Clackmannanshire Council has announced it is acquiring land on a derelict site for a house building development.
The council has so far invested over £12 million towards regenerating the town centre.
It has been estimated the Alloa area needs around 75 new houses per year.
A further new build housing development with Kingdom Housing Association is also planned at nearby Primrose Place.
The acquisition is anticipated to be fully funded by the Scottish Government's affordable housing supply budget allocated to the council.
Housing Convener Councillor Les Sharp said: "This site occupies a prime position in Alloa town centre and its redevelopment for affordable housing, with or without retail, would bring a number of benefits to the town centre beyond meeting housing needs.
"New homes in the town centre not only improve the appearance of the area, but they bring customers into the area to support local businesses."
(LM)
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