The purpose of this study is to employ a method called 'conflict impact assessment' to analyze the progress, background, cause and relevant issues of conflicts related with affordable housing for youth (Happiness Housing Project), a project that has been implemented since last May 2013, thereby identifying the relevant problems and draw out objectives for improvement. The researchers expect that this study will contribute to solving the current issues regarding Happiness Housing, and contribute to improving the quality of the government's policies. For the above purpose, literatures on Happiness Housing produced from August to November 2013 were reviewed, in-depth telephone or face-to-face interviews were conducted with personnel associated with project implementation in the Ministry of Land, Infrastructure and Transportation and LH, etc., and major interested parties including Yangcheon-gu residents. Key issues identified regarding Happiness Housing construction include: the way that the project was implemented, living quality of residents, impact on educational environment, inconsistence with existing plans, relatively high construction cost, insolvency of public corporations, land use fee issue with Korail, need of preliminary feasibility survey, securing sufficient amount for supply and issue of additional designation, likelihood of finishing construction in time and issues related with actual source of demand, etc. Through analysis of conflict development and positions of interested parties, the main causes of the conflicts were identified as follows: lack of deliberation on pledges during election, lack of viability review on pledges, lack of conflict management plans, one-way implementation without consent of interested parties, project plans established with no regard to local circumstances, frequent project revision, underwehlming level of conflict management. In order to address issues above, the following measures need to be taken: selecting election pledges based on actual effectiveness, thorough assessment on pledges by relevant departments, gradual implementation based on consideration of the actual circumstances, participation of key interested parties, consistent policy and adopting conflict management techniques that reflect the reality.