The former Derby Home in Lancaster.
The plans have altered slightly since they were first submitted to the council last January, and were re-submitted in December after changes were made to the affordable housing provision that could be provided.
Council officers have now recommended the plans be approved when they go before council officers on Monday February 1, subject to various conditions.
Oakmere Homes has applied to build the new houses, which include a three-storey building comprising eight two-bed apartments and the conversion of Derby Home to eight one-bed apartments.
The former Royal Albert Hospital, now Jamea Al Kauthar Girls Islamic College.