The urban regeneration can be realized by establishing a development plan on various physical level such as urban, neighborhood and dwellings. The urban residential area contains characteristics of neighborhood environment and its community, since it is a mixture of dwellings which is a basic unit in neighborhood and various residential facilities. Thus, neighborhood regeneration should aim at sustaining physical condition and recovering its characteristics and functions of neighborhood with its community. For these purposes, this study analyzes present housing condition in the old section of Seoungnam city and aims at proposing a course of development (3 stages reconstruction schedule) and basic dwelling unit plans with various building types for sustainable housing regeneration. Thus, this study concludes that 1) The 3 stage course of development is proposed on a specific site for the purpose of housing regeneration. And from basic unit for 1 person to larger unit for 4 person family, 5 different units are proposed with 16 building types containing several different units. 2) For urban regeneration through sustainable housing development with existing urban streets and aged multi-family housings, basically existing grid street system should be kept intact with the condition of maintaining fire aisle. In order to have fire safety, one of two 4m width roads is turned into one for pedestrian only and the other one is widened to 6m for essential car traffic. This new housing block makes 16sites into one big site which will contain more housing units. 3) In order to achieve above 2), the process for proper building codes and regulations must be advanced before this Housing Design Proposal would be launched.