Crawley Borough Council has bought Longley House in East Park, Crawley, and the site already has permission for the building to be knocked down.
The council will replace the site with 121 flats, with 65 shared ownership and 56 for affordable rent.
It says brownfield land is in short supply in the borough, so it was keen to secure this site for affordable housing rather than see it developed by a private enterprise.
Councillor Ian Irvine, cabinet member for housing, said: “This is another significant purchase by Crawley Borough Council and an excellent opportunity to add 121 properties to Crawley Homes for affordable rental in the town.
“We are constantly seeking opportunities to increase the rental stock available to Crawley Homes and locations like Longley House give us the chance to build high-quality new homes in place of under-utilised sites and reduce some of the pressure on our housing waiting list.”
The £1.5 million purchase was made from Crawley Homes’ existing acquisitions budget and grant funding will be sought to help with building costs.
Construction is expected to begin later this year.
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