The site of former Ravenscraig Hospital in Greenock is to be transformed into a new 198-home social rent development.
The £24 million project from Link Group and Oak Tree Housing Association will include a mix of terraced houses and cottage flats. Up to 10 per cent of the energy efficient homes will also be wheelchair accessible.
Link Group Chair, Ross Martin said: "We look forward to working with the Scottish Government, Oak Tree Housing Association and Inverclyde Council to deliver new, affordable and sustainable homes to the Greenock area, improving housing choices for the local community."
Housing Minister Kevin Stewart added: "I am very pleased that the Scottish Government, in partnership with Inverclyde Council and NHS Greater Glasgow and Clyde, has secured this key site in Greenock for much needed affordable housing.
"Over the lifetime of this Parliament, we are investing more than £3 billion to deliver at least 50,000 affordable homes, including 35,000 for social rent and we are delivering more of the right homes in the right places to meet Scotland's housing needs. I look forward to seeing this exciting project progress."
Larkfield Housing Association will manage and maintain the majority of the housing stock, with 71 of the homes to be transferred to Oak Tree Housing Association upon completion.
A spokesperson from Oak Tree Housing Association said: "We are delighted to be working with Link Group and Larkfield Housing on this project. The new affordable homes will be a welcome contribution to the local community and our respective customers."
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