With a view to supplement the efforts of housing agencies to facilitate their housing activities in the country, hudco provides financial assistance for land procurement to the regular borrowing agencies like housing boards & devt. authorities. Preference is given to land acquisition proposals intended to benefit economically weaker sections & low income groups in urban areas & predominantly utilise the land so acquired for housing schemes to be financed by hudco. 
Under area devt. scheme, hudco's financial assistance is available for acquisition of land as well as for development of  land envisaging new human settlements.