The Not For Profit has submitted a proposal to build a two-storey, 80-bed facility plus 90 independent living units at Kaleen.
Plans for the village show the 90 units will be spread out over four buildings with a maximum height of three storeys.
The 2.65-hectare block was originally bought by the Sir Leslie Morshead Manor aged care home in Lyneham as the site for a 150-bed retirement village put forward to the ACT Government in 2012.
Morshead has since merged with RSL Lifecare, which has now revised the original plan to demolish the Morshead facility. Instead, it will keep its existing services at Lyneham and develop its new services at Kaleen.