The paper addresses modular hierarchical design (composition) of a management system for smart homes. The management system consists of security subsystem (access control, alarm control), comfort subsystem (temperature, etc.), intelligence subsystem (multimedia, houseware). The design solving process is based on Hierarchical Morphological Multicriteria Design (HMMD) approach: (1) design of a tree-like system model, (2) generation of design alternatives for leaf nodes of the system model, (3) Bottom-Up process: (i) multicriteria selection of design alternatives for system parts/components and (ii) composing the selected alternatives into a resultant combination (while taking into account ordinal quality of the alternatives above and their compatibility). A realistic numerical example illustrates the design process of a management system for smart homes.