Construction is being led by Sunderland based MCC Homes Limited, who have signed a development agreement with the council to build the homes, which will support people living with disabilities.
Once the existing building - which went on to become the Alzheimer's Society before closing in 2019 - is cleared, work will get started on construction of the new homes, with the properties expected to be completed next year.
The development is being supported by Homes England and is part of a council-led plan to deliver more supported properties for vulnerable residents, more bungalows for people living with disabilities and older residents, as well as general use homes available for affordable rent. The bungalows - all one-bedroom homes - will complement existing housing for people at nearby St Clement's Court and ensure a more comprehensive, connected and efficient support service.
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Councillor Kevin Johnston, dynamic city portfolio holder at Sunderland City Council, said: "It's brilliant to see the way being cleared for 19 new one-story homes, which will help us deliver more accessible properties for people living with disabilities in Sunderland.
"The scheme, which will see us working with Sunderland based MCC Homes Limited, will ensure we have the range of properties we need to support our more vulnerable residents to live in homes that are suited to their needs, and that enable them to live a happy, fulfilled life, as independently as possible."
MCC Homes Limited has delivered a range of developments for the council to date, including five bungalows in Elmwood Avenue, Southwick, and more recently the larger 'Arnay Court' development at Old Mill Road in Southwick. By working with Monkwearmouth based MCC Homes Limited, the council is supporting the firm to sustain and create jobs and opportunities for local people and businesses during its development.
The Hylton Road scheme is part of an ambitious plan that has seen the local authority once again become a Registered Housing Provider, renting its first homes in more than 20 years. It has also begun a programme of construction - building its first new properties in 40 years -- including two schemes developed by MCC Homes - to create new housing stock that meets the needs of the city's residents.
Homes England has enabled the development with a £954,000 grant.
