Nelson McCausland MLA said the scheme will target social houses managed by Harmony Homes at Leopold, Columbia and Rosebank Streets.
The plan includes the major refurbishment of 118 properties, which require "significant modernisation".
The announcement comes after a campaign by residents in the area, who claimed they had been excluded from planned regeneration projects and mounted a series of protests in 2009.
Minister McCausland claimed on Monday that he had recently visited the area to see the poor housing conditions and also met with local residents to "discuss options to improve their homes".
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Minister McCausland said: "The people living in these three streets have had to put up with inadequate housing for far too long. I now intend to put that right.
Elements covered by the regeneration scheme include new electrics and heating, kitchens and insulation. A number of properties will also be converted to provide bigger family homes.
The oldest 14 houses remaining in Leopold Street will be demolished and replaced by 10 new three-bedroom houses.
"Proposals have now been drawn up by Harmony Homes, in consultation with local residents, to completely refurbish most of the homes and demolish those beyond repair to make way for new homes more suitable for modern families," Mr McCausland said.
He added: "Good housing is the cornerstone of any community. I would encourage people living in the area to contribute their ideas to the final plans for their homes by getting involved with the tenants planning group being set up by Harmony Homes."
(DW/KMcA)
