The money will help create new jobs and will mean more new homes available to buy in 2010, according to Barratt.
"This is another welcome boost for the local economy and great news for anyone hoping to buy a new home of their own in Whitwood," said Chris Burton, Managing Director at Barratt Yorkshire West.
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"This is a major national scheme and to qualify for the money we had to meet some extremely tight criteria. The fact that College Mews was chosen is a great vote of confidence in this outstanding new development."
The money is part of a £450 million Government scheme called Kickstart, which has been distributed to selected developments across the country.
HCA Head of Area, Naz Parkar said: "This Kickstart investment is part of the response to the housing downturn, using funding from the Homes and Communities Agency to support homebuyers through the current market conditions. It is good to see that this investment is creating jobs and helping build the homes people need in places where they want to live."
(CD/GK)
