hybrid model it will be opposed by those adversely affected and you cannot decide the question based on majority vote at the GB meeting. The decision must be imposed by an external authority like the Government. In Maharashtra the so called hybrid model is prescribed under the Model byelaws and it is accepted by everyone. In Tamilnadu all expenses were shared on a per sq.ft. basis under the Tamilnadu Ownership Flats Act, 1994. Now I understand that the act has been repealed and a new act has come into force. I do not know what is the formula. Income-tax is levied by the Government based on the income of the person. But all have equal right to share the benefits even if they do not pay income tax. Vehicle tax are levied on vehicle owners and they use the public facilities more than those who do not own any vehicle. One can go on arguing this way. Only an external authority can decide. Is there a Telengana Ownership Flats Act ? What does it say?

trivikram rao (Private employee)     23 November 2023

The Maintenance is not for the flat and it is for the common area and the Undivided share in common area is the basis for common area maintenance

That apart, In terms of the Telangana Apartments (Promotion of Construction and Ownership) Act, 1987, the society have to levy proportional maintenance charges in accordance with the size/area of the flat(s) held by it's members.

Dr. MPS RAMANI Ph.D.[Tech.] (Scientist/Engineer)     23 November 2023

Larger flats occupy larger border wall area of flats than smaller flats. Hence it can also be argued that larger flat owners have to pay higher maintenence cost. This is not something that can be decided by arguements. If the Telengana Act prescribes proportional charges, follow it.


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