Council houses could be built in South Tyneside for the first time in nearly a decade.
Next week, Cabinet will be asked to approve the construction of at least 250 new homes for rent, following previous changes to the cap on council borrowing limits and grant funding conditions.
If given the go ahead, the first phase would see two-bedroomed houses, apartments and bungalows built at sites in Henderson Road, South Shields, and Hindmarch Drive, Boldon.
South Tyneside Homes would carry out the construction works and manage the developments on behalf of the council.
Cllr Mark Walsh, Lead Member for Housing and Transport, said: "We're committed to meeting the housing needs and aspirations of local people, now and in the future, which is why we are proactive about developing homes across all tenures.
"That is where the council can use its land and borrowing power to fill the gap and ensure we meet our government-set house building targets.
"It's important that there is a good choice of homes to rent in the borough and these new developments would provide modern, affordable properties that people would be proud to live in."
If approved, the homes would be built over the next five years, through the Housing Revenue Account, following the easing of restrictions.
Cllr Walsh added: "Housing is about more than just bricks and mortar; people's lives can be enhanced by good quality housing in sustainable communities.
"It's exciting to think that a century after we first started building council homes in South Tyneside, we could be doing so again."
Cabinet will also be asked to agree for Centaurea Homes to appraise further sites to deliver up to 200 new high-quality homes for sale, following the success at Langdale Grange, with profits from land sales reinvested into council priorities rather than lost to private companies.
It will also be recommended that South Tyneside Housing Ventures Trust, which has provided 440 affordable homes over the last five years, deliver at least 350 specialist homes to support the council's Adult Social Care Accommodation Strategy. The council will provide land and loan finance to support the independent company and ensure that the right types of homes are provided for all communities in the Borough.