The Doonholm Road project will provide 28 'high quality amenity and general needs' homes for rent.
The development is a partnership project between Hanover (Scotland) Housing Association and South Ayrshire Council.
The scheme makes best use of passive solar gain technologies, meeting all 2010 Regulation requirements and exceeding 2010 Energy Efficiency requirements.
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The cost of the development is over £3 million, funded through a mixture of grant funding (£1.68 million) and private finance (£1.37 million).
John Scott MSP said: "I was delighted to attend and to help cut the first sod of this new development which will provide much-needed high quality housing locally.
"This is a great example of partnership working between a housing association, the Council and the Scottish Government, and I very much look forward to the development being completed and families moving in."
The development is scheduled to be completed by June 2016.
(LM/MH)
