Stroud District Council has completed 13 new homes for social rent at Cambridge Avenue in Dursley.
The development has transformed a brownfield site that previously housed sheltered accommodation.
The scheme includes six two-bedroom and seven three-bedroom houses.
All the homes have EPC A ratings and include air source heat pumps, solar panels, permeable paving, bird and bat boxes and hedgehog highways.
The project received £1.82 million from Homes England’s Affordable Homes Programme and £371,000 from the Government’s Brownfield Land Release Fund.
Councillor Gary Luff said the scheme shows how brownfield sites can be used to deliver affordable housing while protecting countryside from overdevelopment.