The Urban Settlement Development Authority (USDA) which was established in year 2008 by the Parliament Act No. 36 of 2008 is an institution functioning under the Ministry of Housing & Construction. Formulation of national policy in relation to urban settlement development and ensuring implementation of such policy along with provision of improvements of the living conditions of persons in underserved settlements are the interconnected twin objectives of the establishment of USDA.

USDA aims to re-house poor families who are in encumbered lands with no titles on the urban under-served settlements in modern neighborhoods without disturbing their livelihoods and the social networks, and thereby liberate those lands for urban redevelopment purpose. Simultaneously, Human Development Programme is being implemented to develop the socio-economic status of the households living in urban settlements.