The government will aid Sochi residents who will have to sell their homes to make way for sport facilities in the lead up to the 2014 Olympics, Deputy Prime Minister Dmitry Kozak said.
The Deputy Prime Minister met with locals while on a trip to Sochi to inspect sites for the games.
Many of the residents are unhappy with the current terms of the compulsory purchase order.
Construction projects affect several towns in the area, with hundreds of private houses scheduled for demolition.