The Commonwealth and NSW governments have reached an agreement that will fast-track the construction of more than 780 new social and affordable homes in Sydney.

The National Housing Finance and Investment Corporation and NSW Land and Housing Corporation have finalised a deal that will see $100 million in loans and grants provided through the $1 billion National Housing Infrastructure Facility.

The facility was announced in the 2017/18 budget and provides finance for eligible infrastructure projects that unlock new housing supply.

“By working together, not only are we delivering hundreds of new social and affordable homes throughout Sydney, we are also supporting jobs and economic activity as we get through the COVID-19 pandemic,” federal Housing Minister Michael Sukkar said in a statement on Sunday.

NSW Housing Minister Melinda Pavey said the funding will deliver vital infrastructure works that enable housing.

“By delivering the roads, water, sewerage, electricity and telecommunications these developments need, 781 new social and affordable homes will be built at significant development sites throughout Sydney,” she said in the joint statement.

-AAP