In a statement from Midlothian Council, the decision was made regarding the properties in Gorebridge on Tuesday.
Earlier this year, the homes were found to have recorded elevated levels of carbon dioxide (CO2). It was later discovered that the gas build-up was coming from old mine-workings in the ground beneath the developments.
In June, it was suggested that the homes should be demolished and now elected members of the council have agreed to the plans.
Once demolished, the local authority will rebuild new homes, with gas membranes installed.
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Costing around £12m to complete, Midlothian Council has said the decision will help meet the social housing need in the local area and has been incorporated into Phase 2 of the Council's Social Housing Programme.
The housing developments are scheduled to be demolished next year. To date, those living in 32 of the affected properties have been placed in alternative accommodation, with the rest expected to move out over the coming months.
Council Leader, Owen Thompson, commented: "This has been a long process for everyone involved, and I'd like to thank residents again for their patience. The resident's safety and welfare has always been our top priority and it's great that we're finally seeing signs of a conclusion.
"We studied both options in great detail before reaching our final decision on what should happen to the vacated site. This option will mean a massive boost for our social housing provision in the local area, and shows that we are dealing effectively with this exceptional problem.
"Going forward, the remainder of the residents are due to move out and we will get on with developing plans for the Newbyres site. Again, I would like to thank all local residents for their understanding and co-operation during this difficult time."
(JP/MH)
