How Housing Society Maintenance Charges Are Calculated: Rules Explained
How Housing Society Maintenance Charges Are Calculated: Rules Explained
Maintenance in cooperative housing societies is governed by Maharashtra law and must follow specific rules approved by members.
With the rapid growth of housing societies in cities, disputes over maintenance charges have become increasingly common. Many residents pay monthly maintenance fees but are often unsure about how the amount is calculated or what rules societies must follow while levying these charges.
In Maharashtra, maintenance collection in cooperative housing societies is governed by the Maharashtra Cooperative Societies Act, 1960 and the model bye-laws framed under it. According to these provisions, societies must calculate and collect maintenance as per rules approved by members during the general body meeting.
Maintenance is collected from each member to cover the cost of common facilities and services within the society. These include expenses related to cleanliness, security, electricity for common areas, lift maintenance, water supply systems, repairs and other shared amenities.
The law also requires housing societies to maintain written records of all expenses and inform members about how the collected funds are being used. Transparency in accounting and approval from members are considered mandatory under cooperative rules.
Maintenance charges in a housing society typically include several types of expenses. These may cover salaries of cleaning staff and security guards, electricity bills for common areas, operation of water pumps, lift servicing, gardening work, waste management, insurance of the building and administrative expenses of the society.
Apart from routine costs, societies also collect certain funds meant for long-term requirements. These include a sinking fund and a repair fund, which are used for future structural repairs, major renovation work or replacement of important infrastructure.
Generally, maintenance charges are calculated using two methods. Some expenses are divided equally among all flat owners, regardless of the size of the apartment. Costs such as security services, cleaning and administrative expenses are usually shared equally by all members.
Other expenses are calculated based on the size or area of each flat. For instance, property tax, water tax and certain repair expenses may be divided in proportion to the carpet or built-up area of the apartment. The model bye-laws allow societies to charge certain common expenses equally from all members, while area-based expenses must be calculated according to the size of each flat.
The way maintenance charges are calculated for flats can vary, but the goal is always to distribute costs fairly among residents. One common method is the per square foot basis, where charges are calculated according to the size of the flat. For example, if a flat measures 1,000 square feet and the society rate is ₹5 per square foot, the monthly maintenance charge would be ₹5,000. In some societies, a fixed rate system is followed where all residents pay the same maintenance amount regardless of the size of their flats. In addition, societies that offer premium amenities such as swimming pools, clubhouses or reserved parking may levy additional charges for using these facilities. As per tax regulations, if monthly maintenance charges exceed ₹7,500, a Goods and Services Tax (GST) of 18 per cent may also be applicable on the total amount.
Importantly, housing societies cannot impose maintenance charges arbitrarily. If the society wants to increase the maintenance amount, the proposal must first be presented in a general meeting and approved by the members.
If any resident believes that the maintenance charges are illegal or unfair, they can file a complaint with the office of the Cooperative Registrar. The matter can then be investigated by the authorities.
At the same time, the law also makes it compulsory for society members to pay their maintenance dues regularly. If a member fails to pay maintenance, the society can impose a penalty. In cases where the dues remain unpaid for a long period, the society can also initiate legal recovery proceedings under cooperative laws.
