How Planning has submitted a reserved matters application to Preston City Council on behalf of Taylor Wimpey for the redevelopment of the former Whittingham Hospital.
The council voted unanimously to extend the time limit on outline planning approval earlier this year.
Outline plans include 650 homes, 9,000 sq ft of commercial space and community facilities.
The scheme brought forward by Taylor Wimpey is for 150 homes comprising a mix of two-bed, three-bed and four-bed properties including apartments, detached, semi-detached and mews housing, 17 of which will be affordable units.
The application represents the first phase of development on the land to the north of the site, known as Cameron North.
Richard Barton, associate at How Planning, said: "We have been working closely with Taylor Wimpey for a long time to ensure this development meets all expectations and ambitions for the area. It will create many new homes helping to boost the local community, the rural areas and wider borough of Preston and will act as a catalyst for the transformation of what is currently a vacant and unusable site."
How Planning said the success of the scheme would pave the way for the future development of the entire site.
Taylor Wimpey was selected as preferred developer in 2007 and received consent for 650 homes in 2011. Taylor Wimpey will deliver the first 150 homes but the Homes & Communities Agency said in February that it would seek other developers for the remaining 500 units.