These ARHCs provide affordable housing with civic amenities, ensuring a dignified standard of living for the beneficiaries. To date, ₹173.89 crore has been sanctioned under the scheme as Technology Innovation Grant, with ₹83.26 crore already disbursed.

The Ministry of Housing and Urban Affairs (MoHUA) continues to push forward its initiative to provide affordable and dignified housing for urban migrants and the economically weaker sections (EWS) of society, Tokhan Sahu, Minister of State in the Ministry of Housing and Urban Affairs, said during a discussion in the Rajya Sabha on Monday.

The Affordable Rental Housing Complexes (ARHCs), a sub-scheme of Pradhan Mantri Awas Yojana – Urban (PMAY-U), addresses the housing needs of labourers, street vendors, rickshaw pullers, and other urban poor near their workplaces.

Launched under two implementation models, ARHCs aim to reduce housing challenges faced by migrants and low-income groups. Model-1 repurposes vacant government-funded houses under schemes such as the Jawaharlal Nehru National Urban Renewal Mission (JNNURM) and Rajiv Awas Yojana (RAY) into ARHCs through Public-Private Partnerships (PPP) or public agencies. Model-2 focuses on the construction, operation, and maintenance of ARHCs on vacant land owned by public or private entities.

As of now, 5,648 existing government-funded houses have been successfully converted into ARHCs in various states and union territories under Model-1. Model-2 has seen approval for the construction of 82,273 new units across seven states, out of which 35,425 have already been completed. The remaining units are in different stages of initiation and construction.

These ARHCs provide affordable housing with civic amenities, ensuring a dignified standard of living for the beneficiaries. To date, ₹173.89 crore has been sanctioned under the scheme as Technology Innovation Grant (TIG), with ₹83.26 crore already disbursed.

Regulatory Framework

Under the scheme guidelines, initial rents for ARHCs are determined by local authorities based on surveys. The rent increases by 8 per cent biennially, with a maximum cumulative increase of 20 per cent over five years. This pattern continues over the 25-year concession period. The operational guidelines, which detail the incentives and benefits to encourage public and private participation, are available online.

Building on nine years of PMAY-U’s success, the government revamped the mission, launching PMAY-U 2.0 on 1 September 2024. Under the new “Housing for All” initiative, 1 crore additional beneficiaries are expected to benefit through four verticals: Beneficiary Led Construction (BLC), Affordable Housing in Partnership (AHP), Affordable Rental Housing (ARH), and Interest Subsidy Scheme (ISS).

The ARH vertical under PMAY-U 2.0 focuses on providing rental housing for short-term needs of EWS/LIG beneficiaries, including migrant workers. This move addresses the needs of those who require temporary accommodation rather than permanent homeownership.

While no official assessment of the ARHCs has been conducted yet, the minister said that the government’s commitment to improving urban housing remains evident. The revamped guidelines for ARHCs and PMAY-U 2.0 aim to ensure affordability, inclusivity, and dignified living for urban poor across the country.