According to the Homes and Communities Agency (HCA), the amount of interest in the new Local Authority New Build Programme has been "tremendous".
This initiative allows councils across the UK to apply for a grant to help fund new construction projects in their area.
Developments that have been designed with the environment in mind have been given priority, as these could help Britain meet its target for cutting carbon emissions.
Indeed, government figures show that about a quarter of the UK's carbon emissions come from domestic properties.
Sir Bob Kerslake, chief executive of the HCA, said: "I am particularly pleased with the number intending to deliver to a higher energy efficient standard."
He added that it has been very difficult to choose between the various bids it has received.