Halifax contractor Southdale Homes has won a contract to build 106 new homes in Darlington, after funding for the development was secured from the Homes and Communities Agency.
Client for the project is Tees Valley Housing, which bought the former Beaumont Hill School site from Darlington Council.
The £14m scheme at Glebe Road will provide a mix of two, three and four bedroom houses, plus a range of affordable ownership options and properties for rent.
Six homes will be built to level five of the Code for Sustainable Homes.
Some £4m of funding for the scheme will come from the HCA.
Planning permission has already been secured for the development.