"Residential Environment Improvement Project" is intended to improve the environment of deteriorated residential areas that many low-income residents live in. It is a public sector-led project supported by the government subsidies. Despite the enforcement by the public sector and government subsidies, the project has been criticized that it has no effect of improving the residential environment, and it is not different with "housing redevelopment project". So it is facing a crisis of abolition recently. Therefore, this study clarifies the current state of "Residential Environment Improvement Project", and then derives its problems from the survey and interview to officials of nationwide 16 provinces. Finally, policy and legislative issues on the sides of improving the effectiveness, ensuring the differentiation, improving the carrying forward system are suggested for "Residential Environment Improvement Project" to be enforced smoothly and stably from now on.