Henry Boot Construction will carry out the development of the social houses.
More than £100 million has so far been spent in Doncaster as part of the Decent Homes Programme, with £200 million left to be spent.
Work is to be carried out on 750 homes in Doncaster to replace electrics and install new bathrooms and kitchens.
Council tenants in Denaby Main will be the first to benefit from the construction work.
It is expected that the project will cost £7.2 million and is to be overseen by executives at St Leger Homes.
Paul Elliot from St Leger said: "More than 500 of these homes are bungalows so there is a wide selection of tenants who will be benefiting."
He added that it was one of the biggest construction projects the group had undertaken.
The work is being supported by Lyn Ralph from the Doncaster Federation of Tenants' and Resident's Associations, who said that she was "looking forward" to work on her home.