A total of 16 new homes have been built at Linkwood and tenants have started moving into their new homes.
Construction at the site got underway in March last year and includes eight one-bedroom flats, four three-bedroom houses and four four-bedroom houses.
The second phase of the development is now underway and will see a further 15 homes built by the end of the year.
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Cllr Lorna Creswell said the scheme is just one of several new-build council housing developments in Moray.
"We're delivering new council properties at Strathcona Road and Grantown Road in Forres, and Phase 2 of Linkwood and the Driving Range in Elgin," she said.
"These developments, which are expected to be completed by the end of 2018, will provide 68 more homes for our tenants."
Council Leader George Alexander said: "Our latest housing need and demand assessment – which has been praised as ‘robust and credible' by the Scottish Government - shows that numbers of households in Moray are projected to increase by 7.8 per cent by 2033, so we must ensure that we're continuing to provide as many high-quality, modern and energy-efficient homes for our residents as we can afford."
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