Several studies have pointed out that institutional layering of formal social programmes over informal welfare arrangements in Indonesia has undermined the social solidarity between welfare actors. The means-tested Housing Renovation Programme in Kulon Progo Regency was studied by drawing on primary and secondary data, including 11 in-depth interviews with key stakeholders. This article has, consequently, a different argument. The layered approach has stimulated the development of solidarity ventures by welfare actors in providing decent housing for the needy. This could have occurred because of the government adopting a community-based distribution system, rather than a statistical calculation-based system. © 2019 Informa UK Limited, trading as Taylor & Francis Group.