Kathmandu, Nepal

GHI Highlights: 
  • Rental units are a more recent phenomenon in Nepal. Traditionally, everyone owned a home.
  • Mortgage loans are concentrated in urban areas and those with all weather road access.
  • A government scheme to evict people living in slum areas has not been successful due to a large amount of resistance by settlers.
  • Regularization of titles in informal settlements is a highly political agenda and so far has not been implemented.
  • International NGOs provide indirect subsidies in the form of micro-loans for housing improvement.
  • There is no government housing bank in the city or country. 

 

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QuestionScore
P0.68
P1BARRIERS TO LAND OWNERSHIP ARE REMOVED.0.60
P1.1Can women legally own or inherit land? (Yes=1/No=0)1.00
P1.2In practice, do women own or inherit land? (Yes=1/No=0)1.00
P1.3Can land be jointly owned by husband and wife? (Yes=1/No=0)1.00
P1.4Does the law recognize the customary or tribal land rights of indigenous people? (Yes=1/No=0 or 100 if no indigenous people)0.00
P1.5Are immigrants, refugees and non-citizens allowed to own land? (Yes=1/No=0)0.00
P1.6Is it common for residents to hold land through a long-term lease? (Yes=1/No=0)0.00
P2ALL RESIDENTIAL LAND HAS REGISTERED TITLES AND/OR INCREMENTAL TENURE DOCUMENTS.1.00
P2.1Is there an operating program to register titles or incremental tenure documents? (Yes=1/No=0)1.00
P2.2Estimated percent of all the properties in the greater municipality that have their title properly registered. (%)100.00
P2.3Are titles updated regularly when property is transferred? (Yes=1/No=0) 1.00
P3TITLES AND/OR ALTERNATIVE PROPERTY DOCUMENTS ARE GIVEN TO LONG-TERM RESIDENTS OF INFORMAL SETTLEMENTS.0.00
P3.1Is there a policy or program that supports the regularization of titles or alternative documents in established informal settlements? (Yes=1/No=0)0.00
P3.2aNumber of households living in informal settlements in the greater municipality.10000.00
P3.2bNumber of households living in informal settlements in the greater municipality who have titles provided by a regularization program.0.00
P3.3Is the occupation of public land tolerated? (Yes=1, No=0)0.00
P3.4Is there a process or program to recognize occupancy of public land? For example, certificates of occupancy, street addressing, or other official documents are given to informal settlers. (Yes=1/No=0)0.00
P4EVICTIONS ARE MINIMIZED AND, WHEN THEY OCCUR, THEY ARE LEGAL AND INVOLVE COMPENSATIONS OR RESETTLEMENT.1.00
P4.1The number of persons evicted in the largest mass eviction that took place in the greater municipality in the last three years.0.00
P4.1aDid the eviction follow an established legal guidelines for evictions? (Yes=1/No=0, or 100 if no eviction) 100.00
P4.1bHow long in advance of the actual eviction were people first informed? (months) Please enter 100 if no eviction.100.00
P4.1cWas violence involved? (Yes=1/No=0, or 100 if no eviction)100.00
P4.1dThe percent of people who were resettled or given compensation roughly equivalent to the value of their homes. (%) Please enter 100 if no eviction.100.00
P5CLEARANCE OF LOW-INCOME COMMUNITIES TO REPLACE THEM WITH MORE PROFITABLE DEVELOPMENT IS MINIMIZED.0.50
P5.1Slum clearance and redevelopment is an established policy of the national or local housing agency. (Yes=1,No=0) 1.00
P5.2The government has torn down existing low-income neighborhoods and transferred the vacant lands to the private sector for development of new commercial, infrastructure or higher-end residential. (Yes=1/No=0) 0.00
P6THE PUBLIC HOUSING STOCK IS PRIVATIZED, AND RESTRICTED ON THE SALE OF UNITS ARE MINIMIZED.1.00
P6.1bThe estimated share of the public housing stock that is being or has been privatized. (%)0.00
P6.1aThe estimated share of the housing stock that is publicly owned. (%)0.00
P6.2Is the public housing stock generally well maintained? (Yes=1/No=0 or 100 if no public housing stock)100.00
P6.3A national or local housing policy is in place to support the privatization of the public housing stock. (Yes=1/No=0 or 100 if no public housing stock)100.00
QuestionScore
F0.84
F1CONDITIONS SUPPPORT MORTGAGE LENDING.0.42
F1.1The inflation rate last year. (%)10.00
F1.2Residential mortgage debt as percentage of GDP. (last year)1.00
F1.3Are there ceilings on interest rates for bank deposits? (Yes=1/No=0)0.00
F2MORTGAGE LENDING IS LIBERALIZED.1.00
F2.1Are private housing finance institutions (commercial banks) allowed to engage in mortgage lending? (Yes=1/No=0)1.00
F2.2Can private housing finance institutions make mortgage loans in any geographical region inside the country? (Yes=1/No=0, or if no mortgage lending=100)1.00
F2.3Is mortgage lending available for both newly-built and existing houses? (Yes=1/No=0, or newly-built only =0.5, existing only=0.5)1.00
F2.4Is mortgage lending available for the construction of rental housing? (Yes=1/No=0)1.00
F2.5Is construction lending for residential development (infrastructure and housing) allowed? (Yes=1/No=0)1.00
F3MORTGAGE INTEREST-RATE SUBSIDIES ARE ELIMINATED.1.00
F3.1The government has a public housing bank or agency that lends directly to borrowers. (Yes=1/No=0)0.00
F3.2What is the difference between the interest rate on a mortgage given by a private housing finance institution and an interest rate on a mortgage given by a government agency? (%) Enter 100 if there are no private housing finance institutions. Enter 0 if government agency does not give mortgages.0.00
F3.3Are there mortgages given at subsidized interest rates? (Yes=1/No=0)0.00
F4MORTGAGE LENIDNG IS PROTECTED FROM UNDUE RISK.0.86
F4.1Private housing finance institutions are required to investigate borrower credit using independent credit agencies. (Yes=1/No=0)1.00
F4.2Private housing finance institutions are required to assess the value of collateral using an independent third party. (Yes=1/No=0) 1.00
F4.3Is there a legal upper limit to the loan-to-value ratios for bank mortgage loans? (Yes=1/No=0)1.00
F4.4Is there a legal upper limit on the loan payment-to-monthly income ratio for bank mortgage loans? (Yes=1/No=0)1.00
F4.5Does government guarantee individual mortgage loans for housing? (Yes=1/No=0)0.00
F4.6Banks that provide mortgage lending are required to have annual audits. (Yes=1/No=0)1.00
F4.7The volume and size distribution of mortgages is reported annually to the regulatory agency. (Yes=1/No=0)1.00
F4.8Please indicate the percentage of the mortgage lending portfolio that is in default (60-days past due). (%)20.00
F5LENDER'S INTEREST IN THE COLLATERAL IS PROTECTED.0.63
F5.1Percentage of residential properties with mortgages that have legal titles. (%)100.00
F5.2Private housing finance institutions view property titles or long-term lease agreements as sufficient collateral and do not require personal guarantees (Yes=1/No=0, or no mortgage lending = 100)0.00
F5.3The number of months required for a bank to register a lien on a property used for collateral (Months) (no mortgage lending=100)2.00
F5.4The number of months required to foreclose on a mortgage and transfer the property to the bank (Months) (If no foreclosures or no mortgage lending=100)0.00
F6SECONDARY MORTGAGE MARKETS ARE OPERATIONAL.1.00
F6.1Has legislation passed for the creation of a secondary mortgage market? (Yes=1/No=0)0.00
F6.2Government liabilities in support of secondary mortgage markets are transparent and have a sunset clause (Yes=1/No=0, or no secondary mortgage market =100)100.00
F6.3Are mortgages standardized? (Yes=1/No=0, or no mortgage lending=100)1.00
F6.4Is mortgage insurance is readily available? (Yes=1/No=0, or no mortgage lending=100)1.00
F6.5Have banks issued mortgage bonds? (Yes=1/No=0)0.00
F6.6Are mortgages traded in a secondary market (i.e. mortgage-backed securities)? (Yes=1/No=0)0.00
F7MICROCREDIT FOR HOUSING IS AVAILABLE.1.00
F7.1Is there a ceiling on lending interest rates for microcredit? (Yes=1/No=0, or microcredit for housing is not available = 100)0.00
F7.2Organizations providing microcredit for housing are licensed and require annual auditing (Yes=1/No=0, or no microcredit available = 100)1.00
F7.3The volume and size distribution of microloans for housing is reported annually to a regulatory agency or other association. (Yes=1/No=0, or no microcredit available = 100)1.00
F7.4Private money lenders, individuals, or private companies provide unregulated credit (Very common=3, Somewhat common=2, Rarely=1, Never=0)2.00
F8GENERAL FINANCING QUESTIONS
F8.1The typical loan term (number of years of mortgage loans by private housing finance institutions) for mortgage lending.10.00
F8.2The typical interest rates (annual nominal rate by private housing finance institutions) for mortgage lending.13.00
F8.3The typical loan term (number of years of mortgage loans by private housing finance institutions) for micro-credit. 3.00
F8.4The typical interest rates (annual nominal rate by private housing finance institutions) for micro-credit.18.00
F8.5Are mortgages tied to an index?
F8.6Are there other sources of funding for the housing sector?
QuestionScore
S0.70
S1HOUSING SUBSIDIES ARE AN IMPORTANT SHARE OF THE NATIONAL GOVERNMENT BUDGET.0.70
S1.1Housing was one of the ten highest priorities in the platform of the national government. (Yes=1/No=0).1.00
S1.2Is there a ministry or department of housing in the national government (Yes=1/No=0)1.00
S1.3What is the housing budget as a percentage of the total national government budget in the last year? (0-100%)0.00
S1.4What is the estimated share of the housing budget at the national level that finances the production of completed housing units or housing improvements this year? (%)0.00
S1.5What is the estimated share of the housing budget at the national level that was given in rent vouchers, direct demand subsidies (housing allowances, vouchers or subsidies for a down payment), interest-rate subsidies, grants given directly to beneficiaries or slum-upgrading in low income communities, this year? (%)0.00
S1.6What is the estimated share of the housing agency's budget dedicated to all forms of homeless assistance? (%)0.00
S1.7What is the estimated share of the housing agency's budget dedicated to upgrading homes and infrastructure in low-income communities? (%) 50.00
S2HOUSING SUBSIDIES ARE SERVING LOW-INCOME HOUSEHOLDS.0.50
S2.1Housing agency provides demand side subsidies such as housing vouchers to beneficiaries to rent or purchase housing. (Yes=1/No=0)0.00
S2.2Is eligibility and the value of demand side subsidies (housing allowances, vouchers or subsidies for a down payment) determined by income level of the resident? (Yes = 1/No=0 or 100 if no demand side subsidies)1.00
S2.3Are there other criteria to target demand side subsidies? (Yes=1/No=0, or 100 if no demand side subsidies)1.00
S3THE GOVERNMENT ENGAGEMENT IN PUBLIC HOUSING IS LIMITED.1.00
S3.1Does the government subsidize the construction of new housing for low-income residents? (Yes=1/No=0)1.00
S3.2The private sector is engaged in carrying out government funded housing programs. (Very engaged=5/Not engaged=1, or 100 if no government housing program)100.00
S3.3The civic sector is engaged in carrying out government funded housing programs. (Very engaged=5/Not engaged=1, or 100 if no government housing programs)100.00
S4DOWN-PAYMENT ASSISTANCE IS PROVIDED IN CONJUNCTION WITH MORTGAGE LENDING.0.50
S4.1Is the government providing up-front subsidies in the form of a partial or full payment of a down payment for a mortgage loan. (Yes=1/No=0)0.00
S4.2Subsidies were given in association with micro-loans for housing improvement last year. (Yes=1/No=0)1.00
S5OTHER ASSISTANCE RELATED TO HOUSING IS PROVIDED.0.70
S5.1Subsidies for costs associated with land titling were provided by the national or local government to incentivize residents to obtain a land title. (Yes=1/No=0 or 100 if everyone has land title)0.00
S5.2The government has a slum upgrading program providing infrastructure improvements in low-income settlements. (Yes=1/No=0 or 100 if no slums)1.00
S5.3The government has a sites-and-services program. (Yes=1/No=0)1.00
S6THERE ARE TAX INCENTIVES FOR HOMEOWNERSHIP AND RENTAL0.50
S6.1Are there tax deductions for constructing affordable rental housing? (Yes=1, No=0)0.00
S6.2Can mortgage interest payments be deducted from income tax calculation? (Yes=1/No=0 or 100 if not applicable) 0.00
S6.3If so, is there a ceiling on the amount of mortgage interest that can be deducted? (Yes=1/No=0 or 100 if not applicable)100.00
S7THE HOUSING SUBSIDY SYSTEM IS TRANSPARENT AND WELL-UNDERSTOOD.1.00
S7.1Does the government provide insurance for mortgages issued by the private sector at preferential rates? (Yes=1/No=0 or 100 if not applicable)0.00
S7.2The estimated amount of tax exemptions to homeowners is documented and publicly available. (Yes=1/No=0 or 100 if not applicable)0.00
S7.3If there is a government housing bank providing mortgages at below market rates, is this implicit subsidy being documented and made publicly available. (Yes=1/No=0 or 100 if not applicable)100.00
S7.4The estimated amount of mortgage loans given by public agencies that are in default is known and published. (Yes=1/No=0 or 100 if not applicable)100.00
QuestionScore
I0.55
I1INFRASTRUCTURE SERVICES IN INFORMAL SETTLEMENTS ARE UPGRADED.0.25
I1.1There is an active infrastructure upgrading program in the city's informal settlements (Rank 1 to 5, Strong program=5/No program= 1, enter 100 if no informal settlements)1.00
I1.2There is an active national-level infrastructure upgrading program operating in informal settlements in numerous municipalities. (Rank 1 to 5, Strong program=5/No program= 1)3.00
I2INFRASTRUCTIURE PLANS ARE ADEQUATE TO MEET FUTURE POPULATION GROWTH.1.00
I2.1There are approved physical plans in the city and its surrounding municipalities for urban expansion to accommodate population growth. (Yes=1/No=0)1.00
I2.2There are recent capital investment plans for urban expansion to accommodate population growth in the city. (Yes=1/No=0)1.00
I2.3Is there an active program of acquiring the right-of-way for major roads in expansion areas? (Yes=1/No=0)1.00
I3THERE IS ADEQUATE WATER SUPPLY IN ALL NEIGHBOURHOODS.0.42
I3.1Most recent data on the percentage of the urban population in the country with access to improved water supply (From www.wssinfo.org)83.00
I3.2Year for which most recent data is available. (Year)2010.00
I3.3How many hours a day, on average, is water available in pipes in low-income settlements in the city? (hours)1.50
I3.4What is the ratio of the price of water sold by water trucks or private vendors and the price of metered water in a typical informal settlement in the [capital] city? (if there are no water trucks then write 100 and note in the comments section)1.50
I4THERE IS ADEQUATE SANITATION IN ALL NEIGHBOURHOODS.0.00
I4.1Percent of urban population with improved sanitation (From www.wssinfo.org) (0-100%)45.00
I4.2Year for which most recent data is available. (Year)2010.00
I4.3Percentage of the city's sewerage that is treated (0-100%)0.00
I5THE ROAD NETWORK IS ADEQUATE AND WELL MAINTAINED.0.42
I5.1The percentage of paved roads in the country [From World Bank's WDI website] (0-100%)33.00
I5.2The average time of the journey to work by all modes in the city (minutes)25.00
I5.3Number of days last year that the roads in the city were flooded.7.00
I6ELECTRICITY IS AVAILABLE IN ALL DWELLING UNITS.0.75
I6.1Percent of urban dwelling units with electrical connection [from last census] (0-100%)100.00
I6.2Year for which most recent data is available. (Year)2010.00
I6.3Number of hours per day that electricity is available in a typical low-income settlement in the city.18.00
I7THERE IS ADEQUATE POLICE AND FIRE PROTECTION IN ALL NEIGHBOURHOODS.0.65
I7.1The share of the area of the city in neighborhoods that are regularly patrolled by the police (0-100%)100.00
I7.2Ratio of the value of a mid-range dwelling unit in a safe neighborhood and a similar-quality dwelling unit in an unsafe neighborhood.100.00
I7.3Number of murders per 1,000 people in the city last year.4.00
I7.4Does the government provide resources to address youth violence? 1.00
I7.5Is there adequate fire protection in all neighborhoods? (Rank 1 to 5, adequate fire protection in all neighborhoods=5/fire protection in some neighborhoods=3/No fire protection=1)3.00
I8PUBLIC TRANSPORT IS AVAILABLE THROUGHOUT THE CITY.0.67
I8.1The estimated percentage of the city within 10-minute walking distance of a public transit (bus or rail) stop. (0-100%)65.00
I8.2Estimated percentage of commuters who walk to work (0-100%)35.00
I8.3Estimated percentage of journey-to-work trips in the city and its environs by public transport, mini-busses and other non-private transport, excluding walking trips (0-100%)33.00
I9GARBAGE COLLECTION IS ADEQUATE.0.25
I9.1Percentage of the city with regular public garbage collection. (0-100%)55.00
I9.2aHow many times a week, on average, is garbage collected from households in high-income neighborhoods in the city? 3.00
I9.2bHow many times a week, on average, is garbage collected from households in low-income neighborhoods in the city? 3.00
I9.3Percent of garbage disposed in sanitary landfills (0-100%)65.00
I10ACCESS TO EDUCATION AND HEALTH CARE IS ADEQUATE IN ALL NEIGHBOURHOODS.0.63
I10.1What is the average travel time in minutes to the nearest primary school from low income communities? (minutes)20.00
I10.2What is the average travel time from low-income neighborhoods to the nearest health care center or medical facility? (minutes)30.00
I11MUNICIPALITIES CAN MOBILIZE FINANCE FOR INFRASTRUCTIURE INVESTMENTS.1.00
I11.1Municipalities are allowed to borrow or issue bonds to finance infrastructure. (Yes=1/No=0)1.00
I11.2Municipal budgets and expenditures of all municipalities are subject to strict accounting, reporting, and auditing rules. (Yes=1/No=0)1.00
I11.3All municipalities have available revenue streams that can be pledged for debt repayment. (Yes=1/No=0)1.00
I11.4Municipal assets, especially land, can be sold or used as collateral to finance infrastructure investments. (Yes=1/No=0)1.00
QuestionScore
R0.84
R1AN OFFICIAL HOUSING POLICY DOCUMENT IS PREPARED.0.88
R1.1The law mandates the preparation of an official housing policy document by at least one level of government. (Yes=1/No=0)1.00
R1.2Number of UN global resolutions on housing rights that are adopted by the government. (If none=0, enter 1-15 depending on the number of resolutions adopted) 5.00
R1.3Do representatives of the private sector, the civic sector, and residential communities actively participate in the preparation of the housing policy document? (Yes=1/No=0)1.00
R1.4Is progress against the official housing policy document publicly known? (Yes=1/No=0)1.00
R2THERE IS NO RESTRICTIONS ON RESIDENTIAL MOBILITY.1.00
R2.1Are there restrictions on residential mobility? (Yes=1, No=0)0.00
R2.2If yes, is the government working to eliminate the restrictions? (Yes=1/No=0 or enter 100 if no restrictions exist)100.00
R3EXCLUSIONARY HOUSING PRACTICES ARE DISCOURAGED.0.75
R3.1Are there policies, laws, or regulations that prohibit the refusal to rent or sell property to someone based on race, religion, ethnicity, gender, or marital status. (Yes=1, No=0) 0.00
R3.2If yes, are the policies, laws, or regulations enforced? (Rate 1 to 5, Strong enforcement=5/No enforcement=1, Not Applicable=100)100.00
R3.3Are residential neighborhoods in the city segregated by race, income, or religion? (5=all neighborhoods are mixed,1=highly segregated)5.00
R3.4Are gated communities for specific race or income groups common? (Rate 1 to 5; Very common=5, Not common=1, Not Applicable=100)1.00
R4LAND AND HOUSING REGUALTIONS ARE NOT BURDENSOME OR COSTLY.1.00
R4.1Please indicate the most recent year that the municipality reviewed or revised land regulations and building codes. (Enter 0 if official building regulations or codes do not exist )2007.00
R4.2Smallest minimum lot size for residential building of any kind in the city (square meters).77.00
R4.3Maximum allowable number of stories for new residential multi-unit buildings in the city. (Number)25.00
R4.4Maximum allowable density in new housing developments (persons per hectare). 779.00
R5PROCESSES TO MEET LAND AND HOUSING REGULATIONS ARE BURDENSOME OR COSTLY.0.75
R5.1What is the number of days required to register a property?2.00
R5.2What are the typical costs involved in registering a property? (in local currency)
R5.3What is the number of days required to obtain building permits for residential construction. 68.00
R5.4What is the number of agencies that an individual is required to visit to obtain a permit for new construction?1.00
R5.5What are the typical costs associated with obtaining a building permit? (in local currency)1.00
R5.6Can alternative documents be used in place of official property title to obtain construction permits? (Yes=1/No=0)0.00
R6INCREMENTAL BUILDING PRACTICES ARE ALLOWED.1.00
R6.1Land regulations require that new residential land be fully serviced before it is occupied (Yes=1/No=0)0.00
R6.2The building code requires that houses be completed before they are occupied (Yes=1/No=0)0.00
R7RESIDENTIAL DEVELOPMENT IS NOT PERMITTED ON ENVIRONMENTALLY SENSITIVE OR HAZARDOUS LAND.0.83
R7.1Recent municipal documents and maps designate areas to be protected from development. (Yes=1/No=0)1.00
R7.2Illegal or irregular construction in protected areas is demolished. (Always=3, sometimes=2, never=1)2.00
R7.3In earthquake prone areas, do building codes require earthquake resistant construction standards? (Yes=1,No=0 or 100 if not applicable)1.00
R8THERE IS AN AMPLE SUPPLY OF LAND FOR RESIDENTIAL DEVELOPMENT.0.75
R8.1The most distant year for which populations projections for the metropolitan area of the city are available to municipal or metropolitan planners (Year). 2017.00
R8.2Estimated number of years it would take for raw land where residential development is allowed on the periphery of the city to be filled up, given present densities and present annual levels of land consumption. (Years)
R8.3Does the city have an urban planning document designating areas for urban expansion. (yes=1, no=0)1.00
R9HOME-BASED BUSINESSES AND MIXED LAND USES ARE ALLOWED.0.50
R9.1Municipal regulations allow the operation of home-based businesses in residential communities (Always=3, sometimes=2, never=1)2.00
R9.2Municipal zoning regulations allow mixed-use zoning of residences, stores and productive establishments (Always=3, sometimes=2, never=1)2.00
R9.3Degree of segregation of different land uses in the city (Rank 1 to 5, 5=highly mixed, 1=highly segregated).3.00
R10CONDOMINIUM AND COOPERATIVE HOUSING LAWS ARE IN OPERATION.0.80
R10.1There is a condominium law and it is operational (Yes=1/No=0)1.00
R10.2There a cooperative housing law and it is operational (Yes=1/No=0)1.00
R10.3If yes to R10.1 or R10.2, are common elements of apartment buildings also privatized? (Yes=1/No=0)1.00
R10.4There are regulations allowing for restrictive covenants in residential communities (Yes=1/No=0)0.00
R10.5There are regulations that allow the creation of formal community organizations (Yes=1/No=0)1.00
R11RENT RESTRICTION OR RENT CONTROL IS PHASED OUT.1.00
R11.1Rental units as a percentage of total housing units. (%)20.00
R11.2The percentage of total rental units now under rent restriction or rent control in the [capital] city (0-100%)0.00
R11.3What is the ratio of the estimated average market rent to the average rent in a similar rent-controlled or restricted unit in the city? (100 if no rent control)100.00
R11.4New rental units are not rental controlled or rent restricted (Yes=1/No=0)1.00
R11.5The dismantling of rent control or rent restriction on new rental units is addressed in recent policy documents.(Yes=1/No=0 or 100 if no rent control) 100.00

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