Odisha Begins Process to Convert Vacant Govt Buildings into Affordable Rental Housing under PMAY-U 2.0

Bhubaneswar: To provide affordable housing for the urban poor and working population, the Odisha government has initiated the process of identifying vacant and unutilised Central and State Government buildings and houses in urban areas for conversion into Affordable Rental Housing (ARH) under the Pradhan Mantri Awas Yojana–Urban (PMAY-U) 2.0.

Additional Chief Secretary to Government, Housing and Urban Development Department, Usha Padhee, has issued a communication to key State Government departments, directing them to identify such vacant or unutilised 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.

Officials said housing remains a critical component of urban development, directly influencing health, education, economic opportunities and overall well-being. While earlier housing initiatives largely focused on ownership-based models, PMAY-U 2.0 has introduced Affordable Rental Housing as a distinct vertical to cater to urban migrants, industrial and informal sector workers, and working women, who require safe and affordable accommodation but may not be in a position to immediately own a house.

Under the operational guidelines of PMAY-U 2.0, Affordable Rental Housing will be implemented through two models. Model-I предусматривает conversion of existing Government-funded vacant buildings into rental housing through Public-Private Partnership (PPP) mode or by public agencies. Under Model-II, private or public entities can construct, operate and maintain rental housing units for Economically Weaker Section (EWS) and Low Income Group (LIG) families, with investment recovery through long-term rental income.

As per the scheme provisions, the initial rent will be determined by the local authority based on a local survey. Rent revision will be permitted once every two years at eight per cent, subject to a cumulative cap of 20 per cent over a five-year period, ensuring affordability and transparency.

The initiative is expected to transform idle public assets into long-term rental housing, supporting workforce stability, strengthening urban economies and curbing the proliferation of informal settlements. Departments have been asked to promptly furnish details of suitable buildings to OUHM for further action, including repair, retrofitting and making them habitable, with financial support under PMAY-U 2.0 from the Ministry of Housing and Urban Affairs, Government of India.