Hundreds of affordable homes are being planned for Herefordshire to help solve what the council calls its "desperate housing plight". More than �24m could be spent on providing 843 new houses.
A council spokeswoman said there was a desperate need for affordable homes as there are more than 4,000 households on the affordable housing register.
More than 50 families are in bed and breakfast accommodation along with a similar number of couples, she added.
The money will come from central government as well as housing associations and developers.
Councillor Olwyn Barnett, spokeswoman for housing, said: "These statistics reflect the need the desperate need for more affordable homes."