The firm was selected by Yorkshire Housing.
The site, off Hart Street, sits by a former mill. Urban Group is currently carrying out the remediation phase of the project prior to commencing infrastructure works on the development.
The scheme comprises a mix of two and three-bed semi-detached homes, as well as associated landscaping, access, roads, and sewer installation. The development will complete in spring 2024.
Rick Long, Head of Housing (Construction) at Urban Group, said: “The team is delighted to be working with Yorkshire Housing on this exciting development.
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"The initial phase of the development has proved to be challenging. Prior to commencing works on site, a flock of ducks had taken up residence on the former mill ponds, and a small number of fish had also found their way into the ponds. The ducks were given time to leave the ponds of their own volition, whilst the fish were humanely re-located prior to the ponds being drained.
"We worked closely with Yorkshire Housing and architects, Brewster Bye, during the planning process and look forward to delivering a successful and high-quality development which will help to address the shortage of affordable housing within easy reach of Huddersfield town centre."
Anthony Askew, Development Manager at Yorkshire Housing said: "We're delighted to be working with Urban Group (York) and Brewster Bye, and that this project is now underway.
"When complete, this site will provide over 20 families with high-quality affordable homes and brings us closer towards our plans of delivering 8,000 new homes over the next few years."
