The development is on the former St Mary's Primary School site bounded by Polton Street, Moorfoot View and Moorfoot Place.
The Intermediate Care facility is for up to 40 short term residents and will provide assessment, rehabilitation, interim and respite care.
The extra care housing development will offer tenancies with on site care and housing support services for older people and those diagnosed with a variety of degenerative conditions.
-- Advertisement --
The school annexe will be refurbished and become a day-care unit with shared social and office space.
Midlothian Council Leader Councillor Derek Milligan said: "It's fantastic that this new scheme is underway. It will be a huge asset to the local area, offering older people and those with degenerative health conditions more choice to stay in their community, close to friends and family, for as long as possible.
"Working as part of the Health and Social Care Partnership, we are committed to helping local people living well for longer."
Head of Adult and Social Care with Midlothian Health and Social Care Partnership Nick Clater said: "This is a great example of partnership working that will help the Health and Social Care Partnership provide the right support, at the right time and in the right place for local people."
A design team led by Collective Architecture will oversee the work which entails demolishing part of St Mary's RC Primary School and the Dundas building, both of which are now vacant.
The work is due to finish later in 2024.
