The Newcastle-based housing provider Home Group is borrow up to £61m through the Government’s Affordable Housing Guarantees programme, enabling it to build an additional 642 affordable homes.
Around 350 of these will be built in the North East between 2015 and 2017.
The group has already pledged to create 764 new properties before then.
The £3.5bn Affordable Housing Guarantees programme enables housing associations to use a government guarantee to secure private investment at more competitive rates than they would otherwise.
Home Group, which has a turnover of £328m, has been named as one of the first eight associations to receive the assistance.
Chief executive Mark Henderson said: “We’re delighted to have been selected as one of only seven housing associations in this first wave of Affordable Housing Guarantee funding.
“Greater access to funding at favourable rates will assist us to provide much-needed homes and provide great value for money for our customers and the taxpayer.
“As one of the UK’s largest affordable housing developers, this finance will contribute to the development of 642 homes throughout England as part of our existing development programme.”