Bhubaneswar, Feb 6: In a significant step towards expanding affordable housing options for the urban poor and working population, the Odisha government has initiated the process of identifying vacant and unutilized Central and State Government buildings/houses located in urban areas, for conversion into Affordable Rental Housing (ARH) under PMAY-U 2.0.
Usha Padhee, Additional Chief Secretary, Housing & Urban Develop Department has issued a communication to key departments of the State Government requesting them to identify such vacant/unutilized assets under their administrative control and share the details with the Odisha Urban Housing Mission (OUHM), the State Nodal Agency for implementation of PMAY-U 2.0.
Housing is a key component of urbanisation and has a direct impact on health, well-being, stability, education and economic opportunities of families. While earlier housing policies primarily promoted ownership models, PMAY-U 2.0 has introduced Affordable Rental Housing as a dedicated vertical to address the needs of a large segment of the urban population, particularly urban migrants, industrial and informal sector workers, and working women, who require secure and affordable accommodation but may not be in a position to own a house immediately.
As per the operational guidelines of PMAY-U 2.0, Affordable Rental Housing will be implemented through two models. Under Model-I, existing Government-funded vacant buildings/houses can be converted into rental housing through Public Private Partnership (PPP) mode or by Public Agencies. Under Model-II, private/public entities may construct, operate and maintain rental housing units for EWS/LIG families and recover investments through rental income over a long period.
Under the scheme provisions, the initial rent will be fixed by the local authority based on a local survey. Rent enhancement is allowed biennially by 8%, subject to a maximum increase of 20% in aggregate over a period of five years, ensuring affordability and transparency.
The initiative will help transform unutilized public assets into long-term rental income generating housing units, while simultaneously supporting urban workforce stability, strengthening local economies, and preventing the growth of informal settlements.
Departments have been requested to provide details of such vacant buildings/houses to OUHM for necessary action, including repair, retrofitting and making them livable, with funding support under PMAY-U 2.0 of the Ministry of Housing and Urban Affairs (MoHUA), Government of India.
