Building work is set to start to bring 24 houses to a village between Chorley and Leyland.
Plans have been approved to build the homes on Moor Road in Croston, and the work is due to start in the next two or three weeks.
The affordable homes will be located on overgrown land, which currently prevents homeowners on Moor Road and Station Road from being overlooked by neighbours.
Worried residents have raised concerns about the development in the past, stating traffic congestion as one of their complaints.
But the director of Chorley Community Housing, Richard Houghton, which is part of applicant Adactus Housing Association and Seddon Homes, said they are aware of the neighbours' concerns.
He said: "The contractor will liaise with residents about the plans, because we want to build up a good relationship with them."
The 2m scheme aims to re-house people who have local connections to Croston, such as through employment, and will be available for rent.
Mr Houghton said the project could take around 12 months to complete, and added that he expected there to be a lot of interest on the properties.