Bangladesh is aspiring to be a middle-income country by 2021. The country has demonstrated an impressive trend of economic growth and development. However, local government institutions remain weak in delivering services to their citizens including housing. Limitations of resources, lack of accountability, and the process of delivering services through a top-down and centralized approach add up to creating a challenging environment for providing housing for all, especially low-income groups. However, there are examples of some good practices where the low-income communities are working with local support groups, international organizations as well as local government. The success of these local initiatives is building trust in the community-led process and encouraging the government and other organizations to scale up across the nation.