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POLICY REVIEW
timely intervention. Earlier, in binding of rental housing families through States/
2020, the central government access to the beneficiaries’ Union Territories (UTs)/PLIs
experimented with the ability to pay rent put the to construct, purchase or rent
Affordable Rental Housing most vulnerable urban poor in a house at an affordable cost
Complexes (ARHCs) as a sub a disadvantageous position. in urban areas in 5 years.
scheme under PMAY-U to Further, the experiences The central government
respond to the housing needs of Mumbai Metropolitan assistance of INR ` 2.30 lakh
of the urban poor, especially Region Development crore will be provided under
the migrants who were hard Authority led rental housing the Scheme. The PMAY-U
hit by COVID 19. There were scheme revealed two crucial 2.0 will have four verticals:
provisions for repurposing implementation challenges Beneficiary-Led Construction
the vacant houses in the cities – first, lack of capacity of the (BLC), Affordable Housing in
to rentals through PPPs and public agency to manage Partnership (AHP), Affordable
developing rental housing rental housing stock and Rental Housing (ARH), &
by public or private entities second, improper assessment Interest Subsidy Scheme
on their own available vacant of needs and capacities of (ISS). In order to seek benefit
land. This indicates over- the beneficiaries (Tandel under PMAY-U 2.0, States/
reliance on the private sector et al., 2016). Given these UTs will have to formulate
for building rental housing complexities, the budget “Affordable Housing Policy”
units. document’s emphasis on containing various reforms
the enabling policies and and incentives for ensuring
However, in spite of the regulations for efficient and active participation of Public/
concessions including tax transparent rental housing Private entities and promote
rebates, project loan at lower markets is praiseworthy. Fast an Affordable Housing
interest rate, additional Floor tracking the implementation Ecosystem. ‘Affordable
Area Ratio (FAR)/ Floor Space of the Model Tenancy Act with Housing Policy’ will include
Index (FSI), provision of trunk provisions for safeguarding such reforms which will
infrastructure, the private the interests of the vulnerable improve the affordability
sector response to this scheme sections and setting up of ‘Affordable Housing’.
was lukewarm. Even in case of professional rental Technology & Innovation
of the housing units being management committees to Sub-Mission (TISM) will be
constructed under the ARHC manage the rental properties set up under PMAY-U 2.0 to
scheme, there are multiple can be helpful in bringing guide and facilitate States/
problems in terms of poor efficiency and transparency in UTs and other stakeholders
location and non-availability the rental housing market in in adoption of modern,
of basic urban services, India. innovative and green
making the rental housing technologies and building
units inhabitable. Moreover, The Union Cabinet, chaired by material for faster and quality
affordability remains a key Hon’ble Prime Minister Shri construction of houses.
concern as rents of the units Narendra Modi, approved Under TISM, States/UTs/
under the AHRC have often Pradhan Mantri Awas Cities will be assisted through
exceeded the prevailing Yojana-Urban (PMAY-U) 2.0 innovative practices and
private rental market rent on 9th August 2024, under projects in challenge mode
(Harish, 2021). Absence which financial assistance focused on disaster resistant
of specific income criteria will be provided to 1 crore and environment friendly
for eligibility and implicit urban poor and middle-class technologies for climate
October, 2024, Volume 25. No.1 - SHELTER 61
