The Council is working in partnership with Barratt East Scotland to provide 31 new homes for the Oakfield Gait development at Ridge Way.
The £3.7m project will consist of two and three bedroom homes and 2-bedroom homes with wheelchair access.
Work has already begun, with the first homes due next summer.
Councillor David Ross, Executive Spokesperson for Housing, Communities and Local Services was on-site yesterday. He said: "Dalgety Bay has one of the highest needs for social rented housing in Fife and these will be the first new Council homes for the area in over 30 years.
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"We’ve set an ambitious target to provide 2,700 new affordable rented homes over the next five years. In order to deliver this, we have looked at what new approaches are available to the Council by working with private builders, developers and housing associations in different ways."
The new homes are being built to 'Housing for Varying Needs' and 'Secure by Design' standards.
They will also include sprinkler systems and energy efficient windows
Douglas McLeod, Managing Director Barratt East Scotland said: "We are delighted to have secured the contract to provide 31 new affordable homes. We have worked closely with Fife Council on this project and look forward to a successful partnership."
Housing and Welfare Minister Margaret Burgess said: "This development has been backed by £31,000 from the Scottish Government, which demonstrates our ongoing commitment to supporting councils and their tenants.
"Investing in new housing not only benefits the recipients, it supports local jobs, the construction sector and helps to sustainably grow the Scottish economy."
(IT)
