Council Leader Sybil Ralphs said the decision, made by the executive group, was not a risk.
BBC: Staffordshire Moorlands social housing loan criticised
Mr Ralphs said the NHS and patients would benefit if more people were treated as day cases.
BBC: NHS failing on day operations
Work on that is due to start next month and be completed by March 2014, Ms Ralphs said.
Mr Ralphs added that many hospitals had failed to implement new government guidelines on day surgery and were still admitting patients unnecessarily.
David Ralphs, president of BADS, said the situation needed to change.
Describing the plans as "pioneering", Ms Ralphs said demand for social housing in the area was high and that incomes from rent would cover interest payments on the loan.
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