Yes, please forget FTP. You have SFTP already if you are connecting with SSH. With SFTP, what you ask can be done in two phases:
One step is to
get the directory ready for multiple users.
The other step is to lock the one user into an SFTP chroot. For that you'll need to familiarize yourself with several directives from the manual page:
In particular look up each of these:
Code:
Subsystem sftp internal-sftp
Match Group webmasters
ChrootDirectory /var/www/html/
AllowTCPForwarding no
X11Forwarding no
ForceCommand internal-sftp
Which version of openssh-server are you running?