A vacant building and former retail unit in Bury town centre will be turned into supported accommodation for people with disabilities.
The site at 137 The Rock will be transformed into 10 supported living units with a further three units to be constructed at the back of the building.
The supported living units aim to provide supported accommodation for adults with a mental health condition or learning disability and will include some on-site support from health care professionals.
The site, close to The Rock Shopping Centre, has been vacant for a number of years but was formerly used as a pub and more recently by cake making company, Liberty.
The new build was approved by the council last week and will involve partial demolishing of the existing building.
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In its application, Northern Healthcare, which would run the facility said the new homes would help to address housing issues in the borough.
It said: “Current data shows in Bury there is not enough provision to meet the future demands for supported living, with the 'own front door' model in mind and especially for adults with mental health needs.
"This may present opportunities for the market to explore whether they are able to fill these gaps.
“Based on conversations with the local health and social care teams this development could be used for people stepping down from a 24 hour supported living service to promote a more independent life within the community with some floating/onsite support.”
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The council says a number of people have already been identified who are being supported by services in Bury and who could move into the new accommodation.
It also said it would allow people who have moved out of the area to return to the borough.
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