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POLICY REVIEW
Migrant households are typically
low-income households living
in substandard and inadequate
housing conditions in the cities
of their employment. Rental
housing is often the only
available housing solution for
such households. To address
this problem, the Government of
India launched the ‘Affordable
Rental Housing Complexes’
(ARHC) scheme under the
umbrella of the ongoing
Pradhan Mantri Awas Yojana
– Urban (PMAY U), as a part of
the Hon’ble Prime Minister’s
‘Aatma Nirbhar Bharat’ Vision.
The scheme covers economically
weaker sections (EWS), lower
income groups (LIG) and migrant
households, students and other
vulnerable groups. ARHC is one
of the two most recent and much
needed rental market policy
interventions. The other being
the Model Tenancy Act (MTA)
put forth in July 2019, which
seeks to improve regulation
and enhance efficiency of urban
rental markets. This article
discusses both initiatives and
certain aspects of each which
require further attention for
greater effectiveness.
AFFORDABLE RENTAL
HOUSING COMPLEX
(ARHC) SCHEME
ARHC scheme is a social rental
2 https://www.sciencedirect.com/science/article/pii/S0188440920309401
3 https://indianexpress.com/article/explained/coronavirus-india-lockdown-migran-workers-mass-exodus-6348834/
4 https://openknowledge.worldbank.org/bitstream/handle/10986/33634/COVID-19-Crisis-Through-a-Migration-Lens.pdf?sequence=5&isAllowed=y
5 https://economictimes.indiatimes.com/news/economy/policy/cabinet-nod-for-development-of-affordable-rental-housing-complexes-for-urban-migrants-
poor/articleshow/76855891.cms
6 http://arhc.mohua.gov.in/filesUpload/Operational-Guidelines-of-ARHCs.pdf
housing scheme wherein rental ARHC is to function as one for a
housing is to be provided at minimum period of 25 years. An
below market rates based on ARHC is to have 1-BHK, 2-BHK
the paying capacity of the apartments and dormitory beds
renters. It seeks to target more of 30 sqm, 60 sqm and 10 sqm
than 350,000 beneficiaries. It (per bed) respectively with a
is to be implemented through minimum of 40 dwelling units
two models: Model 1 – renting (DUs). Dormitories will comprise
of unused and vacant housing of 4 to 6 beds per dormitory
constructed under any and 3 dormitory beds is to be
government scheme, through considered as one DU. 1 BHK
concessionaires, as a Centrally and 2 BHK DUs will include
Sponsored Scheme; Model 2 one or two bedrooms, one
– construction, operation and living room, kitchen, bathroom
maintenance of ARHC by public and toilet. All DUs are to have
and private entities on their own access to basic services such as
land, as a Central Sector Scheme. water, sewage, sanitation and
In case of Model 1, States/UTs/ electricity. Complexes to have
Parastatals/ ULBs are to identify health centres, creche and shops
and list all vacant and unused catering to daily necessities etc.
government houses. As per Any project can have a maximum
the ARHC scheme documents, of one-third of all DUs as 2-BHK
of the total 13.83 lakh houses DUs.
sanctioned under JNNURM Initial rent for the DUs and
and RAY missions, 1.08 lakh dormitories are to be set by ULB
houses remain vacant across after conducting a local survey.
159 cities. In addition, vacant Survey is to be conducted by
houses constructed by various the ULB at the proposal stage
state governments can also be itself. Rents can be increased
covered. Concessionaire will by a maximum of 8 percent
repair, retrofit and operate the every two years, provided
ARHC. In case of Model 2, it doesn’t increase by more
States/UTs/ Parastatals/ULBs are than 20 percent in five years.
to identity public and private However, illustrative models
entities with vacant land. In case showcasing financial viability of
of non-residential vacant land,
the State is to ensure required the scheme assume rent per DU
to be between Rs. 2500 to 3500
changes are made in the Master for Model-1. For Model-2, rent
Plan to allow for residential use
of Rs. 3000 per dormitory bed
of such land. In both cases, an and Rs.6000 per 1-BHK DU has
October 2020 Volume 21 No. 2-SHELTER 55