Ayoub Khan, the independent MP for Perry Barr, where the apartments are located, said it was an "absolute scandal" that the Labour-led local authority had agreed last week to sell more than 700 homes to a private company in a deal forecast to result in a multimillion-pound loss.
It comes after Birmingham city council, England's largest local authority, declared itself effectively bankrupt last year due to a crisis largely caused by an equal pay claim bill and a failed IT system update.
It is also facing a housing crisis, with 23,000 households on the waiting list for social housing in the city and 450 new applications coming in every week.
The new-build Perry Barr estate, described as a ghost town by local people, was meant to be an athletes' village for the 2022 Commonwealth Games, which Birmingham hosted.
Due to delays caused by the Covid pandemic the development was not completed in time, so athletes were housed in student accommodation.
The council said the apartments would become homes instead.
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