Abstract: The article is devoted to the mechanism of state  mangaement of housing and communal services in Sevastopol at this stage and in terms of adaptation to new economic environment. The researcher analyzes the regulatory framework of housing and communal management, describes general and special features attributable to housing and communal services in Sevastopol and other regions of Russia. The author also outlines the external and internal factors that hinder the reformation and successful development of housing and communal services. In order to eliminate risks of ineffective and incomplete use of budget funds, the authors of the article suggest to imprrove the current mechanisms which will allow to achieve housing and communal services targets at this stage. The author suggests the program-oriented and goal-oriented approach to the aforesaid problem. The novelty of the research is caused by the fact that the authors prove that reformation of the housing and communal services may create conditions both for the effective use of both completely new innovation technologies and improvement of the management mechanism including making new management decisions that have been developed involving consumers of housing and communal services.