New Nepal Housing Bill Offers Grants to Poor, Tightens Penalties for Unsafe Buildings

A housing reform bill registered in Nepal’s House of Representatives seeks to amend the Building Act 1998, offering cash grants of at least Rs75,000 to extremely poor families for building their first residence, supplemented by free materials, low-interest loans and technical assistance. It requires mandatory structural, seismic, fire and use-related assessments for buildings that reach 50 years, with further reviews after 65 years, and allows occupancy permits to be renewed if safety is confirmed.

The legislation introduces heavier penalties, ranging from Rs500,000 to Rs1 million, for violations by Class A and B projects, and up to Rs500,000 for lower-class buildings. Local governments must approve environmental studies, source construction materials and provide model designs, while the federal and provincial levels coordinate financing, grants and insurance. The bill also promotes smart homes, cultural-appropriate architecture and grants for disaster-affected or informal-settler families. Officials such as Jibendra Mishra, Sunil Lamsal and former urban development secretary Maniram Gelal highlighted the need for stronger safety oversight and the constitutional right to housing.