Affordable Housing for All: The New ARHCs Scheme Under PMAY-U 2.0
Introduction: The New Opportunity to Contribute to Housing for All
In recent years, housing has been a shared challenge for urban dwellers and migrants working in informal sectors. This is why the Ministry of Housing and Urban Affairs (MoHUA) launched the Affordable Housing Complexes (ARHCs) under the Pradhan Mantri Awas Yojana (PMAY-U), a sub-scheme of the broader Urban (PMAY) program aimed at providing dignity to urban migration.
The Scheme: Two Models, One Vision
Under MoHUA’s ARHCs scheme, eligible urban migrants and poor individuals from economically weaker sections of society are granted access to dignified housing through two distinct models.
Model 1: Existing Projects
As part of the PMAY-U program, 5,648 government-funded vacant houses have already been converted into ARHCs in various states/UTs across India. These projects highlight MoHUA’s commitment to providing affordable housing for a diverse range of applicants, including laborers, street vendors, rickshakers, and others who face income challenges or work in informal settings.
Model 2: Initial Propegia
The second model is under way, with the government proposing the construction of 82,273 ARHC units over the next seven years. Of these, 35,425 are currently completed, signaling progress toward achieving the national target of constructing housing for additional 1 crore eligible beneficiaries.
Financial Mechanisms: A Path to Affordability
The scheme’s financial success relies on a combination of grants and innovative support. The Ministry has already injected ₹173.89 crore of technology innovation funding (TIG) into ARHCs, with an initial allocation of ₹83.26 crore to be used under the ARHCs program.
Initial Rent and Growth
The first affordable rent for ARHCs is set by local authorities based on surveys, ensuring that housing is affordable in its early stages. Rent increases are biennially by 8%, but subject to a maximum aggregate increase of 20% over five years, which ensures sustained growth.
Long-Term Sustainability
The same mechanism is applied throughout the concession period of up to 25 years, with rent increases potentially up to ₹160 per month, reflecting the growing demand for affordable housing.
The PMAY-U 2.0 Mission: A New Era
In a new initiative launched in September 2024 (PMAY-U 2.0), MoHUA aims to democratize housing further by empowering public and private entities to build ARHCs.
Four Verticals of Housing Development
The PMAY-U 2.0 scheme features four verticals:
- Beneficiary Led Construction (BLC): Homeowners from eligible categories are the primary developers, ensuring a sense of ownership and commitment.
- Affordable Housing in Partnership (AHP): Collaboration between local authorities and private entities helps in achieving affordability while building projects.
- Affordable Rental Housing (ARH): ARHCs focus on providing housing for short-term needs, such as visiting clients or studying.
- Interest Subsidy Scheme (ISS): Low-income households can contribute interest subsidies to reduce their costs when renting an ARHC.
Real-Time Progress: A Message of Hope
The government’s commitment to improving housing is evident in the progress so far. With 5,648 existing houses converted and 35,425 units approved, the scheme has already made a significant impact on reducing poverty in urban areas.
Impact on Eligible Beneficiaries
By 1 crore additional eligible beneficiaries, these ARHCs will offer dignity to a diverse range of people—workers, street vendors, migrant families, and others struggling with income barriers or limited access to housing.
The Road Ahead: Encouraging Participation
The PMAY-U 2.0 initiative aims to level the playing field for all eligible applicants by empowering them to participate in housing development through various means. This not only benefits the community but also reduces inequality, ensuring that housing opportunities are available to those in need.
Call to Action
If you’re an urban migrant or poor individual facing financial barriers, joining the PMAY-U 2.0 initiative could be a pathway to dignity and affordability. With the right support and vision, India is finally taking housing to a new level where everyone has a home.
In conclusion, the Affordable Housing Complexes (ARHCs) scheme under MoHUA’s PMAY-U 2.0 represents a bold move towards addressing housing inequality. By combining local expertise with innovative financial solutions, the government aims to create opportunities for a brighter future for millions of urban migrants and their informal neighbors.