Blackpool Council has agreed to sell the site of a former residential centre.
The deal will see the former Hoyle House site on Grange Park sold to Progress Housing Group with the granting of a 99 year lease in return for payment of £150,000.
Hoyle House closed in 2013 and the building was demolished in 2016.
Planning permission has been granted to redevelop the site including the construction of six two-storey semi-detached houses, two semi-detached bungalows and three two storey mews homes.
There will also be an assistive technology centre to help people live independently, with seven self contained flats and a staff communal area on the site on Argosy Avenue.
A council report says the council successfully bid for capital funding of £645,000 from the Department of Health’s Housing and Technology Fund to build the flats with assistive technology and associated communal accommodation on the site.
It adds: “Blackpool Council has received the first tranche of the scheme funds, £322,500, with the final payment due in December 2017.
“All additional development costs incurred will be met by Progress Housing Group.”