Kerry County Councillors have agreed to transfer a plot of local authority land in Tralee to an approved housing body.
The plot at Chamfers Place on Mitchels Road will be handed over to Clúid Housing Association for the construction of 18 social housing units.
The units will be for independent living and older people as well as single people and couples.
The scheme has been approved under the Capital Assistance Scheme.
The project is part of the multi-million-euro Mitchels Regeneration Programme.