The council is to transfer the site of the town’s former community centre to the developer for £1, paving the way for a £28m residential scheme.
Tameside Council is to authorise the sale of the land to Onward Homes this week to facilitate a 161-home scheme in Hattersley.
Comprising around 1.5 acres across two sites off Hattersley Road East, the land is valued at £361,000, according to a valuation carried out by Sanderson’s.
As part of the deal, the council has agreed an overage provision of up to £350,000 that will be triggered if certain houses within the scheme are sold, according to a report to Tameside’s executive cabinet.
In addition, the project could earn the authority £172,000 a year in council tax revenue, the report said.
“Members should be satisfied that the proposed recommendation demonstrates value for money for the council,” the report said.
The larger of the two sites to be disposed of sits on the corner of Hattersley Road East and Beaufort Road and was previously occupied by Hattersley Community Centre, which has now been demolished.
Onward, which owns five sites in the area around Hattersley Road East, requires the council-owned land to progress its project.
The development features 91 extra care units within a single building made up of 60 one-bedroom apartments and 31 two-bedroom apartments.
A further 70 houses are proposed on the remainder of the overall site.
The project is being part funded through a £2.8m contribution from the Brownfield Homes Fund and an £8.2m housing subsidy from Homes England.
Sandy Livingstone, executive director of property at Onward Homes, said: “Securing this land brings us one step closer to delivering transformative investment and 161 high quality, green homes in Hattersley.
“Our plans will meet the housing needs of local people at every stage in life, from specialist care to shared ownership and affordable rent. We have worked closely with Tameside Council to secure support from the Brownfield Land Fund and await confirmation of our bid for Homes England Strategic Partnership ahead of a planned start on site this autumn.”