Affordable Rental Housing Complexes Scheme (ARHC)
The Affordable Rental Housing Complexes (ARHC) scheme, launched in May 2020 under Atmanirbhar Bharat as a sub-scheme of PMAY-Urban, addresses the acute gap in formal rental housing for urban migrants, industrial workers, and the urban poor. Unlike most GoI housing schemes focused on ownership, ARHC explicitly targets the rental market. Two models operate: Model 1 converts existing vacant government-funded housing stock (from JNNURM/RAY/PMAY) into rental complexes via 25-year concessionaire arrangements with ULBs setting rents; Model 2 incentivises public/private entities to build new ARHC units on their own land through a Technology Innovation Grant, additional FAR/FSI, priority sector lending classification for construction loans, Section 80-IBA income tax exemptions, and GST relief. Target beneficiaries include industrial workers, students, economic zone workers, migrants, and the urban poor generally. This note provides an honest assessment: Model 1 has faced practical barriers (location, quality, legal complications in vacant stock), and Model 2 has seen limited private uptake despite incentives, making ARHC’s overall scale substantially below its 2020 ambition. Availability is geographically uneven; interested individuals and employers should check with their local ULB or state PMAY nodal agency for projects in their area.