The Urban Settlement Development Authority (USDA),which was established in 2008 by Parliament Act No. 36 of 2008, is an institution functioning under the Ministry of Urban Development and Housing. The formulation of national policy in relation to urban settlement development and ensuring implementation of such policy, along with the provision of improvements to the living conditions of people 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 in urban under-served settlements in modern neighborhoods without disturbing their livelihoods and social networks and thereby liberate those lands for urban redevelopments purposes. Also, USDA provides lands for investors to build reasonably priced paraments for the middle-income segments. Houses are provided to those in need through easy payment plans based on the income of the buyer in housing compels, built under public-private partnership (PPP) arrangements. Simultaneously, the Human Development Programmer is begin implemented to develop the Socio-economic status of the household living in urban settlements, fulfill the aspirations of underserved, low-income dwellers in urban areas by empowering them socially, economically, and culturally.