ARHCs Operational Guidelines Released

To address the issue of affordable rental housing for urban migrants/poor through private/public bodies, the government has designed two models. The first model involves ARHCs on government funded vacant houses and the second involves construction, operation and maintenance of units by public or private entities on their own available vacant land. Under the second model, private or public developers are free to construct a mix of single/double bedroom and dormitories (4/6 units). However, to ensure that such complexes are used for urban migrant/poor of economically weaker sections (EWS)/lower income group (LIG) categories and not misused for any other purposes, a maximum ceiling of 33 percent in double bedroom form in any project has been provisioned. Dwelling units to be built under the affordable rental housing complex (ARHC) scheme will comprise single bedrooms up to 30 square metres (sqm), double bedrooms up to 60 sqm and dormitory beds of up to 10 sqm carpet areas each. The initial rent of ARHCs will be fixed by local authorities based on a survey of surrounding areas, operational guidelines issued by the Ministry of Housing and Urban Development stated. A dedicated escrow account will have to be opened for all financial transaction and the income accrued as rent will be maintained in a separate account by the concerned concessionaire or entity. The rent will be enhanced biennially by 8 percent, subject to maximum increase of 20 percent in aggregate, over a period of five years, effective from the date of signing the contract. Same mechanism shall be followed over the entire concession period of 25 years, the operational guidelines said. Concessionaire and tenants (including institutions) will sign a rent agreement abiding to applicable rules and regulations. Tenants will abide by the contract terms and vacate premises without any dispute. In the event a tenant is found indulging in any unlawful activity and fails to abide by the terms and conditions of the rent agreement, the concessionaire will have eviction rights during the contract period and his decision will be considered as final.