With a sudden rise of the housing prices in Gangnam district of Seoul and the New Urban Area in the capital region as well as housing shortage in the capital region, housing reconstruction and redevelopment of residential areas became focal interests of prospective home buyers. Particularly the sudden rise of the housing prices in the areas of reconstruction and redevelopment is pointed out as a factor of the rapid increase of the housing prices in Gangnam district of Seoul. In relation to the redevelopment of residential areas and housing reconstruction projects, the transactions between the Housing Maintenance Project Association and the members of the Association generated complex tax issues and produced disputes over interpretation. Complicate tax issues on the redevelopment of residential areas and housing reconstruction projects resulted from ambiguous characteristics of the Housing Maintenance Project Association, lack of tax regulations, and complexity of tax regulations regarding reconstruction control. In addition, a differential heavy tax of capital gain tax for the Association members' retainment of housing rights as well as dual taxation of high-rate reconstruction charge and a capital gain tax has potentially unconstitutional. Therefore, it is needed to improve a relevant legislation.