South Ribble Borough Council has committed £6.6m to the Jubilee Gardens extra care facility.
Caddick Construction began work on the new-build in December and the confirmation of funding will enable it to provide a wide range of community benefits, such as the creation of more than 80 jobs.
There will also be a strong focus on skills and training, with more than 52 weeks of apprenticeship provision, support for unemployed people and equality and diversity training for the company and its supply chain.
Coun Paul Foster, leader of South Ribble Council, said: "I am so pleased that we are able to deliver added value to our communities with the new extra care development.
"We have been champions of ensuring added value wherever we can through our projects and were making sure that we deliver real social value alongside everything we do.
“We are delighted to work with Caddick Construction to deliver this innovative social value programme – and its set to provide support and opportunities to many people across the borough.
“Together, we are committed to creating opportunities, fostering inclusion, and building a stronger, more resilient community for generations to come."
Paul Dodsworth, Caddick Construction Group’s managing director, added: "Caddick Construction is proud to collaborate with South Ribble Council on this initiative. By combining our efforts and resources, we can make a meaningful difference in the lives of local residents and contribute to the sustainable development of the region."
Enjoyed this? Read more from Tim Aldred