Over 88,200 government-funded vacant houses available to be converted into ARHCs – ET RealEstate

About 88,236 existing government funded vacant houses are available to be converted into Affordable Rental Housing Complexes (ARHCs) for rental accommodation to migrants under Model-1 of ARHC scheme, according to Ministry of Housing & Urban Affairs.

However, no vacant houses are available in Telangana for rental accommodation to migrants under Model-1.

According to the ministry, aims and objectives of Affordable Rental Housing Complexes (ARHC) Scheme announced under Atmanirbhar Bharat Package are to address the vision of ‘AtmaNirbhar Bharat Abhiyan’ significantly by creating a sustainable ecosystem of affordable rental housing solutions for urban migrants/poor.

“Another aim is to achieve overall objective of “Housing for All” encompassing the need of affordable rental housing for urban migrants/poor. ARHCs will provide them dignified living with necessary civic amenities near their place of work,” the ministry said.

The move will also create a conducive environment by incentivizing public and private to leverage investment for creating affordable rental housing stock to take care of their own requirements for workforce and also cater to neighbouring areas, if they have available vacant land.

Initial affordable rent of ARHCs will be fixed by the local authority based on a local survey prior to the issuance of Request for Proposal (RFP) by Urban Local Bodies (ULBs).

Subsequently, rent will be enhanced biennially by 8%, subject to maximum increase of 20% in aggregate, over a period of 5 years, effective from the date of signing the contract. The same mechanism shall be followed over the entire concession period, which is 25 years.

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Government to offer incentives for ARHCs development: Housing Minister – ET RealEstate

MUMBAI: The government is extending several incentives including free Floor Space Index (FSI), concessional project finance and free of cost trunk infrastructure facilities to push participation in the Affordable Rental Housing Complexes (ARHCs) scheme for urban poor and migrants, said Hardeep Singh Puri, Minister of State, Housing and Urban Affairs.

A total of 24 states and union territories have already signed Memorandum of Understanding (MoA) with the central government to implement this scheme in their respective regions.

“Am 100% confident that other states will also come on board soon as they are also facing a similar issue of affordable rental housing shortage for migrants and urban poor. I will personally write to chief ministers of states that are yet to sign the agreement,” Puri said while launching a dedicated portal for ARHCs scheme. “We are witnessing good interest among private entities too for the scheme.”

Three private entities have already offered their commitment to build a total of around 2,800 such houses in Jaipur, Baroda, Bahadurgarh and Bengaluru.

He also released the model Request for Proposal (RFP) for selection of Concessionaire by states and union territories under model I, and Draft Expression of Interest (EOI) for short-listing of entities under inviting the expression of interests for the scheme under model II.

These complexes will be implemented by utilizing existing government funded vacant houses to convert into ARHCs under the first model, while under the second model construction, operation and maintenance will be by public or private entities on their own available vacant land.

In July, the Union cabinet approved the Affordable Rental Housing Complexes (ARHCs) scheme under Pradhan Mantri Awas Yojana – Urban (PMAY- U) to provide budget rental accommodation to poor and migrant workers in urban areas. This is estimated to benefit more than 350,000 people.

As per this sub-scheme under the Pradhan Mantri Awas Yojna (PMAY), existing vacant government-funded housing complexes across key cities will be converted into ARHCs, and offered to concessionaires for 25 years to rent out the units to urban poor and migrant workers. State and civic bodies will select concessionaires through bidding, according to guidelines issued by the housing and urban development ministry.

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