Sir/Madam, I own a flat in an apartment located at KPHB, Hyderabad, Telangana. It is a gated community with 9 towers and around 1200 flats with sizes varying from 616 SFT to 1780 SFT. We are in process of forming a CHS. We have prepared an estimate of complete expenses which include common electricity, security, water, gardening,AMCs,STP, WTP, DG etc.Now we are having a huge debate on what model to be adopted for maintenance charges. We are basically divided on the below 1) Equal maintenance charge for every flat with which even a 1bhk (616 sft)would be ending up paying 4000 as well. 2) Arbitrarily some 15% variation from one type of bhk to the other. I.e if 1bhk pays 3200, 2 bhk pays some 3700, 2.5 pays 4400 and 3 bhk 5000. 3) SFT model a fixed price per sft or based on the undivided share an individual gets which is strongly opposed by 3 bhk guys. Please advise me which of these models have a legal stand or approved as per Telangana ACT provided we are planning for formation of CHS. Thank You
Even as per the Apartment Ownership Act, the proper way to exact maintenance charge is to do so as per size of the flats.
So bugger the size fatter the pay cheque.
So the option 2 mentioned by you is msot logical and supported by provision of law as well.
Maintenance charges should be equal for all members irrespective of size of flat
2) however water charges should be based on number of inlets in flat
3) further insurance charges should be as flat area
You need to follow municipal maintenance model for mix sq fts flat
like equal rates for all common purpose use like security, garbage cleaner (safaiwala) common electricity, lift.
than secondly actually use purpose maintenance for water as per meter and building funds , sinking funds and what soever related towards building material repairs should be per sq ft wise.
The maintenance should be crystal clear and show all expenses columns which are equal rates for all and which are charges as per sq ft wise and than make total of per month charges.
If you want a model I can prepare for you and maintain for you on google cloud file will be kept.
1. See maintenance can either levied equally on all members or on sq. Ft. Basis legally as per the act
The society can in bye laws can agree for any one kind of the maintenance system.
Equal maintenance model is applicable
Better adopt Hybrid Method and for common area. common expenses like common electricity, audit fees, meeting charges, property taxes, lifts etc.
congratulations for making Cooperative Housing Society at the maintenance of the shoes society and you have to take wise decisions while fixing the common area maintenance charges please note that the common area maintenance charges to be made on the basis of absorption costing so you have to take the basic as the square feet area so that the people living in different size of apartments do not have the question that they are being charged extra for living in bigger apartments it will be an equitable distribution of expenses to all the apartment holders based on their apartment sizes which includes common area maintenance and common area electricity charges the entire expenses to be divided based on the entire area of the flats to arrive to per square feet rate this is very common practice adopted in most of the Cooperative housing societies
The Cooperative Housing Society at the same time make rule for the contingency expenses which are beyond the common area maintenance charges and charge some amount annually to generate a Corpus towards this contingency expenses
Dear Sir,
The following information may kindly be read:
Popular methods of calculating Maintenance charges
There are two common ways in which each housing society can decide the service charges for each member. The society is free to choose the design that suits their respective needs. The two popular methods used to calculate maintenance charges are:
Flat Wise: Flat wise service charge module calculates sum or total maintenance charge to be incurred by the society and divides equally among all flat owners irrespective of the size of the flat. This method brings a sense of fairness to each flat owner and society resident. This method is best adopted in housing societies where each flat is of the same size.
Area Wise: Under the Area Wise maintenance charge method, the total costs incurred by the society are charged according to the area in terms of per square feet owned by each member. The common areas are divided equally using a fixed rate while flats are calculated depending on the size of the apartment. For example, If acrate is Rs. 2/sqt then for 1000 sqft flats it is Rs 2000/per month and for 1500 sqft flat it is Rs 3000/per month.
Understanding Maintenance Charge Calculations
Housing societies have the option of charging their maintenance charges in either per square feet or per flat basis. Regulations in most states are not clear, but the model bye-laws of MOFA provide a simple solution. As per the Act, each housing society must follow a combination of per sq ft and per flat for various heads. There are however some exceptions as Co-operative Housing Socities (CHS) are not allowed to levy maintenance charges based on the area of flat of members under MOFA. This was clearly mentioned in the judgment following a writ Petition of Venus CHS Ltd and another, when the cooperative housing society wanted to switched from flat-wise monthly charges to area-wise monthly charges.
The Co-operative Housing Societies should charge the maintenance charges equally to all flats.
Apartment owners and tenants have to pay maintenance fee for the amenities and service enjoyed by them in their apartment.
There are different procedures or methods adopted by association or society for collecting monthly maintenance fee. Some of the important practices that are prevalent are following.
The common expenses will include the amounts determined to be payable as such by the Society or Association. It includes expenses such as expense of administration, maintenance, repair or replacement of common areas and facilities. So long as there is no dispute, any system acceptable to all the apartment owners can be implemented on the basis of agreement or consensus.
Method of calculating maintenance fee varies depending on the agreement or byelaw of association.
1. This logic of charging more maintenance from the bigger flat holders is very common accross India.
2. The is a counter logic stating that the bigger flat owners do not use more share of the common facilities. they use the same common space alongwith the members of smaller flats for which the maintenance should bve the same for all the flat owners.
3. All the flat owners shall have to amicably decide on this matter.
Hi
Unfortunately, there is No Law to regulate the maintenance fees collected by Apartment owners and presently the majority members of flat owners association decide on a model that is accepted/ consented by majority(2/3rd of flat owners).
However you can consider the following methodologies that are generally practiced at Hyderabad/Secunderabad
1) Flat Monthly Fee:
Under flat monthly fee, apartment owners association calculates sum or total maintenance charge and divides equally among all flat owners. In an apartment, there maybe flats with different sizes. Under this system irrespective of size of the flat, all flat owners will be paying equal maintenance fee.
2) Per Square feet rate:
Variable rate would be depending on square feet of each apartment or flat. Under this method, rate or fee varies depending on square feet owned by apartment owners. Larger the square feet owned, higher will be monthly maintenance fee. This is widely practiced in Apartment societies with different sizes of apartments. The general logic behind being that since you have bought the flat based of the sq. ft.area, you must pay the maintenance on the same basis.
3) Partial flat rate:
Under this method, association or society charges flat rate for a limit square feet and each additional unit will be charged extra. For e.g.: Flat owners who owns up to 1000 sqft will be charged fixed rate and for addition of 100 sqft will charged extra 2 per cent. In this case, all flat owners with 1000 sqft pay equal amount but flat owners of 1100sqft, 1200 sqft and 1500 sqft pay different amount towards monthly maintenance fee
4) Mixed approach:It’s a central approach to maintenance charging which is generally followed in apartment
societies with variable sized apartments. Here there is a per square feet charge, which is generally low. Besides, the total expenses is divided equally between the flats.
The common expenses will include the amounts determined to be payable as such by the Society or Association. It includes expenses such as expense of administration, maintenance, repair or replacement of common areas and facilities.
Hope this information is useful
Dear Sir,
My answers are as follows:
1. Equal maintenance charge for every flat with which even a 1bhk (616 sft)would be ending up paying 4000 as well.
Ans: It may not be accepted by all the inmates.
2. Arbitrarily some 15% variation from one type of bhk to the other. I.e if 1bhk pays 3200, 2 bhk pays some 3700, 2.5 pays 4400 and 3 bhk 5000.
Ans: There are other methods too.
3. SFT model a fixed price per sft or based on the undivided share an individual gets which is strongly opposed by 3 bhk guys.
Ans: It may be decided in the first annual general meeting of the association/society.
