A major new complex is expected to replace an elderly people's home and day care centre.
Milton House in Barkerend, Bradford, could be developed and improved if Bradford Council's Executive Committee approves the plans.
The scheme would include 40 flats, a rehabilitation unit, a 40-place day and community centre, shops and housing for families.
The project, which would provide intensive support for the elderly, would be the first of its type in the district.
The idea involves a partnership between the Council, health bodies, Regen 2000 and a housing association. Milton House provides long-term, respite and day care for the elderly. Its users come from a wide variety of backgrounds and are encouraged to celebrate each other's cultures.
The centre was showcased as an example of good practice in bringing communities together at the former Bishop of Bradford's Bradford Celebrates event at the beginning of the summer.
But the cost of improving the existing building would cost between £750,000 and £1 million - more than its current value.
The replacement project is being recommended to next Tuesday's Executive Committee following widespread consultation.
Councillor Kris Hopkins, executive member for community, said: "It is important we match the provision of services to the people using them.
"To do this, we need to work in combination with outside partners to ensure the wide range of services at Milton House are continued and improved upon.
"These proposals would see the development of extra care housing, communal support and the appropriate healthcare facilities needed.
"After a long, detailed and positive consultation process, the proposals we are bringing to the Executive will ensure the highest quality services for the residents and users."
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