Stockton Borough Council have decided to turn a property on Darlington Road in Hartburn into a home for vulnerable children and teenagers.
A meeting is ongoing to decide on whether to make a property in Stillington into a similar home.
More top news
Durham Crown Court heard how Sarah Louise Fettis approached the woman after spotting her in a pub and began shouting and swearing at her.
A judge said adoption would give the baby the "best prospect" of growing up in a "safe and secure" way.
41-year-old Jayne Maughan from Middlesbrough used the £15,500 to fund her spending habits.