Gentoo Construction has been named the preferred contractor to develop around 190 new homes in Durham and Darlington.
£20m is to be invested in the new properties, homes and communities organisation livin confirmed.
Areas across the county, such as Ferryhill and Newton Aycliffe, will benefit from the new homes for affordable rent as well as private sale, with construction at the first development location expected to start in September later this year at the Oak Tree Pub site in Newton Aycliffe.
The development will comprise eight two-bedroom apartments for affordable rent, especially for people aged 55 and over.
Wayne Harris, executive director property and development for livin, said: "We have a track record of building high quality, affordable new homes to meet the housing need and aspirations of our communities and recognise that investing in communities is integral to creating sustainable places to live and work."
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