Bhubaneswar: The state government has initiated the process to identify vacant and unutilised stateowned buildings in urban areas for converting them into affordable rental housing (ARH), according to an official document.
The decision is aimed at expanding affordable housing options for the urban poor and working population, Housing & Urban Development department Additional Chief Secretary Usha Padhee said in a memo to key departments, directing them to identify such vacant and unutilised assets under their administrative control and share the details with the Odisha Urban Housing Mission (OUHM).
Noting that housing is a key component of urbanisation and has a direct impact on health, well-being, stability, education and economic opportunities of families, Padhee noted that earlier housing policies primarily promoted ownership models.
However, PM Awas Yojana-Urban 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 are not in a position to own a house immediately, she said.
As per the operational guidelines of PMAY-U 2.0, ARH will be implemented through two models – existing government-funded vacant buildings can be converted into rental housing through PPP mode or by public agencies, or private and public entities may construct, operate and maintain rental housing units and recover costs through rental income, she added.
Under the scheme, the initial rent will be fixed by the local authority based on a survey.
Rent enhancement is allowed biennially by 8 per cent, subject to a maximum increase of 20 per cent in aggregate over a period of five years, ensuring affordability and transparency.
Padhee said the initiative is expected to help transform unutilised 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.
