"Brigg received several high calibre applications for the position, but felt that Steve was the right man for the job," read a statement from the Hawthorns-based side, who are the oldest football club in Lincolnshire.
"Although in the caretaker position for only two matches, and despite unluckily going out of the FA Trophy, performances had improved, with an excellent response from the players.
"The club are in no doubt that they are capable of producing the type of football, and hence the results, to climb up the UniBond League table.
"There is the added bonus of continuity, after all this appointment is the only third managerial change in 20 years at Brigg Town."
Gainsborough-born Housham made his Iron debut in 1995 and was part of the side that won promotion from Division Three via the play-offs in 1999, coming off the bench in the Wembley final win over Leyton Orient.
But after dropping away fromt he first-team picture he headed to Conference side Barrow in 2000, joining Brigg after two seasons in Cumbria.