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rbed by:
partment ofHousing and Urban Development
)11' Mahal, Kathmandu, Nepal.
: 9TI-1-226927,223974,227945
: m-1-224139
INTRODUCTION
In Nepal there is a tradition of constructing shelters by households using own
means and resources and by making tireless efforts. But looking at the present
circumstances, fulfilment ofthe shelter needs has become a complicated problem
for the majority of the families, especially for the families with limited and low
income. Low capacity ofinvestment in means and resources required for shelter
I~ facilities is mainly due to poverty which exists as a major problem. Problems
g that exist in the urban and rural areas which are due to internal migration,
i urbanization, increasingpressure ofpopulation, natural calamities and deteriorating
environment are posing as a serious challenge to the nation as a whole. According
to the "National Housing Survey" conducted in B.E. 2048 (A.D. 1991), by the
end of B.E. 2062 (AD. 2006), the total of 2,500,000 new dwelling units have to
be constructed and about 732,000 dwelling units have to be renovated.
I
Therefore, in realisation of the requirements of the national shelter policy, His
Majesty's Government have formulated a policy as stated in the current Eighth
Plan (1992-1997) in collaboration with the United Nations Organisation and
Habitat. As far as the shelter sector is concerned, such effort is the first of its
kind in Nepal. In the constitution, 1990,ofthe Kingdom ofNepal, the fulfilinent
of the shelter needs of all the families of Nepal is taken as a basic need. The
Global Shelter Strategy adopted by the United Nations has provided a strong
guideline as well as assistance in the formulation of the present policy. This
policy has been formulated by various government, semi-government agencies,
,-
rl social workers, intellectuals, political workers and competent consultants through
extensive discussion, seminars and exchange of views.
:l
I:
The execution of various strategies and working policies included under this
~
policy depends on various factors such as national growth rate, administrative
and other essential improvements, cost recovery, recognition of the concept of
I
the use ofprivate lands (control by the community) for public welfare, etc. This .
I policy will considerably help in identifying the right course of action for the
''{
r implementation of short term (upto 2000 AD.) mid-term (upto 2006 AD.)
and long-term housing programmes.
CONTENTS

Chapter Page
1. Status of housing in Nepal 1
1.1 Housing situation
1.2 Housing need and estimate 2
2. Shelter Policy
4
2.1 Basic concept of the shelter policy 4
2.2 Objectives
5
2.3 Policies
5
3. Implementation Strategy
13
3.1 The fundamental premise of the implementation strategy 13
3.2 Action packages
14
3.3 Associated actions
15
Annex
A. Existing housing situations inNepal 19
B. Dwelling unit needed and investment condition indicators 22
Chapter 1 

1. STATUS OF HOUSING IN NEPAL
1.1 Housing situation
A review of the housing situation in Nepal gives a mixed picture. On the
one hand, the physical condition ofthe majority ofdwelling units is relatively
good, on the other, there is undue overcrowding and also there are very
little facilities and services related to housing. Furthermore, estimates of
future housing needs show that Nepal must make a strenuous effort in the
next 15 vears to provide basic shelter to the citizens of urban and rural
areas.
As indicated by the National Housing Survey, 1991, low capacity of
investmentin means and resources required for the construction of dwelling
units is mainly due to inherent poverty of individuals and households,
which stands as a major problem. In spite of this, the practice of
constructing dwelling units through their own tireless exertion and sacrifices
continues. This may be called the Owner Builder System. In such
circumstances it has become more difficult for the people of low and limited
income group to build dwelling units. In addition to this, land acquisition
has become a major problem. On the overall analysis, the paucity of essential
physical infrastructures in housing sectars and unavailability of credit and
other financial incentives for the construction of dwelling units pose as
major problems far shelter builders.
According to the completed survey (Annex 'a'), out of the total number
of dwelling units in the Kingdom, 50.5 percent of dwelling units belong
to Kachi (temporary) type, 41.2 percent belong to ardha pakki (semi­
permanent) type and 8.3 percent belang ta pakki (permanent) type. Looking
at the existing housing situation of Nepal, it can be assumed that about
1
7 percent of dwelling units are more than 50 years old and out of the total
dwelling units in rural areas about 34 percent are 10 years old and 46 percent
of the dwelling units of the urban areas are 10 years old or less than that.
The physical condition of about 12 percent of dwelling units is found to
be very weak. About 8 percent of the existing dwelling units in urban and
rural areas need to be renovated.
The review of the shelter-relatedinfrasttuctural facilities indicates that about
50 percent of families have been provided piped drinking water facilities
and about 30 percent and 20 percent have been provided electricity and
toilets respectively. On the one hand, statistics indicate the paucity ~ well as
inadequacy ofinfrastructural facilities for dwelling units, on the other, there
is inequality in the distribution of physical and facilities available in the
urban and rural areas. The residential density indices indicate that 4 persohE
occupy a habitable room and the average space per person is 53.3 sq ft.
Considering the housing tenure, it appears that most of the families live in
the houses oftheir own. Butin the urban areas about 24 percent offamilies
use rental accommodation and about 7.3 percent live as squatters.
The significant number of the population of Nepal are suffering from
physical and financial problems. For the relief of such underprivileged
people, it is essential to formulate a special policy for providing housing.
The underprivileged class include the resourceless, landless and helpless
individuals/ families such as agricultural workers, Kamaiyas (bonded
labourers), ploughmen, etc., displaced by natural calamities, dependent
people, physically impaired, delinquent, sick people, destitute women,
lepers, certain professional group of people, and aged people.
1.2 Housing need and estimate
In Nepal there are altogether 3,000,000 dwelling units at present. Out of ~1
that there are 2,700,000dwellingunits in rural areas and only 300,000 dwelling ;,
units in urban areas. On the basis of the increasing growth rate of I
population, it is estimated that the following number of dwelling units
I
may be required in future. In the urban area alone, additional requirement
of dwelling units at the rate of 5.5 percent a year is estimated upto 1996.
From 1997 to 2001 the increase of shelter requirement may be 5.3 percent.
Accordingly; from 2002 to 2006, the additional requirement of dwelling
units may be S percent a year. But in the rural areas, over the same periods
the additional requirement may be 2.1 percent, 2 percent and 1.9 percent
respectively. In this context, while projecting the occupancy rate of dwelling
units or the use of dwelling units per person, it is estimated that in the
urban areas, the occupancy rate will be approximately 6.2 persons per
shelter upto 1997, 6.1 persons per shelter from 1997 to 2001, and 6 persons
from 2002 to 2006. And, in the case of rural areas, the prejection is 6.3,
6.2, and 6.1 persons respectively over the same periods.
According to the findings from the survey, it is estimated that about 0.76
percent of dwelling units in the case of urban areas and 2.4 percent in the
case of rural areas are destroyed every year by natural calamities and other
unforeseen reasons.
On the basis of the above data (Annex 'b') it is estimated that the total of 

2,500,000 new dwelling units are required for the period 1992-2006 and 

out of that the requirement of the urban areas will be 17.0 percent. Over 

the same period, about 732,000 dwelling units are required to be repaired 

and renovated. Out of that figure, the share of the urban areas is 60,000. 

2
3
Chapter 2
2. SHELTER POLICY
2.1 Basic concept of the shelter policy
The basic principles of the basic concept of the National Shelter Policy
are as follows:
1. 	 Make proper arrangement and create favourable atmosphere as
mentioned in the Constitution of Nepal, 1990, in order tb fulfil the
need of dwelling units in the form of a basic need of the entire people.
2. 	 Need to recognise the important role of dwelling units in the alleviation
of poverty and economic development in addition to the role of raising
the living standard of the people.
3. 	 Shelter should be taken as an integral part of economic productivity
in the nation taking it in the form of an asset and accumulated
capital of national economy and individuals, not taking shelter as
consumption good.
4. 	 Follow the principle of financial self-reliance for the attainment
of the housing objectives in the light of increase in pressure due to
demand of various sectors in the context of the level of economic
development and achievements made in previous years.
5. 	 Based on the principle of financial self-reliance, His Majesty's
Government should act as enabler as well as facilitator for the
fulftlment of shelter targets and the private sector should play an
important role in formal and informal sectors.
2.2 Objectives
1. 	 To facilitate in the task of producing dwelling units, repairing,
maintaining the existing dwelling units and improving the standard
of shelter by adopting positive steps in fundamental aspects such
as land and physical infrastructures, service and facilities, building
construction materials and technology, etc.
2. 	 To orient the housing sector to fmancial self-reliance, mobilize financial
resources effectively and promote the utilisation process.
3. 	 To clarify the role of the government, non-government and private
sectors in the fulfilment of shelter needs and then improve the
organisational structure through the appropriate institutional basis
and creation of legal framework.
4. 	 To continue undertaking activities that support to further mobilize,
develop, and expand the land and housing market in consideration
of the welfare of the majority of households of low-income group,
shelter-less, and affected people of rural and urban areas, continue
launching other activities to improve the provision of ensuring
rights and security of land, cost recovery, cross subsidy,
management of housing construction technology and regional
balance.
5. 	 To adopt the ways of reducing the adverse impact on environment
from the residential dwelling units, improve basic public health
facilities and minimize the impact of natural calamities on dwelling
units.
, 2.3 PoJicies
1­
a. 	 Increasing the production of dwelling units and repair
I~
;
l and maintenance of the existing stock
I~
1. 	 Increase the availability of dwelling units of proper and suitable
value and increase the supply of serviced lands .
1.1 	 Simplify the provision of acquisition of land by removing the
existing constraints regarding land in order to register increased
5
production and construction of dwelling units for the maximum
number of households.
1.2 Increase the supply of housing plots for owner builder households
by implementing the plans and programmes such as guided land
development, land pooling, and other kinds of land development
programmes.
ii
ilk
1.3 Encourage the establishment of housing and land development
companies through the joint participation of His Majesty's I",
Government and the private sector and also through the sole
involvement of the private sector.
1.4 Construction of cost effective shelters for low income people,
the shelterless and the disadvantaged group, provide smaller
plots of land to construct dwelling units, provide the basic
services and facilities and provide the grant on behalf of the
government to some extent for the provision of shelters.
1.5 Encourage the construction of apartments for fulftlling the
I
Ii
i£
increasing shelter demand in urban areas.
1.6 Reduce the pressure caused by the high value of land by
I
,~
encouraging the people to utilize the investment-oriented and
other alternative opportu)1ities.
1.7 Reduce the tax on vacant land, tax on land & property, reduce the
registration fee on land transactions, improvement of land
ownership system, and enforce rules and regulations on
appropriate land use and building construction.
2. 	 Increasing the necessary basic infrastructural services and
facilities and expanding the same
2.1 	 Develop the standards, codes, and technology required for making
the work of constructing, producing and distributing the ,
infrastructural services and facilities practicable and effective.
i!
Besides this, housing and land development projects should be
protected by improving the mechanism of co-ordinating between
the agencies involved in such works.
6
2.2 	Decentralise the rights and responsibilities regarding the
mobilisation of resources, infrastructural services and facilities,
their construction, distribution, management and their
maintenance and encourage the participation of private sectors
and local people's participation in the development of
infrastructural services and facilities and their expansion.
2.3 	Fix the fee and charge on the basis of actual services and facilities
received and increase the income of concerned sectoral agencies
by improving the cost recovery mechanism.
2.4 Ensure the construction of infrastructural services and facilities
and their distribution network at minimum cost as far as
possible while developing new lands for settlement and
encourage the preparation of a scientific planning and design.
2.5 	Encourage public awareness on the positive impact on public
health, environment and other facilities from the construction
and expansion of the infrastructural services and facilities.
3. 	 Improvement in the use of building materials and construction
technology
3.1 	 Encourage the utilisation of appropriate materials and technology
by studying, investigating and evaluating the local or imported
alternative construction materials. While evaluating the possible
impact from the use of these construction materials, attention
must be given to see whether the impact is favourable from the
social cultural, financial and environmental point of view.
3.2 Encourage the maximum use 	of indigenous materials such as
lime, rice husk, jute, soft woods along with bamboo, hay and
other such construction materials available in rural areas.
3.3 	Adopt various financial and technical alternatives for reducing
the cost of producing building materials, upgrading the quality
of building materials, and simplifying the delivery system.
7
3.4 Adopt simple and cost effective construction technology and 	 1.2 Expand credit facilities for housing and construction materials
emphasize the use of earthquake resistant techniques. Develop by integrating the projects and programmes regarding the
early warning and information system. 	 community-based credit schemes with income generation
activities.
3.5 	 Improve the quality of building materials and ensure effective
utilization of the same through training and skill upgrading i
programmes. Rationalization of the design and construction
process and production of standardized building components
;
and materials.
J
3.6 Disseminate information 	on cost effective and appropriate
construction technique at the local level and bring about
improvement in skill formation through experimental
demonstrations.
3.7 	Enforce the National Building Code while constructing
government buildings and gradually enforce this code in the
private sector.
3.8 	Promote regional vernacular art and architecture while
constructing the residential buildings.
3.9 To encourage small credit schemes for cresting the building
materials supply system.
3.10 	Disseminate information about the innovative use of
construction materials anditechnology in different regions of
the country apart from the collection of internationally
accepted construction materials and techniques. Make
provision of necessary incentives in such works at the national
level.
b. 	 Promote effective mobilization and allocation of financial
resources
1. 	 Mobilize the land and housing credit delivery mechanisms to
be floated at the form;Ii and community le.vels on an
experimental basis.
1.1 	 Promote linkages between the available fmancial resources and
the land and housing development companies.
8
1.3 Facilitate the creation of financial institutions like Women's
Development Bank in order to increase the participation of
women in the process of shelter construction.
1.4 Facilitate the implementation of a short term credit delivery
programme for providing the building materials.
1.5 	Promote collective loan arrangements and housing co­
operatives to provide land and loan facilities for housing and/
or building materials to majority of households who do not
have fixed income source.
1.6 	Encourage the commercial banks and other financial
institutions to float loans for land development and
construction of dwelling units.
1.7 Facilitate the establishment of financial institutions for making
available loans for the construction of dwelling units and land
development.
2. 	 To develop the process of cost recovery of public investments
in land, physical infrastructures and other services
2.1 	 Test and use the cost recovery mechanism on regional basis along
with the adoption of an appropriate improvement in taxation
system.
2.2 	Develop joint ventures between the public and private sectors.
2.3 Develop the cross-subsidY"ll1echanisms within land development
schemes to make the target classes of low income group
accessible to land at a cheaper rate.
8
2. 	 Milke.' /Ie.'I.·t.'ssury iwttitutiUlull Ilrrangement for planning policy
3. 	 Increasing financial self-sufficiency of the shelter sector
mukiJJg, implementation, training, re.'WIlrch and evaluation on
3.1 	 Integrate employmentgeneration activities with land development sectors related to the development of dwelling units. 

and shelter construction activities to enable the potential house­

2.1 	 Establish a high level technical "apex body" at the central level to
owners to provide credit to the housing scheme.
C( H 	 lrdinate the activities ()f public and private sectors for the
3.2 Encourage maximum mobilisation of indigenous means and
,
,
resources as far as possible so as to enable the people to afford
financial resources required for the construction of the
residential buildings and the infrastructures and their
maintenance and operation.
3.3 	Facilitate the loans through financial institutions for providing
dwelling units to the classQs of people with limited income
subject to payment of loans in instalments.
3.4 	Promote the participation of national and international non­

government organisations (NGOs and INGOs) in the 

provision, operation and maintenance of various services to 

be provided in urban areas. 

c. 	 Organisational improvement
1. 	 Clarify the role of public and private sectors for implementing
the National Shelter Policy.
1.1 	 Establish the role of His Majesty's Government as promoter at
both central and locallevels)in each component of the national
shelter strategy.
1.2 Establish the role 	of local authorities (District Development 

Committee, Municipalities, Village Development Committee) 

in promoting land and housing development work. 

1.3 Take initiative to enlist the active participation of women in 
the process of the choice, financing and management of ,
dwelling units.
implementation of the shelter strategy.
2.2 	ESlablish a high level inter-ministerial assistance committee to
co-ordinate the entire activities rel~lted to shelter development.
.2. ') 	 Stream-line responsibilities among the concerned Ministries,
Departments and their regional and local offices for the
implementation of the shelter policy.
Promote the long term involvement of NGOs, INGOs and
community-based organisations for the implementation of the
shelter policy.
J. 	 Introducing the appropriate and effective laws and regulations
and amending the existing ones as needed.
3.1 	 Introduce legislation and regulations concerning condominium,
co-operative and leasehold tenure.
3.2 	Continue introducing necessary legislation and regulations
gradually for the implementation of National Building Code.
3.3 Amend the existing legislation and regulations concerning tax
on vacant land, definition of public good, co-operatives, dual
land ownership, land pooling, dual taxation on land
transactions, cadastral mapping procedures in addition to other
subjects related to the shelter policy.
3.4 Study and analyze various aspects 	of house rent, adopt the
possible alternative and make necessary legislation and
regulations as needed.
4. 	 Make arrangement for the data base to make the decision
making and monitoring process on shelter development simple
and effective.
4.1 	 Carry out regular monitoring and evaluation studies on land and
housing markets, demand and supply of construction materials,
financial and other indicators.
4.2 Monitor and evaluate the impact of the shelter policy, objectives,
programme and strategy on the target group. Carry out regular
updating of the national shelter survey by making improvements
as needed. Such kind of surveywork will be tied up in the national
census.
DUi }I,': ;~v' ,;11
'-i~~,~,,,
Chapter 3
3. 	 IMPLEMENTATION STRATEGY
3.1 	The fundamental premise of the implementation
strategy
1. 	 The existing shelter construction and production process in
the private sector which relies primarily on the individual
owner builder system will be improved and strengthened as
needed.
2. 	 In view of the limited means and resources available in the
shelter sector, His Majesty's Government must play the role of
motivator in order to make the people capable of successfully
implementing the shelter policy. Basic principles adopted under
this policy are:
a. 	 Make arrangement for incentives for promotion of marketing
of goods and services related to construction and development
of shelter.
b. 	The present arrangement does not reduce the responsibility
of the government in the development of dwelling units and
their promotion activities. On the contrary, the government
is required to re-allocate financial, physical and human
resources.
c. 	Promote the sense of unity and co-ordination among the
persons associated with the successful execution of the enabling
approach, among groups like landlords, builders, institutions
involved in real estate business and among the persons involved
in various financial, social and political activities.
12 13
d. Minimize special difficulties of women such as poverty, illiteracy,
lack oftraining, compulsion ofpre-occupation in domestic affairs
and the shouldering of the two-fold responsibility like labourers
and encourage then) to participate in the production and
maintenance of dwelling units.
e. 	 In order to make the role of the motivator effective, legislation
and regulations related to shelter production and improvement
must be revised and amended as needed.
f. 	For carrying out the above role, central and local agencies,
private sector and non-government organisatiol';ls, co-operatives
and community organisations, financial. institutions,
construction material manufacturing industries and other
agencies associated with this work must be identified. Besides
this, co-ordination must be maintained among these agencies
on an institutional basis.
3.2 Action packages
1. Land development programme
In view of the families with low income and limited income such
as employees, teachers and labourers, etc., His Majesty's
Government will carry out land develop~ent programmes with a
view to removing various constraints st1nding in the way of land
acquisition in urban and rural areas.
2. Encourage joint participation
Promote the residential land development and shelter construction
works through joint participation of the government and private
sectors for attracting the private sector towards the construction
of residential dwelling units.
3. Improvement in legislation
Undertake reformative actions needed for the legal structure of
the existing marketing mechanism regarding land and shelter.
4. Promote shelter finance
The shelter finance mechanism should be promoted by developing
the institutional framework of providing loan to shelter
construction for the families who are unable to build improved
and appropriate dwelling units due to financial difficulties.
5. Development of construction materials and technology
Environmentally friendly, cost effective construction materials and
technology will be developed.
6. Shelter improvement programmes
The shelter improvement programme should be implemented for
encouraging the participation of land owners in activities launched
for the improvement of residential environment and health
conditions.
7. Planning and co-ordination
Make provision of a high level mechanism to carry out the works
related to the construction and development of dwelling units on
an institutional basis, formulate plans for the above and maintain
co-ordination between the concerned agencies.
8. Development of manpower and communication
Make the manpower working in public and private organisations
related to various aspects of shelter construction skilful and efficient
and promote the exchange of information among the concerned
agencies.
3.3 Associated actions
1. Extension of Urban land development programmes
Develop and extend the urban land development programmes such
as integration of land development, site and services, land
development and town extension plan.
~.-.-
14 15
2. 	 Formulating legislation and regulations for land use plan
and ecological balance
Prepare land use plans for appropriate land utilisation for residential
purposes, execute these plans, and implement them at the local
level in line with the policy of decentralisation.
While constructing and developjng physical infrastructures in
residential areas in an integrated manner, effortmust be made to reduce
the cost ofthe projects implementation and the violation ofprescribed
conditions must be discouraged.
Set aside the space for roads and fort path areas in residential ar~as
for a long-term setdement development perspective.
Formulate and enforce legislation and regulations required for
rendering the residential areas free from pollution.
3. 	 Improvement in financial aspects of development of
infrastructural services
Make provisions of necessary tax and fees in accordance with the
policy of cost recovery against development and maintenance of
physical infrastructural services from the local users group. While
collecting tax and fees, the rates must be fixed as per the proportion
of services and facilities provided.
4. 	 Improvement in cadastral survey and registration
Improve the cadastral survey and registration procedures and
maintain their records up-to-date.
5. 	 Upgrading of infrastructures in urban areas
Rectify the discrepancies in the"construction, development and
maintenance of infrastructural services and facilities in urban areas
of the Kingdom including the Kathmandu Valley.
6. 	 II pgrading of unplanned settlement
Check the growth of unplanned settlement in different parts of
Nepal and launch programmes for developing the settlement in a
planned way.
Prepare necessary plans for the underprtvileged and displaced
people including various ethnic groups like 'Kamaiyas' (bonded
labourers) and setde for them in a phase-wise manner.
Discourage the encroachment of land, forest land and public
open space for human settlement.
7. 	 Protection of building of historic importance
Renovate and conserve the buildings of historic and cultural
importance in different parts of Nepal in:::luding the Kathmandu
Valley.
8. 	 Formulation of the policy and the provision of data
Formulate the policies, rules and regulations in order to develop
the activities related to construction and development work for
land and dwelling units separately in the form of a separate shelter
sub-sector.
Collect the data on various aspects of the shelter sub-sector within
the limits of macro-economic policy and planning of the country.
The act of collecting such data should be done in collaboration
with the national census.
9. 	 Strengthening local government
....
In order to make the implementation process of various
programmes mentioned in the present housing policy and
implementation strategy successful as well as effective, powers
should be delegated to the government, semi-government, local
agencies, non-government organisations and private organisations
working at the local level in line with the principle of
decentralisation. Such agencies would be made much more responsible.
16
10. Improvement in the land information system
Identify the habitable lands on the basis of land use plan.
Annex:A
Expand and develop the habitable land and for the sake of public 

health, safety, ecological balance, pressure on the land value as 

well as population density. 

Undertake the works regularly to maintain the land information EXISTING HOUSING CONDITIONS IN NEPAL 

system up-to-date on the basis of changes in land use. 

(Households by Percent unless mentioned otherwise)
11. Promotion of community-based organization
In line with the concept that the government will play the role of
enabler in shelter construction and development, the duties of owner
builders, other concerned agencies established in the private ~ector
must be co-ordinated by awakening the sense of self-awareness in the
society. For this, the community organisations must be created,
developed and strengthened by solving the shelter problems unitedly.
S.N Particulars National Urban Rural
1 STOCK BY HOUSING TYPE
Squatter 7.81 9.09 7.64
Traditional (Urban) 0.53 4.28 0
Kuchcha 42.18 8.25 46.94
Semi-pucca 41.18 37.09 41.76
Pucca 8.30 41.27 3.67
2 STOCK BY TENURE
Squatter 7.21 8.61 7.02
Renters
Owners
6.70 24.46 4.28
Owner-builder 18.33 12.87 19.07
Owner-purchaser 2.79 3.47 2.70
Owner-occupier 64.97 50.59 66.93
3 OVER-CROWDING INDICES
Total DU Size (Sq.Ft) 867.50 780.80 879.30
Per Capita Space (sq. Ft./Person) 155.30 134.70 158.20
Number of Persons p~r Room 2.20 2.00 2.20
4 HOUSEHOLD INCOME
Median Monlhly HH Income (NRs) 2517.00 1264.00
Average Monlhly HH Income (NRs) 2313.60 4200.70 2059.10
Averoge ~/CqJl::J Income (NRs) 432.90 747.50 390.50
5 LEVEL OF SERVICES
Defacating Plgce
Indoor Toilet 5.58 37.23 1.27
Outdoor Toilet 17.85 33.66 15.70
Open Space 58.98 22.57 63.93
19
S.N Particulars National Urban Rural
Cookma Fuel Tvoe
FireWood
Electricity
Illumination Type
Electricity
Kerosene
~[inking Wa~r S2!![!;~
84.45
0.83
2998
68.96
55.03
0.79
82.09
17.21
88.42
0.83
22.91
75.98
Piped Water Supply
• Inhouse 28.08 33.52 27.66
•Public Stand Pipe 0.12 0.56 0.08
6
. Other
MAJOR PROBLEMS FACED
IN LAST 10 YEARS
71.81 65.91 72.27
Fire 2.25 0.92 2.38
Wind 36.15 12.79 38A6
leaking Roof 6.30 13.71 5.57
DampWall 1.69 7.86 1.08
7
Damp Floor
CONDITION OF HOUSE
0.55 2.00 0.40
Good 20.60 26.34 19.82
Average 67.61 61.98 68.37
8
Bad
SATISFACTION LEVEL OF
PRESENT HOUSE
11.8~
,
11.68 11.81
Very Satisfied 3.97 10.91 3.02
Satisfied 63.37 66.37 62.97
9
Dissatisfied
HOUSEHOLD CHARACTERISTICS
32.67 22.72 34.02
Family size 6.30 6.30 6.40
Family Members Illiterate 3.40 2.10 3.60
No of Income Earners 2.50 1.90 2.60
S.N Particulars National Urban Rural
10 MAJOR CHARACTERISTICS BY
HOUSEHOLD INCOME LEVEL
10.1 Lower Income Tenure
{under median HH Incomel
Family Size 5.30 5.60
Family Memberslllilerate 2.40 3.90
Monthly Household Income {NRs} 1537.80 719.00
Monthly Per Capita Income {NRs} 360.80 153.90
No of Earners 1.60 2.30
Total DU Size {Sq.Ft.} 542.00 671.70
Per Capita DU Size (Sq.Ft.1 112.20 142.30
No of Persons Per Room 2.30 2.50
10.2 Upper Income Tenure
{under median HH Incomel
Family Size 7.40 7.20
Family membersllliterale 1.80 3.30
Monthly Household Income (NRs) 6928.30 3319.50
Monthly Per Capita Income (NRs) 1143.60 607.10
No of Income Earners 2.30 2.90
Tolal DU Size (Sq.Fl.} 1032.80 1085.60
Per Capita DU Size {Sq.Ft.} 157.90 174.20
No of Persons Per Room 1.70 2.00
Note:
1. Traditional (urban) housing is one that was built over 40 years ago
2. Recorded by Interviewer
3. According to Respondents
Source: 

Nepa National Housing Survey 1991 

MinistrY of HOUSing & Physical Planning HMG/Nepal. 

20
21
j
Annex:B
TOTAL DWELLING UNIT NEEDS AND

INDICATIVE INVESTMENT REQUIREMENT

For Urban & Rural Nepal (1992-2006)
(Base year 1991)
S.N Particulars 1992·96 1997·01 2002·06
1 TOTAL DU NEEDS
Urban Nepal
New dwelling Unit 115000 143700 174900
DU Upgrading 19100 19700 20900
Rural Nepal
New Dwelling Units 676900 705500 733300
DU Upgrading 215100 221800 235300
All Nepal
New Dwelling Units 791900 849000 908300
DU Upgrading 234200 241500 256200
-
2 AVERAGE BLDG COST
(NRs/DU)
Urban Nepal
New Dwelling Units 100000 100000 100000
DU Upgrading 10000 10000 10000
On-site Infrastructure
-Upgrading 700 700 700
- New Construction 20000 20000 20000
Rural Nepal I
New Dwelling Units 40000 40000 40000
DU Upgrading 5000 5000 5000
On-site Infrastructure
-Upgrading 200 200 200
- New Construction 3000 3000 3000
22
S.N Particulars 1992·96 1997-01 2002..Q6
3 TOTAL INVESTMENT COST
(Million NRs)
Urban Nepal
New Dwelling Unit 11500 14370 17490
DU Upgrading
On-site Infrastructure
191 197 209
-Upgrading 81 101 122
- New Construction
Rural Nepal
382 394 418
New Dwelling Unit 27076 28220 29332
DU Upgrading
On-site Infrastructure
1076 1109 1177
- Upgrading 135 141 147
New Construction 645 665 706
All Nepal
New Dwelling Unit 38576 42590 46822
DUUpgrading
On-site Infrastructure
1267 1306 1386
Upgrading· 216 242 269
- New Construction 1027 1059 1124
Total Investment (4) 41086 45197 49600
I
.$
Note:
1. 	 Dwelling unit upgrading comprises improvements in the physicalcondition ofthe house
2. 	 Average building costs are based on indicative cosl$ for five types in urban and rural
areas
3. 	 On-site infrastructure for new and upgrading unil$ comprises modest services inter
alia, water supply sanitation power, road access, etc
4. 	 Total investment includes the costs of construction and materials.
T 

23

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National shelter policy 1996

  • 1. ... ~~2P.. rbed by: partment ofHousing and Urban Development )11' Mahal, Kathmandu, Nepal. : 9TI-1-226927,223974,227945 : m-1-224139 INTRODUCTION In Nepal there is a tradition of constructing shelters by households using own means and resources and by making tireless efforts. But looking at the present circumstances, fulfilment ofthe shelter needs has become a complicated problem for the majority of the families, especially for the families with limited and low income. Low capacity ofinvestment in means and resources required for shelter I~ facilities is mainly due to poverty which exists as a major problem. Problems g that exist in the urban and rural areas which are due to internal migration, i urbanization, increasingpressure ofpopulation, natural calamities and deteriorating environment are posing as a serious challenge to the nation as a whole. According to the "National Housing Survey" conducted in B.E. 2048 (A.D. 1991), by the end of B.E. 2062 (AD. 2006), the total of 2,500,000 new dwelling units have to be constructed and about 732,000 dwelling units have to be renovated. I Therefore, in realisation of the requirements of the national shelter policy, His Majesty's Government have formulated a policy as stated in the current Eighth Plan (1992-1997) in collaboration with the United Nations Organisation and Habitat. As far as the shelter sector is concerned, such effort is the first of its kind in Nepal. In the constitution, 1990,ofthe Kingdom ofNepal, the fulfilinent of the shelter needs of all the families of Nepal is taken as a basic need. The Global Shelter Strategy adopted by the United Nations has provided a strong guideline as well as assistance in the formulation of the present policy. This policy has been formulated by various government, semi-government agencies, ,- rl social workers, intellectuals, political workers and competent consultants through extensive discussion, seminars and exchange of views. :l I: The execution of various strategies and working policies included under this ~ policy depends on various factors such as national growth rate, administrative and other essential improvements, cost recovery, recognition of the concept of I the use ofprivate lands (control by the community) for public welfare, etc. This . I policy will considerably help in identifying the right course of action for the ''{ r implementation of short term (upto 2000 AD.) mid-term (upto 2006 AD.) and long-term housing programmes.
  • 2. CONTENTS Chapter Page 1. Status of housing in Nepal 1 1.1 Housing situation 1.2 Housing need and estimate 2 2. Shelter Policy 4 2.1 Basic concept of the shelter policy 4 2.2 Objectives 5 2.3 Policies 5 3. Implementation Strategy 13 3.1 The fundamental premise of the implementation strategy 13 3.2 Action packages 14 3.3 Associated actions 15 Annex A. Existing housing situations inNepal 19 B. Dwelling unit needed and investment condition indicators 22 Chapter 1 1. STATUS OF HOUSING IN NEPAL 1.1 Housing situation A review of the housing situation in Nepal gives a mixed picture. On the one hand, the physical condition ofthe majority ofdwelling units is relatively good, on the other, there is undue overcrowding and also there are very little facilities and services related to housing. Furthermore, estimates of future housing needs show that Nepal must make a strenuous effort in the next 15 vears to provide basic shelter to the citizens of urban and rural areas. As indicated by the National Housing Survey, 1991, low capacity of investmentin means and resources required for the construction of dwelling units is mainly due to inherent poverty of individuals and households, which stands as a major problem. In spite of this, the practice of constructing dwelling units through their own tireless exertion and sacrifices continues. This may be called the Owner Builder System. In such circumstances it has become more difficult for the people of low and limited income group to build dwelling units. In addition to this, land acquisition has become a major problem. On the overall analysis, the paucity of essential physical infrastructures in housing sectars and unavailability of credit and other financial incentives for the construction of dwelling units pose as major problems far shelter builders. According to the completed survey (Annex 'a'), out of the total number of dwelling units in the Kingdom, 50.5 percent of dwelling units belong to Kachi (temporary) type, 41.2 percent belong to ardha pakki (semi­ permanent) type and 8.3 percent belang ta pakki (permanent) type. Looking at the existing housing situation of Nepal, it can be assumed that about 1
  • 3. 7 percent of dwelling units are more than 50 years old and out of the total dwelling units in rural areas about 34 percent are 10 years old and 46 percent of the dwelling units of the urban areas are 10 years old or less than that. The physical condition of about 12 percent of dwelling units is found to be very weak. About 8 percent of the existing dwelling units in urban and rural areas need to be renovated. The review of the shelter-relatedinfrasttuctural facilities indicates that about 50 percent of families have been provided piped drinking water facilities and about 30 percent and 20 percent have been provided electricity and toilets respectively. On the one hand, statistics indicate the paucity ~ well as inadequacy ofinfrastructural facilities for dwelling units, on the other, there is inequality in the distribution of physical and facilities available in the urban and rural areas. The residential density indices indicate that 4 persohE occupy a habitable room and the average space per person is 53.3 sq ft. Considering the housing tenure, it appears that most of the families live in the houses oftheir own. Butin the urban areas about 24 percent offamilies use rental accommodation and about 7.3 percent live as squatters. The significant number of the population of Nepal are suffering from physical and financial problems. For the relief of such underprivileged people, it is essential to formulate a special policy for providing housing. The underprivileged class include the resourceless, landless and helpless individuals/ families such as agricultural workers, Kamaiyas (bonded labourers), ploughmen, etc., displaced by natural calamities, dependent people, physically impaired, delinquent, sick people, destitute women, lepers, certain professional group of people, and aged people. 1.2 Housing need and estimate In Nepal there are altogether 3,000,000 dwelling units at present. Out of ~1 that there are 2,700,000dwellingunits in rural areas and only 300,000 dwelling ;, units in urban areas. On the basis of the increasing growth rate of I population, it is estimated that the following number of dwelling units I may be required in future. In the urban area alone, additional requirement of dwelling units at the rate of 5.5 percent a year is estimated upto 1996. From 1997 to 2001 the increase of shelter requirement may be 5.3 percent. Accordingly; from 2002 to 2006, the additional requirement of dwelling units may be S percent a year. But in the rural areas, over the same periods the additional requirement may be 2.1 percent, 2 percent and 1.9 percent respectively. In this context, while projecting the occupancy rate of dwelling units or the use of dwelling units per person, it is estimated that in the urban areas, the occupancy rate will be approximately 6.2 persons per shelter upto 1997, 6.1 persons per shelter from 1997 to 2001, and 6 persons from 2002 to 2006. And, in the case of rural areas, the prejection is 6.3, 6.2, and 6.1 persons respectively over the same periods. According to the findings from the survey, it is estimated that about 0.76 percent of dwelling units in the case of urban areas and 2.4 percent in the case of rural areas are destroyed every year by natural calamities and other unforeseen reasons. On the basis of the above data (Annex 'b') it is estimated that the total of 2,500,000 new dwelling units are required for the period 1992-2006 and out of that the requirement of the urban areas will be 17.0 percent. Over the same period, about 732,000 dwelling units are required to be repaired and renovated. Out of that figure, the share of the urban areas is 60,000. 2 3
  • 4. Chapter 2 2. SHELTER POLICY 2.1 Basic concept of the shelter policy The basic principles of the basic concept of the National Shelter Policy are as follows: 1. Make proper arrangement and create favourable atmosphere as mentioned in the Constitution of Nepal, 1990, in order tb fulfil the need of dwelling units in the form of a basic need of the entire people. 2. Need to recognise the important role of dwelling units in the alleviation of poverty and economic development in addition to the role of raising the living standard of the people. 3. Shelter should be taken as an integral part of economic productivity in the nation taking it in the form of an asset and accumulated capital of national economy and individuals, not taking shelter as consumption good. 4. Follow the principle of financial self-reliance for the attainment of the housing objectives in the light of increase in pressure due to demand of various sectors in the context of the level of economic development and achievements made in previous years. 5. Based on the principle of financial self-reliance, His Majesty's Government should act as enabler as well as facilitator for the fulftlment of shelter targets and the private sector should play an important role in formal and informal sectors. 2.2 Objectives 1. To facilitate in the task of producing dwelling units, repairing, maintaining the existing dwelling units and improving the standard of shelter by adopting positive steps in fundamental aspects such as land and physical infrastructures, service and facilities, building construction materials and technology, etc. 2. To orient the housing sector to fmancial self-reliance, mobilize financial resources effectively and promote the utilisation process. 3. To clarify the role of the government, non-government and private sectors in the fulfilment of shelter needs and then improve the organisational structure through the appropriate institutional basis and creation of legal framework. 4. To continue undertaking activities that support to further mobilize, develop, and expand the land and housing market in consideration of the welfare of the majority of households of low-income group, shelter-less, and affected people of rural and urban areas, continue launching other activities to improve the provision of ensuring rights and security of land, cost recovery, cross subsidy, management of housing construction technology and regional balance. 5. To adopt the ways of reducing the adverse impact on environment from the residential dwelling units, improve basic public health facilities and minimize the impact of natural calamities on dwelling units. , 2.3 PoJicies 1­ a. Increasing the production of dwelling units and repair I~ ; l and maintenance of the existing stock I~ 1. Increase the availability of dwelling units of proper and suitable value and increase the supply of serviced lands . 1.1 Simplify the provision of acquisition of land by removing the existing constraints regarding land in order to register increased 5
  • 5. production and construction of dwelling units for the maximum number of households. 1.2 Increase the supply of housing plots for owner builder households by implementing the plans and programmes such as guided land development, land pooling, and other kinds of land development programmes. ii ilk 1.3 Encourage the establishment of housing and land development companies through the joint participation of His Majesty's I", Government and the private sector and also through the sole involvement of the private sector. 1.4 Construction of cost effective shelters for low income people, the shelterless and the disadvantaged group, provide smaller plots of land to construct dwelling units, provide the basic services and facilities and provide the grant on behalf of the government to some extent for the provision of shelters. 1.5 Encourage the construction of apartments for fulftlling the I Ii i£ increasing shelter demand in urban areas. 1.6 Reduce the pressure caused by the high value of land by I ,~ encouraging the people to utilize the investment-oriented and other alternative opportu)1ities. 1.7 Reduce the tax on vacant land, tax on land & property, reduce the registration fee on land transactions, improvement of land ownership system, and enforce rules and regulations on appropriate land use and building construction. 2. Increasing the necessary basic infrastructural services and facilities and expanding the same 2.1 Develop the standards, codes, and technology required for making the work of constructing, producing and distributing the , infrastructural services and facilities practicable and effective. i! Besides this, housing and land development projects should be protected by improving the mechanism of co-ordinating between the agencies involved in such works. 6 2.2 Decentralise the rights and responsibilities regarding the mobilisation of resources, infrastructural services and facilities, their construction, distribution, management and their maintenance and encourage the participation of private sectors and local people's participation in the development of infrastructural services and facilities and their expansion. 2.3 Fix the fee and charge on the basis of actual services and facilities received and increase the income of concerned sectoral agencies by improving the cost recovery mechanism. 2.4 Ensure the construction of infrastructural services and facilities and their distribution network at minimum cost as far as possible while developing new lands for settlement and encourage the preparation of a scientific planning and design. 2.5 Encourage public awareness on the positive impact on public health, environment and other facilities from the construction and expansion of the infrastructural services and facilities. 3. Improvement in the use of building materials and construction technology 3.1 Encourage the utilisation of appropriate materials and technology by studying, investigating and evaluating the local or imported alternative construction materials. While evaluating the possible impact from the use of these construction materials, attention must be given to see whether the impact is favourable from the social cultural, financial and environmental point of view. 3.2 Encourage the maximum use of indigenous materials such as lime, rice husk, jute, soft woods along with bamboo, hay and other such construction materials available in rural areas. 3.3 Adopt various financial and technical alternatives for reducing the cost of producing building materials, upgrading the quality of building materials, and simplifying the delivery system. 7
  • 6. 3.4 Adopt simple and cost effective construction technology and 1.2 Expand credit facilities for housing and construction materials emphasize the use of earthquake resistant techniques. Develop by integrating the projects and programmes regarding the early warning and information system. community-based credit schemes with income generation activities. 3.5 Improve the quality of building materials and ensure effective utilization of the same through training and skill upgrading i programmes. Rationalization of the design and construction process and production of standardized building components ; and materials. J 3.6 Disseminate information on cost effective and appropriate construction technique at the local level and bring about improvement in skill formation through experimental demonstrations. 3.7 Enforce the National Building Code while constructing government buildings and gradually enforce this code in the private sector. 3.8 Promote regional vernacular art and architecture while constructing the residential buildings. 3.9 To encourage small credit schemes for cresting the building materials supply system. 3.10 Disseminate information about the innovative use of construction materials anditechnology in different regions of the country apart from the collection of internationally accepted construction materials and techniques. Make provision of necessary incentives in such works at the national level. b. Promote effective mobilization and allocation of financial resources 1. Mobilize the land and housing credit delivery mechanisms to be floated at the form;Ii and community le.vels on an experimental basis. 1.1 Promote linkages between the available fmancial resources and the land and housing development companies. 8 1.3 Facilitate the creation of financial institutions like Women's Development Bank in order to increase the participation of women in the process of shelter construction. 1.4 Facilitate the implementation of a short term credit delivery programme for providing the building materials. 1.5 Promote collective loan arrangements and housing co­ operatives to provide land and loan facilities for housing and/ or building materials to majority of households who do not have fixed income source. 1.6 Encourage the commercial banks and other financial institutions to float loans for land development and construction of dwelling units. 1.7 Facilitate the establishment of financial institutions for making available loans for the construction of dwelling units and land development. 2. To develop the process of cost recovery of public investments in land, physical infrastructures and other services 2.1 Test and use the cost recovery mechanism on regional basis along with the adoption of an appropriate improvement in taxation system. 2.2 Develop joint ventures between the public and private sectors. 2.3 Develop the cross-subsidY"ll1echanisms within land development schemes to make the target classes of low income group accessible to land at a cheaper rate. 8
  • 7. 2. Milke.' /Ie.'I.·t.'ssury iwttitutiUlull Ilrrangement for planning policy 3. Increasing financial self-sufficiency of the shelter sector mukiJJg, implementation, training, re.'WIlrch and evaluation on 3.1 Integrate employmentgeneration activities with land development sectors related to the development of dwelling units. and shelter construction activities to enable the potential house­ 2.1 Establish a high level technical "apex body" at the central level to owners to provide credit to the housing scheme. C( H lrdinate the activities ()f public and private sectors for the 3.2 Encourage maximum mobilisation of indigenous means and , , resources as far as possible so as to enable the people to afford financial resources required for the construction of the residential buildings and the infrastructures and their maintenance and operation. 3.3 Facilitate the loans through financial institutions for providing dwelling units to the classQs of people with limited income subject to payment of loans in instalments. 3.4 Promote the participation of national and international non­ government organisations (NGOs and INGOs) in the provision, operation and maintenance of various services to be provided in urban areas. c. Organisational improvement 1. Clarify the role of public and private sectors for implementing the National Shelter Policy. 1.1 Establish the role of His Majesty's Government as promoter at both central and locallevels)in each component of the national shelter strategy. 1.2 Establish the role of local authorities (District Development Committee, Municipalities, Village Development Committee) in promoting land and housing development work. 1.3 Take initiative to enlist the active participation of women in the process of the choice, financing and management of , dwelling units. implementation of the shelter strategy. 2.2 ESlablish a high level inter-ministerial assistance committee to co-ordinate the entire activities rel~lted to shelter development. .2. ') Stream-line responsibilities among the concerned Ministries, Departments and their regional and local offices for the implementation of the shelter policy. Promote the long term involvement of NGOs, INGOs and community-based organisations for the implementation of the shelter policy. J. Introducing the appropriate and effective laws and regulations and amending the existing ones as needed. 3.1 Introduce legislation and regulations concerning condominium, co-operative and leasehold tenure. 3.2 Continue introducing necessary legislation and regulations gradually for the implementation of National Building Code. 3.3 Amend the existing legislation and regulations concerning tax on vacant land, definition of public good, co-operatives, dual land ownership, land pooling, dual taxation on land transactions, cadastral mapping procedures in addition to other subjects related to the shelter policy. 3.4 Study and analyze various aspects of house rent, adopt the possible alternative and make necessary legislation and regulations as needed.
  • 8. 4. Make arrangement for the data base to make the decision making and monitoring process on shelter development simple and effective. 4.1 Carry out regular monitoring and evaluation studies on land and housing markets, demand and supply of construction materials, financial and other indicators. 4.2 Monitor and evaluate the impact of the shelter policy, objectives, programme and strategy on the target group. Carry out regular updating of the national shelter survey by making improvements as needed. Such kind of surveywork will be tied up in the national census. DUi }I,': ;~v' ,;11 '-i~~,~,,, Chapter 3 3. IMPLEMENTATION STRATEGY 3.1 The fundamental premise of the implementation strategy 1. The existing shelter construction and production process in the private sector which relies primarily on the individual owner builder system will be improved and strengthened as needed. 2. In view of the limited means and resources available in the shelter sector, His Majesty's Government must play the role of motivator in order to make the people capable of successfully implementing the shelter policy. Basic principles adopted under this policy are: a. Make arrangement for incentives for promotion of marketing of goods and services related to construction and development of shelter. b. The present arrangement does not reduce the responsibility of the government in the development of dwelling units and their promotion activities. On the contrary, the government is required to re-allocate financial, physical and human resources. c. Promote the sense of unity and co-ordination among the persons associated with the successful execution of the enabling approach, among groups like landlords, builders, institutions involved in real estate business and among the persons involved in various financial, social and political activities. 12 13
  • 9. d. Minimize special difficulties of women such as poverty, illiteracy, lack oftraining, compulsion ofpre-occupation in domestic affairs and the shouldering of the two-fold responsibility like labourers and encourage then) to participate in the production and maintenance of dwelling units. e. In order to make the role of the motivator effective, legislation and regulations related to shelter production and improvement must be revised and amended as needed. f. For carrying out the above role, central and local agencies, private sector and non-government organisatiol';ls, co-operatives and community organisations, financial. institutions, construction material manufacturing industries and other agencies associated with this work must be identified. Besides this, co-ordination must be maintained among these agencies on an institutional basis. 3.2 Action packages 1. Land development programme In view of the families with low income and limited income such as employees, teachers and labourers, etc., His Majesty's Government will carry out land develop~ent programmes with a view to removing various constraints st1nding in the way of land acquisition in urban and rural areas. 2. Encourage joint participation Promote the residential land development and shelter construction works through joint participation of the government and private sectors for attracting the private sector towards the construction of residential dwelling units. 3. Improvement in legislation Undertake reformative actions needed for the legal structure of the existing marketing mechanism regarding land and shelter. 4. Promote shelter finance The shelter finance mechanism should be promoted by developing the institutional framework of providing loan to shelter construction for the families who are unable to build improved and appropriate dwelling units due to financial difficulties. 5. Development of construction materials and technology Environmentally friendly, cost effective construction materials and technology will be developed. 6. Shelter improvement programmes The shelter improvement programme should be implemented for encouraging the participation of land owners in activities launched for the improvement of residential environment and health conditions. 7. Planning and co-ordination Make provision of a high level mechanism to carry out the works related to the construction and development of dwelling units on an institutional basis, formulate plans for the above and maintain co-ordination between the concerned agencies. 8. Development of manpower and communication Make the manpower working in public and private organisations related to various aspects of shelter construction skilful and efficient and promote the exchange of information among the concerned agencies. 3.3 Associated actions 1. Extension of Urban land development programmes Develop and extend the urban land development programmes such as integration of land development, site and services, land development and town extension plan. ~.-.- 14 15
  • 10. 2. Formulating legislation and regulations for land use plan and ecological balance Prepare land use plans for appropriate land utilisation for residential purposes, execute these plans, and implement them at the local level in line with the policy of decentralisation. While constructing and developjng physical infrastructures in residential areas in an integrated manner, effortmust be made to reduce the cost ofthe projects implementation and the violation ofprescribed conditions must be discouraged. Set aside the space for roads and fort path areas in residential ar~as for a long-term setdement development perspective. Formulate and enforce legislation and regulations required for rendering the residential areas free from pollution. 3. Improvement in financial aspects of development of infrastructural services Make provisions of necessary tax and fees in accordance with the policy of cost recovery against development and maintenance of physical infrastructural services from the local users group. While collecting tax and fees, the rates must be fixed as per the proportion of services and facilities provided. 4. Improvement in cadastral survey and registration Improve the cadastral survey and registration procedures and maintain their records up-to-date. 5. Upgrading of infrastructures in urban areas Rectify the discrepancies in the"construction, development and maintenance of infrastructural services and facilities in urban areas of the Kingdom including the Kathmandu Valley. 6. II pgrading of unplanned settlement Check the growth of unplanned settlement in different parts of Nepal and launch programmes for developing the settlement in a planned way. Prepare necessary plans for the underprtvileged and displaced people including various ethnic groups like 'Kamaiyas' (bonded labourers) and setde for them in a phase-wise manner. Discourage the encroachment of land, forest land and public open space for human settlement. 7. Protection of building of historic importance Renovate and conserve the buildings of historic and cultural importance in different parts of Nepal in:::luding the Kathmandu Valley. 8. Formulation of the policy and the provision of data Formulate the policies, rules and regulations in order to develop the activities related to construction and development work for land and dwelling units separately in the form of a separate shelter sub-sector. Collect the data on various aspects of the shelter sub-sector within the limits of macro-economic policy and planning of the country. The act of collecting such data should be done in collaboration with the national census. 9. Strengthening local government .... In order to make the implementation process of various programmes mentioned in the present housing policy and implementation strategy successful as well as effective, powers should be delegated to the government, semi-government, local agencies, non-government organisations and private organisations working at the local level in line with the principle of decentralisation. Such agencies would be made much more responsible. 16
  • 11. 10. Improvement in the land information system Identify the habitable lands on the basis of land use plan. Annex:A Expand and develop the habitable land and for the sake of public health, safety, ecological balance, pressure on the land value as well as population density. Undertake the works regularly to maintain the land information EXISTING HOUSING CONDITIONS IN NEPAL system up-to-date on the basis of changes in land use. (Households by Percent unless mentioned otherwise) 11. Promotion of community-based organization In line with the concept that the government will play the role of enabler in shelter construction and development, the duties of owner builders, other concerned agencies established in the private ~ector must be co-ordinated by awakening the sense of self-awareness in the society. For this, the community organisations must be created, developed and strengthened by solving the shelter problems unitedly. S.N Particulars National Urban Rural 1 STOCK BY HOUSING TYPE Squatter 7.81 9.09 7.64 Traditional (Urban) 0.53 4.28 0 Kuchcha 42.18 8.25 46.94 Semi-pucca 41.18 37.09 41.76 Pucca 8.30 41.27 3.67 2 STOCK BY TENURE Squatter 7.21 8.61 7.02 Renters Owners 6.70 24.46 4.28 Owner-builder 18.33 12.87 19.07 Owner-purchaser 2.79 3.47 2.70 Owner-occupier 64.97 50.59 66.93 3 OVER-CROWDING INDICES Total DU Size (Sq.Ft) 867.50 780.80 879.30 Per Capita Space (sq. Ft./Person) 155.30 134.70 158.20 Number of Persons p~r Room 2.20 2.00 2.20 4 HOUSEHOLD INCOME Median Monlhly HH Income (NRs) 2517.00 1264.00 Average Monlhly HH Income (NRs) 2313.60 4200.70 2059.10 Averoge ~/CqJl::J Income (NRs) 432.90 747.50 390.50 5 LEVEL OF SERVICES Defacating Plgce Indoor Toilet 5.58 37.23 1.27 Outdoor Toilet 17.85 33.66 15.70 Open Space 58.98 22.57 63.93 19
  • 12. S.N Particulars National Urban Rural Cookma Fuel Tvoe FireWood Electricity Illumination Type Electricity Kerosene ~[inking Wa~r S2!![!;~ 84.45 0.83 2998 68.96 55.03 0.79 82.09 17.21 88.42 0.83 22.91 75.98 Piped Water Supply • Inhouse 28.08 33.52 27.66 •Public Stand Pipe 0.12 0.56 0.08 6 . Other MAJOR PROBLEMS FACED IN LAST 10 YEARS 71.81 65.91 72.27 Fire 2.25 0.92 2.38 Wind 36.15 12.79 38A6 leaking Roof 6.30 13.71 5.57 DampWall 1.69 7.86 1.08 7 Damp Floor CONDITION OF HOUSE 0.55 2.00 0.40 Good 20.60 26.34 19.82 Average 67.61 61.98 68.37 8 Bad SATISFACTION LEVEL OF PRESENT HOUSE 11.8~ , 11.68 11.81 Very Satisfied 3.97 10.91 3.02 Satisfied 63.37 66.37 62.97 9 Dissatisfied HOUSEHOLD CHARACTERISTICS 32.67 22.72 34.02 Family size 6.30 6.30 6.40 Family Members Illiterate 3.40 2.10 3.60 No of Income Earners 2.50 1.90 2.60 S.N Particulars National Urban Rural 10 MAJOR CHARACTERISTICS BY HOUSEHOLD INCOME LEVEL 10.1 Lower Income Tenure {under median HH Incomel Family Size 5.30 5.60 Family Memberslllilerate 2.40 3.90 Monthly Household Income {NRs} 1537.80 719.00 Monthly Per Capita Income {NRs} 360.80 153.90 No of Earners 1.60 2.30 Total DU Size {Sq.Ft.} 542.00 671.70 Per Capita DU Size (Sq.Ft.1 112.20 142.30 No of Persons Per Room 2.30 2.50 10.2 Upper Income Tenure {under median HH Incomel Family Size 7.40 7.20 Family membersllliterale 1.80 3.30 Monthly Household Income (NRs) 6928.30 3319.50 Monthly Per Capita Income (NRs) 1143.60 607.10 No of Income Earners 2.30 2.90 Tolal DU Size (Sq.Fl.} 1032.80 1085.60 Per Capita DU Size {Sq.Ft.} 157.90 174.20 No of Persons Per Room 1.70 2.00 Note: 1. Traditional (urban) housing is one that was built over 40 years ago 2. Recorded by Interviewer 3. According to Respondents Source: Nepa National Housing Survey 1991 MinistrY of HOUSing & Physical Planning HMG/Nepal. 20 21 j
  • 13. Annex:B TOTAL DWELLING UNIT NEEDS AND INDICATIVE INVESTMENT REQUIREMENT For Urban & Rural Nepal (1992-2006) (Base year 1991) S.N Particulars 1992·96 1997·01 2002·06 1 TOTAL DU NEEDS Urban Nepal New dwelling Unit 115000 143700 174900 DU Upgrading 19100 19700 20900 Rural Nepal New Dwelling Units 676900 705500 733300 DU Upgrading 215100 221800 235300 All Nepal New Dwelling Units 791900 849000 908300 DU Upgrading 234200 241500 256200 - 2 AVERAGE BLDG COST (NRs/DU) Urban Nepal New Dwelling Units 100000 100000 100000 DU Upgrading 10000 10000 10000 On-site Infrastructure -Upgrading 700 700 700 - New Construction 20000 20000 20000 Rural Nepal I New Dwelling Units 40000 40000 40000 DU Upgrading 5000 5000 5000 On-site Infrastructure -Upgrading 200 200 200 - New Construction 3000 3000 3000 22 S.N Particulars 1992·96 1997-01 2002..Q6 3 TOTAL INVESTMENT COST (Million NRs) Urban Nepal New Dwelling Unit 11500 14370 17490 DU Upgrading On-site Infrastructure 191 197 209 -Upgrading 81 101 122 - New Construction Rural Nepal 382 394 418 New Dwelling Unit 27076 28220 29332 DU Upgrading On-site Infrastructure 1076 1109 1177 - Upgrading 135 141 147 New Construction 645 665 706 All Nepal New Dwelling Unit 38576 42590 46822 DUUpgrading On-site Infrastructure 1267 1306 1386 Upgrading· 216 242 269 - New Construction 1027 1059 1124 Total Investment (4) 41086 45197 49600 I .$ Note: 1. Dwelling unit upgrading comprises improvements in the physicalcondition ofthe house 2. Average building costs are based on indicative cosl$ for five types in urban and rural areas 3. On-site infrastructure for new and upgrading unil$ comprises modest services inter alia, water supply sanitation power, road access, etc 4. Total investment includes the costs of construction and materials. T 23