The funding will allow housing associations to purchase unsold stock from the private sector, increasing the availability of much needed affordable housing.
Ms Sturgeon said: "We are taking decisive action, within our powers, to help alleviate the brunt of the credit crunch on developers, and assist the delivery of more affordable homes.
"Housing associations will be able to buy off the shelf stock from the private sector. It will help the hard pressed construction industry and increase much-needed affordable housing.”
The funding will support projects across Scotland:
• £3.5 million will help accelerate site starts/construction on five projects in Highland, Stirling, Fife, West Lothian and South Ayrshire
• £4.1 million to fund land purchase by housing associations for future developments in Orkney, Perth & Kinross, Falkirk, East & West Dunbartonshire, and Argyll
• £1.4 million to fund purchase of suitable unsold stock from the private sector in Falkirk and Perth & Kinross