After the event of disaster, rebuilding of damaged houses constitutes as one of the most important conquest for the government and other stakeholders for reconstruction efforts. In case of Nepal, much government efforts, social organizations and aid-donors have helped finance significant portion on housing reconstruction. This paper analyzes the effect of governance effectiveness on housing reconstruction. The author analyzed the role of state, social organizations and citizen’s in participation for effective housing reconstruction. The research was conducted with a view that despite much emphasis placed by aid-donors, communities, NGOs and governmental institutions, the recent experiences show that such commitments haven’t really been translated into reality at grounded level. This case study was done from period 2015-2017, two years since April 25^th 2015 earthquake. The case study reveals that the state capacity, coupled with its collaborative efforts among other actors of governance is low when it comes to post-disaster reconstruction of private housing in Nepal. Some considerable measures have to be taken on monitoring and coordination mechanisms to speed up the reconstruction of private homes and yet more concrete efforts in increasing effectiveness of aid delivery and mobilizing local resources are required for reconstruction.