Storage space above two Brighton shops is to be extended and turned into 33 flats.
The new flats, including affordable homes, were approved yesterday by the Brighton and Hove City Council planning committee.
Councillors gave permission for the flats in St James’s Street, above the existing Tesco Express and Superdrug stores.
The project will mean converting the first floor, currently used for storage and building two additional floors above.
Thirteen flats will be classed as affordable homes, aimed at people on the council waiting list.
Nine will be fully wheelchair accessible.
Each flat will also have an internal cycle store, with the lifts big enough to carry bikes to all floors.
The developer will also contribute £55,000 towards the cost of improving open spaces elsewhere and £46,000 for education.
Councillor Lynda Hyde, chairman of the planning committee, said: “This makes much better use of the valuable space above these shops in St James’s Street.”