Work to knock down 99 bungalows in Killamarsh and Eckington is set to begin.
The post-war homes, known as Tarran bungalows, will be replaced with new council homes by North East Derbyshire District Council.
Permission for the £10.5 million scheme has been granted and work to clear homes will start soon.
The bungalows are notoriously cold and are said to have long-term structural problems because of a defective design.
About 130 new council homes – the first for decades – are to be built by the end of the year with the majority of residents moving across.
Two Tarran homes could be preserved to be turned into ‘living museums’ by history groups.