Pozzoni has been given planning approval for a £20m extra-care housing scheme and community well-being centre in Ormskirk.
The development, known as Brookside, was made possible after a multi-agency consortium gained Government funding.
Lancashire County Council, NHS Central Lancashire, West Lancashire District Council, Age Concern, U3A, Alzheimer's Society and Arena Housing secured a grant of £7.32m to develop the housing scheme in July last year as part of an £80m cash injection into extra care housing.
The remainder of the cost will be met by Arena Housing, the County Council and the NHS.
The new development replaces the County Council's existing care home on part of the site and will create 111 extra one and two bedroom apartments for those in need of care.
Len Andrews, director of Pozzoni, said: "When our client, Arena Housing Association, received funding for this scheme in July last year, we were delighted, however the funding came with a couple of stipulations; the first being that planning would be achieved by March 2009 and the second that the project should start on site by September 2009.
"We are delighted we have achieved the first milestone for our clients in obtaining planning approval, securing the funding arrangements from the Department of Health, and enabling the scheme to move forward to its next stage."
The complex will be run by Arena Housing, a Liverpool-based company that manages 14,000 homes in the North West and Yorkshire.