Calderdale Council is ploughing £500,000 into extra care for older people with dementia.
The authority is putting the money towards a new scheme aimed at helping people to live independently.
A site in Brighouse could provide housing for 46 adults with dementia and learning disabilities, offering personalised care services.
Funding has been awarded by the Department of Health and a grant application will now be submitted to the Homes and Communities Agency for the rest of the cost.
The Council's cabinet member for adults, health and social care, Councillor Bob Metcalfe, said: "There are about 2,300 people with dementia in Calderdale, a figure set to rise by 75 per cent by 2030.
"We only have a limited number of extra care schemes at the moment. Yet we know those who live in such schemes are less likely to need residential care.
"By providing more specialised extra care housing now, we can ensure people stay in their own homes for longer."
Calderdale's Cabinet member for economy and environment, Councillor Barry Collins, said the Council wants to double extra care places by 2015.
"This proposed scheme will help us reach that target," he said. "We have identified a potential site in Brighouse and are working on getting funding in place to make it a reality."