The sustainable properties have been built at the site of former garages off Wilmot Road in Shoreham.
The cul-de-sac, named Wilds Row, now houses four two-bed houses and a one-bed accessible bungalow.
The name is a tribute to 19th century architect Amon Henry Wilds, best known for his role in designing Regency homes in Brighton, who lived and died in Shoreham.
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Adur and Worthing Councils said the new homes have efficient insulation and air-source heat pumps for effective and affordable heating.
They also have gardens, water butts, EV charging points, trees and plants to minimise environmental impact.
The waiting list in the area is at nearly 1,000 households.
Around 130 of these are being housed in temporary accommodation.
Councillor Lee Cowen, Adur’s cabinet member for Adur Homes and customer services, said: “Too many of our residents have no permanent home because their landlords have evicted them or they cannot afford to take a step on the housing ladder.
“Many are having to be housed by the council outside the district, which strains their health due to the long distances they must travel for work, getting their children to school, and seeing friends and family.
“We will continue to build sustainable new council homes like those at Wilds Row and also invest in our existing properties, which our community so desperately needs.”
The new homes are part of Adur and Worthing Councils plans to replace old council garage compounds and under-used sites with extra homes that families need.
A total of 14 new council homes have been built in Adur so far in 2024, with more on the way in Southwick and Lancing.
More than £10m will also be spent over the next year improving council homes including replacing double-glazed windows and doors, repairing roofs and walls and fitting new kitchens and bathrooms for tenants.
More homes are currently in the process of being constructed in Lancing.
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