The Tamil Nadu Urban Habitat Development Board (TNUHDB) has commenced construction of 270 tenements in Coimbatore city at an estimated cost of ₹40.51 crore as part of the rehabilitation project for conservancy workers displaced for the Ukkadam flyover works.

The project, which began in February this year, is expected to be completed by June 2027. The housing units are being constructed on the site of the old Ukkadam fish market along the Ukkadam–Selvapuram bypass road.

Around 500 families from CMC Colony were shifted to temporary shelters near Pullukadu in 2019 after their huts were cleared for the flyover project. The families were assured of permanent housing within two years.

In the first phase of the rehabilitation initiative, TNUHDB constructed 222 tenements at a cost of ₹25.25 crore in 2024. Delay in allotment led to repeated representations and protests by conservancy workers, who continued to live in temporary shelters for several years. The tenements were eventually allotted to beneficiaries in June 2025.

The old Ukkadam fish market was demolished by the Coimbatore City Municipal Corporation in February 2025 to facilitate the second phase of the housing project after fish traders were relocated to the new market at Pullukadu.