The scheme, in Copse Cross Street, Ross on Wye, involved a former mill that has been sensitively restored through conversion into eight highly energy efficient affordable apartments to meet local housing needs for those in Ross on Wye. All of the apartments have been developed to an extremely high standard and are highly sustainable, being both affordable to rent and heat.
The apartments have triple glazing, heat exchange units, efficient heating and extra insulation to keep the heat in and the cold out.
Councillor John Jarvis, Herefordshire Council's cabinet member for environment and strategic housing, said: "I would like to thank the owner and contractor Martin Bundy as well as Marches Housing Association and the housing needs and development team of the council for entering into this partnership which has led to a stunning development worthy of being a finalist."
Ledbury Cottage Hospital, Ledbury, was a former hospital opened in 1891 for the benefit of Ledbury market town.
Two Rivers Housing, in partnership with Advantage West Midland, Herefordshire Council and Ledbury Area Development Trust, sensitively refurbished the building, creating six self-contained flats and seven separate office spaces.
Many original features including staircases, architraves and archways were retained and incorporated into the scheme. All properties have been allocated to those in housing need with a local connection to Ledbury.
Councillor Jarvis added: "Herefordshire Council provided grant funding to help the owners turn the two properties into much needed affordable housing.
"The grant funding allows empty properties throughout the county to be brought back into use and in addition provide additional affordable housing accommodation for those in need," he added.
LABC awards reward the best quality design and construction projects in the West of England.
The winners will be announced on July 9, 2010.