Aberdeen City Council is to share in a £26m social housing cash-injection from the Scottish Government.
Aberdeen is one of 17 councils benefiting from the funding with a share of £1.9m towards 78 new homes.
Council Leader Kate Dean welcomed the news. She said: "I am absolutely delighted that the Scottish Government has recognised Aberdeen's need for additional housing.
"This money will reduce the borrowing for the first phase of the building programme to provide much-needed city homes."
The council's programme for new builds took its first step in April when tenement flats in Tillydrone were demolished.
Tillydrone is one of three sites being developed across the city as part of the council's new-build housing programme.
Lead councillor for housing Aileen Malone said: "This is great news for Aberdeen. This is a significant way to respond to the city's need for housing. It will be a great boon to many families who are waiting for affordable rented housing in Aberdeen.
"Our commitment to new social housing is well known and it's good to see the government committing to it too - this is a great start, long may it continue."
Councillor Mark McDonald added: "I am delighted that we have been successful in securing this funding, which will assist in the delivery of the first new-build Council housing in Aberdeen for a generation.
"I know that elected members are completely behind the new build project, and there is now a clear endorsement from the Scottish Government. I hope that the feedback from the public consultation will demonstrate that the people of Aberdeen are equally enthusiastic about our ambitious and innovative proposals."
Phase one of the programme will see the creation of more than 90 new homes. The other sites are the old nursery site at Byron Park, in Northfield, and Rorie Hall in Cults.
(GK/JM)
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