Socialist collective housing (Khu Tap The, hereafter called KKT), built in the period 1954–86 and modeled on the micro-district (micro-crayon) concept developed in the former Soviet Union, is a very typical architectural feature in Hanoi. It represents an exceptional period in the architectural history of northern Vietnam. Since 1986, population pressures and urban development have prompted Hanoi to experiment with renovating KTT, but these renovation alternatives have had many limitations. Creative solutions in renovating these KTTs are necessary to accomplish a more livable urban future and accommodate future growth while preserving the valuable and distinctive historic architectural character. This article reviews the formation and development of KTT in Hanoi in the period 1954–1986; The factors affecting housing architecture and the KTTs in this period; and the impacts of urbanization and the emerging market economy after 1986. This chapter summarizes the author's research on KTTs and architecture in the period 1954–1986, reviews the current situation of these KTTs since 1986, and discusses both the solutions and the challenges for urban planners and heritage conservation experts as they renovate KTTs. This chapter proposes several ideas related to adaptive conservation that may be useful in renovating these KTTs, thus preserving the historical and legacy value of these extraordinary architectural features. Achieving a sustainable balance between preserving the complex cultural, historical, and humanities legacy and meeting the increasing demands for sustainable and livable cities is challenging and complex for cities like Hanoi.