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The properties which require an estimated 10 million of work are dotted across the city and are houses where residents opted to have work deferred if they were too old or unwell for the disruption.
"We will be planning how the remaining work is carried out.
Around 10 million of work today still remains outstanding.
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Sheffield Council assistant director for investment Iain Allott said: "The remaining 1,600 have been surveyed to identify what work is required to bring them up to standard.
Mick Daniels, chairman of Brushes Tenants and Residents' Association based at Firth Park, said: "At the start of the programme, people were promised the last homes would be completed to the same standard as the first.
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The council has previously said although Decent Homes was in financial difficulty, and over running by three years, it would ensure all renovations are complete.
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Plan being drawn up to see when work can be done
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But in fact house sales collapsed due to the recession and only around 1,000 homes were actually sold, which has meant less income from sales.
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In some cases, new tenants have since moved in.
"Almost 39,000 homes will have been improved by the end of March when the Decent Homes programme comes to an end.
The council said it would look at obtaining cash from unspecified 'future funding streams' for the outstanding 1,600 homes.
Full improvements to the remaining 1,600 homes would cost 25.6m but the council says expensive work including new roofs and boilers has been done.
"All the way through I kept asking why money wasn't put aside."
But now it has emerged officials only ever budgeted for 32,300 of the city's 42,000 council houses because they thought the rest would be sold under the right to buy scheme.
Residents have accused the council of breaking its promise.
Altogether, the work was worth around 16,000 per property.
Sheffield tenants fear houses will never be improved
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But it has now run out of money and 1,600 households where work is not finished by next March could miss out altogether.
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"Sheffield Council remains fully committed to maintaining excellent homes and is in the process of developing a five year investment strategy worth over 300m which forms part of a longer term 30 year business plan."
Council officials have never before revealed how few homes they had budgeted for in the first place.
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