Existing government funded vacant houses to be utilised as ARHCs: Housing Minister
NEW DELHI: Hardeep Singh Puri, Minister, Housing and Urban Affairs (MoHUA) on Friday said that existing government funded vacant houses will be utilised as Affordable Rental Housing Complexes (ARHCs).
Puri also said that the government will soon allow 100 per cent FDI in affordable rental housing. The minister further said that real estate sector will also have a ‘Permanent Working Group’ to attend any issues or matters pertaining to the sector for faster decision making.
The minister informed that ARHCs will be implemented through two models:
In the first model, utilising existing government funded vacant houses to convert into ARHCs through public-private partnership or by public agencies for a period of 25 years.
Under this all states/union territories (UTs) can convert their existing vacant houses into ARHCs. The central government has also shared a model RFP has been shared with all states for customisation and issuance by them to select a concessionaire.
In the second model, construction, operation and maintenance of ARHCs by public/private entities on their own available vacant land for a period of 25 years.
Under this, vacant land of various industries, trade associations, manufacturing companies, educational/health institutions, development authorities, housing boards, central/state public sector undertakings (PSUs) can be utilised effectively for developing of ARHCs
MoHUA will issue expression of interest (EoI) for shortlisting of entities by urban local bodies (ULBs) to do so.
To make this a viable business opportunity for entities, central government 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.
State government/UT 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.
ARHCs is a sub-scheme under Pradhan Mantri Awas Yojana (Urban) to provide ease of living to urban migrants/poor.
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