The establishment of the Penang State Housing Board (LPNPP) as a Detached and Exempt Statutory Body is in accordance with the decision of the Government Meeting Council (MMK) No. 24 of 2020 dated 08 July 2020. The official operation of LPNPP is effective from 1 January 2021 through the gazette of the effective date of the Penang Housing Board Enactment 2010 [Gazette No. 580] dated 24 July 2020. In general, LPNPP still carries out the functions and powers exercised by the Housing Division, Penang State Government Secretary's Office.

Apart from that, LPNPP acts on behalf of the State Government to drive development and preserve the development of housing, especially the development of affordable housing and urban redevelopment throughout the state of Penang.

Ensure the management of State Government Public Housing as well as housing development in Penang in a sustainable manner and meet the needs of various levels of society