The West Midlands Combined Authority (WMCA) has pledged to give £20 million towards the construction of the Commonwealth Games Village in Perry Barr.
Board members gave the green light to the scheme at their monthly meeting, held at Birmingham Council House.
The cash will come from the WMCA Brownfield Land and Property Development Fund, specifically created to bring brownfield land back into use for new housing, industrial and commercial development across the region.
Mayor of the West Midlands Andy Street said the combined authority had backed the Birmingham bid from the start and would continue to support the city in staging the Games.
He said: “The Commonwealth Games development is important for two reasons – not only is it a key part of the offer for the Games to take place but it will also mean regenerating Perry Barr and providing much-needed housing for Birmingham.
“We hope that soon we will hear from the government about the remaining funding for this ambitious scheme.”
Cllr Ian Ward,
“This funding is a key element of the package we are putting together to deliver this project, so it is great to see the WMCA board underline their commitment to the Games and what we are doing to regenerate Perry Barr and the wider north-west area of the city.
“The Village will be the catalyst for a much wider home building plan, critical if we are to meet the housing demand in the city, as outlined in the Birmingham Development Plan – and we remain fully committed to working with existing residents to shape a scheme that is the best one possible for current and future citizens in the area.”