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Maintenance fees cannot be levied by builders on affordable housing developments.

Q: What expenses are affordable housing allottees responsible for?

Affordable housing allottees are obliged to cover individual electricity and water bills, property tax (if within Municipal Corporation limits), door-to-door waste collection, garbage collection, and upkeep of each floor.

Q: What is the role of The Department of Town and Country Planning (DTCP) ?

The Organisation is entrusted with the responsibility of offering superior assistance and counsel to public sector agencies, state and central governments, urban local bodies, and development authorities regarding urban and regional planning and development.

Q: What is the Affordable Group Housing Policy?

The objective of the Affordable Group Housing Policy 2013 is to encourage the development of affordable housing initiatives that provide predetermined-term, fixed-rate apartments of particular dimensions. The intended beneficiaries of this policy are meritorious parties in the urban housing market.

February 14, 2024

4 min read

Additionally, a long-awaited clarification regarding maintenance fees for affordable housing properties has been issued by DTCP. For a number of years, maintenance fees have been a source of contention between allottees and developers. Maintenance fees are prohibited for affordable housing initiatives constructed by builders.

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Table of content

Nature of the Conflict
Issues at Hand
DTCP Directive

Finally, the Department of Town and Country Planning (DTCP) has clarified the situation regarding affordable housing project maintenance expenses in Gurgaon. Homebuyers have eagerly anticipated this clarification since March 2023, when the Punjab and Haryana High Court ordered the department to address the issue.

Nature of the Conflict

The issue of maintenance fees associated with affordable housing projects in Gurgaon has been a contentious one among purchasers for a number of years. The imposition of maintenance fees on affordable projects has been met with opposition from homebuyers. They contend that the policy, which was implemented in 2013, specified that no maintenance fees would be assessed for the first five years. In approximately 150 affordable housing projects in Gurgaon, allottees were required to pay maintenance fees ranging from Rs 3 to Rs 4 per square foot due to the ambiguity surrounding this matter.

DTCP Directive

In accordance with a recent directive from DTCP Director Amit Khatri, developers are responsible for the financial obligations associated with the upkeep of various amenities and services. On the other hand, affordable housing allottees have specific financial responsibilities related to the maintenance of their units and certain common areas.

Responsibilities
Developers	Affordable Housing Allottees
Public health services Roads Open spaces Public parks Lifts Common area cleaning Plumbing Electricity in common areas Electrical equipment in shared spaces DG sets Generator sets (excluding diesel fuel) Parking spaces Sewage treatment plants Salaries for engineering personnel and management staff	Personal electricity and water expenses Property tax (if applicable) Door-to-door refuse collection Debris collection Floor maintenance Internal maintenance to the flat Diesel expenses for backup power Electricity bills for elevators Generator operating costs Taxes levied by central and state governments

Issues at Hand

The individuals assigned to affordable projects have expressed their discontent, contending that the guidelines provided only marginal consolation to those who were enticed by the assurance of complimentary maintenance during the first five years.

Apprehensions regarding bilateral agreements
Concerns about liability for defects
Remuneration for security personnel/guards

Associations advocating for affordable purchasers demanded that the directive be executed judiciously and that any surplus funds imposed on allottees be returned expeditiously.