Embassy said it hoped the £5m village would be opened before next winter.
The charity currently rents five properties to 15 former homeless people, including Gabriel Gabor.
The 36-year-old, who said he had grown up in a Romanian orphanage, moved to Manchester in 2013.
Without Embassy, Mr Gabor said he would still be living on the city’s streets.
“I slept rough under a railway bridge near the canals in Castlefield,” he said.
“It was scary and I couldn’t sleep properly. Embassy helped me with showering, toiletries, clothing and shoes.”
Mr Gabor now works as a cleaner in Spinningfields and rents a flat in Lower Broughton, Salford.
“I’ve got a job and I’m trying to do security courses.
“My ambition is to work for a homeless charity. You get to meet and help people.”
