Cabinet nod to develop affordable rental housing complexes for urban migrants

The complexes will revert to ULB after 25 years

Union Cabinet, Affordable Rental Housing Complexes, Pradhan Mantri Awas Yojana-Urban, Government funded housing complexes, FAR/FSI, Affordable housing, Migrant workers, Urban migrants, Technology Innovation Grant, Rental housing

The Union Cabinet has given approval for developing Affordable Rental Housing Complexes (AHRCs) for urban migrants/poor as a sub-scheme under Pradhan Mantri Awas Yojana-Urban (PMAY-U).

The existing vacant government funded housing complexes will be converted in ARHCs through concession agreements for 25 years.

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. The states and the Union Territories will select concessionaire through transparent bidding.

The complexes will revert to ULB after 25 years to restart next cycle like earlier or run on their own.

The Cabinet approved special incentives like use permission, 50% additional FAR/FSI, concessional loan at priority sector lending rate, tax reliefs at par with affordable housing, etc will be offered to private/public entities to develop ARHCs on their own available vacant land for 25 years.

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

An expenditure of Rs 600 crore is estimated in the form of Technology Innovation Grant which will be released for projects using identified innovative technologies for construction. An approximately three lakh beneficiaries will be covered initially under ARHCs. The investment under ARHCs will create new job opportunities.

The government funded vacant housing stock will be converted into ARHCs for economically productive use.

The scheme will create conducive environment for entities to develop AHRCs on their own vacant land which will enable new investment opportunities and promote entrepreneurship in the rental housing sector.

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