Norfolk County Council bid for the cash during the negotiations on the in-principle county deal devolution agreement, which was signed last December.
County council leader, Councillor Andrew Proctor, said: "Delivering more housing, where it is needed, is a key part of the county deal.
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"We have worked closely with Norwich City Council to identify opportunities to do this and I’m delighted that the Government is providing £2 million to make it happen.
"It shows how the county and district councils can work together to deliver local priorities, under this deal."
Norfolk County Council and the Government have agreed, in principle, a county deal, to transfer funding and powers to this area – a process known as devolution.
Subject to reaching final agreement later this year, the Government will enable the county council to invest in areas such as better transport, skills, job opportunities, housing and regeneration, tailored to the specific needs of local people.
