A £900,000 resource centre is being planned for community use and voluntary groups in Hyndburn.
The facility will be based at the former St James' School house, in Cannon Street, Accrington, after the council bought the building for £120,000.
The scheme will breathe new life into the Victorian building after a previous deal to convert it to a resource centre for the eldery fell through.
Facilities at the two-storey building will include nine offices and a staff kitchen upstairs, and a community hall, meeting rooms, computer facilities and toilets downstairs.
The conversion will include the building of an extension to the front of the building. Work is expected to start this week and be finished by the second week in July next year.
New windows and roofing will also be fitted.
Once the work is complete, it is expected the building will be run by a management committee made up mainly of residents, with some councillor membership.
The offices will be allocated to vountary sector groups in Hyndburn who will pay a service charge, yet to be decided, instead of rent.
An interim management committee has been set up with representation from Hyndburn CVS, Hyndburn Community Empowerment Network, and Neighbourhood Renewal Community Voice.
Income will be generated by the hire of the downstairs facilities, including the hall, for social events.
Funding for the project has come from the European Regional Development Fund, and the government's Single Regeneration Budget.
Ian Marfleet, project development manager for Hyndburn First, said: "There's a number of excellent voluntary sector organisations in Hyndburn, but there's no space across the town centre and Hyndburn. We are hoping to provide a dedicated centre with a number of voluntary sector groups under one roof, so people find it easier to access the services available."
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