Local housing associations play leading role in in its project, such as purchasing land, selecting a construction company. With initial funds that the members of the associations provided, the associations can promote the project at an affordable price with a simpler procedure, so that the members can get houses easily. On the other hand, if a project is delayed or canceled due to problems such as taking land ownership, compensating for migration, internal corruption, and false or exaggerated advertising in the process of recruiting members, most of the poor and ordinary people may suffer financial damage. Legal disputes between Local housing associations and their members have continued to increase, and this trend is expected to further intensify due to the recent real estate economic downturn. There are cases the lower court accepted the invalidity of the so-called ‘Certificate of security’ among various legal issues raised and returned the contributions of the plaintiffs, where the plaintiffs, who are members of a Local housing association, claimed to withdraw the membership and return the contributions against the association. In this paper, a case mentioned in the sub-title(‘subject decision’) is discussed to find an institutional improvement of Local housing association system.