A new development will see a 52-bed care home, 50 extra-care units and 74 houses built.
The development is planned for the land adjacent to Goathill Farm.
58 of the houses will be for rent and 16 for purchase through the shared equity scheme.
The project has been developed by Comhairle nan Eilean Siar and Hebridean Housing Partnership with funding assistance from the Scottish Government at an estimated total cost of £46m and is a significant part of the implementation of a review of care facilities on the island and of the Local Housing Strategy, specifically the provision of affordable housing in Stornoway.
The construction works are to be undertaken in three distinct phases. The first phase, comprising preliminary civil engineering works across the entire site at Perceval Road, Stornoway, is to be undertaken by main contractor Wates Group in conjunction with their principal subcontractor McLaughlin & Harvey Ltd. Construction works are to commence during the first week in July.
The construction of the second phase of the project, comprising the construction of the care home and extra-care housing, is scheduled to commence in the autumn of 2019 with completion of both facilities by summer 2021.
The third phase, comprising the construction by Hebridean Housing Partnership and O’Mac Construction Ltd of 74 new homes, is also planned to commence in autumn 2019 with the first homes becoming available by March 2021.
Councillor Roddie Mackay, the Leader of Comhairle nan Eilean Siar, said: “Reaching this key milestone in what is undoubtedly a significant investment in the islands’ assets and infrastructure is testimony to all the key providers having a shared commitment and vision to improve the provision of care for the Islands."
Norman M Macleod, Chairman of the Hebridean Housing Partnership, added: “Getting to this stage has not been without its challenges but last week the Comhairle, the Scottish Government and Hebridean Housing Partnership were able to give the green light to the project finally moving from drawing board to cutting the turf."