Affordable Rental Housing Complex

Subject : Governance

Concept :

A total of 5,648 vacant houses built under various government schemes have been converted into ‘Affordable Rental Housing Complexes’ (ARHC), a scheme which the Centre had announced during the COVID19 pandemic to help migrant workers and urban poor employed in the informal sector.
The Urban Development Ministry has also approved construction of 82,273 new units under the scheme in public private partnership model.

Affordable Rental Housing Complex (AHRC )

AHRC is a sub-scheme under PM Awas Yojana – Urban.
Under the scheme, existing vacant government-funded housing complexes will be converted in ARHCs through Concession Agreements for 25 years.
The concessionaire will make the complexes livable by repair/retrofit and maintenance of rooms and filling up infrastructure gaps like water, sewer/ septage, sanitation, road etc.
States/UTs will select concessionaire through transparent bidding.
Complexes will revert to ULB after 25 years to restart next cycle like earlier or run on their own.
Special Incentives to Entities: Special incentives like concessional loan at priority sector lending rate, etc. will be offered to private/ public entities to develop ARHCs on their own available vacant land for 25 years.
Technology Innovation Grant: Under it an expenditure of Rs. 600 crore would be provided for projects using identified innovative technologies for construction.

Beneficiaries of the scheme

A large part of the workforce in manufacturing industries, service providers in hospitality, health, domestic/commercial establishments, and construction or other sectors, labourers, students etc. who come from rural areas or small towns seeking better opportunities will be the target beneficiary under ARHCs.

Significance of AHRC

Usually, these migrants live in slums, informal/ unauthorized colonies or peri-urban areas to save rental charges.
They spend a lot of time on roads by walking/ cycling to workplaces, risking their lives to cut on the expenses.
ARHCs will create a new ecosystem in urban areas making housing available at affordable rent close to the place of work.
Investment under ARHCs is expected to create new job opportunities.
ARHCs will cut down unnecessary travel, congestion and pollution.