This project served twelve settlements in Lekhnath municipality, northern-central Nepal, and was an extension of the Lekhnath Housing 1 project. All families approved for the loans had private land ownership certificates and the project was set up to give those households access to housing finance, to construct safe, permanent housing, or to upgrade their existing home. Lumanti provided an 80% guarantee to Kamana Bikash Bank for loans to project clients. In this way, Lumanti have been able to leverage private finance for clients living on low incomes, and encourage banks to lend to income groups that they previously considered too risky.

The built houses were single storey detached buildings that could be incrementally extended in the future. They were constructed with an emphasis on disaster risk reduction, which was achieved through infrastructure designs and appropriate settlement planning. Training in technical, financial and management skills was provided by Lumanti, and a team of community architects assisted the clients in designing their housing according to their needs.