The Walvis Bay Municipality has allocated erven at Farm 37, on the outskirts of the town, to the first 50 landless people.
The Mayor has urged the first beneficiaries to start building their structures as of today.
Located about seven kilometres east of Walvis Bay, Farm 37 was identified in 2015 as a solution to the land and housing backlog.
Residents have since been waiting to get plots, but bureaucratic processes and a lack of funds to service the land delayed the move.
Last year, the Walvis Bay Municipal Council was divided over the issue, as some councillors were against moving residents to an area with limited services.
Mayor Trevino Forbes has congratulated the first 50 people who voluntarily agreed to move to Farm 37.
"It is my intention as Mayor of Walvis Bay and with my councillors that we have more people. We want to have this area, extensions 10 and 11, filled up by December. We want to bring you more neighbours. And I want to see the structures—the houses—proper houses. This is your land, this is your area, and the land belongs to you. Build a proper house to be proud of yourself—a house you can leave for your children. Ne? Let's stop the culture of shacks. We can start with something like that, but eventually, we should have our houses."
Each of the 50 beneficiaries will be paying about N$40,000 in installments for the erven allocated to them.
Some informed nbc News that they have spent more than a thousand dollars per month renting backyard shacks in crowded yards since 1998.
The mayor renamed Farm 37 to Green Valley and urged each household to plant a tree in their yards.
Forbes has further pledged the councils' support in setting up backyard gardens.