Ti West wrote and will direct, with the shoot set to start in mid-March in Connecticut. It is casting now.
Braun, Kass, Fessenden and Peter Phok are producing.
Dark Sky is a division of MPI Media Group. MPI's Malik Ali and Greg Newman were introduced to the project by Marie-Therese Guirgis.
The story is about a college student who signs up for a babysitting job and finds more than she expected.
West has previously directed The Roost, Trigger Man and Cabin Fever 2: Spring Fever.
Kass and Braun, who executive produced A History Of Violence, have also set up the adaptation of John Wagner's graphic novel Button Man at DreamWorks.
Larry Fessenden of Glass Eye said: 'I am excited to be working with Ti again, and with this team and a few more resources. Ti's ability to root his genre films in the rhythms and details of everyday life is what makes them resonant and startling. This one will be a doozy.'
Braun added: 'This film is a horror classic in the making and we are excited to be working with MPI Media on this and hopefully future projects.'