TIG was formed as a non-profit making organisation registered under the Industrial and Provident Societies Act 1965, and a member of the Scottish Federation of Housing Associations.
It was set up as part of a strategic agreement between Scottish Homes and the Western Isles Islands Council to act as a local Housing Agency to provide housing for sale and rent throughout the Western Isles. A five year plan was announced which forecast 300 new homes by a variety of means. Five Housing Associations were set up, from Barra to Lewis, and TIG provided development services to all five.
TIG’s main office was originally set up on James Street, Stornoway, run by two staff members.