In light of the unprecedented economic challenges due to the pandemic COVID-19, the Ministry of Housing and Urban Affairs has decided to launch the Affordable Rental Housing Scheme to ensure ease of living for urban poor and migrant laborers. The government has also planned to utilize the existing vacant houses under UPA-era schemes, which were further included under Pradhan Mantri Awas Yojana after the central government introduced the Housing For All Mission. The development of Affordable Rental Housing Complexes will provide low-cost decent living spaces to lakhs of migrant workers in cities. According to the Ministry of Housing and Urban Affairs, the rent of these places is going to vary between ₹1,000 to ₹3,000 per month.
Here are the 7 things to expect from the Affordable Rental Housing Complexes Scheme.
Government-Funded Housing to Be Converted into Affordable Rental Housing Complexes
Existing vacant government-funded housing complexes to be converted into Affordable Rental Housing Complexes for 25 years through a Concession Agreement. There are almost 1.2 Lakh available government houses that were built under the UPA-led Jawaharlal Nehru National Urban Renewal Mission and NDA led Pradhan Mantri Awas Yojana.
As per the Concession Agreement, the concessionaire will be expected to make the necessary repair/retrofit, maintenance of rooms, and fulfil the infrastructure issues related to water, sewer, sewage, roads, sanitation.
Selection of the Concessionaire
The Concessionaires will be selected by States/UTs through a transparent bidding session.
Maintenance of Affordable Rental Housing Complexes
Private or Public Entities are allowed construction, operation, and maintenance of Affordable Rental Housing Complexes on their available vacant land for a time period of 25 years.
Affordable Living Spaces Near Places of Work
Affordable Rental Housing Complexes Scheme will provide affordable rental accommodation near places of work which will further contribute a great deal in slashing the travel cost for the migrant workers, decrease pollution, and congestion on roads.
Promoting Entrepreneurship and Job Opportunities
ARHCs will not only create job opportunities but will also stimulate investment and entrepreneurship in the rental housing sector.
Loans and Lower Interest Rates
The government has also planned to offer concessional finance under the Affordable Housing Fund and Priority Sector Lending. The applicant will be eligible for exemption in GST, Income Tax, and Technology Innovation Grant for the promotion of innovative technologies under the Affordable Rental Housing Complexes Scheme.
Turning government-funded houses to Affordable Rental Housing complexes with the public-private partnership will give a new life to the real estate sector and other related industries. This Scheme is going to benefit around 3.3 Lakhs middle-class families so far and will also create means of livelihood for a large number of people.