The scheme will provide a 15 apartment building and five bungalows – all available at affordable rents – together on a site at Park Road, Newburn.
Gateshead-based construction specialist Tolent is building the properties, due to be completed next summer.
The scheme will feature:
Michael Farr, Bernicia Executive Director of Assets and Growth, said: “It’s great to see work beginning on site with our partners at Newcastle City Council and Tolent to deliver this important scheme.
“It will provide high quality, affordable homes with care and support for people with specialist needs – providing a house they will be proud to call home in a community they will enjoy living in.”
Tolent Regional Director Chris Price said: “It's great to be working with both Bernicia and Newcastle City Council again, two valued clients who we know are creating some fantastic new communities across the region.
“We're passionate about creating high quality homes, delivered to suit the needs of those who need them most and this development will be another example of this work."
Councillor Linda Hobson, Cabinet Member for Housing and Regulatory Services at Newcastle City Council, said: “The council is committed to working in partnership to deliver a range of housing options that meet the diverse needs of all our residents.
“This scheme will provide affordable, accessible housing for people with learning disabilities and I am looking forward to seeing these homes completed and meeting the residents when they move in.”