Telford & Wrekin council's cabinet approved a new 'Housing Intervention Fund', at its cabinet meeting today.
The fund will be used to increase the range and choice of affordable homes including specialist and supported housing.
The authority said it would also help to maintain independent living across the borough and help first time buyers to access the property market and become home owners.
The council said stalled development sites would be targeted through the fund to bring new homes back into play.
As part of the Housing Intervention Fund, the council has also proposed a new Telford Home Loan Scheme to support households across the borough.
The council said it is looking to provide affordable and flexible loan opportunities given the financial pressures on households from the current financial climate.
It said they would include home improvement loans, energy efficiency loans, landlord loans, empty property loans and loans for first time buyers and key workers.
The council added that up to 940 new supported and specialist accommodation units, helping residents with mental and physical disabilities, care leavers and veterans, are set to be delivered between 2022 and 2025.
Councillor Richard Overton, Telford & Wrekin Council’s Deputy Leader and Cabinet Member for Housing, Enforcement and Transport said: “In Telford and Wrekin we are focused on supporting our residents by delivering more accessible, sustainable and affordable homes.
“We have made great strides to drive new housing developments forward locally but we know there is more to do.
“The Housing Intervention Fund aims to add value and tackle failures in the market – creating more housing opportunities for our residents which meet their needs.
“The fund will build on current housing schemes and strategies and isn’t intended to replace or duplicate investment or delivery by existing partners such as developers and Homes England.”