Two properties will be turned into homes for vulnerable children in Hartburn and Stillington.
Stockton Council's Cabinet made the decision despite opposition from some residents.
Those backing the plans say it will benefit the young people, none of whom have criminal records or are a danger to people.
More top news
Do you know someone who should represent ITV Tyne Tees at the Daily Mirror Pride of Britain Awards in London?
PM announces funding will be made available for a memorial dedicated to the victims of last week’s terrorist attack in Tunisia
England beat Germany 1-0 after extra-time to finish third in the Women's World Cup.