A former homeless hostel in Surrey is set to be turned into 15 flats, nine of which will be used for homelessness prevention work.
Waverley Borough Council is working with Mount Green Housing Association on the plans for Marshalls in Farnham.
Councillor Keith Webster said a whole hostel was no longer needed because homeless people in the borough had been found places to live.
He said the other six flats would be turned into affordable homes for rent.
A request for the council to help fund the project at the Weydon Lane site will be discussed by the council executive on 30 November.
Marshalls was used as temporary housing for homeless people until about two years ago.
Mr Webster said: "A project like this is important because it means that local people in need of housing with an attachment to a community such as Farnham will be able to remain in the area despite the relatively high house prices we have in the borough."