The former Prestatyn library will be demolished and the site will be redeveloped to create new commercial space and apartments available for social rent.
Denbighshire County Council cabinet members recently awarded the contract for the works, which are expected to begin in the next few weeks.
The Denbighshire Housing development which has been named Llyn Llên to celebrate the site’s previous use as a library, will provide energy efficient apartments designed for older persons including those with limited mobility.
Energy in the apartments will be generated by ground source heat pumps and solar panels on the roof to create improved energy efficient living for future residents.
Local firm Wynne & Sons Limited Construction who have successfully worked with the council on other construction schemes has been awarded this development contract.
The project contributes towards the Housing and Homelessness Strategy by enabling the building of accessible homes for social rent.
Cllr Tony Thomas, lead member for Housing and Communities, said: “We are pleased to be able to move forward with this development and continue improving housing solutions for people in Denbighshire.
“As well at providing more modern energy efficient homes for our tenants, the development of Llys Llên will also improve the surrounding outdoor space and parking for residents of the neighbouring Llys Bodnant development.
Construction is due to start in the coming weeks with completion estimated for spring 2023.