It is understood the plans have been approved in principle, pending the appropriate building standards, planning and HMO Licensing approval.
If this goes through, two empty properties in Penicuik and Poltonhall will be transformed.
The properties in question are Pentland House and Midfield House.
Prior to the application, a full public consultation was carried out with the local community to allow residents to have their say on the plans. In addition to saving money, making better use of empty Council buildings, and helping homeless people in the area, many in the local community appeared to be unaware of the extent of homelessness in the region.
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Regarding the proposals for the homelessness accommodation, a majority of people said they would be more comfortable with the proposals as long as those using the accommodation were not living "chaotic lifestyles", and the properties are staffed and well managed.
Councillor Owen Thompson, cabinet member for housing, said: "I'd like to thank everyone for their contributions to this public consultation and I'm pleased that everyone has had a chance to have their say.
"These events were also useful in banishing the often negative stereotypes of homeless people, as we all know that homelessness can happen to anyone. Moving forward we plan to make the best possible use of these buildings to help some of the most vulnerable in our society."
Director of Shelter Scotland, Graeme Brown, added: "At a time when household budgets are under huge pressure and people struggle to keep a roof over their heads, for some, the spectre of homelessness is closer than ever before. It's important to remember that homelessness can happen to anyone.
"Our experience is that becoming homeless sends people's lives into crisis and when it does happen, it is crucial that facilities and services are in place. Safe and secure temporary accommodation can help people get back on their feet.
"We welcome positive discussion within communities to find appropriate solutions to Scotland's housing and homelessness challenges."
(JP/MH)
