Architects, Walker Troup, have put forward designs for 16 four-bedroom homes and 24 two-bedroom homes on land off Hobgate Road and Tithe Croft.
They will be the first of more than 300 new homes to be built for rent and sale on the estate over the coming years, with the council set to develop nine sites and WV Living putting in place plans to build on a further five sites.
The application is part of the revised Heath Town Masterplan and follows an extensive demolition programme of buildings, some of which had been vacant for years.
Once planning permission is granted, a contractor will be selected, with a view to building works starting in autumn this year.
The project will also see the pedestrian bridge over Wednesfield Road reconnected.
It is part of a major development programme, with the Housing Revenue Account business plan making provision for £157.3 million to create around 800 new council homes across the city over the next five years.
Councillor Peter Bilson, Deputy Leader and Cabinet Member for City Assets and Housing, said: “We have made significant headway with works on the Heath Town estate over the last 12 months and real change is happening.
“The estate this year celebrates the 50th anniversary of its official opening by Princess Margaret.
“This planning application will now kick-start the new building programme and we can look forward to seeing the first bricks laid for the council homes later this year.
“The majority of the new homes will come with gardens and all will have access to their own parking - Heath Town will soon look like a very different place.
“This is a major development programme as part of £3.7 billion investment on site or in the pipeline in the city - and it will make a huge difference to the quality of life and housing choice for our residents.”
The scheme is also being delivered in parallel with Wolverhampton Homes’ £50 million investment works, with refurbishment of the Wednesfield Road blocks close to completion and other blocks to follow.
The new homes across Heath Town will be a mixture of one and two-bedroom apartments, and two-bedroom bungalows, as well as two, three and four-bedroom houses. All of the new homes will have their own car parking space provided.
Enabling works on the Heath Town estate saw walkways and garages in the Hobgate Road area of the estate demolished, the disconnection and re-routing of the district heating pipework, and the refurbishment of the ground and lower ground floors of Ling House to provide new office, meeting and activity space for the Hope Family Centre.
Further demolition saw garages, a disused underground car park, 36 maisonettes and other buildings that have been vacant for some years removed from the Chervil Rise area, creating an interim car park of 50 additional spaces for residents.