The facility has been specially designed to allow older people to live longer in their own homes, providing accommodation to those aged 55 and over who require care or support.
The development has received planning approval and will be built on council-owned land between Moor Lane and Harvest Road in Rowley Regis.
Homes England will part fund the scheme with a £3.9m grant.
The three-storey building will feature 67 one-bedroom and 23 two-bedroom flats and communal facilities including a restaurant and a hairdressing salon.
Speller Metcalfe Regional Director Rob Lashford said construction will start in August and is scheduled for completion in early 2021.