Planning for Affordable Housing During Densification in Nepal

Kathmandu, the capital city of Nepal, is undergoing a period of rapid urban growth. Over the past decade, its population has nearly doubled. This surge in population has led to increased urban density, both in traditional inner-city settlements and in newer peripheral areas experiencing growth and expansion pressures. However, the city’s ability to accommodate this growth has been severely hampered by the lack of appropriate and enforceable zoning bylaws and building regulations. As a result, landowners and private developers often exceed legal limits in their construction activities, driven by the pressing need to address housing shortages, particularly among low-income renters.

The rapid urban growth in Kathmandu has led to significant densification in both traditional and newer settlements. This densification has brought about a host of challenges, including the strain on existing infrastructure and services, increased traffic congestion, and heightened social inequality. The lack of affordable housing in central areas has exacerbated these issues, leading to the displacement of lower-income residents. As higher-income groups move into formerly affordable neighbourhoods, rents and property prices rise, further marginalizing those who can least afford it.

The absence of effective zoning bylaws and building regulations has exacerbated the housing crisis in Kathmandu. Without clear guidelines and enforcement mechanisms, landowners and private developers can build beyond legal limits, often resulting in substandard and unsafe living conditions. This not only poses a risk to the health and safety of residents but also contributes to the overall shortage of affordable housing. The lack of regulation also means that there is little incentive for developers to prioritize the needs of low-income renters, further widening the gap between housing supply and demand.

Affordable housing is a critical component of sustainable urban development. It not only provides a basic necessity for residents but also plays a vital role in reducing social inequality and promoting economic stability. In cities like Kathmandu, where the demand for housing far outstrips the supply, affordable housing can help mitigate the negative impacts of urban densification and ensure that all residents have access to safe and decent living conditions.

To address the housing shortage and create more affordable housing options, a multi-faceted approach is needed. This includes the implementation of effective zoning bylaws and building regulations to ensure that new developments meet safety and quality standards. Additionally, incentives for developers to build affordable units, such as tax exemptions or subsidies, can help to make such projects more financially viable. Public-private partnerships can also play a crucial role in funding and developing affordable housing projects.

The public sector has a crucial role to play in providing affordable housing. This can be achieved through the allocation of public land for housing projects, the implementation of inclusionary zoning policies, and the provision of financial support for affordable housing initiatives. For example, Montgomery County in the United States has implemented a Housing Preservation Fund (HPF) model, which finances large-scale mixed-income housing projects with a significant proportion of affordable units. The county also uses property tax exemptions and public land strategies to lower development costs and increase the availability of affordable housing.

The private sector also has a significant role to play in the provision of affordable housing. Developers can be incentivized to build affordable units through policies such as inclusionary zoning, which requires a certain percentage of new developments to be set aside for affordable housing. Additionally, partnerships with private entities can help to fund and develop affordable housing projects, leveraging the expertise and resources of both the public and private sectors.

The rapid urban growth in Kathmandu presents both challenges and opportunities for the provision of affordable housing. While the current lack of zoning bylaws and building regulations has exacerbated the housing crisis, there is potential for significant improvement through the implementation of effective policies and strategies. By prioritizing affordable housing and involving both the public and private sectors in its provision, Kathmandu can move towards a more sustainable and equitable urban future. This will not only improve the living conditions of its residents but also contribute to the overall social and economic stability of the city.