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The £30m contract is part of the HCA's Affordable Homes Programme, set to deliver 80,000 new affordable homes across England by 2015.
The Matrix Housing Partnership, led by the Accord Group, will develop the homes over the next four years, helping to create much needed affordable housing in the region.
In the UK, social housing lists have almost doubled in the last 13 years, with an estimated five million people now waiting for a home.
Key housing projects that will be partly funded by the grant include the Eastern Gateway development in West Bromwich, which will create 70 homes for rent and outright sale.
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Another 80 affordable homes will also be built on the site of the former Marfield School in Redditch, with work anticipated to start later this year.
New homes are also planned for other parts of the region, including Birmingham, Coventry, Dudley, Walsall and Wolverhampton.
Chris Handy, Chair of the Matrix Housing Partnership Strategy Group: "We submitted a high-quality and innovative bid which included a broad range of developments across the West Midlands, so we are delighted to have secured such a significant allocation from the Homes and Communities Agency.
"Building affordable homes for local people is a key priority for us and this grant is testament to our strong delivery record, commitment to partnership working and our ability to provide good quality housing."
Christine Seaton, Area Manager for the HCA, Midlands: "This agreement is great news as it will see much-needed new homes delivered across the Midlands and make a significant difference to the local communities in which we work.
"Our local teams have worked closely with Accord and the Matrix Partnership over recent months to ensure that their programme brings the maximum benefit for local people."
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