Beech Developments has teamed up with social housing group Adra to build 29 properties.
The development planned for Narrow Lane, Llandudno Junction, will also see Beech build and occupy four commercial light industrial units.
They have started the process of securing planning for the site.
Managing director at Beech Developments Matthew Gilmartin said: “We are delighted to be partnering again with Adra housing association to deliver these much- needed homes for local people.
“With more than 1,100 applicants in need of affordable homes to rent in Conwy county alone, and with the mixed tenure of the development, we hope it will help to bridge some of the gap between those in need of good quality efficient housing in North Wales.”
Daniel Parry, director of development at Adra, said: “Adra is growing by building homes, jobs and opportunities across North Wales.
“We have been making a huge effort to create and develop more new homes at an affordable price to meet the local housing need in North Wales.
“We are delighted to be partnering and continuing a good working relationship with Beech Developments.
Most Read
“Using local companies and contributing to the local economy is important to us.”
Eight out of the 29 properties will qualify for Rent to Own. Adra will also take on eight homes for their own market rent portfolio.
Matthew added: “For a scheme of 29 units the baseline provision should be to provide nine affordable units.
"However, between our partnership arrangements with Adra we have been able to increase the level of affordable dwellings to 13 homes.
Sign up to the BusinessLive Wales newsletter and follow us on LinkedIn
As well as an in-depth early morning newsletter, we will be sending out regular breaking news email alerts. To sign up to this service
And, follow us on to catch the latest stories and to network with the Welsh business community.
"This is to ensure that the scheme goes some way towards helping the growing local need for affordable homes in the county.”
Phase 4 will also encompass Beech Developments’ plans to build more sustainable homes for the future by using the space to help assembly Passiv standard, energy efficient homes for the future of North Wales.
Matthew added: “Not only will this create local employment but this will see one of the first productions of its kind in Conwy county.”