Rust Holes In Axle Housing

So I finally started pulling apart the suspension cutoff I was planning to put in my W9. Got the 5th wheel plate off it and noticed the housing looked a little rough under where the torque arm pedestal is welded to on both diffs. (Rockwell 40k lb, KW AG100 suspension) Sure enough its corroded right through. So what is my best option?

A) Find 2 good housings at a wrecker.
B) Have a welder cut off the mounting brackets and weld them onto the original axles that were in the truck (Rockwell SSHD 44k lb on rubber block) since they are in better shape.
C) Cut out the top part of the housing on both and weld in the section donated from the old SSHD's.

I'm thinking my best option is either get some better housings or re-use my old SSHD's. My old SSHD's look like they are stamped steel housings but I'm not entirely sure about the 40's.

 

Unfortunately its a little worse than I thought. Its a strip the width of the top of the housing by about 10" long so I'd have to get the torque arm pedestal air arc'd off, have that top strip cut out and replaced, then the torque arm pedestal re-welded. I also uncovered a couple holes in the rear cover when I steam cleaned it off. It's not really much of a loss. I got it very cheap and all I really wanted was the air ride suspension anyways.

 

Truck is hanging out in central BC, Canada.