The selection of a retaining method during the excavation of building foundations is always of paramount concern to engineers. In general, the application and use of steel H-shapes are typically practiced by designers to form the entire retaining system; however, sustainability issues, including carbon emission reduction, environment protection, material consumption, and resource circulation, are being increasingly considered when developing a new project. The Linkou Public Housing Project (LPHP), located in New Taipei City, Taiwan, is introduced in this paper to present a sustainable soil-retaining method that also exhibits the principles of a circular economy. The triangular shape of the foundation zone of the LPHP led to difficulty in setting the horizontal strut H-beam system. In this project, the “Anchor Pile with Steel Cable System (APSCS)” was adopted to retain the 11.5 m depth excavation for the LPHP foundation construction. The prime contents of the soil in the Linkou district comprises a laterite–gravel layer mixed with brown silty and sandy clay, with a groundwater level (G.L.) of −25 m. By adopting the sustainable APSCS method, the excavation of the LPHP foundation was safely completed. Approximately NT $350 million in direct and indirect costs of construction was saved, and the duration of the work was reduced by up to 90 days. Furthermore, the carbon emissions were reduced by 677.6 tons due to the diminished use of the steel H-shaped materials. The authors concluded that the use of the APSCS method in the LPHP was successful and it was a valuable reference for other similar projects. Moreover, the authors presented another retaining-system failure case, which was located near the LPHP site, to compare the success of the LPHP.