Affordable Housing in Partnership Under PMAY (Urban)

Affordable Housing Oct 13, 2020

The Affordable Housing in Partnership (AHP) component under Pradhan Mantri Awas Yojana (Urban) is for people from the EWS category who cannot afford to construct a house of their own or buy an existing property. Through this component, a subsidy of Rs. 1.5 lakh is given to beneficiaries as central assistance.

What is the EWS category?

The ‘Economically Weaker Sections’ is a category  of households having an annual income up to Rs.3,00,000 (Rupees Three Lakhs). Only people belonging to the EWS category are eligible for the AHP scheme.

How AHP works

Which are the implementing agencies?

AHP can be implemented by the state governments or municipal bodies (Urban Local Bodies) or development authorities in partnership with the real estate developers from the private sector. AHP thus refers to a partnership between the public and the private sector.

Role of stakeholders in an AHP project

The AHP guidelines outline four different models for implementing an AHP project. Each model assigns different risks to each stakeholder- the government, the private developer, financial institutions and the beneficiaries. Thus, in each model every stakeholder takes up a unique set of responsibilities. For instance, in one model, the private developer takes up the responsibility of maintenance of the project, whereas, in rest of the models, maintenance is the responsibility of the beneficiaries.

Procedure for implementing an AHP project

Although the procedure and stakeholder roles vary from city to city, there are a few aspects which are common to each model. They are listed below.

  1. Land is identified and provided by the public authority (state government/ULB/development authority).
  2. A private developer is selected and empanelled through a bidding process.
  3. The public authority frames the technical guidelines.
  4. The private developer prepares a design for the project with the approval of the public authority.
  5. The public authority decides on a percentage of the total number of dwelling units that is to be allotted to EWS beneficiaries. It must be a minimum of 35 percent. Central Sanctioning and Monitoring Committee at the central level, however, can reduce the requirement of minimum number of houses in one project on the request of the state Government.
  6. The public authority decides on an upper ceiling on the sale price of EWS houses in rupees per square meter of carpet area.

How is the allotment of the dwelling units for the beneficiaries carried out?

The public authority frames an open and transparent procedure to decide the allotment strategy. The allotment may be done for instance, through a lottery system. The authority may also consult NGOs or civil society organisations to ensure that the allotment process remains transparent.

Is there any special preference given to anyone who wants to apply as a beneficiary?

The AHP guidelines mention that preference in allotment may be given to people with physical disabilities, senior citizens, people from Scheduled Castes, Scheduled Tribes and Other Backward Classes, or people belonging to minority communities, single women as well as people belonging to the transgender community.

Central assistance of  ₹ 1.5 lakh will be available for the beneficiaries.

(Note: This article refers only to AHP projects carried out by public authorities in partnership with private developers. PMAY guidelines also provide for affordable housing projects constructed by public authorities without the involvement of private developers).

Photo by Ashwini Chaudhary, Unsplash.

At TEAL, we are building the next generation of property due diligence using big data analytics and machine learning. We provide reliable information about property ownership, registration status, disputes, tax compliance history and all other information that you will need to make a safe and secure property investment. To learn how TEAL can help you in your journey, visit


Great! You've successfully subscribed.
Great! Next, complete checkout for full access.
Welcome back! You've successfully signed in.
Success! Your account is fully activated, you now have access to all content.