Plans for 55 apartments for elderly people on the site of the former Newton Grange care home in Stocksbridge were approved by city councillors.
The accommodation will comprise 34 two-bed and 21 one-bedroom flats.
One of the conditions is that the developers contribute £10,700 towards improving recreation space in the area.
Councillors also approved an application for a new primary school for 446 pupils on the site of the former Watermead School off Barrie Crescent, Southey.
The authority is planning two new primary schools in the area - the other at Fir Vale - to cope with demand after a boom in births.
Oasis Community Learning has been selected to run both schools.