This project served eight informal settlements in Kohalpur municipality and is the third stage of the Kohalpur and Rajhena Housing Project. As in the previous two stages the land was owned by the government which agreed to guarantee security of tenure to the clients. Fully financed through revolved funds, housing loans were lent to the new homeowners through the Basobas Mahila Saving and Credit (Women’s) Cooperative, to finance housing construction and home upgrading. Additional technical assistance was also provided by Lumanti.

The new houses were constructed on a low-cost basis with an emphasis on resistance to natural hazards and community engagement in the planning process. The settlements chosen were prioritised by the District Committee of Squatters Federation, with the project aiming to improve resident’s quality of life and remove the fear of forceful eviction. Once the clients had repaid their loan to the cooperative, the funds were then revolved again by Lumanti to support new housing projects throughout Nepal.