Lindum has started work on 36 new homes on the site of a former hospital in Spalding.
Longhurst Group is developing the former Welland Hospital site to provide two and three-bedroom affordable homes.
Work began on the site at the end of last month and Lindum contracts manager Mark Carter said it was expected to be finished in July 2021.
“Initial works include the site strip, mains drainage and construction of the new road,” he said.
“In the coming weeks, we will begin piling activities, during which we will constantly monitor vibrations from site to ensure they stay within the guidelines.
“In early September there will be some partial lane closures on the nearby roads to allow for construction of the new entrances.
“During all the construction work we will have dust suppression systems in place to ensure the impact on our neighbours is kept to a minimum.”
Longhurst Group’s Director of Land and New Business, Charlotte Smith, said: “We’re delighted to have started work on this exciting development, which will deliver much-needed affordable housing in Spalding.
“Our vision at Longhurst Group is to improve the lives of our customers and communities.
“By delivering developments such as this and providing the homes people need, where they need them most, we are doing just that.
“It has certainly been a long journey to get to this point, particularly with the recent challenges posed by the Coronavirus outbreak, but we are now looking forward to these highly-anticipated homes becoming a reality as we bring this development to fruition.
“We are also pleased to once again be working with our construction partners, Lindum Group, with whom we have an excellent relationship.”
The development, which is accessible from Roman Bank and Holbeach Road, will create 18 homes available for Shared Ownership and 18 for affordable rent.