The redevelopment of the landmark Moyderwell Convent building, in Tralee, Co Kerry, is a joint venture between the town council and the HSE.
It caters for a minimum of 40 elderly people on a daily basis.
It was officially opened by Housing Minister Jan O'Sullivan yesterday.
She also officially opened a new development of 18 houses, which marks the first phase of construction on the former Mitchels Crescent local authority estate site, where 81 run-down houses were demolished two years ago.