Housing minister Kevin Stewart will announce more than £1m will be spent to build 200 affordable homes in Fort William.
At least 200 houses will be built at Upper Achintore by Lochaber Housing Association (LHA).
Mr Stewart will visit the site later today to confirm the Scottish Government funding.
He said: “We recognise the challenges of developing affordable housing in rural areas, so I’m delighted our investment will help to make affordable housing a reality at this site.
“This grant will support the delivery of at least 200 new homes in Fort William and is a great example of how partnership working can deliver a range of homes to suit the needs of the local community.
“Increasing the supply of affordable homes across Scotland is a key commitment and vital to our ambition of tackling poverty and inequality in our society.”
There will be a mix of rented and private homes on the site, funded by the Scottish Government’s Affordable Housing Supply Programme, which aims to build 50,000 affordable homes including 35,000 for social rent by 2021.
Lochaber Housing Association director Blair Allan said about 50 homes for social rent were already on the site
He said: “The Association has already built around fifty much needed homes for social rent at Upper Achintore in the last few years.
“However, this Scottish Government grant takes our potential investment in affordable housing here to a new level. Everyone knows that housing need in Fort William is intense.
The opportunity here is that we can, in partnership with the Scottish Government, the Highland Council and others, go a significant way towards satisfying this need in the short to medium term.
“We are grateful to the Scottish Government for this support and for the confidence that it has shown in our ability to deliver”.
Highland Council’s places committee chairman Cllr Allan Henderson said: “This is good news for Lochaber where there has been a shortage of affordable housing.
“The development is especially welcome given the regeneration of the Fort William Smelter and the new job opportunities coming to the area.
“It comes on top of the recent welcome Scottish Government investment, which has enabled the council and its partners to deliver new affordable homes in Tweeddale Apartments, Raasay Court and Belhaven Drive.”
