A bid was originally submitted to Scottish Borders Council in 2021 for change of use of the former Carpet Mart Flooring and Furnishing outlet at 22-24 South Street, Duns.
But the original application had stalled after the council requested almost £20,000 in development contributions.
The applicants deemed that amount to be excessive and agreed to a contribution of £2,000 instead.
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When members of the council’s Local Review Body met last week they approved a revised application and the new contribution amount.
Mid Berwickshire councillor Donald Moffat said: “I think this is a good application and it is going to be affordable housing. I don’t think it would be reasonable to be having to pay £9,963 per dwelling when you are only going to be getting one bedroom properties.
“One-bedroom, two-bedroom and even three-bedroom properties in Duns and Coldstream would be welcome because there are people looking for properties of those sizes and this would be affordable for people buying their first homes.”