Living accommodation for people with learning disabilities is being built in a £770,000 scheme.
Endeavour Housing Association is demolishing two blocks of flats in Shelley Close, Stanley, and replacing them with ten apartments.
Carole Richardson, Endeavour's business development manager, said: "This service will meet local needs and offer people the chance to develop new skills in their own homes and explore new opportunities."
Derwentside District Council, working with the Housing Corporation, selected Endeavour after inviting tenders for the project.
The council, County Durham Care and the housing association, carried out an 18-month consultation with potential tenants before finalising the design.
Steve Melvin, director of housing and capital works for Derwentside District Council, said: "This is a great example of inter-agency working with the community which will achieve meaningful results. Derwentside District Council is proud to be partners."
The apartment complex will offer support staff available 24 hours a day, to help tenants achieve a degree of independence through learning living skills.
The supported living scheme will be finished and ready for the first clients to move in by the end of this year.
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