In recent years, utilization of the under-utilized spaces has been seen with increased concentration by urban planners as it is resulting in wastage of a valuable resource, land. Studying under-utilized spaces in a city is complex as it involves dealing with multiple spaces having varied issues associated with it. The paper intends to derive a framework to study these spaces in different Indian cities and identify issues for its under-utilization. The framework is reinforced by the study of neighborhoods in four tier-II cities in India keeping population density and land use as an identical aspect in all the neighborhoods. With ideal solutions to mitigate the issues affecting the community in the vicinity, these spaces can be used to optimum level. This paper is intended to identify the similarities between the issues related to these spaces in different cities and group the issues in domains of administration, maintenance, design or planning due to various reasons for its formation and as per the planning instruments. The paper also aims to come up with ideal generic design approach for issues in design domain and frame guidelines for it to be implemented for benefits to the community in terms of safety, health and economy.