In connection with the plan for improving the residential environment gradually by analyzing the present condition of the reconstruction and parcel form of the housing area in a inner area, the main objective of this research is to develop a cooperative urban housing model based on the neighborhood agreement. The parcel form has a structure that is inappropriate for individual reconstruction； thus, the substantial improvement only through the residential environment improvement project has its limitations. As an alternative plan to resolve such limitations, I proposed a system that enables step-by-step reconstruction within the small-scaled blocks through the annexation of the land based on the neighborhood agreement. Nonetheless, I realized that it is difficult to apply such reconstruction system to individual housing. Therefore, I presented a design concept on the cooperative urban housing project as a residential form for the reconstruction inside blocks. A model plan vouches for its effectiveness. To apply substantially the cooperative urban housing plan based on the neighborhood agreement, we need to supplement the sectional plan system.