Cosmopolitan Housing Association will start work in January 2011 on redeveloping a former home for the elderly at 12 Holly Road in Kensington, Liverpool.
Cosmopolitan was granted planning permission to develop the property in partnership with L'Arche, a Christian-based support provider.
The Grade II-listed building is adjacent to St Sebastian's Catholic Primary School and was empty for five years.
Angela Dodson, from Cosmopolitan Housing Association, said: "It has taken a while to become a reality but through continued partnership working with L'Arche, Liverpool City Council, Hardcastle & Hogarth and Wellcare Construction, we can now bring this building back to life and deliver quality housing for vulnerable people."
Wellcare Construction will convert the property into units for up to nine adults with learning and physical disabilities. Day to day support will be provided by L'Arche Liverpool, with Cosmopolitan managing the property itself.
The £1.3m project is being delivered without grant subsidy and will take around 12 months to complete.
Cosmopolitan Housing Association owns and manages 2,500 homes and 3,500 student homes in Liverpool, Knowsley, Sefton, Wirral, Halton, West Lancashire, Warrington, West Cheshire and St Helens.
Cosmopolitan announced in October it is in merger talks with Chester & District Housing Trust to create an organisation with combined assets of £875m and 12,500 properties across West Cheshire, Merseyside and the North West.