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The paper probes into the modernization and conservation of Hankou old Lifen which is a typical residential building with high historical value in Wuhan, China. This research emphasizes the range of government and community structures, using analysis on three different modernization models: Xian’an Fang, Changnian Li, and Tongxing Li. This includes qualitative analysis using a mixed method approach; on-site observation with photography to capture the spatial features as well as narratives from residents within these areas; and semi-structured interviews. The findings highlight the importance of conserving Lifen neighborhoods in view of its historical knowledge, cultural legacy and other urban development experience. In the end, maintaining and evolving them can be sustainable only through a hybrid that pairs state support with community involvement. This research provides key insights for policymakers, urban planners and conservationists working to balance heritage preservation with the contemporary needs of cities.