SHC, a partnership between the city council, developer Keepmoat and Great Places housing association, is starting construction of a further 142 new homes at Norfolk Park and Fir Vale.
Other phase two work includes a further 122 family homes at the Brearley Forge site, which is also under way; a three-storey block of 24 flats at the former Park Grange residential home and 181 homes on Harborough Avenue.
A £5.9m loan from the Homes & Communities Agency is supporting the second phase of the initiative, which is expected to deliver 2,300 homes by 2030 in seven city neighbourhoods. Three years in, 320 have been built to date.
SHC project director John Clephan said that the HCA funding “has allowed us to double our housebuilding activity in Sheffield”.
Keepmoat operations director Ian Hoad said: "Every partner involved in this project has a shared vision of delivering the highest quality homes, while investing in the wider community. The first phase has been a resounding success and we are committed to continue supporting buyers at all ends of the property ladder; while providing a platform for employment and training in the region.”