Whitefriars Housing picked the contractor to build 83 homes on a site off Pappenham Green and Donegal Close, in Canley.
It will be the first development that Whitefriars has built in Coventry to include a mix of homes for affordable rent, shared ownership and private sale.
The scheme will also bring a range of job, apprenticeship and training opportunities for local people.
Two old Whitefriars blocks of flats in Donegal Close will be demolished to make way for the new homes, which are being built as part of the ongoing regeneration of the Canley area.
The scheme will comprise 48 homes for affordable rent – a mix of houses and flats with one to four bedrooms, plus 14 for shared ownership and 21 for outright sale – a mix of two and three-bedroom houses.
The development is being funded with the support of a £2m grant from the Homes and Communities Agency.
Preparatory work starts on site this week, with the demolition scheduled for November. The new development is expected to be complete by summer 2018.
Simon Kimberley, deputy chief executive at Whitefriars Housing, said: “Thomas Vale is already working on other construction sites in the area so is in a good position to bring a great deal of social value to the local community.
“The scheme will provide job, apprenticeship and training opportunities for Canley residents, and we are working with the local school and other organisations to maximise these opportunities.”