Rossendale Council has granted planning permission for the demolition of the vacant Whinberry View care home to make way for 29 houses in Bacup Road, Rawstenstall.
The plans from Lancashire-based developer B&E Boys were approved at a planning committee, subject to a legal agreement.
B&E Boys is expected to start on site the early part of this year.
Hourigan Connolly advised B&E Boys.
Beverley Dawson, senior planner at Hourigan Connolly, said: "Work can now start on the redevelopment of a brownfield site which has lain vacant and derelict for many years. By working closely with the local planning authority we were able to overcome initial technical concerns and agree on key design features.
"The site is in a prominent position on Bacup Road in Rawtenstall and its redevelopment will significantly improve the appearance of this part of the town. B&E Boys is committed to providing quality family homes by delivering this exciting scheme in the Rossendale borough."