Some families from a Manitoba First Nation affected by devastating flooding are returning to their newly-situated homes after being displaced for more than six years.

Forty new homes in the south subdivision of Lake St. Martin First Nation, about 250 kilometres north of Winnipeg, are ready for community members to move into.

On Thursday, keys were turned over to 12 families, marking the first phase of community members going back to the newly-developed Lake St. Martin.

Alex Traverse, his wife and daughter, 2, are among the first to move in.

"I can't believe this is actually coming,” said Lake St. Martin resident Alex Traverse. “You know it's happening now. We've been 6 years into this now. It's a surreal moment for everybody here."

"I got married in the city and I had my first daughter in the city so my daughter doesn't even know what it's like to live in the reserve environment."

Fourteen hundred people were forced to leave the community and relocate to Winnipeg due to heavy spring flooding in 2011.

Many have lived in hotels and rental suites in Winnipeg and other places ever since, waiting to return home.

More than 100 community members have died since the relocation due in part to illness and suicide.

"It broke my heart to bury my own people,” said Lake St. Martin Chief Adrian Sinclair. “I wanted them to come home to this but they didn't make it so it's very emotional."

Last November, Indigenous and Northern Affairs Canada put out a bid for tenders to build 150 homes in the community. Matix Lumber won its $32 million bid and hired 60 people from Lake St. Martin First Nation to help.

The $50 million housing project was split between the provincial and federal government.

More than $160 million has been spent to house evacuees since the flood.

A total of 190 homes are expected to be ready for community members by the end of January 2018.