Pendle Council has approved plans for the Grade II-listed Shackleton Hall to be given a £2m refurbishment.
The hall, formerly the headquarters of Colne and District Cooperative Society, has faced years of neglect and has been placed on English Heritage's 'at risk' register.
However, under regeneration plans from PEARL2, a joint venture partnership between Barnfield Investment Properties and Pendle Council, the building will be converted into new offices and a retail arcade while maintaining its Victorian exterior, in keeping with the town's architecture.
Housing Pendle, a provider of social housing in the borough with 3,500 homes, will move in once refurbishment is complete.
Plans are being drawn up by Pendle Council for the future use of Colne Town Hall once Housing Pendle relocates to Shackleton Hall.
Ian Clark, executive director for Housing Pendle, said: "The move is funded from existing budgets, so there's no cut in front-line services. In fact, relocating to Shackleton Hall provides us with an improved reception area, interview rooms and a shop window, making it easier for our customers to access services 24/7."