The Homes & Communities Agency has agreed to provide the Leeds City Region with £110m over the next year to support its major housing and regeneration schemes.
It forms part of a new partnership, including a new joint board, to direct funding priorities in the region.
"'We welcome today's funding agreement with the Homes and Communities Agency, which will provide significant investment within the city region at a time when the economic recovery is still fragile.," said chair of the new joint board Andrew Waller.
"The funding will help maintain momentum in delivering the affordable homes we need across the city region, supporting much needed jobs and training opportunities."
In April the City Region committed itself to an interim investment plan which confirmed support for the region's four urban eco-settlements, its brownfield alternatives selected when it realised proposals for a stand-alone "eco town" were unsustainable.
"This joint partnership arrangement with Leeds City Region will help deliver our shared vision and the economic growth that is necessary for the future prosperity of our communities," said HCA Board member Shaukat Moledina.
"The significant investment agreed will ensure there is a balanced housing market that meets the local needs of the current and future residents of the places within the City Region."
