Ground was yesterday broken on a building project which will see 124 affordable homes rise from the ashes of a historic city jail.
Sanctuary will build 18 houses and 106 flats on the site once occupied by HMP Craiginches, in the Torry area of Aberdeen.
The homes will be available at mid-market rent to local teachers, medical staff and other public sector workers.
Building work got underway with a special sod cutting ceremony.
Kevin Stewart, Minister for Local Government and Housing, said the £21million project – which received £8million from the Scottish Government – would help address the demand for mid-market rented housing.
The Aberdeen Central MSP added: “I am delighted that the Scottish Government’s affordable housing supply programme was able to support this project with a grant of over £8million.
“This is great news for Aberdeen and will hopefully attract more folk to come and work here in the health, teaching and public sector jobs.
“The Scottish Government has committed to deliver 50,000 affordable homes during this parliament, 35,000 for social rent.
“That is an ambitious target but one we are determined to meet.
“Projects such as this one today mark another step on the road to delivering that pledge.”
Sanctuary’s site contractor Robertson Construction will recruit eight apprentices over the course of the project.
The homes are due to be handed over to Sanctuary Scotland Housing Association in March 2018.
Peter Martin, Sanctuary’s director of development, said: “We at Sanctuary are pleased to work with the Scottish Government on this pilot project.
“We will deliver much-needed affordable accommodation for those employed in Aberdeen’s public services.
“Our new homes will become an integral part of Torry and provide wider benefits to the community.”
Aberdeen City Council has also received more than £430,000 for the local community, including improvements to Walker Road School, a car club and community and sports facilities.
Keith Taylor, regional managing director of Robertson Eastern said: “A large part of our proposal to Sanctuary was focused on supporting and investing in the Torry community.
“Across the life of the project there are a total of 74 training and employment opportunities.
“These include local employment, work placements, apprenticeships and education opportunities, including formal certificates and N/SVQs.
“As a local business it was important to us that we could offer both employment opportunities and grow the skills of the local community.”