The concept of financial affordability is characterized by two main features: a minimum down payment fixed at US$ 50 to cover the basic shelter package cost; and regular monthly instalments of US$ 2,50 to US$ 5, based on the means to pay of the beneficiaries, toward the total cost of the plot amounting to US$ 450. The basic shelter package comprises three main components: 1. The plot, with the availability of potable water by public transport and a WC with sanitary latrine; 2. Compulsory savings in the form of a regular monthly instalment, preferably through a bank account operated jointly by designated representative and sponsors of the scheme; 3. A bulk contribution by the residents for the desired level and type of services. Decision regarding the provision of various types of services, the allocation of funds, the level of services and their spatial distribution are taken with the active and direct participation of the residents during open meetings. This is done through representatives elected during meetings of the residents and the HDA. The development of services is undertaken by skilled labour from the community, which ensures economy and better workmanship and provides job opportunities for the residents. This has generated employment for 117 persons (including 48 women). Separate accounts are maintained for each block and are operated by the block's nominee and the HDA project manager. Block organizations are also responsible for maintaining the services and action against defaulters. Community participation is thus ensured from the planning and execution stages, through to maintenance and cost recovery.
The process of assigning plots consists of four steps: (a) identification of families earning about US$ 50 per month and in urgent need of housing; (b) temporary lodging in two types of reception areas: open land where the family can install a makeshift house or accommodation in a two room "pucca" concrete house with latrine and in-house water tap; (c) assessment of eligibility of the HDA; (d) allotment to eligible families of a regular plot of around 70 square metres. The construction of housing is flexible. It must be started immediately after allotment of the plot. No rigid or conventional planning or building regulations are applied and the house builders can use concrete, mud, reed or even cardboard as building materials. The structures can be improved, modified or extended as the financial capability of the family improves.
Maximum encouragement is provided to the residents to provide services and utilities for their homes on a do-it-yourself basis, particularly for sanitation, garbage disposal, electricity and even road building. In 1990, it was reported that there was a network of around 15,000 metres of water supply lines, 5,750 metres of sewerage and 4,100 metres of electricity lines. 23 schools of various levels were functioning with a total enrolment of 872 students and 43 teachers. Health services were being provided by 5 private doctors, 5 paramedics, 2 clinics, 3 mobile clinics and an ambulance. Small scale enterprises provide transport between KKB and Hyderabad.