At a meeting of the Council's Housing and Communities committee, members agreed to the rebuilding of properties on the site, the option which most tenants voted in favour of.
It follows detailed investigatory works at the properties to address dampness and mould, with and environmental sensors fitted in occupied properties allowing the Council to closely monitor conditions.
A thorough consultation exercise was also carried out to ensure everyone had the chance to ask questions and to share their views on how they would like to progress.
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Following the committee's decision, the 36 homes within the Willox Park Sheltered Housing Complex will now be designated as surplus to requirements and work will start on procurement for the delivery of the redevelopment.
Tenants will have a personalised housing plan prepared and priority will be given to existing tenants for the new homes being delivered at the adjacent former care home site.
Councillor Gurpreet Singh Johal, Convener of Housing and Communities, said: "I want to thank the tenants of Willox Park and the Council's housing officers who have worked so hard to make sure the views of tenants and their family members have been properly listened to in making this decision.
"We remain committed to providing tenants with a high standard of homes and I look forward to seeing this programme make progress."
Councillor Hazel Sorrell, Vice Convener of Housing and Communities, said: "The Council is determined to deliver for our tenants and I am pleased to see this proposal being approved."
The project will be funded from the Affordable Housing Supply Programme future new build element of the Housing Capital Investment Programme.
A regular update will be given to the committee on the progress of the redevelopment at Willox Park.
