The work on Old Mill Road in Rattray is being undertaken to develop and revitalise social housing in the area.
The 15 renovated units will provide modern accommodation for families in three and four-bedroom apartments and houses.
The proposal includes the installation of eco-features to reduce carbon emissions.
The houses have been vacant for a number of years due to estate management problems.
Permission was previously granted to demolish the blocks, but Perth & Kinross Council’s Housing and Health Committee has reconsidered this proposal.
The economic downturn has resulted in a decrease in private housing development and an increase in demand for social housing.
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Housing Convener, Councillor Dave Doogan, said: "I am pleased that as the new Convener of Housing I have sought to direct officers towards redeveloping these houses rather than demolishing them. I believe that any Convener of Housing should work towards increasing numbers of social housing not reducing them. This plan will regenerate the area and make it a place where families want to live which is how we measure success.
"The renovation work will bring the properties up to a high standard, including eco-features such as wall, loft and under-floor insulation, triple glazing, energy efficient heating systems, heat recovery ventilation systems and energy monitors to help minimise fuel bills.
"We will also implement a local lettings plan and marketing strategy to make the refurbished homes attractive to potential tenants. We will visit every applicant who expresses an interest in Old Mill Road, so that we can sign up prospective tenants and gain their commitment to the project prior to refurbishment commencing.
"We will work hard to ensure the previous problems that affected this area are not repeated. This will be a brand new start for the Old Mill Road area, and I am delighted that we can now push ahead with the project."
(IT)
