Ministry of Housing and Urban Affairs (MoHUA) has come out with two models for the development Affordable Rental Housing Complexes (ARHCs) through public private partnership mode. It may be recalled here that the Union Cabinet on July 8, 2020, had approved ARHCs as a sub scheme under Pradhan Mantri Awas Yojana (Urban) to provide ease of living to urban migrants/poor.
Under first model the government has allowed utilisation of existing Government funded vacant houses to convert into ARHCs through Public Private Partnership or by public agencies for a period of 25 years. The scheme provides an opportunity for all States/UTs to convert their existing vacant houses constructed under various Central/ State Government schemes into ARHCs.
The second model provides for Construction, Operation and Maintenance of ARHCs by Public/Private Entities on their own available vacant land for a period of 25 years. A large portion of available vacant land is lying unutilized with various Industries, Trade Associations, Manufacturing Companies, Educational/ Health Institutions, Development Authorities, Housing Boards, Central/State Public Sector Undertakings (PSUs) and other such Entities. By providing with appropriate policy support, enabling suitable provisions and incentives, these available vacant lands can be utilised effectively for developing affordable housing facilities to migrants/ poor.
To make this a lucrative and viable business opportunity for entities, Central Government will provide Concessional Project finance under Affordable Housing Fund (AHF) & Priority Sector Lending (PSL), Exemption in Income Tax and GST and Technology Innovation Grant for promotion of innovative technologies in ARHCs. Further, State/UT Govt. will provide Use Permission changes, 50% additional FAR/FSI free of cost, Single Window Approval within 30 days, Trunk Infrastructure facility and Municipal charges at par with residential property.