145 new homes, including 36 new council homes, are to be developed in Sandwell.
Sandwell Council announced the partnership with Kier Partnership Homes.
Land earmarked for development includes the former Bolton Court site in Ocker Hill and Tibbington Terrace, both in Tipton; Doulton Road, Rowley Regis and Kent Close in West Bromwich.
The project will deliver 36 new council homes, seven at Tibbington Terrace and 29 at Kent Close, with a further 109 homes for private sale across the Boulton Court, Tibbington Terrace and Doulton Road sites.
Kier will develop the sites and build the council homes under licence for the council which will be added to Sandwell's council housing stock.
Funding to build the council homes has come from the council's Housing Revenue Account and receipts from council properties which have been sold under Right to Buy.
The new council homes for rent will be built first, with work expected to start in the New Year and scheduled for completion in 2016. The private properties are scheduled to be on the market from 2016-2018.
The deal will also create a number of construction training places and construction jobs for local people.
(CD/JP)
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