A town has been given £9.5m over the next two years to build 210 affordable homes.
Stockton Borough Council will be given the money to build housing association properties.
The money, from the Housing Corporation's approved development programme, is the highest allocation for anywhere in the Tees Valley.
It will go to housing associations to develop schemes in partnership with the council.
One scheme will be a £3.1m development in Hardwick, in Stockton.
Thirty two-bedroomed apartments and 20 two-bedroomed bungalows for the elderly will be built.
The council will work with Endeavour Housing on the development, which will include a hairdressers, laundrette, consulting room, gym, restaurant and communal gardens.
Councillor Martyn Ingram, cabinet member for housing, said: "The £9.5m allows the council and its partners to provide quality, affordable housing and shows the commitment of the council to meet the differing individual and community needs.
"A lot of existing housing is unsuitable for the frail and elderly and the new extra-care scheme will provide a much-needed community within the Hardwick area and will form a core part of the Hardwick regeneration." Other schemes include new housing in the regeneration areas at Mandale and Hardwick, as well as a 14-unit affordable, rural housing scheme and a 12 bed-space supported housing development.
Bob Gibson, leader of the council, said: "This allocation supports the aspirations of Stockton council in the priorities set out in the regional housing strategy for the North-East.
"Our strategic approach to the delivery of additional affordable homes in the borough has succeeded in attracting this much-needed investment from the corporation."
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