Housing provider Saxon Weald is set to receive a loan of £7m from Horsham District Council for the redevelopment of Winterton Court.
Plans to convert the site, off New Street in Horsham, into 60 one, two and three bedroom affordable homes are being proposed by Saxon Weald.
Winterton Court currently consists of 24 social rent bungalows for elderly people.
In March, Saxon Weald broke the news of the proposed development to the residents of Winterton Court.
At a council meeting on Wednesday September 3, members discussed provision of a loan, having been asked by Saxon Weald to consider providing funds.
A number of councillors voiced their support of the plans.
Helena Croft (Con, Roffey North) said: “It is great that we are taking something no longer fit for purpose, and a great brownfield site in the town centre is being put to good use. I think it is really promising.”
Leonard Crosbie (LDem, Trafalgar) said: “I am delighted with this scheme.
“I think it is very good to see us being so proactive with a registered social landlord and as a result they can increase the number of homes from 24 to 60.”
Claire Vickers (Con, Southwater) said: “This is a good opportunity to get an extra 36 homes we wouldn’t have otherwise had.”
Some councillors expressed concern over the lack of specific plans supplied at this stage.
David Holmes (LDem, Horsham Park) said: “I very much welcome the idea, but like councillor (Frances) Haigh I am concerned that we don’t have any specific plans.
“I have been asking for plans and thought I was going to see them, but was told they are not available.
“My concern here is I want to be sure what is built is something that will meet the needs of people in the district, and at the moment I don’t have that assurance.”
Members voted unanimously to approve in principle the provision of a loan worth £7m.
The funds are to be supplied by HDC to Saxon Weald over a period of 15 years, from the financial year 2015/16.