Planning permission has been granted for 69 new homes on the former CI Tyres site at La Charotterie.
A fresh planning application was submitted in May, increasing the number of planned homes from 57.
There will be 60 one bedroom homes across two six story apartment blocks and nine two bedroom houses around a central courtyard.
Guernsey Housing Association says it's a positive step forward.
Lisa de Kooker, Chief Operating Officer of Guernsey Housing Association, said:
"At GHA, we remain committed to progressing developments that provide high-quality, affordable homes for islanders and this scheme does just that.
"We’re grateful for the quick turnaround, which was possible due the submission of a very detailed planning application and also helped by the site’s prior planning approval following an Open Planning Meeting, which set some key principles for us to follow from the outset."
Planning conditions will now be reviewed and a contractor appointed following a tender process.
The GHA hopes to start building early next year and have construction completed by the end of 2027.
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