Ashfield Council wants to build the properties on Warwick Close, part of the Coxmoor Estate, on land previously used for council homes.
The previous council flats were demolished on the land 11 years ago, leaving parcels of unused space either side of existing Warwick Close homes.
Now the council is looking to create ‘good-quality, low-rent’ social homes on the site.
A report due at the next meeting of the council’s cabinet says the authority is looking into ‘opportunities to develop new affordable housing’ on sites it owns.
The project, which includes 18 two-bedroom and 16 three-bedroom houses, is expected to cost £4.75m, including £1.46m from Homes England.
The remaining £3.29m will be funded by the council and support from Right-to-Buy receipts.
Council forecasts suggest the properties will provide the authority £187,874 per year in rental income and help reduce a 4,000-person waiting list for properties in Kirkby.
Coun Tom Hollis, portfolio holder for council and social housing, said the properties will help meet the council’s target of building 100 social homes between 2018 and 2023.
He said: “When we took over the council in 2018 we set ourselves a target to build 100 social homes over five years.
“We’ve finished four of them – two bungalows in Skegby and two in the centre of Sutton – and have identified 50 of the 100 units now.
“Warwick Close is the addition to this. The site used to be council housing before it was knocked down and it has been a bit of a void in the middle of the Coxmoor Estate.
“Now we’ve got a chance to not only regenerate the sites but to provide some good-quality, low-rent social homes for people to live in.”
Coun Hollis said the council is now looking to secure the £1.46m Homes England funding, with a timeframe of ‘a couple of years’ before the homes come to fruition.
He expects the design of the homes to be similar to the social homes currently under construction on Davies Avenue, Sutton, which are due for completion soon.
The plans are recommended to be approved by the cabinet next week, subject to planning permission being granted in the future.