Transforming a former social club and care home in the Mirehouse East area of Whitehaven, the housing scheme includes the construction of 27 new homes for local people.
The developments in Meadow Road will be on the site of the former Calder Club and Pow Beck Court, and provide 26, two-bedroom bungalows and one, three-bedroom bungalow.
Phase one has begun with ground works at Pow Beck Court. Phase two will involve the demolition of the disused CIU Calder Club before the commencement of the construction.
The former Pow Beck Court site will feature10 homes while the remaining homes will be built on the site of the former Calder Club.
Work is scheduled to be completed in early 2014. The scheme has been funded in part by the Homes and Communities Agency.