West Berkshire Council has approved plans to convert the former Chestnut Walk care home in Hungerford into a temporary homeless hostel.
It will provide supported, short-term accommodation for local residents, including families and couples in housing need.
Dozens of neighbours complained about the plans, fearing anti-social behaviour.
The council says the empty building can now be put back to use to benefit the community and that the hostel will offer safe, managed and supportive housing while longer-term solutions are found.
Officials added the project should help people stay closer to their support networks and reduce reliance on other temporary options, and that they will work with local residents as the scheme progresses.
Procurement for a main contractor is under way, with works expected to start later this year. The building dates from the early 1990s, closed as a nursing home nine years ago, and suffered smoke damage in an arson attack in 2022 which contributed to its deterioration.
Niki Hinman, Local Democracy Reporter
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