Council flats look set to be demolished to be replaced with new family houses.
If the scheme goes ahead, it would see 81 homes on Troutbeck Crescent, Mereside, bulldozed.
The properties, which are either one-bedroom flats or bedsits, have become difficult to let and would need investment of £3m over the next 30 years to bring them up to modern standards.
However housing chiefs say grants would be available for new-build projects on the land where 70 new homes could be built.
The council’s executive is being recommended to approve the demolition when it meets on Monday.
Of the 81 flats which were built in the 1960s, 77 are rented out by Blackpool Coastal Housing (BCH) and 35 are empty after re-letting was stopped in late 2016.
Existing households would be rehomed and would qualify for home loss payments of £6,200.
Clifton ward councillor Luke Taylor said residents were being consulted about the proposals.
He said: “There is quite a high turnover of tenants at Troutbeck Crescent and we don’t feel the properties are fit for purpose.
“There is a consultation process taking place and I would urge residents to take part.
“However I think it would be a good idea to get some new housing stock on Mereside, particularly on this prominent site for Blackpool.
“We have already seen welcome investment in the area with the new police station being built on Clifton Road in the ward.”
A council report says the flats are unpopular due to small kitchens and bathrooms and costly heating systems, while work is needed to repair balconies.
Over the next 30 years, £38,427 would need to be spent on each flat to bring it up to modern standards.
A total of £500,000 would need to be invested in the next five years.
There are currently 42 one-bedroom flats and 39 bedsits located within three-storey blocks.
The flats have experienced high levels of anti-social behaviour and higher levels of rent arrears.
New affordable housing development on the land could be supported by grants from government body Homes England.
This is likely to be available at a rate of around £30,000 per home.