Kavrepalanchok, May 31 -- In Mahari of Panauti Municipality, Bishnu Bahadur Mulmi's home sits dangerously close to the edge of the Roshi river. Behind his house, the scars from last year's landslide remain untouched. Since a devastating flood and landslide struck in October last year, his family has been living in constant fear.

"Every time the clouds gather, I worry-what if it rains heavily again? Where would we go?" said Mulmi with anxiety etched across his face. "This is the only home we have left. Everything else is gone. We have neither money nor land to build another."

Eight months after the disaster, the government has finally provided Rs25,000 to the affected families as the first installment for temporary housing. But for most,...