The Gateways to Oldham PFI contract will see some 700 homes being built or refurbished over three years on the Crossley and Primrose Bank estates, and on brownfield sites at Westwood and Fitton Hill.
The council and the Inspiral Oldham Consortium, which consists of Regenter, Wates Living Space and Great Places Housing Group, officially signed the 25-year contract on 30 November.
The government has approved £113m to fund the capital costs of the housing development, which will be paid to the council by the Homes & Communities Agency (HCA) in the form of an annual grant over the term of the contract.
HCA director Deborah McLaughlin said: “The signing of this PFI contract marks a major milestone in the regeneration of the town by providing a clear, long-term commitment from partners to increase the provision of affordable homes for local people, to continue to revitalise the area and to improve vitally important employment opportunities.”
As well as new homes, two new purpose-built community centres will be provided on the Crossley and Primrose Bank estates, and a new retail space developed at Crossley. These estates will also see new parks and open spaces for residents.