Ashfield District Council is planning to demolish 32 bedsit flats and replace them with 39 more up-to-date apartments for over-60s including supported accommodation for the infirm.
The council took the decision as most of the elderly residents at the Darlison Court site, Ogle Street, Hucknall, did not have access to their own bathrooms.
Ashfield District Councillor Trevor Locke, member for Hucknall Central, said the scheme was good for the town.
He added: “This is the first time for as long as I can remember that we have had council houses built.
“There will be a little disruption in the area as there always is with these developments, but the people of Hucknall will be glad the council has started to build properties.”
At present the site consists of four two-story residential blocks and one single story block but these will be replaced with one single-story block.
Ten of the new apartments will be run as Extra Care accommodation with financial backing from Nottinghamshire County Council.
These flats are specially built with support staff on-hand 24 hours a day.
The building work will also mean the diversion and opening up of a river culvert beneath the site.
View the plans at www.ashfield-dc.gov.uk.