Pennine Housing has finally been given planning permission for the "extra care housing" which is designed to enable the elderly and disabled to keep their independence.
As well as having two bedrooms, the new £7 million building will include foyer seating, a lounge, a bistro-style restaurant, a health suite, hairdressing salon, guest room and computer room.
It is being developed by Pennine Housing and Calderdale Council.
"It is an exciting scheme which provides a higher standard of homes and makes sure that older people can continue to live independent lives, with the care and support that they need," said Sue Lewis, Pennine's head of housing support.
As well as accommodation to rent, there will be 10 apartments for part-rent/part-buy and seven houses for sale.
Amanda Byrne (Con, Sowerby Bridge), the council's community services spokeswoman, said: "Over the next decade or so, Calderdale will see a significant increase in the number of older people, particularly those aged 75 and over – many of whom will have increasing needs.
"Most will want to remain in their own home for as long as possible, receiving care there rather than moving into a residential home."
The project is expected to take about 18 months to complete and involves demolishing the old flats and bedsits on the site which, according to Pennine, are very old-fashioned and well below modern standards.
As part of the scheme, Pennine will also be providing new changing rooms for local football clubs in the nearby park.

• A similar development at Melrose Court was turned down in March 2007, because the building was felt to be too large and overbearing.