Introduction: Deteriorated fabric are the part of city that influence on city form, function, quality and security. Therefore, realization of sustainable development and improve the quality of life and welfare of citizens require reconstruction and rehabilitation of city deteriorated fabric. Achieving this requires an enterprise and to facilitate the participation of all institutions involved the urban planning development and the people.

Method: This study is applied with quantitative and qualitative approach and for achieving data field survey is used. Operational indicators identified with the exploratory study through conducting interviews with ten experts and executives related to reconstruction of deteriorated fabric. The population of the research included managers and professionals related to the renewal of city deteriorated fabric and current residents that participated in the reconstruction. Sample society includes 362 heads of households that were random selected.

Findings: Study finding indicate that the amount and intensity of the influence of the individual factors is more than structural, institutional and organizational factors. Assessment of importance of indicators shows that citizens participation in setting objectives, granting financial facilities and residents education factors are higher than average.

Discussion: To achieve effective and lasting contribution to structural, institutional, organizational and individual factors, combined and considered at the same time. However, individual factors have an important role. Attitude of people to participate requires consideration of individual factors. However, only changing peoples' attitudes for participation in the modernization and rehabilitation projects is not enough. In addition to individual factors, organizational and legal structures is necessary for participation.