The Ministry of Physical Infrastructure Development has registered a new Building Act, 2083 bill in the Federal Parliament Secretariat, proposing a range of provisions to ensure housing for all citizens, including grants for vulnerable families and affordable smart homes for middle-income earners. Sunil Lamsal, the Minister for Physical Infrastructure Development, announced the bill’s registration via social media on Friday, October 2, 2026.
The proposed legislation aims to amend the existing Building Act, 2055, with a focus on guaranteeing housing rights as enshrined in Nepal’s Constitution. It seeks to address issues of uncontrolled urbanization and promote a culture of safe and organized construction across the country.
Key Provisions of the Proposed Bill
Under the new bill, poor and vulnerable citizens could receive housing grants totaling up to Rs 75,000. This includes Rs 50,000 from the federal government and an additional Rs 25,000 from provincial governments. Furthermore, Nepali citizens building their first homes, as well as those constructing cattle sheds, would be eligible to receive essential river-based and natural construction materials free of charge, provided they adhere to government-specified designs and standards.
The bill also includes provisions for citizens displaced by disasters or residing in unsafe and high-risk settlements. In such cases, the government would relocate them to safer areas and construct new homes for them.
For middle-income citizens, the bill proposes the construction and availability of safe, earthquake-resistant, and standard-compliant ‘smart homes’. These homes, with a plinth area ranging from 900 to 1,300 square feet, are estimated to cost between Rs 2 million and Rs 7.5 million. Citizens would be able to acquire these homes through concessional loans, with various payment options. For instance, an initial down payment of Rs 500,000 would allow for monthly installments of Rs 11,000 over 15 years. Other options include down payments of Rs 1 million, Rs 1.5 million, Rs 2 million, and Rs 2.5 million, leading to corresponding monthly installments of Rs 15,000, Rs 20,000, Rs 30,000, and Rs 35,000, respectively.
Context and Parliamentary Status
The Ministry of Physical Infrastructure Development stated in a press note that the bill aims to legally ensure every Nepali citizen’s right to housing, from guaranteeing accommodation for low-income families to ensuring safe and organized homes for middle-income families. Nepal’s Constitution, 2072, for the first time, established the right to appropriate housing as a fundamental right under Article 37. To implement this, the Housing Rights Act, 2075, was enacted on September 18, 2018 (Ashwin 2, 2075 BS).
The bill’s parliamentary journey will now proceed in the next session, as President Ramchandra Paudel concluded the current session of both houses of the Federal Parliament effective from midnight on Friday, October 2, 2026. Law, Justice and Parliamentary Affairs Minister Sobita Gautam had earlier announced on October 2, 2026, that the current fiscal year would be observed as the ‘Law Formulation and Reform Year’, with a target of registering 166 bills in parliament.
What’s Next and Unanswered Questions
Following its registration, the bill will be sent to the relevant parliamentary committee for discussion before being presented for a vote in the house. However, a definitive timeline for the bill’s passage and implementation has not yet been announced. Details regarding specific amendments to the Building Act, 2055, and any public or political reactions to the proposed bill are also not yet available.
