The funding from Homes England will go towards Rochdale Boroughwide Housing’s 55-unit development in Lower Falinge, which is being built by contractor Engie.
Construction work started on the site in March and the homes, designed by architecture firm Levitt Bernstein, are a mix of 19 two-bedroom houses and three houses with three bedrooms, alongside 20 one-bed apartments and 13 two-bed apartments. All of the homes will be available through affordable rent.
The project involves the demolition of five 1960s tower blocks.
Engie was selected as lead contractor after RBH, a housing cooperative, ran a procurement process advised by property consultancy Avison Young and law firm Pinsent Masons.
Clare Tostevin, director of growth at RBH, said: “Being able to live in a good-quality home has never been more important. Partnering with Engie and Homes England on this scheme is the latest important milestone in delivering the modern homes and amenities that the community told us are so greatly needed in the town centre.”
Ed Carroll, Engie’s head of major projects, added: “Engie is focused on working with partners to improve the environment we live in. These new and modern homes will be a fantastic addition to Rochdale town centre and will complement the area’s wider regeneration.”