The original, grade II listed, chalets were damaged - or had to be demolished on safety grounds – when the retaining wall collapsed in 2018.
SBC says the chalets would significantly improve how the area looks and complement on-going wider regeneration of South Cliff Gardens.
Externally, the chalets need to be very similar to the original block in order to meet conservation rules and secure support from organisations such as English Heritage and require a specialist architect to design them.
It is yet to be decided if they will be sold on the open market, retained and rented out or a combination of both.
Marc Cole, SBC director, said: “We’ve always had an ambition to reinstate the chalets. Work to fix that is now finished, so we have the opportunity to begin the reinstatement.”