Affordable Rental Housing Complexes (ARHCs)

COVID-19 pandemic has resulted in reverse migration of urban migrants/ poor in the country. Urban migrants stay in slums/ informal settlements/ unauthorised colonies/ peri-urban areas to save cost on housing. They need decent rental housing at affordable rate at their work sites. In order to address this need, Ministry of Housing & Urban Affairs has initiated Affordable Rental Housing Complexes (ARHCs), a sub-scheme under Pradhan Mantri Awas Yojana – Urban (PMAY-U). This will provide ease of living to urban migrants/ poor in Industrial Sector as well as in non-formal urban economy to get access to dignified affordable rental housing close to their workplace. The ARHC scheme will be implemented through two models:

i. Utilizing existing Government funded vacant houses to convert into ARHCs through Public Private Partnership or by Public Agencies

ii. Construction, Operation and Maintenance of ARHCs by Public/ Private Entities on their own vacant land


Incentives will be provided to public/ private entities by Central/ State Government for developing & operating ARHCs which will include additional FAR/FSI, Income tax and GST exemption, Single window approval within30 days, Project finance at lower interest rate, Trunk infrastructure till project site, Municipal services at residential rates and Use permission changes for houses for the vacant land.

Beneficiaries for ARHCs are urban migrants/ poor from EWS/LIG categories comprising of street vendors, rickshaw pullers and other service providers, industrial workers along with migrants working with market/ trade associations, educational/ health institutions, hospitality sector, long term tourists/ visitors, students or any other category. ARHCs will be a mix of single/ double bedroom Dwelling Units and Dormitory of 4/6 beds including all common facilities and will be exclusively used for rental housing for a minimum period of 25 years.

MoHUA has provisioned for an additional grant in the form of Technology Innovation Grant (TIG) under TSM for the project using innovative & alternate technology for speedier, sustainable, resource efficient and disaster resilient construction. TIG of Rs. 1,00,000/- per dwelling unit in case of double bedroom (upto 60 sqm carpet area), Rs. 60,000/- per Dwelling Unit (upto 30 sqm carpet area) in case of single bedroom and Rs. 20,000 per Dormitory Bed (upto 10 sqm carpet area) shall be released by MoHUA to entities through BMTPC.

TIG will be applicable only for projects using innovative and alternate technologies and sanctioned during the PMAY(U) Mission period (March 2022) and completed within 18 months after getting all statutory approvals.

The ARHCs will ensure a dignified living environment for urban migrants/poor close to their workplaces at affordable rates. This will unlock existing vacant housing stock and make them available in urban space. It will propel new investment opportunities and promote entrepreneurship in rental housing sector by encouraging Public/Private Entities to efficiently utilize their vacant land available for developing ARHCs.