LB Hillingdon is among the first councils to sign contracts to deliver new homes as part of the Homes & Communities Agency Affordable Homes programme.
The council will deliver 225 homes with £3.4m of funding.
The Affordable Homes Programme, which runs from 2011-15, aims to increase the supply of new affordable homes in England. Through the period, the HCA will invest £4.5bn in affordable housing through the Programme and through existing commitments from the previous National Affordable Housing Programme.
The majority of the new programme will be made available as Affordable Rent with some for affordable home ownership, supported housing and in some circumstances, social rent.