The Homes & Communities Agency has allocated £886m towards 2,697 schemes across the country, with the North West granted £177.5m. The HCA investment will see 8,500 units developed in the region.
The funding is just over half of the £1.7bn 2015-18 Affordable Homes Programme, which aims to contribute to the government's goal to deliver 165,000 new homes by March 2018.
The homes developed through the programme will be made available through affordable rent along with an element of affordable home ownership.
Previous programmes have allocated all of the fund in one batch, however this time the HCA said that the remainder of the funding would be made available through continuous market engagement. Bidders are encouraged to approach the HCA for funds as and when development opportunities arise during the 2015-18 period.
Andy Rose, chief executive of the HCA, said: "We have set in place a solid delivery programme that will ensure a smooth transition from our current affordable homes programme, and that delivery can start promptly.
"The allocations announced today are closely aligned with locally identified priorities and offer value for money and increased certainty of delivery, with over 75% of the homes we are funding on firm schemes."