Some 77 homes are being constructed Folkestone in Kent from housebuilders Chartway and Orbit Homes.
Construction will start in February after planning permission was secured.
The development will offer a mix of two and three-bedroom homes for social rent and shared ownership.
Oliver Jolley, group chief development officer at Chartway, said: “We are delighted to be working with Orbit Homes to deliver this much-needed development in Folkestone.
“The project not only aligns with our vision of creating sustainable communities but also reinforces our commitment to partnering with organisations that share our passion for delivering homes for everyone.”
The project will include public open spaces across the site, providing residents with recreational areas.
The new homes will be located near Biggins Wood Road in Folkestone.
Brian Nearney, regional managing director at Orbit Homes, added: “We are delighted to be working with Chartway and the Local Authority to expand the availability of quality new affordable homes in a mix of tenures that directly support local housing need.
“This partnership marks another important milestone in our strategy to invest and deliver a range of new affordable homes across the South at scale, and we are keen to work alongside more developers and local authorities as we look to help ease housing challenges by building more safe, warm and well-designed new homes.
“We are excited about creating a new community that is well connected to surrounding facilities and existing neighbourhoods and we’re passionate about supporting our new customers in making their new homes, together.”