Despite growing scholarly interest in residential segregation in Central and Eastern Europe, thus far insufficient attention has been paid to understanding marginalization in these postsocialist transition societies through the perceptions of stakeholders. The present article reports the findings of a qualitative study of the perceptions of urban social problems in the city center of Prague, Czechia. Semistructured interviews with the key actors involved in the city’s social development are used to understand what social phenomena they perceive as problematic, how they localize them within the urban space, and how their perceptions translate into policy attitudes. We find that stakeholders emphasize the issues of homelessness, drug addiction, and the appropriate delivery of social services in their narratives. Furthermore, we demonstrate that the repressive nature of policy interventions partly results from a lack of experience of overcoming such societal issues and partly results from weak coordination at the city level.