First Choice Homes Oldham is planning a further 48 new homes after securing £1.2m from the Homes & Communities Agency.
The social landlord made the announcement as it completed its first 12 houses in the town.
The housing association took over the ownership of the borough's council homes in February last year.
It wants to build the additional homes in Burnley Lane, Crompton Street, Coleridge Road, Milne Street and Huddersfield Road over the next three years.
The first 12, pictured, were built by Oldham-based Wiggett Construction and designed by local architect Nicol Thomas. Funding of £800,000 was secured from the HCA.
Chief executive Cath Green said: "We have always said that we wanted to hit the ground running and make a big investment to improve housing for residents across the borough. These new properties are great news for the area, and this is just the beginning of our plans, with more homes earmarked to be built over the next three years."
All of the houses were built to Code 4 under the Code for Sustainable Homes, with features including solar thermal panels, rainwater harvesting and heat recovery systems.
Deborah McLaughlin, executive director for the North West at HCA, said: "The completion of these much needed new affordable homes is a major achievement for recently formed First Choice Homes and reinforces both their and our commitment to improving housing provision for local people.
"This marks the beginning of some exciting plans for the area and I look forward to working with partners on the next phase of the development to deliver quality homes that meet local ambitions."