Affordable Housing in Partnership (AHP)

Affordable Housing in Partnership (AHP) is part of the Pradhan Mantri Awas Yojana (Urban) [PMAY (U)] scheme. It is designed to address the housing needs of the urban population, particularly the economically weaker sections and lower-income groups. The scheme encourages partnerships between various entities, including government bodies, private developers, and housing boards, to develop affordable housing units.

 

Under this scheme, financial assistance is provided to state governments, union territories, and private developers to build housing units for eligible beneficiaries. These homes are typically offered at reduced costs, making them accessible to families with limited income. The scheme also ensures quality construction, promoting decent living conditions for residents.

The Affordable Housing in Partnership scheme focuses on the following objectives:

• Increase the Availability of Affordable Housing

Encourage the development of affordable housing units to address the housing shortage in urban areas

• Promote Public-private Partnerships (PPP)

Facilitate collaborations between government agencies, private developers, and financial institutions to create cost-effective housing solutions

• Provide Housing for EWS and LIG Families

Target economically weaker sections and lower-income groups, ensuring they have access to affordable and decent housing

• Support Sustainable Urban Development

Contribute to planned urbanisation by creating integrated housing projects with access to essential amenities like water, electricity, and sanitation

• Ensure Financial Assistance

Offer subsidies and financial support to reduce the cost burden on beneficiaries, making homeownership feasible for low-income families

• Encourage Inclusive Growth

Bridge the housing gap for vulnerable sections of society, fostering a more equitable living environment in urban areas

The Affordable Housing in Partnership (AHP) scheme is designed to make quality housing accessible to economically weaker sections (EWS) and lower-income groups (LIG). 

 

The key features include:

Public-private Partnerships (PPP)

AHP encourages collaborations between government agencies, private developers, and housing boards. This model ensures the efficient utilisation of resources, expertise, and infrastructure to deliver affordable housing projects.

Financial Assistance

The central government provides financial support to state governments and union territories. A subsidy of up to ₹1.5 Lakhs per unit is offered to make housing affordable for eligible beneficiaries.

Role of State Governments

State governments and local urban bodies play a crucial role in identifying suitable land, selecting developers, and monitoring project implementation to ensure timely delivery.

• Focus on Economically Weaker Sections (EWS) and Lower-income Groups (LIG)

The scheme primarily targets urban families belonging to EWS and LIG categories. Specific income thresholds are used to define eligibility

• Quality Housing with Basic Amenities

AHP projects ensure that housing units meet standard construction guidelines and include essential amenities like water supply, electricity, and proper sanitation

• Transparent Implementation

The scheme mandates clear eligibility criteria, fair beneficiary selection, and efficient monitoring systems to ensure transparency in execution

To qualify for benefits under the affordable housing in partnership scheme, applicants must meet the following criteria:

Income Group Requirements

• Economically Weaker Sections (EWS): Households with an annual income of up to ₹3 Lakhs

• Lower-income Groups (LIG): Households with an annual income between ₹3 Lakhs and ₹6 Lakhs

Ownership Restrictions

• Applicants or their family members must not own a pucca house in any part of India

• The housing unit under this scheme must be for residential purposes only

Other Prerequisites:

• Beneficiaries must provide valid proof of income and identification.

• Priority may be given to specific groups, such as women, senior citizens, persons with disabilities, and Scheduled Castes (SC) or Scheduled Tribes (ST).

The Affordable Housing in Partnership scheme operates through several partnership models to ensure the effective delivery of housing projects. These include:

Public-private Partnerships (PPP)

In this model, private developers collaborate with government agencies to construct affordable housing units.

 

Governments provide land, subsidies, and policy support, while private developers contribute technical expertise and manage construction.

Private-private Collaborations

• Private entities, such as real estate developers and non-governmental organisations (NGOs), collaborate independently to deliver affordable housing projects.

• Government intervention may be limited to regulatory approvals or financial incentives.

Government Support Models

• Projects fully implemented by state or central government bodies with direct funding and management

• Such projects typically target vulnerable groups or areas with acute housing shortage

The Affordable Housing in Partnership (AHP) scheme has significantly influenced India’s affordable housing sector. Its contributions can be observed across multiple dimensions:

Increased Availability of Affordable Housing

AHP has accelerated the construction of housing units for economically weaker sections (EWS) and lower-income groups (LIG), addressing the urban housing shortage. By involving private developers, it has enhanced the pace of development while ensuring affordability.

Promoting Urban Development

The scheme encourages planned urbanisation by integrating projects with essential infrastructure such as water supply, sanitation, and public transportation. This results in better connectivity and quality of life for residents.

Socio-economic Upliftment

• Provides vulnerable families with access to safe, decent housing, improving their living standards

• Enables financial stability for beneficiaries by reducing their housing cost burden and creating long-term asset ownership

• Supports employment generation in construction, infrastructure, and related sectors, boosting local economies

Empowerment of Marginalised Groups

Special provisions for women, senior citizens, and differently-abled individuals contribute to social inclusion and equity

Despite its benefits, the Affordable Housing in Partnership scheme faces several challenges:

Attracting Private Partners

Developers may hesitate to participate due to lower profit margins in affordable housing projects.

 

Proposed Solution

Offering attractive incentives such as tax benefits, reduced regulatory approvals, and streamlined processes to encourage private sector involvement.

Land Acquisition Issues

Acquiring suitable and affordable land in urban areas is a major hurdle.

 

Proposed Solution

State governments could utilise unused public land or incentivise private landowners to contribute land for affordable housing projects.

Ensuring Timely Project Execution

Delays due to bureaucratic hurdles, regulatory clearances, or lack of coordination between stakeholders affect project completion.

 

Proposed Solution

Implementing robust monitoring mechanisms, setting clear deadlines, and leveraging technology to streamline approval processes.

Limited Awareness Among Beneficiaries

Potential beneficiaries may lack knowledge about the scheme or eligibility criteria.

 

Proposed Solution

Conducting widespread awareness campaigns using digital and traditional media to inform citizens about the scheme.

The Affordable Housing in Partnership scheme has distinctive features compared to other housing initiatives: