FLAT OWNERS WELFARE

FLAT OWNER’S WELFARE ASSOCIATION – MEMORANDUM-
A MODEL AGREEMENT

Prepared by Dr. Sreekumar Menon


LIVING IN FLATS -Foreword


Living in Flats has certain advantages compared to living in Independent villas in cities like Bangalore. Life and property are safer in Flats, as 24 hours security staffs are on duty. Residents in Flats can enjoy more facilities and amenities, because of common sharing of costs such as Lifts, backup Generator, cheap water supply etc. at much lesser costs than is possible, if they were to meet expenses individually. So they enjoy more comfort spending less. Another great advantage is scope for social life. As people are living under the common roof, they are able to lead a better social life and that mutual help is made available. In cities, where the next door neighbors are often strangers, Flat life is a boon in this respect. What is said is one part of the story or one side of the coin. There is another part or another side to it.

Along with the above advantages, people have to adjust to each other; for enjoying the kind of freedom, they can enjoy in an independent house. They should refrain from acting in such a way that it is disturbing to others who live in the same flat. Again, Flat Administration should be proper and effective, if the Residents were to derive the benefits of Apartment life or if the Residents were to enjoy the amenities provided and to be really happy with their life in the Apartments.

Framing of proper rules, regulations and guidelines in the Administration of Flats and their implementation in its proper spirit are essential if Residents want to reap the benefits of living in Flats.

With this end in view a highly democratic and development type of committee structure and function called as Flat Owners Welfare Association – Memorandum has been worked out carefully. Apartment Residents should be able to enjoy the full benefits which Apartment living can offer to them, if they adopt this scheme.

FLAT OWNER’S WELFARE ASSOCIATION – MEMORANDUM OF ASSOCIATION

1. Name of the Association.

1. Registered Office.

1. Aims and Objectives


2. To ensure marketable titles of the Building complex by procuring the necessary documents such as the Building Plan approved by BMP, Sanction letter and other legal clearance such as certificates for lift, certification for the Generator from Pollution Control Board etc. That is meeting legal requirements pertaining to Building complex and other facilities.


3. To manage, maintain and regulate the proper use of common shared areas and the facilities / amenities provided such as Housing keeping, that is keeping the common areas neat and tidy, Elevator facilities, Electricity system including lighting in the common areas and the car park and maintenance of water supply and Tube well, Motor and Pumping Mechanism, Generator running and maintenance, Collection of Garbage from individual Apartments and safe disposal.


4. To pay taxes / levies to the Government applicable to whole Building and common areas except individual Apartments and those applicable to other Services like Electricity charges f0r operating lift, Generator, common lightning etc.


5. To provide round the clock security to the Residents and their property by posting security staff.


6. To ensure safety of the Building Complex by insuring the Building Complex against natural and man made hazards such as Insuring the Apartment Complex, installing Fire Extinguishers and by enforcing safety regulations in matters of handling hazardous materials such as L.P.G. Gas, Prohibiting storage of inflammable materials in individual Apartments, checking electrical wiring to prevent short circuiting and consequent fire hazard, training security staff in the use of Fire Extinguishers etc.


7. To provide for regular up keep, maintenance, repair, replacement of parts of equipments, periodical white washing and painting interiors of common areas and exteriors, to maintain the look of the Building; to maintain Garden availing the Services of the Gardener, if budget permits.


8. To plan and implement developmental activities which are in the nature of adding to existing facilities, improving upon the existing facilities, as found appropriate from time to time.


9. To generally look after and be responsible by consulting Residents on matters of interest to them, to protect their rights and ensure their welbeing and enforcing their respective obligations/duties as responsible Residents and towards the welfare committee and towards each other.


10. To liaise with outside Agencies such as BMP, BSSW, BESCOM, Telephone Companies Cable T.V operators and so on matters having bearing on the administrations of the Apartment Complex and individual Apartments.


11. To Frame rules, regulations and bylaws, found necessary for orderly and efficient functioning of the Flat administration.


12. To coordinate with other Apartment complexes and other external Agencies when it is required for the creation of certain facilities.


13. To decide the rate of monthly maintenance charges and for levying for other sources of funds such as Reserve Funds, in consultation with Apartment Owners.


14. To provide and maintain common facilities in most economic way and build up Reserves for Capital Expenditure through extra-collection from members and investing the amount in low risk high growth instruments.


15. To promote facilities for Health, Recreation, social life, literary and cultural pursuits with in the Building Complex and to celebrate social festivals and National Days like  Independence Day and Republic Day and thus giving chance for the Residents to meet each other and develop fellow feelings .

To realize the above objective, a Managing Committee having two tiers have been settled and the activities which it would undertake have also been spelt out.

Two tiers or Types of Committees :

1. Policy Making Committee and implementation Committee.

This Committee is empowered to take all the major decisions concerning Flat Administration such as fixing monthly Maintenance, levying money for annual Repair and Maintenance of the Building, Capital expenditure, Creation of new facilities etc. Here, Managing Committee referred to above is the Policy making Committee and implements those decisions which have long term implications. . Only owner members are eligible to serve in this committee. This Committee will consist of three Owner Members. Serving in this committee is mandatory for all the Owner Members. They serve in turn .The names of persons to serve in this Committee are chosen by lot, if the Members do not volunteer to serve in the committee. Those members will elect among themselves President, Secretary and Treasurer.

1. House Keeping Committee

This Committee discharges the function of Day to Day house keeping functions. This committee consist of President, Secretary and Treasurer and another two members are elected/selected by Residents among themselves. This Committee allows participation of Tenants in the day to day management of House Keeping functions. Tenants get chance to give their views and opinions regarding how satisfactory are maintenance functions and what can be done to make it better from the point of view of satisfaction of Flat users.

Though Tenants can choose their representatives to this Committee they do not have voting rights in selecting Members of the Managing Committee. Both Managing Committee and House Keeping Committee should meet atleast once in a month. General Secretary should prepare Agenda for the meeting, in consultation with the president and circulate it in a notice including the minutes of the previous meeting atleast 4 days prior to holding meeting. All the office bearers are expected to read the Agenda and prepare themselves for meaningful participation in the meeting. The quorum for Managing Committee meeting could be 3 and that for House Keeping Committee, 4.

As far as possible, decisions should be agreed by all. In cases it is not possible, the issue is to decided by simple majority vote.

Powers of Office Bearers

1. President

President will have overall control of Maintenance Administration of the Association. Generally, he should be a person with good knowledge in technical matters related to Building construction, utility services, legal and administrative matters pertaining to ownership of Flats ,  having ability to liaison with Government and other Agencies ,  having Planning and Administrative Skills and should be sociable with people. He should be able to speak fluently in a language such as English, a language which is understood by all the Residents. He should also have interest in social service and should be friendly with people. He should be able to take quick decisions and implement them speedily.

He will have to represent the Association for all legal actions to enter into contracts or pursue legal action to safeguard the interest of the Association. He is authorized to sign all necessary papers and documents. He is indemnified against risks or lose to the Association that might happen, in spite of his best efforts and actions in good faith.

In his absence, President can authorize any other members of the Executive Committee to officiate, in consultation with the members of the Executive Committee.

2. Secretary
He will implement the decisions of the Executive Committee and discharge day to day administrative Activities of the Association, under the guidance and general supervision of President. He appoints Employees such as Security Staff, Housing Keeping Staff, as approved by the Managing Committee and supervise their work to meet the expected standards. He is authorized to incur expenses not exceeding Rs.________ towards house keeping expanses, without prior approval of the Managing Committee. He ensures regular collection of Maintenance and other levies and can impose penalty for delayed payment or non-payment.

Person to be elected to the post of General Secretary should be friendly with people, should have interest in rendering Social Service and should carry out tasks by considering the views and opinions of the Members, who are affected by his actions.

He should not act what he personally thinks right, without consulting people and in such a way that the Members feel that he is not acting in the common interests. He should be soft spoken and approachable. He should be able to speak fluently and clearly. He should possess administrative skill. He should be objective in what ever he is doing.

He can hold a petty cash account not exceeding Rs._________ with him for incidental expanses. However, this cash balance is to be incorporated in the Treasures Account.

1. Treasurer

He is in the custody of all properties of the Association including Funds. He should maintain a Asset Register and enter all the properties of the Association in detail in it. He should keep it up to date. He should keep the Accounts as per the standard Accounting procedure adopted and such that it meets annual auditing requirement. The person who holds Treasurer’s position should have interest in maintaining accounts or should like to work with numbers and should be prompt and systematic in preparing accounts.

He is empowered to operate Bank Accounts of the Association jointly either with President or Secretary, Preparation of statements of Accounts including Annual statement is his responsibility. He may have to present financial picture to Managing committee as and when it is required.

The Representatives of the Tenant Members are also expected to look after some specific Functions such as overseeing functioning of lift and Generator, lighting arrangements and House keeping.

The term ‘Owner’ stand for the person in whose name Sale Deed is registered, and also includes their relatives like spouse, children, parents, in-laws and so on, whom the Owners authorize to represent them.

Any Member of Managing Committee absents himself / herself without the approval of the Committee / sufficient reasons, for more than three meetings automatically ceases to be the officer bearer. Any Member can Vacate his Membership position, when his resignation letter is addressed to President is accepted by the Committee.

Owner Membership
All the Owners of the apartments are to become Members compulsorily. In the case of joint ownership only one person, either the first or second person will be member of the Association. In the absence of the person who owes the Flat, he can nominate one of his close relatives fro Owner Membership.

Tenant Members
In the Flats which have been rented out, the Tenants become Tenant Members, automatically.

General Body
Authority of General Body
The ultimate authority on all matters of Flat Administration rests with General Body.

More specifically,

1. The General body frames subsidiary rules which are called Bylaws and amends existing ones, consistent with the Rules and Regulations of the Association, found necessary from time to time for effective administration of Association Mattes.


2. Examines reviews and passes Annual Accounts.


3. Examines and passes Annual Budget.


4. Conducts elections of Members of the Managing Committee and House Keeping Committee.


5. Rectifies Disciplinary Actions taken against Owner Members, Tenant Members and Office Bearers for violation Bylaws.


6. General Body has power to remove any office bearer from his position if he is found working against the interest and welfare of the Members and Flat Ownership.


7. Approves raising of and expenditure from Reserve Fund.


8. Approves expenditure over Rs.20,000/- under any head in Annual Account.


9. Fixes monthly maintenance charges, Revisions and creation of Reserve fund.

Notice
Notice for General Body / Extra-ordinary General Body Meetings to be served to the member’s minimum of 21 days in advance. For Annual General Body Meeting, audited statement of Accounts should also be made available. Along with the Agenda for the meeting. Notice to the members to be sent in writing in Delivery Book and receipts to be acknowledged. Notice to the Members staying outside and out of Bangalore, is to be mailed by post or the massager to be transmitted via E-mail. Members are to be informed for acknowledging the receipt of notice for General Body Meeting.

All the Members are expected to attend the Meeting and take part in the deliberations and help to conduct the proceedings in an orderly manner. The Members who are unable to attend the meetings are expected to keep the Managing Committee informed.

At least 25 percent of total members should be present to meet the requirement of quorum. If the Members present fall short of that number, the meting is to be adjourned to a later date. If in the second meeting also, if the quorum is not met, the Managing Committee can conduct the meeting and take decisions. The decisions taken will be considered as reflecting the consent of all the members. If the meetings consistently fall short of required number of people, the members are to be reminded of  their responsibility to attend the meetings. If the orderly, peaceful and productive ways of conducting meetings are disturbed by members, they are to be reminded of the need to conduct themselves as responsible members. If they don’t heed, the other members of the General Body is expected to invoke what ever sanctions they think fit, against those erring members.

The President of the Managing committee who presides over the meeting and other members of the Managing Committee who share in organizing General Body Meeting are excepted to give enough opportunity to the Members to express their views, without cutting them short or imposing their views using power of their positions. Similarly, the members should say whatever they want to say without offending others. Enough opportunity should be given by all for the emergence of common views and agreements in the discussions. Members should accept the views and opinions commonly expressed and not try to be argumentative. In other words, the so called “Problem Solving Approach” should be adopted in all meetings.

The following are the sources of Funds for Association Expenses

1. Admission Fee paid by every Member.


2. Monthly Maintenance Fees, as fixed.


3. Interest from Bank Deposits


4. Any additional collection for Developmental Work and Revenue as approved by General Body.

An Admission fee of Rs.500/- Payable by every Owner member at the time of enrolling as the Owner Member. A monthly maintenance charge as determined by General Body from time to time should be paid by Owner Member / Tenant Member regularly every month in advance with in 10th of that running month. It is the final responsibility of the Flat Owner to pay the monthly maintenance charges. However they can arrange with his tenants to pay. If the Tenants default payment, the Owner of those Flats, rented out are to be held responsible. For delayed payment, some interest on the amount as decided by General Body may be charged for various periods. If payment is pending for a long time, General Body can impose other sanctions like cutting water supply. The power to impose such sanctions will vest with the Managing Committee. The Owner Members agree for such actions, as such it will be considered legal and no dispute arising out of that can be brought to court of Law. Out of the funds collected, a part should be kept as a Fixed sum, as decided by General Body as Reserve Fund for meeting Capital Expenses for creating new facilities , long term recurring expenses like Maintenance of the common Areas and Exteriors of the Building Preventive Maintenance of Elevators, Generators etc., payment of annual Taxes to the Government Bodies etc. Rest of the money is to be kept in the General Fund for meeting day to day and monthly recurring expenses such as staff salary, purchase of materials for House Keeping etc.

President will preside at the Managing Committee Meetings, General Body / Extra-ordinary General Body Meeting. In his absence any other Member will be asked by the President in Consultation with Managing Committee Members to preside over and conduct meetings.

The Duties and Responsibilities of Owner / Tenant Members
These have been laid down as By-laws; duly approved by General Body.

1. All members are to pay regularly and promptly the monthly maintenance charges fixed by General Body before 10th of every month. For any payment after that period, an interests of 30% per annum to be charged from the due date till the date of payment.

The fee is fixed currently as 60 paise per Sq.ft of the super built area of the Flat. Subjectto increase or decrease as decided by the General Body.

1. All apartments should be used for Residential purpose only. Car parks should be used only for parking the vehicles. Neither the Flats nor the Car parks should be used or rented out for any commercial purpose.

1. No hazardous and or inflammable materials should be stored in the Flats or in the car parking area.

1. No Flat Owner should alter the basic structure of their Flats, such as changing the positions of entrance door, windows etc which mars the original architecture of the Apartment Building.

1. All the fittings and fixtures that are there in the common areas like Name Boards, Letter Boxes, Grills, Gates etc., and the space in the common area should not be altered in any manner either by the Owners or Tenants.

1. The Managing committee at its discretion can allow to put the Names of Tenants, along with Name of Owners with their respective Flat No. on the Name Board, on the request of Owners/ Tenants.

1. No member should stick bills / notice, display advertisements on the outer walls or any other common areas nor should soil the wall. All should co-operate to keep the place neat and tidy.

1. Furniture, Empty cartons, shoes Racks, Dustbins , Flower Pots or any other objects should not be kept in the common Verandahs, staircase etc., which affect cleanliness and appearance.

1. Common areas should not be used to host private parties, congregations etc without permission from Managing committee and without seeking the consent of the neighboring flats and without undertaking responsibility for not causing disturbance to others and for keeping the place clean, after the get together.

1. Structure alteration with in one’s Apartment that affects the strength and architectural appearance of the whole Building should not be made.

1. The Flat Owners should carry out the internal maintenance work. They will be accountable for damage caused to other Flats / other parts of the building for want of timely maintenance work carried out in their Flats.

1. Owners should meet the costs of major repairs relating to lighting, water supply and sanitation by themselves including costs of materials and labour. However for minor repairs, services of the Technicians are made available free of cost by the Association.

Association will maintain in their pay roll a part time Electrician and Plumber (Sanitary Worker)

1. The car parking area should be used for parking cars or two wheelers only. The vehicles should be parked with in the parking area. The vehicles should not obstruct the free movements in the Run way and or common areas. While starting the vehicles, the engine should not be raised high causing loud sound. If the sound of high intensity is due to defective silencer which needs correction, it should be attended to. Similarly, they should also ensure that too much exhaust smoke due to poor turning of Engine is not released, in the Car Park area. Sound of high intensity is disturbing to those who stay in the Flat. Similarly Exhaust smoke pollutes the environment in the Flat and causes health hazard to the Flat Dwellers. Flat occupants while reversing their vehicles should switch off the Reverse Horn, which causes disturbance and also refrain from honking, to call security staff to open the gates, especially during night.

1. Common areas and facilities should be put to proper use. Common areas include space left on all sides of the Building, common run ways in the car parking areas, Verandahs, Staircase, Lift room etc. These areas should be available for all and no one should do anything that affects the common use. Verandahs serving on passage should be used only for normal transit through them. They should not let their children play or do cycling etc in those areas.

1. Right of Entry

• In the face of the emergency such as short circuiting, breakage of main water-pipes etc originated in an Apartment, which might affect safety of other Apartments or the whole building, if the Owners / Occupants are not available, any member of the Managing Committee can break open the lock and enter the Apartment without prior permission, in order to avert the danger. However, in  such cases, the person who breaks the lock / door open will do it in such a way that only minimum damage is caused to the door and fixtures and that the Managing Committee will get the damaged part repaired / replaced as decided by the committee or will reimburse reasonable charges for repair etc. as decided by it.

• All people other than those who stay in the Flats should enter their Names and Address, in the Visitor’s Book kept at the Security Desk; before entering the Apartment. Security Personnel can also enquire about their where about and satisfy themselves that they are bonafide visitors. If security staff has any doubt, he may allow their entry only after checking with the person/s in the Flat whom they want to meet.

Managing committee can also issue entry pass to the relatives of the families in the Flats, as requested by representative Flat Owners; in such case the responsibility is their s for any undesirable happening on account of admission for their entry in the Building.

• Security Staff should keep a Register recording all the personal details of the people including photographs like Ayahs, who come to the Building daily and passes should be issued to them. Such details should be made available to the nearest police station which comes handy when thefts etc. are to be investigated.

• No outsiders / Strangers such as Sales people, people visiting houses for collecting money for charitable purpose should be given entry into the Apartments.

Technicians who come to attend the repairs in Flats and people like L.P.G Gas delivery boys, or boys delivering provisions etc on order should be permitted entry into Apartments only after checking with the occupants of the concerned Apartment, whom they say they want to meet.

These steps are taken for ensuring safety of life and property of the flat occupants and such restrictions should not be seen as acts of curtailing freedom of the Residents. However the Security Staff is expected to be polite and decent in their dealing with these people. Any complaints regarding the behaviour of the security staff can be brought to the attention of General Secretary.

• Residents are expected to follow safety regulations in handing and use of such equipments like L.P.G Cylinder, in maintaining proper electrical circuits etc. such that no accidents which originate from above causes happen and the safety of the individual Flats and the Building as a whole are ensured.

If any such accidents occur due to negligence of safety practices by the Residents, they have to compensate monetarily for the lose due to accidents.

• During normal times also Members of the Managing Committee, whom they authorize may have to enter flats to attend to repairs of electrical, sanitary and other systems, as a part of their maintenance work pertaining to the whole building. At that time they should be permitted to enter the Flats. At the same time Managing committee should see that the Residents are not unduly disturbed. The Managing Committee Member or any authorized person should oversee the work of the person inside of an Apartment to see that the Residents are not put to unnecessary inconvenience

1. Residents should not throw Garbage through their windows towards outside. Garbage should be collected and kept in a Dustbins and should be given to Ayahs for safe disposal. It is the duty of the Managing Committee for the regular removal of the garbage from the Garbage Bin and keep the place neat and clean. Residents should not wash their sit out with water which splashes out and falls on those down below.

1. Residents should not play Radio / T.V / Audio / Video equipments in such high volume that it disturbs the neighboring Flats. Similarly, while cooking they should ensure that no strong smell of Masalas, non-veg. items etc. emanates, which neighboring  Flat people feel obnoxious or repulsive. In cases of such deep frying, use of kitchen chimneys is recommended.

1. Residents should use all the facilities and resources provided such as Lifts, Water etc. properly. Water for instance is a precious resource. It is not ever lasting. To bring water to house taps also costs. So it should never be wasted. Managing Committee should oversee the use of water. Water should not be used disproportionately.

The fixtures in the common areas such as lifts should be used with care, so that it does not go out of order frequently and these are kept in good shape. If any one uses these roughly and spoils he is to get it repaired or replaced as the Managing Committee decides fit. It is the responsibility of all the Residents to keep everything in the common area in presentable and good condition.

Disciplinary Appeal Committee
The Managing Committee is authorized to enforce discipline in the use of common areas, resources and facility by all Residents and they can impose sanctions. If the persons against whom the actions have taken are aggrieved, they can appeal to Policy making committee for redressal.

The Members can give suggestions for improvement and creation of new facilities to
Managing Committees. Owner members can give suggestion for actions having long term implication  which call for high expenditure to Policy making committee Both Owner members and Tenant Members can offer their suggestions for action for improvement of facilities regarding day to day matters to Maintenance Committee.  The Committee Members are expected to consider their suggestions objectively and seriously and try to implement those which are worthy of implementation. They are also expected to inform to the persons who made suggestions whether those suggestions have been considered favorably and if those are not considered favorably ,the reasons thereof.
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