Fife Council have brought forward plans for 39 new houses.
The cabinet committee agreed to progress a deal with Ogilvie Homes that would see the local authority deliver 18 new properties for social rent at the Conscience Bridge site in Cairneyhill.
And a deal with Cala Homes to build a further 21 council houses at Main Street in Aberdour was also approved.
Councillor Judy Hamilton, spokesperson for housing, said: "I am delighted that in the face of a housing emergency, we are continuing to deliver our ambitious affordable housing programme, one of the UK's largest social house-building programmes, while the pressure on housing services continues to be relentlessly high.
"Each new council house will deliver a warmer, drier and healthier home that helps to improve the wellbeing of our tenants.”
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The western expansion of Cairneyhill will see 70 new homes built by Ogilvie on former agricultural land to the north of the A994 at Conscience Bridge and west of Glen Moriston Drive.
Site preparation works began in May.
Cala got the go-ahead, after a successful appeal to the Scottish Government in 2019, to build 85 homes off Main Street, at the east end of the village.
It is nearing completion.
Work on the council houses at both sites is starting soon and it's anticipated the properties will welcome their first tenants early in 2026.
As well as providing more housing, the Affordable Housing Programme creates jobs and apprenticeships, supporting the construction industry and the Fife economy.
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