Low-cost Rental Housing Complexes

A parliamentary committee has asked the government to explain how many of the 66 proposals received under the Affordable Rental Housing Scheme, which was launched for the urban poor, particularly migrant workers, during the COVID-19 pandemic, were approved by their respective local urban bodies.

Scheme for Affordably Priced Rental Housing

  • PM Awas Yojana – Urban has an AHRC sub-scheme.
  • Existing vacant government-funded housing complexes will be converted into ARHCs through Concession Agreements for a period of 25 years under the scheme.
  • The concessionaire will make the complexes livable by repairing/retrofitting and maintaining rooms as well as filling infrastructure gaps such as water, sewer/sewerage, sanitation, and roads.
  • The concessionaire will be chosen through transparent bidding by the states/UTs.
  • Complexes will revert to ULB after 25 years to either restart the cycle or run on their own.

Participants in the scheme

  • ARHCs will benefit a large portion of the workforce in manufacturing industries, service providers in hospitality, health, domestic/commercial establishments, and construction or other sectors, laborers, students, and others who come from rural areas or small towns seeking better opportunities.

Benefits of AHRCs

  • To save money on rent, these migrants usually live in slums, informal/unauthorized colonies, or peri-urban areas.
  • They spend a lot of time on the roads walking/cycling to work, putting their lives in danger to save money.
  • ARHCs will create a new ecosystem in urban areas by making affordable housing available close to work.
  • ARHC investment is expected to generate new job opportunities.
  • ARHCs will reduce unnecessary travel, traffic, and pollution.
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