The development, which is located at North Fod, off Pittsburgh Road in the town, will consist of 49 properties.
The local authority has said the development will sit alongside private housing and will be a mix of 11 bungalows, 26 semi-detached houses and 12 cottage flats, with communal parking areas.
They will also have heat recovery systems. This will recover the heat generated in the homes from things like central heating and television use, which will then be put through a heat exchanger and filters, and be re-distributed throughout the household in an effort to be more fuel efficient.
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Councillor Judy Hamilton, Fife Council's Executive Spokesperson for Housing & Building Services, said: "I'm pleased to be celebrating that work is now underway here at North Fod. This will be a great development to add to the Council's housing stock as well as to our building portfolio. The homes are being built in-house by the Council working with local contractor Sharp Construction and NRS Group."
Councillor Helen Law, Chair of the City of Dunfermline Area Committee, added: "The North Fod development will contribute much needed affordable housing for the Dunfermline area. I look forward to seeing tenants settling into their new neighbourhood next year and enjoying the local community."
The development, which received £49,000 of Scottish Government funding, is expected to be completed in autumn 2015.
(JP/MH)
