The £4 million third phase, started in January and will see 26 homes delivered across five sites by a small Midlands contractor, Harper Group PLC, by spring 2019.
Eight former garage sites have been identified as part of phase 4, with works due to start this summer.
The sites, which will yield 36 new homes, are Westcroft Avenue (Fallings Park), Abingdon Road (East Park), Moat Green Avenue (Wednesfield South), Whiston Avenue (Wednesfield North), Foster Road (Bushbury & Low Hill), Dereham Walk (Bilston East), Hylstone Crescent (Wednesfield South), and Fairway Green (Bilston North).
It is hoped the works will be carried out by local contractors selected through a competitive tendering process, encouraging small and medium enterprises (SMEs) to bid.
The builds will be funded from the Housing Revenue Account (HRA) capital budget.
Councillor Peter Bilson, Deputy Leader and Cabinet Member for City Assets and Housing, said: "This scheme is helping smarten up neighbourhoods in the city while providing affordable housing to residents in housing need, and for vulnerable people.
"It started as a pilot programme and has grown from strength to strength, delivering 33 homes in the first 2 phases, and contractors are now on site, building another 26 homes as part of phase three.
"The selected contractors are delivering what we ask of them to improve our housing offer and it has proved to be an effective way to deliver new homes.
"Crucially, it increases the city's housing stock when it needs it most."
Phase 3 sees Harper Group PLC developing 3, 2 bedroom houses, 4, 1 bedroom flats and 4, 2 bedroom flats on Wolverhampton Road (Wednesfield South), 6, 2 bedroom houses on Newman Road (Fallings Park), 4, 2 bedroom houses on Parker Road garage site (Wednesfield North), and 3, 2 bedroom bungalows and 2, 2 bedroom houses on Peach Road (Wednesfield North).
The scheme is monitored through a joint project team from City of Wolverhampton Council and Wolverhampton Homes, to ensure the new council homes are built to a high standard.
- released: Wednesday 9 May, 2018