Development is underway to convert the Lochgelly Town House into four new flats along with the development of 12 new build flats on the adjacent site in Hall Street.
The one and two bedroom flats are due to be completed in spring 2016.
The work is part of a wider 'three-project' investment programme for the town.
Plans for the future include the restoration and conversion of St Andrews Church into an indoor climbing and bouldering centre along with a new public realm, including a new town square in the heart of Lochgelly.
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Councillor Judy Hamilton said: "These projects are an important step in the continued investment to transform the area, not to mention yet another significant milestone for the Council’s housing building programme to deliver 2,700 new affordable homes for rent by 2017.
"Restoring the Town House into flats for rent will give this vacant historic building, in the heart of town, a new lease of life. The construction of the new homes is being managed in house by Fife Council’s Building Services.
"Most of the restoration work is also being carried out 'in house' including the roof and window replacement to the Town House as well as the electrical work on both the new build and the conversion."
The energy efficient flats have been designed with high levels of insulation and air tightness to the building fabric.
Both the new build and converted flats' energy efficiency has been boosted by the use of heat recovery technology in the heating and ventilation systems.
The Affordable Housing Programme is a collaboration between affordable housing providers in Fife including the council, Housing Associations, private developers and a number of Scottish Government initiatives.
(LM)
