Glasgow City Council and Govanhill Housing Association are to renovate around 350 homes and let them for social rent.
With funding from the council and Scottish government, the plans will cost over £34m over four years.
The scheme follows a similar pilot in the area, which was successful.
Govanhill Housing Association will take ownership of the homes and has vowed to continue working with local people to improve living conditions and cut overcrowding.
The association has done great work in bringing private rented stock into the social housing sector, with 60% of their 124 properties being from the PRS.
But they warned that more needs to be done and long-term funding was vital to success.
Local government and housing minister, Kevin Stewart, said of the scheme: “Evaluation of this project has shown that, in a relatively short period of time, significant progress has been made.
“However, it’s clear that more work needs to be done in this area, and that is why I’m delighted that we’re able to invest £20m to support a wider programme of improvements across the Govanhill area.
“By working together with Glasgow City Council and Govanhill Housing Association we can continue to make real improvements to the lives of the people who live here.”