The 19 homes off Maupertuis Lane – opposite the Eastern Good Companions Club – will be ready for their new occupants by next month.
Over the course of next year, Housing president Deputy Terry Le Main said that subject to Planning and States approval, they hoped to progress to the next two phases which would involve rebuilding or refurbishing the remaining houses and flats.
The new homes will either be sold to first-time buyers or let for social rental.
Deputy Le Main said that consideration would also be given to the wishes of older tenants, whose families had grown up and moved away, to remain living in the community of which they felt a part.
He added that Housing were keeping an eye on potential development sites in the area.
