During the last few decades most developing countries have experienced a rapid growth in population which has resulted in a rapid urbanisation in the form of an expansion of existing towns, coupled with an increasing dependence upon developed countries for implementation of new housing programmes. The purpose of this study is to point out the problems of public housing, to identify the relationships between the physical elements and conceptual perspectives of housing functions. To resolve the housing problems, the Libyan government introduced a new policy, which recognised housing as a basic human need and provision of housing as the governments' fundamental responsibility. The aim of the study was to assess the effectiveness of the implementation of the public housing policy in Tripoli, the capital city of Libya. To achieve this aim both secondary and primary data were examined, and the required data was obtained through a questionnaire survey of households living in the three projects. Interviews were also conducted amongst government officials concerned with housing policy and implementation. This study is in general, concerned with the effects of the problems of the new social and physical environments on the residents' level of satisfaction with the housing projects. This study is mainly concerned with aspects of housing policy which might contribute to better housing satisfaction and which are responsive to changes in people's desires and preferences. After the evaluation process it is found that the Libyan housing policy has benefited large groups of people, particularly those on low-income. However, it also suggests that the adopted policy has not resolved the housing problems both in terms of quantity and quality. In particular, the dwellings provided have not met the needs of many Libyan families. Furthermore, the study found that there is a lack of housing management. This evident from some households living in the dwellings without permission in addition, the rate of sharing and occupancy shows that there is still a housing shortage. The study also shows that the dwelling and building construction types affect the resident attitudes to dwellings. Also shows that, most of the residents' prefer new dwellings.