Garage sites in St Albans and Wheathampstead will be turned into ten new affordable homes next year.
The Hightown Praetorian and Churches Housing Association will redevelop the sites in White Hedge Drive in St Albans and Housden Close and Beech Crescent in Wheathampstead.
The district council transferred ownership of the land over to the association earlier this year and it will have the right to nominate people on the housing register to move in.
Councillor Brian Ellis, portfolio holder for housing at the council, said: “We live in an area where there is great demand for affordable housing.
“The council is actively reviewing garage sites which are under-utilised to see which ones are suitable for redevelopment as affordable homes for local people.”
The developments are expected to be completed in 2013.
The council has also identified sites in London Colney which could be developed into more housing.