Substantial part of the housing stock in Czech and Slovak Republics is located in panel multifamily neighborhoods. There are the problems with housing stock conditions and surrounding environments (missing parking places and garages, urban congestion, low attractiveness of the neighborhoods, etc.). Fortunately the social structure of these neighbourhoods represents in most cases the healthy population mix, however this may change in future. Although the important steps have been undertaken in last years to ameliorate the living conditions in these areas, the overall situation has not improved radically. The paper analyses the reasons, why the progress in this area was relatively slow, while taking into account the existing and possible new institutional and financial arrangements. It means therefore that the new innovative and sustainable solutions for these neighbourhoods has to be implemented (such as PPP projects, solution of institutional issues, rooftop extension retrofits, etc.)