Rental Housing Policy: After introducing biggest housing scheme “Pradhan Mantri Awas Yojana, the government is planning to pay your rents. The government is all set come up with welfare scheme in 100 smart cities with the worth of Rs. 2,700 crore through which the government to give rent vouchers to the urban poor.
Rental Housing Policy would be launched by government with the rent vouchers for BPL families. However, the government is working on the policy from last three years and first component of the policy is likely to be rolled out in current financial year 2017-18 in 100 smart cities.
The expected worth of Rental Housing Policy for every years is around Rs. 2,713. Aimed directly at the urban poor and helping the migrant population, the scheme would involve distribution of rent vouchers by urban local bodies.
The tenant would give these vouchers to the landowner, who in turn would be able to redeem them at any citizen service bureau. If the rent is higher than the value of rent voucher, the tenant would pay the difference in cash to the landowner.
Urban local body of the area would determine the value of rent vouchers on the basis of dwelling unit’s size and class and city where the unit is located. The government is also exploring the option of direct benefit transfer in this voucher scheme. As per the information of Census 2011, about 27.5% of urban residents lived in rented houses in 2011.
As per the report of NSS (National Sample Survey), around 35% of urban households lived on rent in 2009. Moreover, according to NSS this proportion has remained steady since 1991. The rental voucher scheme is being looked at as a means to complement the Prime Minister Housing for All scheme.
The government would also monetise the confiscated benami properties to boost the construction of affordable homes to bridge the demand of housing shortage.
The recent implementation of the Benami Properties Act and rules open up another option for rental housing. An enabling provision would be inserted in the rules that houses confiscated by Central government which cannot be auctioned, could be let out by the Central government or through state governments as rental housing for the middle income group (MIG), LIG and economically weaker section (EWS) depending on the suitability and location of such properties.
The ministry would now prepare a Cabinet note to push the rental voucher scheme. The move comes close to a recommendation by a group of secretaries on health, sanitation and urban development formed by Prime Minister Narendra Modi.