National
Housing bill proposes cash grants, tougher penalties for building violations
Extremely poor families could receive at least Rs75,000 in federal and provincial support to build their first home, while buildings over 50 years old would face mandatory safety assessments.Bimal Khatiwada
The government plans to amend the Building Act to guarantee access to safe housing, offering cash grants, free construction materials, concessional loans and technical assistance to low-income families.
A bill to amend the Building Act 1998 has been registered in the House of Representatives. It also introduces new requirements for building safety, structural assessments of older buildings and tighter penalties for violations of building codes.
Under Section 16, families classified as extremely poor and recommended by their local governments would be entitled to a cash grant of at least Rs50,000 from the federal government and Rs25,000 from provincial governments to build a home. The federal and provincial governments could revise the amounts according to need.
The bill is intended to encourage safer private housing, said Jibendra Mishra, personal secretary to Infrastructure Development Minister Sunil Lamsal. Existing traditional houses would also come under the new building regime, he said, while government buildings would be brought under a central record-keeping system and new building standards would be introduced.
The bill proposes fines of Rs500,000 to Rs1 million for constructing class A or B buildings without approved designs, violating building-code requirements or making changes to an approved design without obtaining fresh approval. For buildings in classes C to G, violations could attract fines of up to Rs500,000.
Class A covers advanced buildings designed to internationally recognised state-of-the-art standards, while Class B includes buildings with a plinth area of more than 1,000 square feet, more than three storeys including the ground floor, or a structural span exceeding 4.5 metres.
Class C covers buildings of up to 1,000 square feet, three storeys or a structural span of up to 4.5 metres. It also includes buildings up to 35 feet high, excluding attics, based on traditional architectural styles and indigenous construction techniques.
Class D covers one- or two-storey buildings made from materials such as mud or fired bricks, stone, earth, bamboo and thatch. Class E covers buildings based on traditional or indigenous architecture, materials, skills or construction technology that meet prescribed standards. Class F covers smart homes built to approved standards, while Class G covers livestock sheds meeting specified requirements.
Former urban development secretary Maniram Gelal said the bill addresses several gaps in the existing law. “The main purpose of a building law is to ensure structural safety and regulate construction,” Gelal said. Nepal’s Constitution guarantees every citizen the right to housing, he said, but housing policy and building regulation are not the same thing.
He welcomed the proposed requirement to assess buildings after disasters to determine whether they remain safe for occupation even when they have not suffered complete structural damage.
Under the bill, within three months of the law taking effect, every local unit must approve an environmental study and identify sources of construction materials in its area. Once a building reaches 50 years after completion, it must undergo a detailed assessment covering structural, seismic, fire and use-related safety.
The assessment must determine whether a building can be made safe through repair, improvement or retrofitting. A building certified as safe and properly maintained could have its occupancy permit renewed for up to five years at a time.
Failure to undergo a mandatory assessment alone would not automatically require demolition. However, buildings whose permits are due for renewal would need additional technical testing.
After 65 years, buildings covered by the provision would require another detailed safety assessment and an independent review. If found safe, their occupancy permits could be issued or renewed for up to three years at a time. Buildings found unsuitable for effective retrofitting would have to undergo the required process for partial or full demolition.
Buildings affected by earthquakes, fires, floods, landslides, explosions or other disasters could not be returned to normal use until an authorised body had carried out a rapid technical safety assessment.
The bill's biggest new section concerns “citizen housing”. Federal, provincial and local governments would be required to ensure access to safe, organised housing with basic facilities, as well as livestock sheds.
For a family's first residential house and livestock shed, local governments would have to provide free model designs, technical advice, construction permits, locally available and indigenous materials, and other necessary technical assistance, provided the family does not own another safe home elsewhere in Nepal.
Where construction materials are unavailable in one local government area, materials could be requested from neighbouring or other local governments. Provincial and federal governments would be responsible for coordination and facilitation. The governments would have to establish simple, time-bound and transparent procedures for identifying sources, approving requests and supplying materials, with the system operational within one year of the law coming into force.
The bill also seeks to promote smart homes to improve living standards, urban aesthetics and uniformity, and encourage safer, more technology-friendly housing. Federal, provincial and local governments could coordinate with banks, financial institutions, insurers and cooperatives to provide concessional loans, insurance and other financial support. They could also offer grants, tax concessions and other incentives.
Local governments would be required to document architectural styles suited to their geography, climate, culture, history and local way of life. They could provide fee waivers, free local construction materials, technical assistance and other incentives for designs that preserve local cultural identity.
Governments would also be required to establish programmes providing grants, free construction materials and technical assistance for the construction, reconstruction, repair or retrofitting of first homes for disaster-affected families, people living in high-risk areas and informal settlers.
The bill gives the ministry additional powers where serious defects or risks emerge from an approved technical, material or structural system. It could order further testing, halt the use of a system in new construction or require corrective measures. Except where there is an immediate threat to life or property, affected parties would have to be given an opportunity to respond before an approval was suspended or revoked.
For buildings proposed in high-risk areas, qualified professionals would have to assess geological and geotechnical conditions, seismic risks, flooding, landslides, inundation, emergency access and other potential hazards before the design is prepared. Recommended risk-reduction measures would have to be incorporated into the design before construction approval is granted.
The bill also provides full exemptions from design-preparation and building-approval fees for eligible applicants submitting the required documents.
Architectural components of building designs would have to be prepared and certified by architects, structural analysis and design by structural engineers, and geotechnical assessments by geotechnical engineers where required. Other specialised designs would have to be prepared by engineers qualified in the relevant field.
Architects and engineers would need to be registered with the Nepal Engineering Council and have at least five years of professional experience. Structural and geotechnical engineers would also need a master's degree in their respective fields from a recognised institution.
For government buildings, office layouts and interior and exterior finishes would have to meet standards set by the ministry.




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