The £1.5 million development, for Liverpool Mutual Homes (LMH), which will face on to Duncan Street, is also part of the Tribeca project.
LMH will manage the homes that have been designed by DK Architects and are being developed by Fawley Construction.
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LMH Chief Executive, Steve Coffey, said: "The site is small in terms of the number of houses but big in terms of significance to the tenants who lived there previously and the city as a whole.
"We held a series of consultation meetings with tenants and incorporated their ideas into the scheme such as making the homes two-storeys high.
"The location is a key gateway in the city centre, near the cathedral, China town, shops and business district.
"The old homes have received little investment since they were built in the 1950s and were not fit for purpose so we demolished them and are starting to build new, warm, energy efficient homes."
(CD/IT)
