Westmorland and Furness Council has agreed the sale of the former Abbey care home at Staveley, near Kendal, for redevelopment into affordable housing.
Home Group will deliver an 18-property scheme aimed at individuals, couples and families.
The council carried out a detailed appraisal in 2023 and concluded that sale to a registered provider was the best way to deliver an affordable housing scheme at the site.
The report to cabinet said Home Group has experience in providing social value, local jobs and apprenticeships.
Funding will come from the new Social and Affordable Homes Programme and Home Group’s own borrowing.
The development will mainly provide affordable housing along with a smaller number of local occupancy homes, with a mix of one, two and three-bedroom properties.
Councillor Judith Derbyshire, Cabinet Member for Housing and Community Safety, said: “The affordable homes crisis is particularly acute in and around the Lake District National Park with property prices well above the means of those on average income levels.
“There is a chronic lack of affordable housing in some of the most expensive areas to live within Westmorland and Furness and this is a barrier to economic growth.
“We need more affordable, quality housing so that local families can build a life here and new people can be attracted to relocate.”
Derbyshire added: “Our Council Plan is clear that wherever we can, we will support the provision of housing to encourage people to stay and to attract families and skilled people.
“This scheme will have many benefits for the village, not least ensuing that it remains a stable and vibrant community, with an extended range of housing so that local people have greater opportunity to stay close to loved ones.”
Elsa Brailey, head of development and delivery North West at Home Group, said: “We have a long and successful track record of delivering affordable homes across Westmorland and Furness and Cumberland.
“We currently provide over 10,000 affordable homes across the two areas.
“Delivering the right homes, in the right places, is at the centre of what we do as one of the UK’s largest housing associations.”
