Nirmithi Kendra at Quilon is unique in many respects; its concept as well as its management practices are innovative. It was established with the objective of disseminating low cost housing technology. Nirmithi has influenced change peoples' notions about housing and has succeeded in sowing the seeds of low cost technolgoy in Kerala's housing field. It could demonstrate the viability of low cost technology which could reduce building costs by 30-40 percent. Viable Technology, Motivated leadership, strong patronage of the government, support from housing agencies and media publicity were crucial for its institutionalization. This paper discusses the activities and management practices of the Kendra, and examines challenges this innovative concept had to meet before it became institutionalized.