Update (14:52 NST, October 3, 2026)
Prime Minister Balen Shah announced that the government will ensure safe housing for every citizen, following the registration of the ‘Bhavan (Second Amendment) Bill, 2083’ in the House of Representatives on Friday. The bill, which aims to guarantee housing for low-income families and provide safe, organised homes for middle-income families, was registered by Minister for Physical Infrastructure Development Sunil Lamsal, according to the Prime Minister.
Among the new provisions, the bill proposes free natural construction materials for citizens applying to build cowsheds. It also includes a plan for the government to construct new homes for families by relocating those living in disaster-affected, unsafe, and high-risk settlements to safer locations.
For middle-income families seeking ‘smart homes’ through concessional loans, the bill outlines specific payment structures. Citizens could pay an initial Rs 500,000 and then Rs 11,000 monthly for 15 years. Other options include an initial Rs 1 million with Rs 15,000 monthly, Rs 1.5 million with Rs 20,000 monthly, Rs 2 million with Rs 30,000 monthly, or Rs 2.5 million with Rs 35,000 monthly.
Nepal’s government has registered a bill to legally guarantee safe housing for disaster-affected, vulnerable families, and informal settlers, proposing grants, free construction materials, and technical assistance. The ‘Bhavan Ain, 2083’ (Building Act, 2083) bill was registered at the Federal Parliament Secretariat on Ashoj 17 (BS).
The bill, prepared by the Ministry of Physical Infrastructure Development under Minister Sunil Lamsal, seeks to amend the existing ‘Bhavan Ain, 2055’. It mandates the Nepal government, provincial governments, and local levels to arrange for the construction, reconstruction, repair, or retrofitting of homes for families affected by disasters, those residing in high-risk areas, or informal settlers. Furthermore, it makes it obligatory for these three tiers of government to formulate procedures for providing necessary grants, free construction materials, and technical assistance.
Grant and Material Provisions
Under the proposed bill, poor and indigent citizens could receive up to Rs 75,000 in housing grants, with Rs 50,000 from the federal government and Rs 25,000 from provincial governments. First-time Nepali homeowners are proposed to receive free riverine and natural construction materials, provided they build their homes according to government-specified designs and standards.
For middle-income families, the bill proposes the construction and provision of ‘smart homes’ through concessional loans. These homes would have a plinth area of 900 to 1,300 square feet, with estimated costs ranging from Rs 2 million to Rs 7.5 million.
The bill stipulates that all residential buildings constructed, repaired, or retrofitted under these provisions must be fully safe, adhering to building codes and prevailing laws related to land use, environment, and disaster risk. Such homes must also include basic facilities and be accessible as required.
Background and Next Steps
This legislative initiative aligns with the government’s policy to ensure access to safe housing for every citizen and aims to update the ‘Bhavan Ain, 2055’, which primarily established building rules and a committee for developing national building codes. Previous government efforts to aid disaster-affected families include the ‘Monsoon-induced Disaster Affected Private Housing Reconstruction and Rehabilitation Grant Procedure, 2077’ and the ‘Temporary Housing Construction Grant Standard, 2081’ issued by the Ministry of Home Affairs. This new bill is prepared in line with the government’s policy to ensure access to safe housing for every citizen and their families.
The ‘Bhavan Ain, 2083’ bill is currently registered with the Federal Parliament Secretariat. It will undergo discussion, potential amendments, and passage in parliament before it can be authenticated by the President and enacted into law. The proposed provisions regarding grants, free construction materials, and concessional housing will only be implemented after the bill is passed and detailed regulations and procedures are developed.
Uncertainties Remain
While the bill outlines significant proposals, several details remain unclear. A definite timeline for parliamentary discussion and passage has not yet been made public. Furthermore, the detailed procedures for grant distribution, provision of construction materials, and selection of beneficiaries are still pending. Specific budget allocations for the proposed grants and ‘smart homes’ for upcoming fiscal years are also not yet available. Criteria for identifying ‘families living in high-risk areas’ and ‘informal settlers’ still need to be clearly defined.
