The development will see the building of 58 new affordable home for Council tenants in South Ayrshire, along with the demolition of nine maisonette blocks and the creation of open spaces and modern leisure facilities.
A refurbishment of the maisonette blocks had originally been planned, however South Ayrshire Council has announced funding from Holyrood has enabled new plans for the area to be realised.
It is thought work could begin in less than 12 months.
A total government subsidy of £1.74m and Council investment of over £7.2m has made the development possible.
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Leader of South Ayrshire Council, Councillor Bill McIntosh commented: "I'm delighted we can now move forward with this much anticipated and very exciting project. It's a good news story and a superb outcome for Lochside.
"More importantly, it is affordable within the Council's current business plan."
The council has estimated work will start on the site late 2013, with the first tenants possibly getting keys to their new homes as early as spring 2015.
Councillor Philip Saxton, Portfolio Holder for Housing said: "We've delivered on a commitment to the people of Lochside and in particular the tenants at the maisonette blocks there and they will soon move into the modern, high-quality and affordable homes they deserve.
"The Council's decision is a positive result for them and for the whole Lochside community.
"I'd like to thank them for their patience as this ambitious vision moves from being a plan on paper, to an amazing dream come true for local residents."
(IT)
