LUMBINI ENGINEERING COLLEGE

BHALWARI, TILOTTAMA-07, RUPANDEHI, NEPAL

A
Report
On
“Construction of Low-Cost Apartment Housing”

Submitted to:

Khadananda Sharma

Lecturer

Lumbini Engineering College

Bhalwari, Tilottama-07, Rupandehi, Nepal

Submitted By:

Sagar Bhattarai

Binit Acharya

Garima Paudel

Prakriti Pandey

Smita Parajuli

DATE
 LETTER OF TRANSMITTAL

To

Khadananda Sharma

Lecturer

Lumbini Engineering College

Bhalwari, Tilottama-07, Rupandehi, Nepal

Dear Sir,

The following report is an analysis by undersigned students of Civil Engineering (3 rd

semester) on "CONSTRUCTION OF LOW COST APARTMENT HOUSING”. Based on
our research, we concluded low cost housing gives effective budgeting and following of
techniques which help in reducing the cost construction through the use of locally available
materials along with improved skills and technology without sacrificing the strength,
performance and life of the structure.

This report details the study of low cost housing as well as its advantages and disadvantages.
Thank you for trusting us and giving us your supportive consideration to complete this
research.

I hope this report meets the need of concern people, generates future studies and educates the
public about the cheapest but safest housing today.

Thank you.

Sincerely Yours,

Sagar Bhattarai

Binit Acharya

Garima Paudel

Prakriti Pandey

Smita Parajuli
 ACKNOWLEDGEMENTS

We would like to thank Mr. Khadananda Sharma, Lecturer and our project supervisor for
giving us such wonderful opportunity to expand our knowledge in our own field of study and
guidance to work on making this report. Execution of this project would not have been
possible without his guidance

We would like to pay our sincere gratitude and humble thanks to our parents for their regular
support and encouragement throughout the project.

We would also like to pay our deepest thanks to our seniors who helped us in choosing the
good project topic, collection of materials and also and gave their regular guidance while
doing the project

Next, we would like to thanks the Department of Civil Engineering and all the professor and
the staff for emphasizing student in under taking this project and their guidance and
supervision .This Project has been gat way to the civil engineering field. Searching and
researching into topic related materials and several subtopics have given us the chance to
learn various matter related to this project.

Last but clearly not the least; we would like to thanks The Almighty God for giving us
strength to complete the report on time.
ABSTRACT
TABLE OF CONTENT
Contents: Page:

Letter of Transmittal
Acknowledgements
Abstract
1. Overview
1.1 What is Low-Cost Housing?
1.2 Objectives of Low Cost Housing
1.3 Characteristics of Low Cost Housing
2. Low Cost Housing and Urbanization
2.1 Housing and Inequality
2.2 Supply and Demand
2.3 Economic Inequality
2.3.1 Causes
2.3.2 Effects
2.3.3 Proposed Remedies
3. Types of Low cost Housing
3.1 Micro Units (Co-living spaces and Single Resident Occupancy)
3.2 Manufactured Homes/ Mobile Home Parks
3.2.1 Advantages of Mobile Home Parks
3.3 Tiny Houses
4. Low cost housing and its sustainability
4.1 Social Impact
4.2 Economic Impact
4.3 Environmental Impact
5. Construction techniques for Low Cost Housing
5.1 Modular Construction
5.2 Mass Timber
5.3 Load Bearing Structure
5.4 Foundation for Low Cost Housing
5.5 Hollow Concrete Block
5.6 Staircase
5.7 Structural Elements
6. Advantages of Construction of Low Cost Housing
7. Disadvantages of Construction of Low Cost Housing
8. Affordable Housing Schemes in Nepal
8.1 Mahendra Narayan Nidhi Awas Yojana 
8.2 Kirtipur Squatter Resettlement Project
 1. Overview
Providing shelter for low-income people is one of the most important national projects in
Nepal. The construction of low-cost housing for low-income groups does not involve housing
constructed with substandard building materials. Traditional building materials, that is,
concrete, steel, and insulating materials commonly used in modern buildings, cannot be used
in low-cost housing because the construction cost cannot be included in the scheduled
expenditure of low-cost housing. For this type of house, special construction materials must
be used to reduce mortar consumption as much as possible to avoid using up to about 90%
steel and up to about 80% concrete for foundations and roofs.

1.1 What is low-cost housing?

Low Cost Housing is a new concept which deals with effective budgeting and following of
techniques which help in reducing the cost construction through the use of locally available
materials along with improved skills and technology without sacrificing the strength,
performance and life of the structure. There is huge misconception that low cost housing is
suitable for only substandard works and they are constructed by utilizing cheap building
materials of low quality. The fact is that Low cost housing is done by proper management of
resources. Economy is also achieved by postponing finishing works or implementing them in
phases.
1.2 Objectives of Low Cost Housing

Objective 1: Access to housing

Provide direct assistance to create access to housing for lower income households. Provide
direct and indirect financial assistance to create access to ownership housing for moderate
income first-time homebuyers.

Objective 2: Fair Housing

Vigorously enforce fair housing laws, including regular and rigorous testing. Require CAF
developments to implement an affirmative fair housing marketing plan. Encourage best
practices in non-discriminatory housing. Increase awareness of fair housing issues.

Objective 3: Universal design

Incorporate universal design principles in new and rehabilitated housing to facilitate access
for people with physical and sensory disabilities and aging adults.

Objective 4: Land use plans and policies

Ensure that affordable housing is a component of all new or updated land use plans. Ensure
that the General Land Use Plan, Zoning Ordinance, and other regulations affecting land use
provide for a diversity of housing types and sizes, tenure types, and household types, within
approved land use categories and densities and development constraints.

Objective 5: Age friendly

Support aging in place for elderly households and permanently disabled householders.
Minimize displacement of low income residents out of the community during redevelopment
for the preservation of affordable housing.

Objective 6: Safe and code compliant housing

Ensure through all available means that all housing is safe and compliant with code
standards. Assist tenants to resolve their complaints related to housing safety and tenancy.
Ensure code compliance of older low and moderate cost rental complexes through proactive
means. Ensure that tenants and landlords understand their rights and responsibilities. Provide
assistance for the maintenance of low and moderate-income housing.
1.3 Characteristics of Low Cost Housing

 Has an attractive, low maintenance design.

A ‘zero maintenance’ exterior adds a lot of value. Simple construction is better than
complicated construction. Simple mechanical systems are better than complicated mechanical
systems. Slab-on-grade construction is better than crawl space. Pitched roofs are better than
flat roofs. Individual unit entries are better than common hallways.

 Is a community.

Residents value the opportunity to live here. All members of the community expect to be
treated fairly and courteously, and this mutual expectation creates an informal but powerful
force for community cohesion.

 Is subject to an appropriate, long term, use agreement.

The availability of the property for long term affordable housing use is assured through a
binding covenant running with the land. The long term affordability of the property is not
dependent on the identity or motivations of the sponsor, and is assured even if the property
fails financially and undergoes a workout or a foreclosure. The length of the use agreement
term and the level of affordability it requires are appropriate for the property, its target
resident population, and the subsidies with which it is financed.

 Is physically sound over the long term.

The operating budget contains sufficient funds to operate and maintain the property to high
standards, not just in the early years but over time. From the beginning, the property makes
reserve deposits that are sufficient to fully fund expected major repairs and replacements.

 Does not rely on appreciation in value.

The mortgage financing is fixed rate and self-amortizing, so that the property is not exposed
to interest rate risk or refinancing risk. The property’s debt burden (from all loans, not just the
first mortgage) declines over time, at a rapid enough rate to avoid the risk of over-leverage.
The property’s long term physical and financial viability can be supported by the projected
stabilized cash flow, even if this cash flow does not grow over time. This gives the property
the potential to improve its affordability over time, but the flexibility to increase rents as
needed to respond to unanticipated problems.

 Is financed appropriately.

By comparison with market rate apartments, affordable housing requires lower rents and may
require higher operating expenses. Moreover, affordable housing requires a reserve deposit
that is adequate to fund 100% of reasonably expected major repairs and replacements. As a
result, an affordable housing property generates a much smaller net operating income than an
otherwise similar market rate apartment property, and can support only a very limited amount
of mortgage debt. The remaining development costs must be financed with grants.

 Has an adequate operating margin.

This is not merely a matter of debt service coverage in an underwriting spreadsheet. The
projected rents must be achievable, with room to spare. The vacancy and collection loss
allowances must be reasonable and must recognize that real estate markets fluctuate.
Projected operating expenses must be at or above the level that good management will need
in order to operate the property successfully, not just in the early years when nothing breaks,
but over the long term. There must be adequate debt service coverage, without regard to the
amount of cash flow the owner is allowed to distribute. Basically, the property must be able
to withstand the sorts of income, expense, and capital needs shocks that frequently impact
affordable apartment properties.
 2. Low Cost Housing and Urbanization
The price distortion of land, labor, capital and other factors is the main manifestation and
crux of low-cost urbanization, which successfully avoided the common problems such as
large-scale urban poverty, unemployment and slums in the process of development, but also
contributed to the inefficiency of urban expansion and the inequity of dualistic structure.

2.1 Housing and Inequality

Housing inequality is a disparity in the quality of housing in a society which is a form of

economic inequality. The right to housing is recognized by many national constitutions, and
the lack of adequate housing can have adverse consequences for an individual or a family.
The term may apply regionally (across a geographic area), temporally (between one
generation and the next) or culturally (between groups with different racial or social
backgrounds). Housing inequality is directly related to racial, social, income and wealth
inequality. It is often the result of market forces, discrimination and segregation.

It is also a cause and an effect of poverty. Residential inequality is especially relevant when
considering Amartya Sen’s definition of poverty as "the deprivation of core capabilities".

2.2 Supply and Demand

The law of supply and demand is a basic

economic principle that explains the relationship
between supply and demand for a good or
service, and how this interaction affects the
price of that good or service. When goods or services are in high demand, their prices
increase. If the supply of goods or services is large but the demand is insufficient, the price
will fall. The reason is that people will raise prices when there is a relative shortage, and there
will be unsellable goods when there is an oversupply.

The housing market is also highly dependent on supply and demand, making it a highly
sought-after indicator in the industry. Of course, every house transaction involves a buyer and
a seller. The buyer makes an offer to purchase the property, and the seller accepts or rejects
the offer.

2.3 Economic Inequality

Disparities in housing explain variations in the conversion of income into human capabilities
in different social climates. Income does not always translate into desirable outcomes such as
healthcare, education, and housing quality is a factor which determines if those outcomes are
readily available to an individual. According to economist and philosopher Amartya Sen, an
individual's freedoms (or capabilities) are significant indicators of the kind of life they value
or have a reason to value. As economic equality varies by economic system, historical period
and society, so does housing inequality.

Economic inequality is a primary contributing factor to housing inequality. The distribution

of wealth in a region affects who has access to housing, and at what level.

2.3.1 Causes:

Sociologist John Milton Yinger describes urban residential inequality as a result of housing-
market forces. Yinger reasons that, all else being equal, housing becomes relatively more
expensive as it is closer to work sites. Because poorer families often cannot afford to pay
transportation costs, they may be forced to live in inner-city locations closer to employment
opportunities. To win the spatial competition for housing near work sites, lower-income
families must compensate for a high-priced location by accepting smaller housing, lower-
quality housing or both. These market forces are subject to other socio-economic factors; no
one cause can explain housing inequality.

2.3.2 Effects:

The most direct effect of housing inequality is an inequality of neighborhood amenities,

which include the condition of surrounding houses, the availability of social networks, the
amount of air pollution, the crime rate, and the quality of local schools. A neighborhood with
a certain quality of amenities typically includes individual residences of corresponding
quality. Those with lower incomes usually live in areas with poor amenities to win the spatial
competition for housing. A neighborhood amenity includes satisfaction derived from living in
a nice area, and many studies suggest that growing up in a high-poverty neighborhood affects
social and economic outcomes later in life. Another way the poor compete for housing is by
renting homes rather than buying them, which furthers the negative effects of housing
inequality by restricting access to household wealth.

2.3.3 Proposed Remedies:

Proposals to remedy the adverse effects of housing inequality include:

Subsidized housing, also known as affordable housing. Subsidized housing includes:

 Co-operative housing

 Non-profit housing

 Direct housing

 Public housing

 Rent supplements

 Private-sector housing - U.S. landlords who provide adequate housing.

 Fair-lending enforcement - Lenders are expected to not discriminate against

borrowers because of family status, race, originality, gender, and color.

 Scattered-site housing - A housing system where rent is based on household income.

 Investment in local school systems - According to Ruel Hamilton, financially

supporting schools in impoverished areas has a ripple effect which improves school
ratings and property values for owners of inner-city housing projects.

 Land value tax - A progressive tax on land ownership.

3. TYPES OF LOW-COST HOUSING

3.1 Micro Units (Co-living spaces and Single Resident Occupancy)

Micro-units have widely varying definitions depending on the cities in which they’re built.
This is due to building code variations between cities but is also attributable to the market’s
increasing acceptance of smaller units.

Single-resident occupancy (SRO) refers to a unit where everyone who lives on the site has a
private living room but shares bathrooms, kitchens, and other public spaces. Typically, a
micro-unit consists of a one-room living space designed to include seating, a bed, a
bathroom, storage, and a kitchenette, with possible access to communal amenities. In urban
areas, these small units can provide benefits to both the developer and the renter. Although
typically more expensive to build as a cost-per-square-foot calculation, with more kitchen
and bathroom fixtures in a smaller area, the additional rental income more than offsets the
added construction cost. Renters benefit from 20-30 % lower rental and utility costs, public
transit access, and proximity to employment.

Fig- Micro unit model

3.2 Manufactured Homes/ Mobile Home Parks

The shortage of low-cost homes is one of the biggest unsolved problems in the commercial
real estate industry today. Many renters are struggling to find a place to live within their
means, and in today’s economic environment, the problem will only get worse. As the
growing demand for low-cost housing provides opportunities for unconventional solutions,
the housing manufacturing industry may be in a good position to benefit from this pent-up
demand.

Today’s man-made residential communities are very different from the mobile home parks of
the past. The construction materials and technology of man-made houses are the same as
those of houses built on-site. They include many of the same luxurious facilities as
traditionally constructed new houses, including high-end facilities such as granite countertops
and hand-crafted installations. The cost of building these houses is about half the price per
square foot of houses built on-site, while still having the same luxurious facilities as

traditional houses.

Fig: Mobile Home Park

3.2.1 Advantages of Mobile Home Parks

 Affordable housing will always be in demand.  Only mobile home parks provide the
kind of housing that is truly affordable.
 Mobile home park operating expenses are typically 35-40% of gross income.  Typical
apartment expenses are between 50-60%. 
 Mobile home parks rent land to homeowners and have a much lower turnover than
apartments. A park owner is not responsible for maintaining homes in the park if they
do not own them.  
 Mobile homes do not leave parks because the costs of dismantling, moving, and
setting up the home are too high.  Usually, if a home is sold, it remains in the park and
is not moved.  
 Mobile homes offer residents home ownership at a very affordable price. Residents
have a yard, they are not sharing walls, ceilings, or floors with their neighbors, and
they can park right in front of their homes.
 No property taxes.
 No overly close neighbors.
3.3 Tiny Houses

Residents bear the cost or spend 30% or more of their income on housing. Tiny homes–which
are typically under 400 square feet–stand out as a promising solution to the affordable
housing crisis. Tiny houses have become a popular trend, not only providing cheaper housing
options, but also the sustainable traditional community designs and supports the minimalist
lifestyle trend. Tiny houses provide a low-cost solution for creating more affordable housing.
The tiny house movement is all about downsizing your lifestyle so you can live a more
fulfilling life without a lot of debt or a huge mortgage hanging over your head.

Fig: Example of Tiny House

 4. Low cost housing and its sustainability
Low Cost Housing is a new concept which deals with effective budgeting and following of
techniques which help in reducing the cost construction through the use of locally available
materials along with improved skills and technology without sacrificing the strength,
performance and life of the structure .There is huge misconception that low cost housing is
suitable for only substandard works and they are constructed by utilizing cheap building
materials of low quality .The fact is that Low cost housing is done by proper management of
resources.

Sustainability is particularly important in low cost housing because of the stability that is
created by building healthy, safe, and accessible places to live. And sustainability helps
improve the resilience to the volatility of climate changes and increases in utility costs.
Sustainability is based on the concept of three P. The 3Ps of sustainability are a well-known
and accepted business concept. The Ps refer to People, Planet, and Profit, also often referred
to as the triple bottom line.

Low cost housing is sustainable solution for these people who have less budget for the
investment in the housing .since people of this category are high in number so it is best
solution for high number of people in the world and it is also the environment friendly so it
good for our planet too. In general, sustainable development is divided into three sectors:
society, economy, and environment.

4.1 Social Impact

From a social point of view, low-cost housing not only provides shelters but also provides a
sense of protection for the community. Owning a home is also considered the ultimate life
plan for the family.

4.2 Economical Impact

From an economic point of view, the development of low-cost homes has made a significant
contribution to the construction industry and has led to a year-on-year increase in GDP. High-
performance and energy-efficient properties consume less energy, reducing utility and
operating costs. Traditional building materials, that is, concrete, steel, and insulating
materials commonly used in modern buildings, cannot be used in low-cost housing because
the construction cost cannot be included in the scheduled expenditure of low-cost housing.
For this type of house, special construction materials must be used to reduce mortar
consumption as much as possible to avoid using up to about 90% steel and up to about 80%
concrete for foundations and roofs. Low-cost housing, Low-cost home, Low-cost apartments,
Government low cost housing, Co-living spaces when a high-performance building is
carefully constructed and designed by an experienced team, it can even reduce ongoing costs.

4.3 Environmental Impact

From an environmental point of view, housing should help reduce greenhouse gas emissions,
optimize the use of energy and materials, and control waste.
In addition to saving operating costs, high-efficiency buildings equipped with medium-sized
solar photovoltaic systems can also create a source of income by selling electricity to the grid.

5. Construction Techniques for Low-cost Housing

Low cost housing or building is a concept of innovative ideas of budgeting efficiently instead
of degrading the quality of material you have been using. You just need the correct amount of
skills, technology to aid and the best performance of the workers working on the site to
achieve this goal of Low Cost Housing without sacrificing for the material you have been
using. So, there are some methodologies which can be adopted to cut the construction
cost and still achieve the best.

5.1 Modular Construction

Modular buildings are another trend that helps make low-cost homes. This technology
involves the use of predetermined designs and materials to fabricate buildings off-site. Then a
team assembles the pieces on site. This method can accelerate construction speed and reduce
costs by about 20%. Modular construction is a process in which a building is constructed off-
site, under controlled plant conditions, using the same materials and designing to the same
codes and standards as conventionally built facilities – but in about half the time. Buildings
are produced in “modules” that when put together on site, reflect the identical design intent
and specifications of the most sophisticated site-built facility – without compromise. The
buildings which are manufactured off-site in factories, under strict quality controls, but using
the same building codes and standards as conventional construction methods are made in
modules or small parts, which are transported to the construction site and assembled.
Modular construction is becoming more popular mainly due to its quick completion, cost-
effectiveness and efficiency.

Fig: Modular Construction

5.2 Mass timber

Mass timber uses state-of-the-art technology to glue, nail, or dowel wood products together in
layers. The results are large structural panels, posts, and beams. These exceptionally strong
and versatile products are known as mass timber. It is an energy-efficient alternative to high-
rise and commercial buildings. Wood is a natural, renewable and sustainable material for
building, with a lighter carbon footprint than steel or concrete. Not only does it have positive
environmental impacts, but it has also proven to be structurally strong and meet the same

performance and life safety standards as concrete and steel structures. Mass timber (short for
“massive timber”) is a building system that uses wood bonded together in layers to create
strong and sustainable planks, posts, beams and other structural elements. Mass timber
materials are designed to achieve the same strength ratings as non-wood materials like
concrete and steel while maintaining a much lighter weight.

Fig: Mass Timber

5.3 Load Bearing Structure

When we design the construction plan, we must always focus primarily on the structures we
use. It is better to use a load-bearing structure rather than a frame structure. The load-bearing
structure has several advantages: it is cheaper in the case of ordinary low-rise buildings.
Because less concrete and steel bars are required, construction costs are low. It is easier to
build and requires less time. Therefore, this will contribute to low-cost and fast processing. It
is also very flexible. A load-bearing structure is a structure in which loads are transferred to
the foundation through walls. This type of structure doesn't have beams and columns. The
load-bearing walls are constructed over a continuous foundation and they're designed to carry
the complete load, including their load.
 Fig: Load Bearing Structure

5.4 Foundation for Low Cost Appartment Housing

The Foundation of the building involves 10% to 15% of the total construction cost. Usually,
the depth of the building or the depth of the foundation in the ground is 3-4 feet, but for
ordinary ground, we can also set it to 2 feet deep. This saves a lot of total costs. In other
fragile or soft soils, such cost reduction cannot be well implemented. To avoid cracks in the
foundation of the building, it is recommended to use a suitable proportion of cement mortar.
Generally, slab foundations are your cheapest option when it comes to foundations, an
excellent choice if budget is front-of-mind.

5.5 Hollow Concrete Block

A hollow concrete block is a block made of concrete that has hollow spaces between its
walls. It is used to build different types of walls for different purposes like retaining walls,
decorative walls, classic walls, etc. hollow blocks are made of the same ingredients used in
poured concrete walls. The use of hollow concrete blocks for load-bearing walls has many
advantages, such as

 They are much cheaper than the stone bricks that we usually use.
 Because they are lightweight, they are very easy to handle and work with.
 It has a special insulation advantage for air spaces.
 It consumes very little mortar.

 The most important fact is that they are environmentally friendly.

Fig: Hollow Concrete Block
5.6 Staircase

Traditionally, we have been using the cast in situ stair construction system. But it is much
more expensive. Therefore, alternatively, we can use an effective and efficient method, also
known as a precast stair system. The precast stair system has several advantages, for
example:

 It is cheap and quick to build.

 It does not require laborious work to build.

Fig: Precast Staircase

5.7Structural Elements
 Prefabricated construction is a concept in which all the basic elements of the building
are readily available and purchased. Therefore, it is understandable that you will save
a lot of time and help to focus on the durability of the work. Some examples of
precast materials you can use include:
 Wall materials
 Roof and floor slabs
 Doors and windows
 Fig: Pre-fabricated door

6. Advantages of Low Cost Housing

The demand for low cost housing in the country is huge. Moreover, the interest shown by a
number of large corporate groups in this segment, is likely to facilitate timely delivery of
projects, which remains a nagging issue in the realty sector. Consequently, buyers in this
segment may not have to wait indefinitely, like their counterparts in other segments. 

 Affordable
First and foremost, low cost housing schemes are affordable, of course. Affordable housing
becomes a key issue especially in developing nations where a majority of the population isn't
able to buy houses at the market price. Refabricated homes, container homes and monolithic
domes homes are just some of the most low cost new houses.

 Lowers Homeownership Barrier

The price also lowers the entry barrier for civilians to own a home of their own, especially for
single adults and members of low-income groups. Married couples can merge their finances
for better affordability and a higher budget, but it’s not that easy for singles. Fortunately, with
low cost homes, everyone can be a homeowner!

 Decent-sized Home
And by everyone, we do mean every people. Whether you’re an accountant in a private
company, a teacher in a public school, or a small stall owner, you can own a home. The
homes are not studio-small either, especially for high-rise units.

 Suitable For Young Adults & First-Time Homeowners

Besides that, they also make a good choice for young adults and first-time homeowners as
there’s less financial pressure, combined with the freedom of having your own space. An
affordable home can teach you the dos and don’ts about owning a property.
 7. Disadvantages of Low Cost Housing
A closer look at the upcoming projects, indicates several challenges, in spite of their price
advantage. Most of these projects are located on the outskirts of cities and in far off areas. So,
the absorption in these projects could remain low, despite the demand for affordable housing.
Buyers still prefer central areas, even though they may have to compromise on the size of the
flat.

The present slowdown in the market, could affect the sales in these projects. Thus, even if the
developer completes the project, subsequent occupancy may remain a challenge. Owing to
the dearth of buyers, the formation of the society or the residents’ welfare association may be
delayed. Consequently, the maintenance of the projects’ premises will be affected and buyers
may have to depend on the developer, for the same.

While the units in a low cost housing project are cheaper, than those in the mid-income and
premium housing segment, most upcoming affordable projects may not provide the basic
amenities on account of their location. A majority of these projects are being launched in
remote areas, where the development firms get land at cheaper rates. Most of these areas still
lack basic social infrastructure.

 Projects Closer to Strategic Locations Costs More

Spread throughout the country in rural areas and the city, there are certain cases whereby the
nearer you are to the city center or a strategic location, the higher the prices will be.
Therefore, a home close to a public transport hub might cost more because of the high traffic
and convenience the locale brings.

 Quality of Materials Might Be Lower

Because it’s a low cost home, the keyword is the word ‘low cost’. That means the quality of
the materials used, its workmanship, or building infrastructure may not be as good as private
developers’. It also means a possible lack of facilities in the building, like a swimming pool,
gym, and high-end security systems.

 Tedious Application Process

The application process for low cost homes can be tedious as well. You must ballot for your
preferred development and if chosen, ‘fight’ for a unit or be added to a waiting list.
There’s no definite waiting period, but you can apply for other projects, although you’ll be
removed from the first waiting list if you’ve been selected for another.
  Restrictive T&Cs Regarding Sale or Transfer of Property

Once you’ve set your sights on a home, be sure it’s the right choice because you may not be
able to sell it for several years! Besides the regular lock-in period in your housing loan
agreement, certain affordable housing schemes have a T&C where you are not allowed to sell
or transfer the property without prior approval from the relevant bodies.

8. Affordable Housing Schemes in Nepal

8.1 Mahendra Narayan Nidhi Awas Yojana (Mahendra Narayan Nidhi Deprived
Housing Scheme) is an initiative by the Nepali Government of Madhesh Province in which
affordable housing will be provided to the urban poor with a target of building 610 affordable
houses by 31 March 2022.

As per the province government, two-roomed plastered and roofed house, a kitchen, and a
toilet would be constructed at a total cost of Rs.5 lakh per house. It is reported that the
process of housing construction would be expedited.

The government announced in the budget of financial year 2078/2079 that the province
government would make 10 houses in each provincial constituency within the province which
was first of its kind in any province in Nepal. This was named on Rastra Gaurav Man
Padavi recipient leader late Mahendra Narayan Nidhi, a democracy fighter and Gandhian
leader from the province.

Mahendra Narayan Nidhi Deprived Housing Scheme, Implementation Procedure, 2078 and
Dalit Empowerment Rules, 2078 was passed by the Cabinet on 13 January 2021.

8.2 Kirtipur Squatter Resettlement Project Kirtipur Housing Project, a squatter

resettlement project was launched to relocate those families displaced due to construction of
Vishnumati Link. Road in Kathmandu (LSGS, 2005). The Vishnumati Link Road Project was
proposed by the Department of Urban Development and Building Construction and financed
by the Asian Development Bank in order to ease the traffic flow and improve the
environment of the river corridor along the Vishnumati River located in the west of the
historic core city of 38 Kathmandu (DUDBC, 2001).Out of the eight squatter settlements of
low cast people living along the Riverbanks, only three settlements were affected by the
construction of the VLS (Lunde, 1994).
 REFERENCES

1. "State 2 government will build 610 houses for the poor and destitute" . Himal
Sanchar. Retrieved 14 January  2022.

www.himalsanchar.com/state-2-government-will-build-610-houses-for-the-
poor-and-destitute/
 ACRONYMS AND ABBREVIATIONS
ADB Asian Development Bank

LSGS Lumanti Support Group for Shelter

DUDBC Department of Urban Development and Building Construction