A district council has helped secure £3.7 million in government funding to help build more "affordable" homes.
Communities in north west Leicestershire will benefit from the grant, which will pay for at least 263 homes for people on modest incomes.
Up to £1 million was committed by the district council to three housing associations – East Midlands Housing (emh), Nottingham Community Housing Association and Waterloo Housing Group – to make their funding bids more competitive.
And all the schemes submitted from the district have been supported by the Homes and Communities Agency (HCA).
The £3.7 million was secured following a national competitive bidding process as part of the Government's 2015-18 Affordable Homes Programme.
With a combination of their own funding, the Government grant and gap funding from the district council, the housing associations will invest almost £27 million in the district.
Councillor Roger Bayliss, the council's cabinet member for housing, said it would bring employment opportunities, supporting construction jobs and sustaining businesses.
"This really is fantastic news for North West Leicestershire," he said. "By investing the councils' funds carefully we have been able to unlock a significant investment for the area for much-needed new affordable homes."
A recent county-wide housing assessment indicated that 212 affordable homes need to be provided each year in the district to meet current demand from local residents.