The council has agreed to dispose of two parcels of land to developer Salix Homes to bring forward a 157-unit development in Seedley.
The sites total 3.8 acres and are currently given over to lawns, previously occupied by terraced houses demolished in 2008.
The first site is bordered by Liverpool Street to the south and Alexander Street to the north, and the second is bounded by Kara Street to the south, Greenland Street to the north and is intersected by Harmsworth Street.
The proposed residential scheme from Salix Homes and housing provider Step Places is a mix of one-, three- and four-bedroom houses, and one- and two-bedrooms flats.
Of the 157 homes, 101 would be affordable tenure, under the plans which still need to be granted approval. The council is looking to acquire 17 units – nine one-bedroom apartments and eight houses – using grant funding from the national Shared Ownership Affordable Housing Programme.
However, as the nine apartments are within a 14-unit block, it is possible that the council will also purchase the remaining five flats to own one complete block.
According to council documents on the sale proposals, Salix commissioned a site investigation which found abnormal groundworks and cost £1.4m. This was around £900,000 more than the company had legislated for with its initial bid of £4m.
The council has agreed to foot some of this bill and, together with the cost of purchasing 17 units, said it anticipates a land receipt of £3.2m from the disposal.
NJL Consulting is planning consultant for the Seedley scheme, which will be known as The Neighbourhood, and BDP is the architect. Urban Green, BWB Consulting and SK Transport are also on the project team.
Salford mayor Paul Dennett also approved the disposal of land at the Mocha Parade retail centre in Lower Broughton to grocery chain Lidl to bring forward a supermarket.
Mocha Parade, situated close to the River Irwell, has suffered decline in recent decades and only eight businesses remain at the precinct, which opened in the early 1970s.