This study is mainly concerned with an assessment of the socio-economic benefits of GTZLCHPrnbeneficiaries in Adama town Oromia as a result of housing improvement in relation tornhousing shortages of low-income households in Adama town. Moreover, it looks into thernproblems of renters to seek solutions to address them.rnA case study has been employed to assess the housing benefits of project beneficiaries and thernchallenges of housings .of low-income households, who seek low-cost houses in Adamarnintensively and in details. The targets of the study include the beneficiaries and non-beneficiariesrnof the project which were selected from 120 household heads selected from lists. Half were selectedrnfrom the GTZ-LCHP beneficiaries list, while the others were from the potential demand list of thernnone-beneficiaries in the town.rnAccording to the major findings of the study , based on selected variables and comparing the renters andrnthe owners respondents, the owners of the project housing have benefited from the housingrnimprovement of the GTZ-LCHP. The mortgage system provided for the beneficiaries for the loanrnrepayment of 15 years with the total construction cost of 12000 birr benefited the owners. They havernafforded the repayment cost and the payment is regular. The project has contributed to the improvementrnof housing conditions and shortages in urban centers through technical assistances. The new model ofrnhousing supply with comparatively low-cost have been implemented in Adama and replicated inrndifferent parts of the country either in flat or in apartments form. The housing qualities of the ownersrnwere improved compared to the renters.rnFrom the findings, conclusions, and recommendations have been drawn underlining arnparticipatory low-cost housing provi sion to benefit low-income households in a sustainable way.