Selkirk-based Eildon Housing Association was refused planning permission by Scottish Borders Council to build a two-block complex on a site in Tweedbridge Court in February.
It wanted to build a total of 40 apartments on the brownfield site next to the Tweed.
Despite revising its original plans by lowering the height of the complex by 70cm, it still sparked objections from more than 100 residents and both Peebles Community Council and the town’s civic society.
After its application was rejected, the company next took its fight to the Scottish Government’s planning and environmental appeals division.
However, that appeal was dismissed by government reporter Christopher Warren in July.
In his findings, Mr Warren stated: “Despite the principle of the development being established and the benefits it would offer, the proposed development does not accord overall with the relevant provisions of the development plan.”
Now the association has returned with a revised design for the properties which it hopes will gain approval.
The latest design plans have been submitted to the council and they aim to address the concerns previously raised by local people and community groups.
It proposes 22 new homes with a mix of flats and houses.
A company spokesman said: “It provides much-needed quality affordable housing so desperately needed in the Borders.
“The fresh modular design addresses the concerns previously raised by the local community, with an attractive exterior and reduction in height and mass, as well as number of homes.”
If approved, Edinburgh-based Hart Builders will start on the site in the spring of next year, with families expected to move in in 2021.