Dozens of homes will be built on the site of a Victorian pump house.
Plans for 100 council houses on the site in Bedfordwell Road, Eastbourne, can now go ahead after a final funding agreement of £2.2m was confirmed with the government.
Earlier this year, Homes England approved a bid from Eastbourne Borough Council for £7.622m.
The Grade II listed Victorian Pump House, which will also be renovated for homes as part of the project, is a familiar landmark for train passengers using Eastbourne Railway Station.
The council said it has overcome a number of challenges to develop the scheme on the old industrial site which will see a mix of affordable and low-cost ownership homes.
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Councillor Stephen Holt, leader of Eastbourne Borough Council, said: “At a time when we are dealing with a homelessness crisis and unsustainable temporary costs, this is a real shot in the arm for everyone who cares about creating high-quality affordable homes for our residents to live in.
“I’m absolutely thrilled that this transformational council housing project is set to become a reality and I’m hugely grateful to all the dedicated officers who have played a part in getting us to this point.”
Due to its previous industrial use and location next to the railway, significant remediation and decontamination have already been undertaken, with further activity including specialist groundworks, drainage and relocation of utility services still required.
All ecology work has also been carried out.
Councillor Peter Diplock, cabinet member for housing, said: “With so few councils in the UK building affordable homes, it fills me with immense pride that Eastbourne is amongst the few that are.
“The old pumping station site has proved a tough nut to crack, not least because brownfield sites are complicated and costly to redevelop. However, despite years of dither and delay from the previous government, we now have all the funding in place. The affordable homes this development will deliver means this is the most significant one-off council development in the borough for decades.”
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