According to the results of generalisation; quantitative, qualitative and comparative analysis of the reconstruction of residential buildings, trends and prospects for the reconstruction and modernisation of multi-story residential buildings are determined, considering the principles of sustainable development. The problems, trends and prospects of the reconstruction of multi-story buildings were determined, which made it possible to find optimal ways of modernising residential buildings, considering controversial issues, opportunities and goals of sustainable development. The controversial issue is to find a balance between real opportunities, current and planned projects and ways of implementation, considering economic opportunities, legislation and controversial issues between Condominium and co-owners of multi-apartment buildings. The problems are highlighted and ways to solve the improvement of projects for the modernisation of multi-story buildings are found. Possibilities and options for cost-effective modernisation of multi-story buildings are taken into account. The interests of all stakeholders were taken into account and ways to overcome misunderstandings were found. When all issues are resolved, not only the interests of the project executor, the Condominium, co-owners of multi-apartment building, organisations and funds which financing the project, as well as the capabilities of the state and current legislative and regulatory acts regulating the financing and implementation of the project of modernisation of multi-story buildings are taken into account. Much attention is allocated to the goals of sustainable development of cities and communities. After all, when modernising multi-story buildings, it is necessary to focus not only on the needs of the present, but also to considering the needs of future generations and focus on effective, economically profitable prospects of the present and the distant future, taking into account the need for a healthy environment. Thanks to the amendments to the legislation, it became possible to improve the energy efficiency of buildings and reach a higher quality level in the modernisation of multi-story buildings.