The money will be used to regenerate part of the Willow Estate in Thorne.
Jephson Homes Housing Association has teamed up with Doncaster Council, the Homes and Communities Agency (HCA) and Ignite Homes to create 73 one-, two- and three-bedroom homes on a site that has been vacant for the past decade. It's the first scheme to benefit from the new Delivery Partner Panel.
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Stuart Shore, Jephson northern regional director, said: "We're delighted to get started on this development of high-quality homes for local people. We're very grateful to both Doncaster Council and the HCA for their support to make this exciting development possible.
"This is a key site for regeneration of the area and our plans have been very well received by residents given the high need for affordable housing in the area."
The work will be completed in two phases – 42 homes are expected to be built by March and the other 31 will be finished in 2016.
