ABSTRACT In recent decades, the persisting inequalities in European cities have spurred the implementation of area-based initiatives (ABI) in the most disadvantaged neighbourhoods. This paper investigates how the interplay between diverse institutional frameworks and housing ownership regimes influences the design and execution of ABI policies in France and Spain. Focusing on the specific cases of Pla de Barris in Barcelona and Contrat de Ville in Paris, the study elucidates the strengths and limitations of different urban renewal strategies, emphasizing the imperative of a multi-level governance approach for effective ABIs.