Helena Partnerships has been given a £90m loan to develop 1,400 social and affordable homes over the next five years in the North West.
Warrington Borough Council gave the housing association the funding to build new affordable homes in Warrington, St Helens and elsewhere across the region.
Warrington councillor Terry O’Neill said his council had been one of the first local authorities to lend finance starting in 2010 but added that other councils were now starting to do the same.
He added: “This is good news because there’s currently a shortage of long-term finance due to the banking crisis, and as a result the UK is building about 100,000 new homes a year fewer than we actually need.
“It’s also good news for the local and regional economy in general because every £1 spent on housebuilding leads to £4 being spent in the wider economy.”
Helena Partnerships chief executive, Rob Young said: “This funding will help us to realise our ambitions to create over 1400 social and affordable homes in St Helens, Warrington and across the region over the next five years. The geographical links between St Helens and Warrington provide a real opportunity to positively influence the regional economy.”