City West Housing Trust has landed more a £1.5m of investment from the Homes & Communities Agency for a development scheme in West Salford.
The first phase of work at the Amblecote Green development is now underway, with 73 new family homes and five bungalows for rent due to be completed over the next year.
A second phase of development at the scheme involves City West working in partnership with Salford Council to deliver an extra care facility, with 66 state homes for older residents.
The total investment in the Amblecote regeneration project is £14m including the £1.5m grant secured from the HCA, which will be used to finance the first phase of the scheme.
The investment comes after City West was named as an investment partner by the HCA, meaning the landlord is eligible to bid for future government investment to build more new homes across West Salford.
The HCA finance comes through the 2011-15 Affordable Homes Programme.
Colette McKune, deputy chief executive of City West Housing Trust, said: "The new homes at Amblecote Green will provide a lifeline for dozens of families on housing waiting lists.
"We hope that this development will be amongst many brought forward by City West in the coming months and years and our partnership with the HCA and Salford City Council will go a long way to ensuring more new homes and regeneration projects in communities across West Salford."
Deborah McLaughlin, executive director North West of the HCA said: "This investment and new partnership is great news for City West and for Salford.
"We are proud to be working with the housing association and their partners to help deliver new homes, create jobs and to train young people."
City West is also working with contractor Bardsley Construction on the project.