The council’s communities committee has accepted the tender from Springfield Properties to build the homes at Glassgreen to the south of the town.
The properties will be a mix of one- to five-bedroom houses and bungalows, with some equipped to be wheelchair accessible.
The development, which is funded equally by the Moray Council and the Scottish government, is part of the council’s commitment to build 70 new homes a year to address the shortage of affordable housing in the area.
Councillor Louise Laing, who chairs the communities committee, said that the new homes will also address fuel poverty as the heating and energy requirements for these homes will be designed to be as efficient as possible. “They will all have state-of-the-art systems that will result in low running costs for our tenants, and I’m delighted to see that some will be purpose-built for those in wheelchairs or who are elderly," she said. "It is far more cost-efficient to build these facilities in from the start rather than retro-fit."