2015 April earthquake that hit Nepal has left housing sector as the most affected sector which has caused greatest human misery and casualty.  To avoid further long term vulnerabilities to the victim of the earthquake, housing recovery policy has to address certain housing recovery policy goals such as social justice, efficient and effective government institutions, flexibility, coordination, transparency and accountability.  ‘Building Back Better’ after the earthquake has been the main motto of the reconstruction in the PDNA with the owner driven reconstruction in a participatory manner along with this on October 09, 2015; the Nepalese parliament passed the Earthquake-Induced Fully Damaged Settlement Rebuilding Grant Delivery Procedure. This paper critically assesses the housing recovery procedural guidelines based on the identification of the beneficiaries, financial and technical assistance; and challenges relating to them through literary discourse and reflection from field visits.