The department is responsible for the District Administration Scheme, community building and community involvement activities, minor environmental improvement projects and minor local public works, and the licensing of hotels and guesthouses, bedspace apartments and clubs.

After the 1967 riots, the colonial government introduced the City District Officer Scheme (民政主任) "as the first sign of reaching out to the ordinary people" in Hong Kong society.

In February 2021, the Home Affairs Department announced that pro-democracy district council members would be excluded from government-linked organizations that focus on neighborhood issues.

Nowadays, the functions of area committees are to encourage public participation in district affairs, to advise and assist in the organisation of community involvement activities and the implementation of government-sponsored initiatives, and advise on issues of a localised nature affecting the area.

Owners' corporations are statutory bodies vested with certain legal powers to facilitate the management of a building.

At the end of March 2004, there were 7,294 owners' corporations throughout Hong Kong, among which 5,537 were formed with the assistance of the district offices.