The council has submitted a planning application to build 90 new sheltered housing apartments in Hatfield.
The application is to transform Minster Close, an existing council-owned housing scheme for older people whose 54 flats and bungalows are considered to be no longer being fit for purpose.
RG Carter is expected to start on the site in summer 2020, and the £20m project should be completed at the end of 2021, the council said.
Councillor Nick Pace, executive member for housing and community, said: “We're committed to delivering new, modern homes for our residents that are suitable now and fit for future generations. This accommodation could attract residents looking to downsize from larger homes, releasing those properties to families on our housing needs register.”
RG Carter director Dean Hall said: “We are delighted to be partnering with Welwyn Hatfield Borough Council to transform Minster Close into high quality sheltered housing for the local community.”