HDC is a corporate governmental agency constituted as a public benefit corporation and established in 1971 under Article XII, Private Housing Finance Law. HDC encourages the investment of private capital through low-interest mortgage loans and provides safe and sanitary dwellings for families and persons whose housing needs cannot be met by unassisted private enterprise. Through the issuance of bonds and notes, provides construction and/or permanent financing for multifamily residential housing.

The corporation is composed of the Commissioner of the Department of Housing Preservation and Development as Chairperson, the Director of Management and Budget and the Finance Commissioner, all ex-officio; and four public members, two appointed by the Mayor, and two by the Governor. Members continue to serve until a successor has been appointed.