Langtree's £250m housing development at Festival Gardens in Liverpool has been shortlisted for government funding as part of a £1bn infrastructure programme.
Festival Gardens was among a list of 36 schemes around the country that will now enter a period of due diligence before qualifying for the public finance.
Langtree has planning permission for 1,300 new homes in 26 blocks on the 100-acre site next to the River Mersey in south Liverpool. Part of the 1980s festival garden was restored next door using public money and opened in 2012.
Delivery of the residential element of the project stalled in the downturn.
The government has pledged £1bn to unlock stalled housing sites by providing cheap loans for roads, services and remediation.
Eric Pickles, Communities Secretary, said: "This government's long-term economic plan is getting Britain building again. Residential construction is now at its highest level since 2007 and continuing to rise, and 216,000 new homes were given planning permission last year.
"We are supporting locally-led development, and this £1 billion programme will help unlock or accelerate over 200,000 new homes across the country. This is part of our wider package of housing programmes to support home ownership, increase investment in the private rented sector and further increase house building."