A total of 29 new homes are to be constructed in Forfar, Angus.
The development will cost around £5m, the local authority has said.
It is understood that original funds to convert Chapelpark Primary School into 30 flats, has since been revised to 25 flats and four new-build terraced houses.
The homes will consist of 18 one-bedroom flats, six two-bedroom flats, one three-bedroom flat and four four-bedroom new build terraced houses.
Donald Morrison, Council housing spokesperson, said: "While this move has reduced the number of homes initially proposed, the change was necessary to meet the current anticipated housing demand and the fact that houses take up extra space than flats.
"This is tremendous news for Forfar, as there is high demand for good quality, affordable rented accommodation.
"As part of the council's commitment to delivering affordable homes and reduce carbon dioxide emissions the homes have high levels of insulation – which exceeds current building regulations, installation in external walls, double glazed windows and high efficiency boilers.
"Our emphasis on energy efficiency will ensure tenants have low fuel costs in the years to come which is good news for them as well as for the environment."
(JP/IT)
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