New Delhi: The Centre has included affordable rental housing complexes in the harmonized list of infrastructure sub-sectors.
The department of economic affairs under the ministry of finance issued a notification earlier this week to this effect.
“Affordable Rental Housing Complex” is included in the Harmonized Master List of Infrastructure Sub-sectors by insertion of a new item in the category of “Social and Commercial Infrastructure”, the notification read.
“Affordable Rental Housing Complex” has been defined as a project to be used for rental purpose only for urban migrant or poor (Economically Weaker Section or Lower Income group categories) for a minimum period of 25 years with basic civic infrastructure facilities such as water, sanitation, sewage or septage, road, electricity along with necessary social or commercial infrastructure and the initial rent fixed by Local Authority or Entities based on local survey of surrounding area wherein the project is situated.
As per the scheme, existing vacant government-funded housing complexes across key cities will be converted into ARHCs, and offered to concessionaires for 25 years to rent out the units to urban poor and migrant workers.
State and civic bodies will select concessionaires through bidding, according to guidelines recently issued by the housing and urban development ministry.
The government also plans to offer special incentives to private and public entities to develop such housing complexes on their own available vacant land for 25 years under the scheme.
These incentives include use permission, 50% additional floor space index (FSI), concessional loans at priority sector lending rate and tax reliefs at par with affordable housing, the ministry said in a statement.
Undertaking repair, retrofits, maintenance of rooms, fixing water, sewer and sanitation issues will be included in the concession agreement for ARHCs.