Context: Recently, the Union Cabinet has given its approval for developing of Affordable Rental Housing Complexes (AHRCs) for urban migrants and poor, as a subscheme under Pradhan Mantri Awas Yojana-Urban (PMAY-U).
Key Points

• The existing vacant government funded housing complexes will be converted in ARHCs through Concession Agreements for 25 years.
• The States/UTs will select concessionaire through transparent bidding and 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 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.

Targeted Beneficiary of the Scheme: A large part of workforce in 

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

There will be an expenditure of Rs 600 Crore which is estimated in the form of Technology Innovation Grant which will be released for projects using identified innovative technologies for construction.

Advantages of Affordable Rental Housing Complexes (AHRCs)

• Creation of New Ecosystem: It will create new ecosystem in urban areas making housing available at affordable rent close to the place of work.
• More Job Opportunities: The investment under ARHCs is expected to create new job opportunities.
• Traffic and Pollution Control: The ARHCs will cut down unnecessary travel, congestion and pollution.
• Economically Productive Use: The government funded vacant housing stock will be converted into ARHCs for economically productive use.
• New Investment Opportunities & Promotion of Entrepreneurship: The scheme would create a conducive environment for Entities to develop AHRCs on their own vacant land which will enable new investment opportunities and promote entrepreneurship in rental housing sector.

About Pradhan Mantri Awas Yojana (Urban)

• It envisions Housing for All by 2022 and it subsumed Rajiv Awas Yojana and Rajiv Rinn Yojana.

It seeks to address the housing requirement of urban poor including slum dwellers through following programmes –

• Central assistance to Urban Local Bodies (ULBs) and other implementing agencies for Slum rehabilitation with participation of private developers.
• Promotion of Affordable Housing for weaker section through Credit Linked Subsidy
• Affordable Housing in Partnership with Public & Private sectors
• Subsidy for beneficiary-led individual house construction
• It covers all 4041 statutory towns as per Census 2011 with focus on 500 Class I cities in three phases.

Centre and state will be funded in the ratio of 75:25 and in case of North Eastern and special category States in the ratio of 90:10.

• Beneficiaries: Urban poor who does not own a pucca house, Economically Weaker Section (EWS) and Lower Income Groups (LIG – eligible only for credit linked subsidy scheme).
• States/UTs have flexibility to redefine the annual income criteria with the approval of Ministry.
• Under the mission, a beneficiary can avail of benefit of one component only.
• HUDCO and NHB have been identified as Central Nodal Agencies (CNAs) to channelize this subsidy to the lending institutions.
• Credit Linked Subsidy: It is an interest subsidy available to a loan amounts upto Rs 6 lakhs at the rate of 6.5% for tenure of 20 years or during tenure of loan whichever is lower.
• The houses will be allocated preferably in the name of Women in the family.