Kingdom Housing Association (HA) is working to draw up designs for the 25-home scheme at a derelict former walled garden in Trynmuir, Cupar Muir.
With planning permission in principle granted in 2010, the HA is set to lodge a plan with the council covering the detailed design of the new homes.
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The scheme will be delivered in partnership with Campion Homes and proposals will be presented to Cupar Community Council at its meeting later this month.
Bill Banks, Chief Executive at Kingdom, said: "It is unfortunate that the Association has been unable, for ownership and other reasons, to move more quickly to provide much needed affordable homes on the site.
"We now have that opportunity, in partnership with Campion Homes, to deliver what we believe will be a popular development for the many local families who are on our waiting list for attractive, energy-efficient homes."
Mr Banks added the Association hopes to start work on site later this year.
(LM/MH)
