Ogilvie Construction is carrying out the work on behalf of North Lanarkshire Council. The new homes, off Coshneuk Road, were designed by MAST architects.
The £1.1 million project - supported by £300,000 in funding from the Scottish Government - will see the creation of 11 "amenity" bungalows, purpose-built for older people. The new homes are part of a wider £75 million "Building for the Future" programme by the Council to deliver 500 new affordable properties for rent over five years.
Councillor Barry McCulloch, the Council's convener of housing and social work services, took part in a sod-cutting event, to mark work starting on site. It is hoped that the latest development will be completed by January next year.
Councillor McCulloch said: "It's great to see the real progress that this council is making in delivering new build affordable homes for rent across the North Lanarkshire area." He added that the Council was also improving existing housing stock.
Phil McEwan, the managing director of Ogilvie Construction said: "We're delighted to be working in partnership with the Council housing team, providing quality, affordable homes for the people of North Lanarkshire."
Ogilvie will team up with MAST soon to deliver a further 50 homes for the Council at Gartferry Road, Moddiesburn.