Hjaltland Housing Association Ltd was created from a merger in 1980 between Scottish Airports Ltd, formed in 1974, and the then Hjaltland Housing Association, formed 1975. These associations were originally formed to aid the Shetland Islands Council in providing housing for incoming oil industry workers. Up until 1982, the Association provided 88 houses, most of which were family houses.

Prior to 1984, the Association's administration was carried out in Edinburgh, with part-time Shetland staff managing lettings visits and maintenance. In 1984, the management committee conducted a review and decided that an improved service would require full-time Shetland staff.

By March 2010 the Association has grown to provide over 530 houses, distributed throughout Shetland from Unst to Sumburgh, and from Sandness to Whalsay. Just over half the Association's houses are situated in Lerwick.

As well as providing for single people and families, the Association has been working closely with the Shetland Islands Council, and now has several properties providing homes for people with particular housing needs.