DUDLEY Council has pledged to build 123 affordable homes across the borough over the next two years.
They will be situated on brownfield sites in Kingswinford, Dudley, Woodsetton and Sedgley and Coseley.
All the proposed homes will be for rent and will range from one-bedroom apartments up to five bedroom houses.
A number of the homes will be bungalows and properties specifically designed for people with disabilities.
Money has been made available for the scheme after Dudley Council was able to borrow an extra £6million from the government's local growth fund housing revenue's account borrowing programme.
Cllr Gaye Partridge, Dudley Council's cabinet member for housing, said: "We are doing all we can to provide affordable options in the borough.
"We will be particularly focusing on providing new smaller houses and homes suitable for older people and those with disabilities."
Work is set to start on the homes by 2015 and is expected to be completed in 2017.