Worthing Borough Council is working with housing association Worthing Homes, homelessness charity Turning Tides and Homes England to create 21 much-needed apartments to prevent people sleeping rough.
The new apartments will be built on the site of Skywaves House, an empty building in Ivy Arch Road which is currently in the process of being demolished.
More than £2.6 million of government funding has been secured for the project.
Worthing Council said the discovery of asbestos on the site slowed the pace of the work but now demolition is progressing well.
Worthing Homes is overseeing the construction of the apartments, which will be managed and run by Turning Tides.
Staff from Turning Tides will provide 24-hour support to the residents, including help with mental and physical health issues, employment and life skills, and specialist support for any residents who are dealing with addiction issues. Residents will also be prepared for a move into longer-term, sustainable accommodation.
The council hopes the first residents will be able to move into the accommodation in 2025.
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