FIRST-time buyers, older people and adults with support needs will benefit from a £530,000 housing grant from the Government.
It will enable Rotherham Borough Council to provide 120 homes by demolishing two former care homes and Maltby Central Library.
Work is expected to start in the coming weeks and modern techniques - including offsite construction - could be used to build the homes faster.
Sir Nigel Knowles, chairman of the Sheffield City Region Local Enterprise Board, said: “This is a creative way to provide better services and accommodation for older people and those who need support.
“This funding also means that work can start much more quickly than would otherwise have been the case.”
Cllr Dominic Beck, Rotherham Borough Council cabinet member for housing, added: “We have committed to provide 14,000 new homes that meet the needs of our residents over the next seven years and this funding will help us deliver on this commitment.”
Houses will be built on the former sites of Rothwell Grange care home in Broom and Copeland Lodge in Thurcroft. It was announced three years ago that Maltby’s library would move inside the nearby customer service centre to cut costs.
The funding is from the Government’s One Public Estate scheme, which has previously given money towards 350 riverside homes in Rotherham town centre as part of the master plan.
Halting the decline in town centre living after several decades is seen as crucial to bringing back footfall.