The company is delivering The Cuttings scheme on behalf of the Harrogate Neighbours Housing Association (HA).
A total of 55 apartments will be built, including communal facilities to support the well-being of both residents and the wider community, as well as a restaurant, hair salon and multi-function rooms.
The project, which is supported with over £3m from the Homes and Communities Agency, is scheduled to be completed in June 2018.
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Paula Broadbent, Retirement Solutions Director at Keepmoat, said: "We are excited to be starting works on this new development in Harrogate with our partners. This extra care scheme will help to drive forward our shared ambition of expanding the choice of high quality retirement housing to support people in later life.
"The Cuttings is the tenth extra care housing solution that Keepmoat has provided in North Yorkshire over the last 12 years, and Keepmoat and Harrogate Neighbours have worked in partnership to secure the delivery of this development, overcoming a number of challenges along the way.
"The scheme will not only provide sustainable housing with care for Harrogate Neighbours residents and people right across the borough, but it will also enable the development of additional specialist housing for older people on Wetherby Road once Harrogate Neighbours decant from their existing site."
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