Work is expected to start in June to create almost 370 flats at a former Aberdeen school.
City council officers have given the green light to a building warrant to develop 369 flats at the former Summerhill Academy on the Lang Stracht.
The warrant is required before building work can start. It covers nearly all building activities including alterations, conversions and demolition work.
The £35 million proposals will involve eight four-storey blocks facing the Lang Stracht.
An Aberdeen City Council spokewoman said: “We anticipate that Shaping Aberdeen Housing LLP will start work at its Summerhill site in June.
“Summerhill will be the first site developed among a number of affordable housing locations identified as part of the Shaping Aberdeen Housing LLP Business Plan, which was approved by the council on March 15. Once completed, the Summerhill development will provide 369 new homes available at mid-market rent.
“The Summerhill project is part of a joint venture between Aberdeen City Council and Places for People to build 1,000 new homes on five sites across Aberdeen and is part of Aberdeen City Council’s wider Strategic Infrastructure Plan to deliver up to 2,030 new homes in total.
“The sites will provide a broad housing mix, including social rent, mid-market rent, shared equity/low-cost home ownership, and private sale.”
Finance convener Willie Young, who is also a Places for People board member, said workers could be on site next month.
He added: “This is great news for the city of Aberdeen.”
It is hoped the Lang Stracht development, which could include a park, will help attract more public sector staff to the city.
Councillor Jackie Dunbar, SNP housing spokeswoman, added: “I’m always pleased to see affordable homes being built in this city.
“There’s been a shortage over the last few years and the council should have been doing more to address that.
“It’s just a pity we haven’t seen this same desire from the administration to deliver affordable homes over the full council term as we have seen from them in the run up to this election.”