The works are being made possible due to Waverley Housing and the Scottish Borders Housing Association (SBHA), Housing News has said.
As a result, it is understood work will now begin on site to regenerate housing blocks, while demolishing a further 11 to make way for 44 new homes.
Stonefield contains 25 low-rise blocks comprising of 205 flats.
The area has been a key part of the Hawick Regeneration Strategy with Scottish Borders Council.
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Waverley Housing will begin works on four of the blocks in June while the SBHA will be on site in the autumn to start on the first three blocks.
SBHA will also destroy 11 blocks at the end of the year with a plan to proceed with the new build in spring 2014.
Julia Mulloy, Chief Executive of SBHA, said: "Over the next three years SBHA will invest over £10 million in regeneration and new-build works in Stonefield and we are keen that the community be involved in our plans and come along to view the designs and feedback their comments.
"The transformation of this area into a community with good quality affordable housing, and well-designed neighbourhoods will mean that through effective partnership working with Waverley Housing, and Scottish Borders Council we are delivering on our promises and making a real difference for Tenants in need of good quality homes."
A drop-in session will be held on 9th May for residents and businesses to have their say on the plans.
(JP/CD)
