Housing and communal services' sector is one of the indicators of the state of the regional economy and of the welfare of citizens. Continuing economic degradation of this branch of the economy encourages to seek perspective management technologies, the implementation of which will ensure the creation of conditions for accelerating institutional reforms in it. The paper presents the analysis of the housing and communal services' sphere reforming. The author reveals the problems and the reasons of the current situation in this sector of the economy. The paper presents a new model of development management for housing and communal services, based on the principles of clustering with the participation of consumer of housing and communal services.