Understanding Non Occupancy Charges in Cooperative Housing Societies

Cooperative Housing Societies (CHS) are a common form of housing in many parts of the world, particularly in India. These societies are governed by a set of rules and regulations, one of which pertains to non-occupancy charges. Non-occupancy charges are fees that are levied on members who own a flat in the society but do not reside in it. This article aims to provide a comprehensive understanding of non-occupancy charges in Cooperative Housing Societies.

What are Non-Occupancy Charges?

Non-occupancy charges are fees that a Cooperative Housing Society levies on a member who owns a flat but does not reside in it. These charges are typically imposed when the flat is rented out to a third party. The rationale behind these charges is to compensate the society for the additional burden on common resources and amenities caused by the non-member occupant.

How are Non-Occupancy Charges Calculated?

The calculation of non-occupancy charges varies from one society to another, as it is determined by the society’s by-laws. However, according to the model by-laws of the Cooperative Housing Societies, the non-occupancy charges cannot exceed 10% of the service charges (excluding property taxes). It’s important to note that these charges are not applicable on maintenance charges, repair fund, sinking fund, car parking charges, interest on default charges, or any other charges.

When are Non-Occupancy Charges Applicable?

Non-occupancy charges are applicable when a member of the society rents out their flat to a third party. However, if the flat is left vacant or is used by immediate family members, these charges are typically not applicable. The exact conditions under which these charges are levied can vary based on the society’s by-laws.

Can Non-Occupancy Charges be Challenged?

Yes, non-occupancy charges can be challenged if a member believes they are unjust or excessive. The member can approach the managing committee of the society to discuss the issue. If the matter is not resolved at this level, the member can escalate it to the Registrar of Cooperative Societies. In extreme cases, the member can also approach the cooperative court.

Conclusion

Understanding non-occupancy charges in Cooperative Housing Societies is crucial for members to ensure they are not unfairly charged. It’s important to remember that these charges are meant to compensate the society for the additional burden on common resources and not as a source of income for the society. Members should familiarize themselves with their society’s by-laws and not hesitate to challenge any charges they believe are unjust.