Affordable housing providers in England will be able to bid for a share of up to £225 million to deliver the additional new homes.
Mr Prisk launched bidding guidance for the scheme, which is based on the highly successful and over-subscribed Affordable Homes Programme.
The Affordable Homes Programme is set to deliver 170,000 new homes by 2015 - with almost 63,000 of these already completed.
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On top of this, the fund could help deliver up to 15,000 additional new affordable homes.
The fund is intended to work alongside the government's Affordable Housing Guarantee, which reduces the risk for lenders by providing a government pledge to underwrite debt taken out on eligible housing projects.
Providers can apply to combine the cash with the guarantee: a share of the £225 million funding can be used as a grant towards a project, while the guarantee allows them to borrow the remaining finance at below market lending rates - enabling them to deliver more affordable homes.
Housing Minister Mark Prisk said: "The £225 million fund will not only provide a financial boost for successful house building projects, it will also unlock vital private finance to get spades in the ground and workers on site.
"Paired with the groundbreaking Affordable Housing Guarantee, this cash injection will help get Britain building, delivering up to an additional 15,000 of the high-quality affordable homes this country wants and needs."
(CD/GK)
