Robertson Construction has begun building a £21 million housing development in Aberdeen.
A total of 18 houses and 106 flats are being developed for Sanctuary Group at a former city prison site in Torry.
The Scottish Government has provided an £8m grant towards the scheme, which will be officially handed over to Sanctuary Scotland Housing Association in March 2018.
Speaking at a sod-cutting ceremony on Monday, Housing Minister Kevin Stewart said: "I am delighted that the Scottish Government's affordable housing supply programme was able to support this project with a grant of over £8 million. This will support the delivery of these affordable, high quality homes and will help address the demand for mid-market rented housing for key workers in the Aberdeen housing market area.
"We have committed to deliver 50,000 more affordable homes over the next five years, backed up with investment of more than £3 billion. Projects such as this one today mark another step on the road to delivering that pledge."
Keith Taylor, regional managing director of Robertson Eastern, said: "Across the life of the project there are a total of 74 training and employment opportunities. These include local employment, work placements, apprenticeships and education opportunities, including formal certificates and N/SVQs."
Peter Martin, Sanctuary Group's director of development, added: "We at Sanctuary are pleased to work with the Scottish Government on this pilot project. We will deliver much-needed affordable accommodation for those employed in Aberdeen's public services.
"Our new homes will become an integral part of Torry and provide wider benefits to the community."
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