The idea of a department of Urban Affairs was proposed in a 1957 report to President Dwight D. Eisenhower, led by New York governor Nelson A.

The actual implementation was postponed until January 14, 1966, following the completion of a special study group report on the federal role in solving urban problems.

Some important milestones for HUD's development include:[6] The major program offices are: The United States Congress enacted the Inspector General Act of 1978 to ensure integrity and efficiency in government.

The OIG is to examine, evaluate and, where necessary, critique these operations and activities, recommending ways for the department to carry out its responsibilities in the most effective, efficient, and economical manner possible.

"[33] In 1996, Vice President Al Gore, referring to public housing projects, declared that, "These crime-infested monuments to a failed policy are killing the neighborhoods around them".

Libertarian critic James Bovard commented that, "The more aggressive HUD becomes, the fewer free speech rights Americans have.

[32] In September 2010, HUD started auctioning off delinquent home mortgage loans, defined as at least 90 days past due, to the highest bidder.