Officers were called to Maple Grove at 2.15pm after a car exploded outside one of the properties.
The car, which is thought to be a BMW, was completely destroyed in the explosion with pieces landing on the roofs and in gardens of nearby properties.
No-one was hurt in the incident, however firefighters have found what is possibly oxyacetylene canisters within the vehicle. As a result a 200 metre cordon has been established and around 100 residents from nearby properties have been evacuated to the New Farnley Sports and Social Club.
A number of local road closures are in place but any disruption will be minimised as far as possible.
Firefighters are working to cool the remnants of fire, and West Yorkshire Police and West Yorkshire Fire and Rescue Service are currently working to establish the circumstances surrounding the incident.