Dudley Council said the 123 properties will be built across Dudley, Coseley, Kingswinford, Woodsetton and Sedgley.
The homes will range from one bedroom apartments to a five bedroom house and will include bungalows and homes specifically built for people with disabilities. All of the properties will be built on brownfield land.
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Councillor Gaye Partridge, cabinet member for housing, said: "Far too many people cannot afford to buy or rent a home of their own, so we are doing all we can to provide affordable options in the borough. We have looked carefully at the local need and we will be particularly focusing on providing new smaller homes and homes suitable for older people and those with disabilities.”"
Works on site will start by 2015 with all completions by 2017.
(CD/IT)
