Rapid urbanization led Kabul City to develop illegally over the past two decades of stability. Due to inherent rural-urban migration and the return of people from abroad, a large majority of populations flooded into cities. A significant number of planned residential neighborhoods have undergone housing transformations in Kabul City. In most cases, detached courtyard houses have been transformed into apartment buildings in violation of building land use regulations. Kabul Municipality (after this “KM”) as a responsible entity was unable to enforce the rules and regulations on these planned residential neighborhoods across the city. According to this study, the problem is the result of a monitoring mechanism that lacks technical staff and is based on a top-down approach where residents were not involved in urban planning and development. In the paper, it is argued that the current monitoring mechanism should be revised through a participatory approach involving residents' councils such as Gozar Assemblies (GAs), and Community Development Councils (CDCs). The Engineers Association should also be integrated into the system to prevent the spread of illegal apartment buildings. Therefore, this study aims to examine factors that greatly improve monitoring mechanisms related to housing transformation. We assessed the level of housing transformation and its effects associated with the monitoring mechanism. Furthermore, the study evaluated the existing status of the monitoring mechanisms. Moreover, the study examined how local council intervention can greatly contribute to preventing the proliferation of illegal buildings and strengthening monitoring systems. Lastly, we investigated how the inclusion of Engineer Associations can assist in resolving technical deficits.