The Hull 4 Heroes Veterans Village has received planning permission after almost three years.
The Veterans Village will be a self-sustaining site for the housing and rehabilitation of ex-servicemen and women.
With the designated site straddling two authorities - Hull City Council and East Riding of Yorkshire Council - the proposal had to go through an extra layer of approval.
But after waiting nearly three years, the village has the go-ahead and Paul Matson, founder of Hull 4 Heroes, said he "fell into a blubbering wreck" when he found out.
"I could not understand what was happening to my body, it just fell to pieces, sobbing uncontrollably," he told Forces News.
The Veterans Village is being built on a 22-acre site of land, with one side embracing natural woodland and the other a residential village.
It will also include a horticultural facility and visitors centre with a shop and cafe.
Mr Matson said "everything that you could need when you come out of the forces will be on site".
"We can help a lot of people because it's transitional, so it's all about moving in, helping you and moving you on to somewhere else," he added.
"We've got land all over the city where we can build new houses, there's all sorts of things going on in the background so it's not just a one-stop shop.
"If you do struggle later, you can always come back."
Mr Matson said he's looking forward to starting work on the site, saying: "I wish I had a shovel because I'd be there now.
"I definitely want to put the first shovel in the ground and the amount of time we've waited, I just, sort of, need to do it now."