The Department of Environment, Housing and Community Development (CA 1954) was abolished on 5 December 1978 by PSB Minute No 1978/56 (notified in Commonwealth of Australia Gazette, No S267, 5 December 1978). The same PSB Minute changed the name of the Department of Construction (CA 1952) to the Department of Housing and Construction [II] (CA 2747). The Secretary of the Department of Construction and Director-General of Works became Secretary of the Department of Housing and Construction and Director-General of Works. The new Department inherited responsibility for housing and building industry functions from the abolished Department of Environment, Housing and Community Development and gained responsibility for works, furniture and fittings from the Department of Construction.
 
The Administrative Arrangements Orders of 5 December 1978 (published in Commonwealth of Australia Gazette, No S269, 5 December 1978) stated that the Department was responsible for the following
functions:
 
. Planning, execution and maintenance of Commonwealth Government 
  Works
. Housing
. Building industry
. Design and maintenance of furniture, furnishings and fittings for
  the Commonwealth Government.
 
The same Orders stated that the Minister for Housing and Construction [II] administered the following legislation:
 
. Commonwealth and State Housing Agreement Acts
. Glebe Lands (Appropriation) Act 1974
. Home Savings Grants Acts
. Housing Agreement Acts
. Housing Assistance Acts
. Housing Loans Insurance Act 1965
. Re-establishment and Employment Act 1945, Part VIII; Division 1 of
  Part XI in so far as it extends Part VIII; and Part XII to the
  extent to which it applies or may be applied to the foregoing 
. Snowy Mountains Engineering Corporation Act 1970
. States Grants (Dwelling for Pensioners) Act 1974
. States Grants (Housing) Act 1971.
 
The functions and legislation administered by the Department remained the same throughout its existence. A Press Release of 30 April 1981 issued by the Minister for Aboriginal Affairs stated that States Grants Housing Programmes administered by the Department of
Aboriginal Affairs (CA 1476) were to be transferred to the Department of Housing and Construction. It is uncertain whether this transfer took place and it is therefore subject to further research.
 
The 1979 Commonwealth Government Directory (p.169) stated that the Department had responsibility for housing and building industry functions and for planning, design, construction and maintenance of buildings and engineering facilities and services for the
Commonwealth Government. Functions include:
 
. the provision of a co-ordinated planning, design and construction 
  service for new works projects and repairs and maintenance services
  for Commonwealth departments and authorities;
. provision of specialist architectural and engineering advice to
  Commonwealth departments and authorities as required;
. establishment of standards for design and construction;
. carrying out research into building technology;
. the design, construction, maintenance and operation of water supply
  and sewerage facilities and roads in the Australian Capital
  Territory;
. development and implementation of policies for the housing and 
  building industries;
. advising on resource utilisation and allocation in the residental 
  and non-residential building industry;
. administration of housing programs other than those specifically 
  administered by other departments or agencies;
. design and repair and maintenance or furniture and fittings for the
  Commonwealth Government; and
. operation of industrial undertakings in the Australian Capital 
  Territory.
 
At that time the Central Office was apparently divided into eleven divisions:
 
. Architectural Division:
  Development of technical policies, standards and practices in 
  architecture and the control of the quality of the Department's 
  architectural projects
 
. Building Industry Division:
  Development, co-ordination and implementation of policies for the 
  building industry; monitoring and advising on resource utilisation
  and allocation in the industry
 
. Engineering Division:
  Development of technical policies, standards and practices in 
  engineering and the control of the quality of the engineering
  components of the Department's projects
 
. Housing Policy Division:
  Development, co-ordination and implementation of policies for 
  housing; administration of housing programs including the 
  Commonwealth States Housing Agreement, the Home Savings Grant
  Scheme and the rehabilitation of the Commonwealth's housing estate
  at Glebe
 
. Three Major Projects Divisions:
  Planning, co-ordination and control of the Department's pre-
  planning, design and construction programs, of work and of
  individual major works projects
 
. Management Division:
  Development and implementation of management policies, practices 
  and systems; the provision of management consultancy advice and 
  common management services
 
. Operations and General Works Division:
  Development of policies and practices on the utilisation of day 
  labour and on repairs and maintenance, minor new works, furniture
  and fittings, supply, plant, workshops, public utilities and
  industrial undertakings
 
. Resources Division:
  Development of policies and practices on the cost effective
  utilisation of resources; development and implementation of
  policies and practices for the distribution of Department's total 
  design workload; provision of technical consultance service and 
  the allocation of technical resources to Central Office and
  Regions  

. Technology Division:
  Planning and co-ordination of technical research actitivites and 
  the storage and dissemination of technical information throughout 
  the Department.
 
The three Major Projects Division were:
 
. Scientific and Communication
. Defence and Transport
. Capital Territory and Overseas.
 
In 1977 the Government announced its decision to consolidate the Central Office components of the Departments of Construction and Environment, Housing and Community Development in Canberra. Elements of the Central Office of Housing and Construction [II] were initially split between Central Office of Canberra. The 1979 Commonwealth Government Directory noted that the following elements were at that time located in Canberra:
 
. Ministerial Liaison
. Secretariat
. Architecture Division
. Building Industry Division
. Engineering Division
. Housing Policy Division
. Major Projects Division (Defence and Transport)
. Major Projects Division (Capital Territory and Overseas)
. Operations and General Works Division
. Management Division
. Resources Division.
 
The following Central Office elements were located in Melbourne:  

. Major Projects Division (Scientific and Communications)
. Management Division
. Operations and General Works Division
. Resources Division
. Technology Division.
 
The Department maintained independent Regional Offices in both of these cities. The Divisions were housed at several locations in each city.
 
The 1980 Commonwealth Government Directory noted that all Divisions of the Central Office were normally located in Canberra. Certain senior executives of the Management, the operations and General Works and the Resources Divisions were apparently still located in
Melbourne. As these officers are listed as being located in
Caonberra in the 1981 Directory it appears that consolidation of the Central Office had been carried out by about May of that year.  

On 7 May 1982 the Prime Minister announced that the Department of Housing and Construction [II] had been abolished as part of a general re-organisation of Commonwealth Departments and Ministerial
responsibilities. This administrative change was notified in
Commonwealth Gazette, No. S94 of 7 May 1982, which also notified the creation of the Department of Transport and Construction (CA 3257) and the Department of Aviation (CA 3253).
 
The Administrative Arrangements Orders of 7 May 1982 (notified in Commonwealth Gazette, No S91, 7 May 1982) stated that the following functions had passed from the defunct Department to the new
Department of Transport and Construction:
 
. Planning, execution and maintenance of Commonwealth Government 
  works
. Design and maintenance of furniture, furnishings and fittings for 
  the Commonwealth Government.
 
The administration of the Snowy Mountains Engineering Corporation Act 1970 was also transmitted to that Department.
 
The functions of `Housing' and `Building' which had previously been attached to the Department of Housing and Construction [III], did not explicitly appear in the Administrative Arrangements Orders of 7 May 1982. 

The Prime Minister's Press Release of 7 May 1982 stated that:  
 
 "the welfare housing activities of the Department of Housing and 
 Construction will be transferred to the Department of Social
 Security (CA 1489). This will align housing, including the
 administration of the improved Home Deposit Assistance Scheme and
 welfare housing payments to the States, more clearly with the 
 Government's overall welfare programme.
 
 Relations with the building industry and housing policy generally 
 will be the responsibility of the expanded Department of Industry 
 and Commerce [II] (CA 3256) and take their place alongside other 
 industry matters."
 
The Department of Social Security gained the administration of the following legislation:
 
. Commonwealth and State Housing Agreement Acts
. Glebe Lands (Appropriation) Act 1974
. Home Savings Grants Acts
. Housing Agreement Acts
. Housing Assistance Acts
. Housing Loans Insurance Act 1965
. Re-establishment and Employment Act 1945, Part VIII; Division 1 of
  Part XI insofar as it extends Part VIII; and Part XII to the extent
  to which it applies or may be applied to the foregoing
. States Grants (Dwellings for Pensioners) Act 1974
. States Grants (Housing) Act 1971.
 
It appears that the Building Industry Division of the Department of Housing and Construction was transferred to the department of Industry and Commerce [II] (CA 3256). At a Central Office level the Department of Social Security apparently gained the Housing Policy Division of the defunct Department. At a State Office level it gained the Home Savings Grant Sections of Housing and Construction [II].
 
Ministers for the Department of Housing and Construction [II] were:  

 5 Dec 1978 -  3 Nov 1980   : Raymond John Groom (CP 376)
 3 Nov 1980 -  7 May 1982   : Daniel Thomas McVeigh (CP 288).
 
Secretaries to the Department of Housing and Construction [II] and Director-General of Works were:
 
 5 Dec 1978 -  5 Aug 1980   : George Henry Warwick Smith (CP 319)
 5 Aug 1980 -  7 May 1982   : C W M Freeland.
 
The Assistant Secretary to the Department, Keith James Rodda, acted as Secretary from 18 April 1980 until Smith's formal retirement on 5 August 1980 and the appointment of the new Secretary.
Historical agency address
1978-  1982: ACT TAB Building, 470 Northbourne Avenue, Dickson ACT
1978-by1980: 17 Yarra Street, Hawthorn, Vic
Legislation administered
Creation: Commonwealth of Australia Gazette, No. S267, 5 December 1978
Abolition: Commonwealth of Australia Gazette, No. S94, 7 May 1982