The Scottish government said more than £590 million would be made available for 2017-18 to increase the supply of affordable homes in Scotland.
It said councils would share £422 million to deliver more affordable homes.
The remaining investment would fund national schemes, including support for first time buyers and increasing rural and island housing.
“The total budget is an increase of £18 million compared to last year,” said the Scottish government.
The Scottish Government’s Communities Secretary Angela Constance announced the funding on a visit to Link Housing Association’s new development in Edinburgh — where 161 city centre homes are being built for social and mid-market rent and shared equity.
“A good supply of affordable homes is vital to ensuring everyone has an equal chance of getting on in life,” said Constance.
“That is why it is key to this government’s commitment to tackling poverty, reducing inequality and building strong local communities.
“It also boosts the economy by supporting 14,000 jobs right across the country.
“We’re determined to increase and accelerate housing supply — working in partnership with councils and housing associations to deliver quality homes to fit local needs.
“We are committed to delivering at least 50,000 new affordable homes over this parliament backed by £3 billion.
“This major and increased investment for 2017-18 that I’m announcing today supports our ambitious commitment.”