A centre for old people in Hove will be redeveloped thanks to a £1.8 million Government windfall.
Knoll House, in Ingram Crescent, Hove, will be turned into a care centre for older people following a successful bid by the city council and local NHS for the cash.
Last year Brighton and Hove City Council consulted people on possible changes to Knoll House, including either closing the residential section or getting someone else to take it over.
Councillors and unions campaigned against the changes and the council decided not to go ahead.
When work is completed in the spring of 2004 it will be a key centre for intermediate care, which bridges the gap between hospital and home.
The refurbishment will mean closing Knoll House later this year for about 18 months.
Six permanent residents will be transferred to new homes.
Local Labour councillor Pat Murphy, who led the campaign against any scheme to close the residential side of Knoll House, said: "It is exceedingly good news. A lot of hard work was put into the campaign."
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