A £1m investment is to be made in 22 new homes for young people in the Mendips area of Somerset.
The scheme will allow youngsters, made homeless or with special housing needs, to live in supported accommodation.
It is to be run by Mendip YMCA which will provide a centre where the young tenants can speak to staff.
The money will be put up by the developer of the new Houndswood estate at Westway, Street, as part of its planning agreement with the council.
Phil Miller, the council's housing development officer, said: "These types of affordable housing negotiations take place on all sites in Mendip.
"[But] securing such a large sum for a specific project like this is rare and is great news for Mendip and local people."
Mendip YMCA chief executive Karen Deverell added: "This project will help those living in the accommodation to develop their own life skills to allow them to secure and maintain a home of their own in the future."