The developer has already built 49 council homes at the Birchwood site in Leuchatsbeath, Cowdenbeath.
A further 22 homes are now under construction and the £2.7 million development will be completed by the end of 2016.
Cllr Judy Hamilton said: "The council has a commitment to deliver 2,700 new affordable homes by 2017 and we're on track to meet that target.
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"The first phase of homes here make up a lovely development of council housing for social rent and it's great to see tenants settled and happy in their modern, energy efficient new homes which recently achieved Secured by Design status. I'm very pleased that we've had the opportunity to extend this with a further phase of homes.
"These houses will be a range of two, three and four bedroomed homes with two much-needed six bed specific needs houses also built."
The project is part of the council's target to deliver 2,700 'affordable' homes by 2017.
(LM/CD)
