Greener and better designed affordable housing is to be built in Cornwall and the Isles of Scilly.
The affordable homes will be built to a high quality
The first allocation of £22m from the Housing Corporation will see 522 new homes across the area.
These will include larger homes for families, homes for older and vulnerable people and homes in rural areas as well as urban centres.
Meanwhile, people in Truro are being consulted about plans for a huge expansion of the city.
Later this year the government will decide how many homes should be built in and around Truro over the next 18 years.
It could be as many as 6,500, but the strategic transport manager for the county council said fears about road congestion should be allayed by a planned park and ride scheme, more trains into the city and a new distributor road.
Candy Atherton, the Housing Corporation board member with special responsibility for the South West, said the extra homes were "greatly needed" by local people.
"This investment will also help to build and support thriving local communities where people will want to live and work," she said.
The new homes will be a mix of affordable rent, and affordable sale through low-cost home ownership for local people priced out of the private market.