Hounslow Council is looking to spend £73 million on around 500 new affordable homes.
The homes, along with 48 sheltered housing units and 50 hostel units, would be built over the next five years using £54 million from the housing revenue account together with a £29 million loan.
Councillor Steve Curran, cabinet member for housing, planning and regeneration at the council, said: “This would be the largest investment in affordable housing in the borough for a generation.
“Now we have the control over the income we receive from our housing stock, we can use this to invest in building much-needed new homes, and improving existing housing.”
As well as building new homes, the plans include rebuilding sheltered housing at Rectory Court and Hogarth Court to provide 48 new sheltered flats, and refurbishing Frogley House.
The 50 hostel units would be built as temporary accommodation for households who need emergency accommodation.
The plans include 88 new affordable homes built as part of the Heston leisure development, as well as a further 171 at priority sites across the borough owned by the council.