The project will include 200 new eco homes, complete with courtyards and play areas to replace the eyesore Serpentine Court on Bletchley's Lakes Estate.
The design of the new homes was unveiled in February and now an approved builder has been appointed.
The move is part of major regeneration plans for the 1960s-built Lakes Estate. All the proposals were given planning consent in 2020, following three years of engagement with the local community.
In a ballot the following year, 93% of voters sought to demolish Serpentine Court and redevelop the estate. Wider public realm improvements are also planned.
The selected contractor will their expertise alongside council colleagues to produce a plan to best deliver the design proposals chosen by residents and produce a detailed set of plans for the construction work starting early next year, subject to the second stage of their appointment.
The council requires any contractors chosen as part of the project to make use of local suppliers and create local job opportunities as part of its More for MK policy.
Cabinet Member for Adults, Housing and Healthy Communities, Cllr Emily Darlington. said: “This is a really important milestone in the project and brings us closer to delivering on the proposals residents voted for.
"We’ve been really thorough in the selection process to ensure that any contractors understand the very high standards both the council and residents expect of them. Regeneration is about more than housing so this contract will also create opportunities for local jobs and for local businesses during these tough economic times.“Regeneration in the Lakes Estate will be life changing for the community here. It will give people better opportunities to get on in life and live more healthily and happily.”
Danielle Slaymaker, chair of Serpentine Court Steering Group: “I'm pleased the project has reached this important stage, after all the hard work my community have put into it. The building of our new homes is getting closer and the steering group looks forward to working with the contactor."