Queensway House in Hatfield could soon be used as a temporary night shelter for rough sleepers.
Welwyn Hatfield Borough Council is backing plans 'in principle' with a planning application currently under consideration.
The locally-based rehabilitation charity Resolve has leased the ground floor unit and aims to work with the authority to provide support for rough sleepers with more complex needs.
The full report remains confidential at this stage.
Leader of the Council, Councillor Mandy Perkins, said: "Our aim is to help people find a permanent home and support them to deal with any underlying problems that may be contributing to their rough sleeping.
The night shelter will provide a safe, warm and welcoming environment to enable the council and Resolve to work more closely with them to ensure they get the help they need to get them back on their feet".
:: Local residents can comment on the planning application on the council's website.