The proposal for the former Adria site includes 158 homes, business units and a children’s play park.
Planning permission was granted by Derry City and Strabane District Council’s planning committee on Wednesday.
Adria, which once employed more than 1,000 people in Strabane, closed in 2006.
Sinn Féin councillor Christopher Jackson, who chairs the planning committee, said the development will “bring local employment opportunities during the construction phase and provide much needed social housing for families in Strabane”.
Habinteg’s chief executive Darren McKinney said he was delighted the plans had been given the green light.He said: “There has been a lack of new social housing in Strabane in the past ten years and we welcome the opportunity to help reduce housing stress with this high quality and vibrant residential-led development”.
Sam McKee from the project’s planning consultancy firm said the development will “contribute to reducing the stress on housing waiting lists and provide future residents with comfortable and modern homes”.
The developers will now assess when work on the development can begin, given the wider context of the coronavirus pandemic.