Live in vertical slums or opt for a modern lifestyle – owners have to decide
View(s):The 10.5 acres of land on which the Bambalapitiya Flats stands on was once owned by the Catholic Church (in the 1940s). It was acquired by the government of that time (soon after independence) with plans by the Ministry of Justice to build a law complex. That was shelved and the site was handed over to the National Housing Development Authority which built the residential flats in 1956. It comprises 17 blocks, 300 apartments, 10 retail outlets and common areas. According to the Condominium Management Authority (CMA) which is driving the re-development project, more than 80 per cent of the owners back the government’s plans for re-development. To get more details of this development the Business Times spoke to CMA chairman C.A. Wijeyeweere:
- Can you elaborate on the re-development plans?
Under the CMA Law we have the authority to acquire condominiums that are over 40 years for the purpose of re-development to provide the people in these apartments a better lifestyle. The Government has taken a Cabinet decision to give high priority for the re-development project. The flat owners will be provided with luxury apartments in the same premises without any cost to them. The valuable site has been earmarked as a high-yield urban block and will play a crucial role in the planning and development of the city. These old flats are 60 years old and to remain without re-development will turn out to be vertical slums in Bambalapitiya and the heart of the city. These flats are beyond economic repair. Some of them facing the sea are in a poor state. The reinforcement of concrete slabs is corroded and roofs decayed. Some occupants run a great risk with most of the buildings not conducive for human habitations. In terms of the law, the management corporations have failed to insure the flats against any forms of disaster.
- What will happen to the people living there?
There are 298 flat owners and 10 shop owners. They have two options. Firstly each flat owner is offered a luxury flat at no cost to them in the same premises with all modern facilities. The second option is for the flatters who are interested in selling their flats or the apartments can get the value of the unit they own as per the determination of the government chief valuer and vacate the premises he owns. All parties will have to vacate the premises after signing an agreement with the NHDA and after obtaining a shifting allowance.
- Where will they be relocated during the re-development?
All those flatters willing to accept a flat will be provided with a decent rent allowance until the completion of the relocation tower within the premises. They can find alternative accommodation during the construction period. This rent will be more than the prevailing market rental rates. Two years of the agreed rent will be provided upfront, no sooner the agreement is signed.How many towers will be built and what is the time frame for the re-development?
Around 2000 people will be accommodated in seven towers (including one only for current owners). According to the developer, the time frame will be between 36 to 42 months. UTI Global Projects Singapore and Engineering Projects India, a company of the government of India, are the investors and developers. Their credentials have been verified by the Board of Investment.
- What will be the cost of re-development and who will bear the cost?
The cost of re-development will be around US$100 million I believe. The developers will bear the cost.
- Are the residents keen on the re-development?
Of course. Out of 308 owners, 80 per cent are in favour. However a small number with vested interests are against it. Most of those who oppose are tenants and unauthorized occupants, not owners. Some of these people have built unauthorised walls and acquired common areas and amenities owned by the flat dwellers. Simply speaking they are violators of the law and harassing the majority of the legal owners. Some of the unauthorised occupants, by the use of force are holding office in the Welfare Society and pressurise the elderly owners to go against re-development.
- Where does the project stand right now?
The latest is very encouraging. The developer under the directions of the CMA has agreed to include proposals received from the owners to the proposed plan. This is mainly with regard to apartment sizes, revision of the rent allowance and other facilities to be provided. On the owners’ request, the developer has also agreed to reduce the height of the relocation tower to about 30 floors above the parking area. We will call members of each management corporation and present the revised proposal to them so that they can accept or reject it. The majority decision will be implemented and owners will have to sign a MOU and agreement with the NHDA. The developer has also agreed to deposit Rs.100 million for a maintenance fund and a further sum of Rs.50 million for the sinking fund. In addition an income earning project will be worked out to reduce the burden of maintenance by the management corporation. At present almost 80 per cent of the owners are looking forward to a modern apartment. -(Alvin)