Plans to build 27 new council houses are set to be approved by council bosses next week.
Sandwell’s cabinet is being asked to approve the scheme for the homes on Reservoir Road, Rowley.
If passed, building work will begin in October 2019 and is hoped to be completed by July next year.
The scheme is part of the council’s three year £70 million investment in housing announced in 2017 and will help replace homes sold under the right to buy scheme.
In a report to cabinet members, housing officers say the present site is unsuitable for development by private developers.
They add reduced rents imposed on housing associations has led to a fall in social housing, explaining: “Over the last 4-5 years the council has experienced problems with registered providers scaling back their development programmes.
“The majority are not currently developing at all owing to imposed rent reductions and the consequent impact on their business plans and financial borrowing requirements. “
It goes on to say: “The site already has the benefit of detailed design and our in-house team have shown that they can deliver an innovative high quality residential design solution to provide much needed council-owned affordable rented accommodation.”
Construction costs would be split between the council and Homes England grant.
Officers say rents will be set at 80 per cent of market rate and the homes will generate £24,259 a year in council tax.
Cabinet members will discuss the proposal at their meeting on June 5.