Karnataka Apartment Bill 2026 Proposes Federation Model to Improve Management of Large Housing Complexes

The Karnataka government has proposed a significant change to the way large apartment complexes are managed by introducing a federation model under the Karnataka Apartment (Ownership and Management) Bill, 2026. The draft legislation aims to resolve long-standing disputes in multi-tower and multi-phase residential projects by creating a formal legal structure for federations of apartment associations.

The proposal comes after years of challenges faced by apartment owners over the management of common infrastructure, maintenance charges and shared facilities. In many large residential projects, separate apartment associations have been formed for different towers or development phases, often leading to disagreements regarding financial responsibilities and the use of common areas.

Under the proposed Bill, apartment projects developed in multiple phases will continue to have separate associations for each phase. However, these associations will be permitted to form a federation responsible for managing infrastructure and amenities shared across the entire project. Similar provisions have also been included for mixed-use developments comprising residential, commercial and Economically Weaker Section (EWS) units.

The legislation also places responsibility on project promoters to clearly define the ownership and management of common areas. Developers will be required to identify which facilities fall under individual apartment associations and which assets will be administered collectively through the federation.

To ensure accountability, every federation must be registered with the Urban Development Department. Once the prescribed documents are submitted and the federation complies with the provisions of the Act and Real Estate Regulatory Authority (RERA) guidelines, the authority is expected to issue a registration certificate within 60 days. Registered federations will function as separate legal entities with the authority to manage common assets, collect maintenance charges and oversee shared infrastructure.

The Bill further proposes a transparent mechanism for sharing maintenance expenses. Costs incurred for common infrastructure will be distributed among member associations based on the aggregate super built-up area represented by each association, ensuring a more structured and equitable approach to cost sharing.

Industry observers believe the proposed legislation could bring greater clarity to governance in large apartment communities. By formally recognising federations, the Bill seeks to minimise disputes, improve financial accountability and strengthen the long-term management of shared infrastructure as Karnataka continues to witness rapid urban residential development.