HIMUDA was constituted in 2004 by an act of Legislation under Himachal Pradesh Housing and Urban Development Authority Act, 2004, with objective to provide for the creation of a Development Authority to plan and develop land and create infrastructure to meet with the Housing needs of different income groups and to provide for development schemes for mobilizing public and private resources for the promotion of housing colonies and related infrastructure and to provide for the creation of appropriate Authority and mechanism for planned development of housing colonies. Actually erstwhile H.P Housing Board established in 1972 was re-christened as H.P Housing And Urban Development Authority (HIMUDA) in 2004.Main aim of the Authority is the development of housing colonies at various places of the State under different housing schemes like Social Housing Schemes, Self Financing Schemes, Rental Housing Schemes for HP Govt. employees, Police Personnel etc. by taking loan from financial institutions like HUDCO, National housing Bank etc. or by inviting public finances. Authority has also executed prestigious deposit work projects of different Departments like Tourism, Urban Development, Education, HIPA, Social Justice and Empowerment, Department of sports and Youth Services, Police , Prison, Health, Animal Husbandry and Fisheries ,Horticulture etc.