The sale of the former Nazareth House home in Bishop Street should complete within weeks.
A spokesperson from Oaklee Trinity said a design team has been appointed and is in the process of designing a general needs social housing scheme.
“It is our intention to reengage with the local community when the scheme design proposals are available,” he said.
The housing association intends to develop the Nazareth House site into social accommodation for families and the elderly.
Last year Oaklee Trinity were forced to abandon plans for a supported living scheme at the site for people dealing with alcohol addiction, after resistance from the local community.
“T he plans for housing will go ahead but without the supported living scheme.
“The association to date has been unsuccessful in securing an alternative site in the city side area for its supported housing facility for persons with alcohol dependency and continues to actively pursue suitable sites.”