Great Places Housing Group will start work on 18 new units for young people with autism at Brookfield View, Levenshulme, after securing funding from the Homes & Communities Agency.
The HCA awarded £1.21m towards the project, with a further £380,000 coming from Great Places.
Currently a number of young adults with autism are cared for outside the city. This new scheme will enable them to return to Manchester to be nearer their families, as well as saving money for the council. A specialist provider will deliver 24-care on site.
The homes will have individual spaces and shared areas to prevent isolation. They will be flexible to accommodate the differing needs of clients with a shared house for five people with communal facilities, one block for five people living in individual flats who need significant support and another block for eight people living in individual flats where a lower level of care is needed.
Work on the site, at the junction of Broom Lane and Stockport Road, is scheduled to start in March 2011.