Lack of financial resources has become one of the main issues in fulfilling social and physical needs in urban development. The declining levels of public resources make the collaboration between public and private investors necessary. When facing the challenges of ageing population, shared investment may contribute to the appropriate development of sheltered housing to meet the goals of spatial planning as well as certain standards at the level of urban design. By ensuring appropriate living conditions for all generations such urban PPP projects may contribute to the fulfilment of the public interest. The paper presents practice of PPP implementation in Ljubljana, Slovenia, where local authority with the collaboration of private partners ensured more than 400 sheltered apartments in the last years. Examples show the extension of the idea from the 70s onwards in finding new models of housing for the aging population. The development of new models can be a good example of strengthening the cooperation between public and private partners in the field of urban development practice.