The Ministry of Housing and Urban Affairs (MoHUA) has introduced the Pradhan Mantri Awas Yojana – Urban 2.0 (PMAY – Urban 2.0), a five-year initiative that aims to meet the affordable housing needs of India’s urban population. Launched on 1 September 2024, this program promises to address urban housing challenges through multiple schemes, compliance with regulatory laws like RERA, and the adoption of the Model Tenancy Act.
Key Components of PMAY – Urban 2.0
PMAY – Urban 2.0 is structured to cover a variety of affordable housing solutions. Some of the major components include:
- Beneficiary Led Construction (BLC): Beneficiaries can avail themselves of central assistance to build their own homes on their land.
- Affordable Housing in Partnership (AHP): Private developers partner with public bodies to develop affordable housing projects.
- Affordable Rental Housing: The scheme also addresses the need for rental housing by promoting affordable rental units for urban populations.
- Interest Subsidy Scheme: To make housing loans more affordable, an interest subsidy will be available for eligible beneficiaries.
Eligibility for the Scheme
The scheme targets families from Economically Weaker Sections (EWS), Low-Income Groups (LIG), and Middle-Income Groups (MIG). The eligible families must not own a pucca house (permanent home) anywhere in India. A family is defined as a unit comprising a husband, wife, and unmarried children.
Resident Welfare Associations and RERA Compliance
One of the critical components of PMAY – Urban 2.0 is the establishment of Resident Welfare Associations (RWAs) for overseeing housing project maintenance. Compliance with the Real Estate (Regulation and Development) Act, 2016 (RERA) and other state laws is mandatory for all implementing agencies, which include Urban Local Bodies (ULBs), housing boards, and private developers.
Single-Window Approval and RERA Registration
To streamline the approval process, States and Union Territories are required to adopt a single-window approval mechanism for housing projects, ensuring approvals are granted within 90 days. All Affordable Housing in Partnership (AHP) projects must be registered under RERA, and any change in project proponents will not be allowed.
Funding and Instalment Release
The first instalment of 40% of funding for these projects will be released upon the submission of detailed project reports and compliance with key statutory requirements, including RERA registration and identification of the project developer.
Adoption of the Model Tenancy Act by 2025
The Model Tenancy Act (MTA) will play a significant role in governing Affordable Rental Housing (ARH) projects. States and Union Territories must adopt the MTA or amend their existing tenancy laws by June 2025. The MTA ensures speedy resolution of disputes and promotes a healthy rental housing market by mandating rental agreements and enforcing tenant responsibilities.
States must carry out the first phase of urban reforms by 31 December 2024 to avail of the benefits under PMAY-U 2.0.
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