Affordable Rental Housing Complexes scheme (ARHCs)

Affordable Rental Housing Complexes scheme (ARHCs)

Subject: Welfare schemes

Context: ARHCs are seen as part of Atma Nirbhar Bharat and seeks to create a sustainable ecosystem of affordable rental housing solutions for urban migrants/ poor.

Concept:

• It is a sub-scheme under Pradhan MantriAwasYojana – Urban (PMAY-U) and is under Ministry of Housing and Urban Affairs.
• It will be implemented by Public/Private bodies either by converting the existing Government funded vacant complexes into ARHCs or by constructing, operating and maintaining ARHCs on their own available vacant land.
• It envisages to create a conducive ecosystem for Public/ Private Entities through policy incentives which will leverage investment for creating affordable rental housing stock.
• Beneficiaries for ARHCs will be from Economically Weaker Section (EWS)/ Low Income Group (LIG) who are urban migrants/poor. They include labour, urban poor (street vendors, rickshaw pullers, other service providers etc.), industrial workers and migrants working with market/ trade associations, educational/ health institutions, hospitality sector, long term tourists/ visitors, students or any other persons of such category.

Following incentives/ benefits have been proposed by Government of India and State/UT Governments:

• Exemption of Income Tax on any profits and gains derived from operation of ARHCs on similar lines as that of ‘Affordable Housing’ under section 80-IBA of Income Tax Act, 1961;
• Exemption of GST on any profits and gains derived from operation of ARHCs.
• Project finance/loan at lower interest rate through concessional window under Affordable Housing Fund (AHF) by Housing Finance Companies (HFCs) and Priority Sector Lending (PSL) by Commercials Banks;
• Provision of “Use Permission” changes for houses on vacant land, if needed;
• 50% additional Floor Area Ratio (FAR)/ Floor Space Index (FSI) free of cost;
• Single window approval of design/ drawings and other statutory approvals within 30 days;
• Necessary trunk infrastructure facilities like road, sanitation services, water, sewerage/septage, drainage, electricity etc. up to the project site without any additional cost to Entity;
• Municipal services such as water supply, electricity, house/ property tax, sewerage/ septage charge etc. for operation of ARHCs will be levied at par with residential projects; and
• Additional grant in the form of Technology Innovation Grant (TIG) is provisioned by Ministry of Housing and Urban Affairs (MoHUA) for using innovative, sustainable, green and disaster-resilient technologies as well as building materials for cost effective, faster and quality construction of ARHCs. TIG of Rs. 60,000/- per house (Single Bedroom), Rs. 1,00,000/- (Double Bedroom) and Rs. 20,000/-per Dormitory Bed will be provided as per Scheme Guidelines.