The 'affordable' terraced houses will be developed on the former Damacre Community Centre site in Brechin.
The facility closed earlier last year following the opening of the new £26.5 million Brechin Community Campus.
Councillors have now approved proposals to move forward with demolition work and build 'affordable' housing for existing council tenants on the Damacre Road site
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Communities Convener Donald Morrison said: "This is a good news story, though it also has a hint of sadness. In its heyday the Damacre Centre played an important part for the Brechin community but, with the new £26.5 million community campus and changing times, the centre closed last year.
"The appropriation of the former centre will see the development of high quality, affordable housing and follows on from the works that redeveloped the town centre from the Town Heritage Initiative. These new houses will be eagerly awaited and with our approach to new build allocations we will see many more positive housing outcomes than the ten houses we will be building."
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