This paper aims to show the city planning policy for transformation of brownfield areas into housing developments. Research results of three selected case studies have shown that the brownfield area transformation into housing developments contributes to the quality of life in the area and the integration of that area into the surrounding space, and thus also to the aspects of sustainable development at the local level. New housing developments contribute to the better networking of space and dynamic mobility. Design and construction of new housing areas based on a programmes put in place, such as the Croatian Social Housing Construction Scheme allow rapid and integral implementation of large-scale interventions and provide socially integrated housing and high-quality living conditions. Areas that were once monofunctional, enclosed and inaccessible have become multifunctional, open and accessible thus representing a generator of development in the wider context. A transformation based on an effective city planning policy, comprehensive urban planning and design contributes to sustainable development at the local level, thus fulfilling Aalborg Commitments.