The Peaks & Plains housing trust has been granted planning permission to redevelop its former Winlowe sheltered housing scheme and build 15 new homes.
The development at Bank Street and Knight Street, Macclesfield will have a mix of two and three-bedroom properties.
Cruden Construction will be preparing the site for demolition and the new houses are expected to be completed by autumn 2014. The whole project will cost just under £2m.
Nigel Bennett, assistant director of partnerships, said: "We are delighted that the planning board has granted permission.
"The development at Winlowe will bring high quality, affordable housing to Macclesfield town centre reinforcing our commitment to creating safe and vibrant communities for our residents."