Angus Council has struck a deal with Houses for Heroes to create five homes for disabled former military personnel.

An agreement has been reached with the charity to demolish the former Camus House care home in Carnoustie and transform it into five wheelchair-accessible properties, along with a further 11 affordable homes.

Members of the corporate services committee will meet on Thursday to discuss the plans after a recommendation for approval from communities director Alan McKeown.

The vacant property has been listed as surplus to the requirements of Angus Council’s People Directorate and is available to housing division for development.

The plans were discussed at the August meeting of the committee and provoked controversy among members over financing the project.

The new report to the committee from Mr McKeown confirmed a deal has been sealed with Houses for Heroes, confirming the charity’s involvement. The estimated total cost for the five Houses For Heroes properties is £666,806.

Angus Council’s contribution is £230,000 and HFH will contribute £436,806, a council spokesman said.

“Carnoustie is situated in the South Angus housing market area, where demand for affordable housing is the highest in Angus,” Mr McKeown said.

“To help respond to this situation, members agreed in report number 152/13, approved by Angus Council on February 28, that if the Camus House site could be appropriated to the HRA the existing building on the site should be demolished to make way for up to 12 new affordable council houses for rent, and that part of the site should be leased from the HRA to Houses for Heroes Scotland to allow the construction of five wheelchair-adapted houses to accommodate ex-services personnel, all dependent on reaching a final agreement with Houses for Heroes Scotland.

“Consequently, plans have been progressed and agreement reached with Houses for Heroes. The current proposal is for 11 new council houses for rent and five homes for Houses for Heroes.”

Demolition of the property will be funded by the Housing Revenue Account and is expected to be carried out in the near future.

Councillors will also be asked to approve proposals to demolish Wirren House in Montrose for a similar council house development.