Manningham Housing Association (MHA) has secured funding from the Homes and Communities Agency (HCA) to build 76 new properties.
The group will be able to carry out the work to construct the family homes after being given the £2.13 million grant.
This sum will be added to an existing total to meet the £10.69 million that was needed for the project to take place.
Ansar Ali, chief executive of MHA, said he is delighted the grant will enable the group to construct the affordable homes.
“That is despite the fact that the new funding regime is much tougher requiring us to borrow more which will add to the challenge presented by the current economic climate,” he added.