A 60-home development on the former Primrose Mill site in Briercliffe, proposed by Calico Homes, has been approved by Burnley Council.
Planning permission for the £6m development on the former textile mill site, off Harrison Street, was approved on Thursday.
The development designed by Halsall Lloyd Partnership will consist of 48 two and three bedroom houses and bungalows, and 12 apartments.
The scheme will provide 30 houses for affordable rent and 14 for sale, as well as 16 affordable rent homes for over-55s.
Ring Stones Maintenance & Construction has been appointed to build the development. Work is due to begin on site in November.
The scheme will receive £1.1m from the Homes & Communities Agency.
Planning consultant JWPC advised Calico.