Calderdale Council is planning new affordable homes and apartments for people to be supported between leaving hospital and returning home.
The Heatherstones site at Skircoat Green, Halifax, owned by Calderdale and Huddersfield Foundation Trust, has 13 empty terraced house and eight unused apartments.
Councillors plan to purchase the properties and work alongside health organisations and Connect Housing to bring them back into use.
The apartments would be used by hospital patients who don’t need the high level of support given in hospital but who are considered not ready to return home.
The houses which have been empty since 2009 would be rented.
Calderdale Council’s cabinet member Coun Bob Metcalfe, said redeveloping the apartments would help avoid long hospital stays and help people remain independent.
A full council meeting on Wednesday will discuss the proposals further.