Lincolnshire County Council will develop a special new facility for the elderly in Lincolnshire, which is dubbed by the authority as the future of care.
Land in Nettleham has been put aside for the extra care housing, but more are expected to be built in the county in the near future.
Extra care housing is an alternative to residential care for those still able to be independent, but help is on site if needed.
It can also be used for those in sheltered accommodation, and offers them more options.
Councillor Graham Marsh, Executive Member for Adult Services, said: “This will be modern care and support of the future.
“We are looking at significant contributory investment in Extra Care Housing across the county, committing funding and assets of over £2.5m between now and the end of 2014/15.
“Now we’ll start work with incentivised developers and providers around possible locations and schemes, with an emphasis on areas of demand such as Sleaford and East Lindsey.
He added: “When the Linelands residential home closed in Nettleham, we made a promise of investing in an alternative for the area and I’m so pleased to be getting the ball rolling on what will ultimately be a superb facility here.
“It will help to keep people independent and retain their home comforts, but with round the clock care on hand if needed.
“Each resident will have their own front door, kitchenette and so on, with properties tailored to individual needs.
“This will not only help people maintain a good quality of life in the community rather than going into residential care, but we also hope it will result in a reduction in 999 calls and avoidable hospital admissions.”
The plans will now be prepared to go through procurement to find a land developer, and it’s hoped work will begin in early 2014, and in use by 2016.