Around 800 jobs could be supported building up to 500 homes in Edinburgh for rent at below market rates, the Housing Minister has announced.
The homes could be built and let at a more affordable rent before being sold on, with existing tenants given priority to buy.
The Scottish Government will underwrite council loans to jointly purchase the properties with developers under the National Housing Trust initiative.
Edinburgh council has already provided loans of more than £45 million for 422 NHT homes, with the construction of a further 94 homes in the Western Harbour area due to start soon.
The Scottish Futures Trust, which is responsible for taking forward the NHT initiative, expects the number of NHT homes delivered in communities across the country to exceed 2,000.
Housing Minister Margaret Burgess said: “Despite Westminster’s cuts to our capital budget the Scottish Government is doing everything possible to stimulate growth, maximise our investment in housing and deliver our target of 30,000 new, affordable homes over the lifetime of this parliament.”
Edinburgh’s housing leader Cammy Day said: “NHT has been a great success in Edinburgh with huge demand for these affordable homes.
“We have responded to this demand with this new round of NHT, which will enable new affordable rented homes to be built.
“The council has already provided loans of over £45 million for previous phases of National Housing Trust, enabling 422 affordable homes to be built at Telford Road, Lochend, Granton Waterfront and Sailmaker Road.”