The local authority has granted approval to Loreburn Housing Association (HA) to deliver the scheme on the site of the former Garrick Hospital. Work is expected to start on site in spring and finish in summer 2019.
Designed by Aitken Turnbull Architects, the proposals involve creating eight one-bed and four two-bed "extra care" dementia-friendly homes, as well as parking spaces for 37 vehicles.
In addition, the Youth Foyer will be built alongside the new housing and offer supported accommodation for up to 12 young people. Other features include community access areas, a modern conference facility, breakout spaces and access to WiFi.
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Lorraine Usher, Chief Executive at Loreburn HA, said: "Our idea to create dementia-friendly accommodation alongside a youth foyer in Stranraer has been on the cards for a long time, so to have got the go-ahead from Dumfries & Galloway Council is really exciting news for the whole community, as this is a development which will bring so many benefits.
"The Foyer will be there to give a helping hand to young people who are motivated to study or work, and the young people living there will be expected to make a positive contribution to their local communities. All youngsters must be either working, studying or volunteering.
"As the Foyer will be located right beside the dementia specific accommodation, it will also offer opportunities for intergenerational projects that involve both the young people and older people. This will help reduce social isolation in older people and increase civic participation for young people."
Ms Usher added: "The building will be for the whole community, who will be able to use its meeting rooms, break-out spaces and WiFi. The architects for the development have an excellent track record in residential design, and it will also be eco-friendly and sustainable, using a district heating system and photovoltaics."
(LM)
