YOUNG single people recovering from alcoholism, drug dependency or homelessness will be housed on the site of the former Magistrates' Court in Victoria Road.
The application from Surrey Community Development Trust (SCDT) will involve demolishing part of the magistrates' building to redevelop the site to provide 13 self-contained flats.
Waverley planning councillors approved the scheme last week and it is expected to be up and running by next September.
The £800,000 development will provide short-term accommodation and prepare the occupants for entering the employment and housing markets.
As well as the flats, there will be a communal lounge on the ground floor, staff offices with provision for 24-hour telephone contact with staff and a rear landscaped courtyard.
SCDT has provided accommodation for people referred by their local authority for 30 years and currently has 99 different schemes across the county.
The charity describes itself as a "people business" helping the occupants towards independence in the community.
Chief Executive Paul Mitchell said: "The point is none of the residents are living in a goldfish bowl. Most people nowadays don't like to share accommodation so they are in their own flats doing the cooking and clearing up themselves.
"We then try to integrate them back into society which we have managed to do with thousands of people who have benefited from the schemes."
Because the development is in a Conservation Area, additional money is required to fund the higher-than-average construction costs of the proposal and the charity will organise a series of fund-raising events which will be outlined next week.
Although the scheme has met little opposition, Marie King Hele (Lib Dem, Central Farnham) has expressed concern over the demolition of the former magistrates' building facing on to Victoria Road.
"Although I welcome the work of Surrey Development I find the loss of this building very saddening. It is architecturally attractive and I am very sad that we will lose it."
The building backs onto the old Court House in Union Road, which is not affected by the development.
The scheme in Victoria Road is the second one in Farnham run by the charity.
Last October, the Trust officially opened Hawkins House - formerly Gadd House - one of the first properties purchased by SCDT in 1972.
Gadd House originally offered supported accommodation for ex-offenders, but in April last year was changed to a high-support scheme for people recovering from alcohol and drug dependency and renamed Hawkins House.