Braddan Parish Commissioners will take on the responsibility for government owned social housing as part of a pilot experiment.
The commissioners will run the day-to-day management and maintenance of the 37 Department of Infrastructure properties in the Cronk Grianagh estate.
Minister Ray Harmer says: "I am delighted that the department and local authorities are able to work together for the betterment of the Island in this way.
"The commissioners' willingness to engage in and support the development of housing in the east of the Island is key to improving services and facilities for our community."
Chairman of Braddan Parish Commissioners Andrew Jessopp says: "The board looks forward to taking on these properties, which will provide the opportunity to improve what we are able to offer at the same time as being more efficient through cost effective and centralised service provision."
Tenants occupying the properties in question are aware of the proposal and have been asked to complete a short satisfaction survey before the transfer takes place.