London Borough of Barking and Dagenham and the London Borough of Hillingdon have secured £21.6m funding under the Affordable Homes Programme (AHP) from the Homes and Communities Agency (HCA) to help build 987 affordable homes in London.
The £4.5bn AHP programme administered by the HCA is designed to help deliver 80,000 new homes for the affordable housing sector over the 2011-2015 spending review period, with close to 36% of the AHP's budget allocated to building new homes in London.
So far, 146 organisations have been selected to deliver new affordable homes under the AHP over the spending review period.
The Homes and Communities Agency (HCA) says it is on course to exceed its housing targets for 2011/2012.
The HCA's total programme investment for the year was also within budget at £2.3bn. This included £1.2bn on the National Affordable Housing Programme (AHP).
Though figures for housing starts and completions cannot be reported until May or June due to their status as official statistics, the agency already anticipates reporting a "strong performance".
Chief executive Pat Ritchie said: "Despite the backdrop of continued economic uncertainty and a period of great change for the Agency, I am pleased to report that we have nevertheless met or exceeded our delivery [new homes] targets.