NomadE5 is set to build 500 new affordable homes in the north-east of England after being awarded a £25m loan from Abbey.
The housing association is also set to receive an additional £25m from the Homes and Communities Agency, allowing it to build each home at an average cost of £100,000, Inside Housing reports.
"We have been able to negotiate sensible terms in a very difficult economic climate," said Keith Lorraine, Chief Executive of NomadE5 parent association the Isos Group, as quoted by the publication.
He added: "The association will still be able to live within its financial constraints, with headroom and capacity to develop long into the future, because we have managed our affairs prudently."
NomadE5 reported last month that it was awarded "one star with excellent prospects for improvement" during its February inspection by the Audit Commission.
Domini Gunn, Audit Commission Lead Housing Inspector for the north-east, added that the organisation has a "strong level of confidence" that NomadE5 will be able to achieve these improvements.
