ARHCs to be implemented by utilizing existing Government funded vacant houses through PPP Model

Jul 31,2020

Shri Hardeep Singh Puri, Hon’ble Minister of State (I/C), Ministry of Housing and Urban Affairs (MoHUA) released a ARHCs Knowledge Pack (AKP) here today via a Video Conference. Shri Durga Shanker Mishra, Secretary, MoHUA presided over the function which was attended by senior officers of State Governments/UTs and representatives of NAREDCO, CREDAI, FICCI, CII and ASSOCHAM connected through webinar. COVID-19 pandemic has resulted in massive reverse migration of workers/ urban poor in the country.  In line with Hon'ble Prime Minister's clarion call of 'Atmanirbhar Bharat', Union Cabinet on July 8, 2020, approved Affordable Rental Housing Complexes (ARHCs) as a sub scheme under Pradhan Mantri Awas Yojana (Urban) to provide ease of living to urban migrants/poor.

ARHCs will be implemented through two Models:

Model-1: Utilizing existing Government funded vacant houses to convert into ARHCs through Public Private Partnership or by public agencies for a period of 25 years.

1. The scheme provides an opportunity for all States/UTs to convert their existing vacant houses constructed under various Central/ State Government schemes into ARHCs.
2. A model RFP has been shared with all States for customisation and issuance by them to select a concessionaire.

Model-2: Construction, Operation and Maintenance of ARHCs by Public/ Private Entities on their own available vacant land for a period of 25 years.

1. A large portion of available vacant land is lying unutilized with various Industries, Trade Associations, Manufacturing Companies, Educational/ Health Institutions, Development Authorities, Housing Boards, Central/ State Public Sector Undertakings (PSUs) and other such Entities. By providing with appropriate policy support, enabling suitable provisions and incentives, these available vacant lands can be utilised effectively for developing affordable housing facilities to migrants/ poor.
2. Further, MoHUA will issue Expression of Interest (EoI) for shortlisting of Entities by ULBs to Construct, Operate and Maintain ARHCs on their own available vacant land.

ARHCs Knowledge Pack  includes following documents:

1. Memorandum of Agreement (MoA) to be signed with States/UTs
2. Operational Guidelines of ARHCs,
3. Model Request for Proposal (RFP) for selection of Concessionaire by States/UTs/ULBs under     Model-1
4. Expression of Interest (EOI) for shortlisting of Entities under Model-2
5. Frequently Asked Questions (FAQ).

ARHC scheme has been framed after series of consultation with concerned Central Ministries/Departments, States/UTs and other Private/ Public stakeholders. AKP has been devised to provide support to all stakeholders in implementing ARHCs. A continued cooperation in successful implementation of this Scheme will not only benefit urban migrants/poor in need but also accelerate entrepreneurship and investment in rental housing market and give boost to the economy. It will be a win-win-win model for all.

Incentives/Benefits proposed for Private/Public Entities: To make this a lucrative and viable business opportunity for Entities, Central Govt. will provide Concessional Project finance under Affordable Housing Fund (AHF) & Priority Sector Lending (PSL), Exemption in Income Tax and GST and Technology Innovation Grant for promotion of innovative technologies in ARHCs. Further, State/UT Govt. will provide Use Permission changes, 50% additional FAR/FSI free of cost, Single Window Approval within 30 days, Trunk Infrastructure facility and Municipal charges at par with residential property.

A mobile application of CREDAI - Awaas App and an e-Commerce Portal of NAREDCO - Housing For All was launched by the Housing Minister on the occasion.    These online platforms will leverage technology and provide benefits to home buyers in changing market practices by providing effective solutions. These will serve as gateway for home buyers from around the world to connect with developers and choose their dream homes from RERA registered projects.

The event had a large participation from States/UTs/ULBs from across the country, Real Estate industry captains and industry Chambers. All stakeholders had first-hand familiarization with ARHC scheme and its implementation tools in the form of AKP. MoHUA will extend all possible support for successful implementation of the scheme.

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RJ