Twelve one bedroom flats are being built at the £1.5 million Fort Road site while 14 properties are being developed at the £1.9 million Pegasus Place development.
Pegasus Place will include eight two-bedroom flats, four three-person semi-detached houses and two five-person semi-detached houses.
The flats will be built with structural steel, blockwork and concrete floors for soundproofing and fire protection. They will also be connected to the district heating scheme and have mechanical ventilation with heat recovery systems installed.
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The homes will be timber clad with enhanced insulation and will be heated by air source heat pumps to reduce heating costs.
The two developments are a £3.5 million investment by HHA and are partly funded by a £1.25 million package from the Bank of Scotland.
HHA Chief Executive Bryan Leask said: "There are currently 360 people on the housing list for Lerwick and the Fort Road and Pegasus Place developments will make a substantial contribution to reducing those numbers."
For both sites the engineer is Arch Henderson, while Michael Thomson is the quantity surveyor and the CDM co-ordinator is the John Duguid Partnership.
The two developments are due to be completed in September 2016.
(LM/CD
