Housing Association One Manchester is delivering 45 shared ownership houses on the site of the former vehicle factory on Crossley Street in Gorton.
Contractor Mears Group is on site building the homes, which were designed by Triangle Architects.
The £5.8m development, featuring two-, three- and four-bedroom properties, will be known as Crossley Grange.
One Manchester received £1.3m for the project from Homes England’s Shared Ownership Affordable Homes Programme that was bid for via social housing consortium JV North, of which One Manchester is a founding member.
The scheme is expected to be completed in August 2021, and Arcus Consulting was the planning consultant.
Catherine Halstead, senior development manager of One Manchester, said: “This development will bring some much-needed affordable housing to the heart of Gorton.
“One Manchester is dedicated to creating thriving communities and this allows us to continue providing local residents with the opportunity to get on to the housing ladder.”
The Crossley Brothers was founded by Francis and William Crossley in 1867. They launched Crossley Motors in 1906 producing 19,000 cars until 1938.
It was a supplier of military vehicles during the First and Second World Wars making cars and trucks for the British Armed Forces.
The factory closed in 1958.