First published by ABC News

A court case over the $100 million lease agreement over town camps in Alice Springs has resumed in the Federal Court.

Mount Nancy Town Camp resident Barbara Shaw has launched a legal challenge against a Commonwealth takeover.

Her lawyers told the court this morning the 16 housing associations who have indicated they will enter the 40-year sub-leases do not properly represent the rights of their residents.

The lawyers argue that the housing associations are giving away control of the residents' individual tenancies to the Commonwealth with little benefit and no guarantee of expenditure.

The case continues.

Meanwhile, federal Indigenous Affairs Minister, Jenny Macklin, has released the details of her housing plans for town camps. Ms Macklin says 85 new houses will be constructed at a cost of about $400,000 each.

If the litigation is processed in time, the Minister aims to have works begin as early as next week.

Ms Macklin has also announced administration costs are expected to be about 8 per cent.