Andium, which administers the States housing stock, is to be loaned £47.183 million to pay for the development of the former Samarès Nurseries site.
The money will be paid back with five per cent interest over 24 years.
Developers GR Langlois have already been granted planning permission for the project and Andium has an agreement with the developer to purchase the properties from it.
The development will include 20 one-bedroom units, 89 two-bedroom homes and 91 three-bedroom houses, along with parking and communal landscaped areas. Some properties would be offered for sale to first-time buyers but the majority would be kept by Andium for social housing.
