These institutions met with difficulty in coping with the demand of the middle and lower income groups. Later The Department of National Housing was created in 1953 It was headed by the Commissioner of National Housing who was empowered to raise loans, grant loans to building societies, co-operative, housing bodies, and individuals to acquire land and implement housing schemes.
Soon after general elections of 1977, a new constitution was adopted which provided for an Executive President. The government aimed to build a hundred thousand houses in a five year period. In this back drop the need for accelerated development mechanism was felt.
The government following its free economic policy decided to deregulate the housing sector with new legislations and a new institution. Thus the National Housing development Authority Act was passed and the institution called National Housing Development Authority was created succeeding the Department of National Housing.
The New Authority having motivated by the success of the hundred thousand houses program decided to another massive program called Million Houses and 1.5 million Houses programs. This daring endeavour received National and International recognition.