The proposal would see the 37-bedroom former Blythewood Care Home in Port Elphinstone converted into flats.
A public consultation event is set to take place in the New Year, as well as a discussion at an Inverurie Community Council meeting.
The application was submitted by Lippe Architects and Planners.
Blythewood was first converted from a private residence into a care home in the early 1950s. However, it has been empty for two years after residents moved into the new £10 million Bennachie View facility.
Surplus to requirements, the building was put on the market by Aberdeenshire Council. It was agreed the building would be sold to Bill BT Ltd during a Garioch area committee meeting last year.
The sale required that if it was converted into housing, at least 50% of the homes built must fit affordable housing criteria.
Ideas to convert the building into affordable homes had been welcomed, with suggestions it would help to alleviate the 14,000 people currently on the Aberdeenshire Council house waiting list.
Councillor Neil Baillie, who represents Inverurie and District, encouraged members of the public to come along to the proposal meeting on February 19.
He said: “I would highly encourage the community to come along to the meeting to have their say.
“That site has been so closely linked with the Inverurie community for such a long time, I’d like to see as many people as possible voice their opinions and share their ideas for the new plans. It would be good to see it go to a valuable use and that is for the community to decide.”