Abstract: As a local practice of urban renewal policy, the transformation of old district has not yet entered the full track of rule of law. In practice, it is difficult to reconcile complex interests and insufficient protection of community residents’ rights and interests in urban renewal, which constitute the “deficit of rule of law” in urban renewal. The controversy of urban renewal is rooted in different kinds of conflict of rights. Judging the importance of various interest demands of community residents in specific scenes can realize the right proof of complex spatial interests, and then confirm which interests can enter the scope of legal protection. Urban renewal needs to introduce the theory of distributive administration, and administrative organs should create due process with interest pooling as the core, build a procedural mechanism of district differentiation, and promote the mutual trust of stakeholders. In the benefit distribution procedure, the administrative organ should take the abstract importance of the right as the judgment standard, apply the analytical method of the principle of proportionality, adhere to the principle of the beneficiary’s contribution, actively introduce social capital to participate in the compensation and operation, and fulfill the state payment obligation of residential right protection, so as to realize the rebalancing of the community space benefit distribution. Interest balance and procedure structure are the internal logic of rule of law to promote urban renewal.