What is affordable rental housing complex (ARHC) scheme?

Affordable Rental Housing Complexes (ARHCs) are a Government of India initiative under the Pradhan Mantri Awas Yojana Urban (PMAY-U) framework, launched in 2020. The scheme aims to provide dignified, affordable rental housing to urban migrants, industrial workers, and the urban poor who move to cities for work but cannot afford or choose not to purchase homes. ARHCs convert government-owned vacant housing stock or enable private entities to build new rental complexes.

Two Models of ARHC

• Model 1 – Government Vacant Housing: Existing government-owned vacant housing units (built under earlier schemes) are converted into ARHCs through a concessionaire. The concessionaire repairs, operates, and rents out units for 25 years.
• Model 2 – New ARHC Construction by Private/Public Entities: Entities with their own land can construct new ARHCs and avail concessions including use of change of land use, extra FSI, subsidised infrastructure, and tax benefits under Section 80-IBA.

Target Beneficiaries

• Urban migrants: Workers migrating from rural areas or small towns for employment.
• Industrial and construction workers.
• Students and young professionals working in cities.
• Street vendors, rickshaw pullers, and daily wage earners.
• Families staying in slums or unsafe structures.

ARHCs represent an important policy intervention to bridge India's massive urban rental housing gap. For the real estate industry, they offer a framework to formalise and scale managed rental housing a segment that remains largely unorganised but serves tens of millions of urban workers.