The project, which has been put together by students, plans to transform the Middlefield and Northfield areas.
Leader of Aberdeen Council, Councillor Jenny Laing said: "This is people power in action. When we set aside the funding for this core regeneration project we decided to engage with local residents to see what they really wanted.
"This new approach to community engagement has empowered citizens to make decisions on where and how money will be spent in their area – and offers our residents the chance to influence their communities for the better.
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"From new housing developments to refurbishment works and public spaces – residents in Aberdeen now have the opportunity to create a vision for their home, community and the city.
"This new model goes to the very heart of the ideals of democracy, where decisions are made by the people, for the people."
The investment programme will create new community facilities as well as improving the infrastructure and creating open spaces with some of the work already underway or near completion.
Aberdeen City Council is building 185 new council houses at the Manor Walk and Smithfield sites which are high quality, sustainable, energy efficient and incorporates a degree of flexibility to meet the future needs of tenants.
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