Barking and Dagenham Council has secured a further £7 million of funding from the Homes and Communities Agency to build another 82 new council houses.
Southern Housing has also received a grant to build 24 houses at Barking Riverside - bringing the total of new houses for the borough to 106.
The council houses are planned for six different sites across the borough - Goresbrook, Dagenham; Curzon Crescent, Barking; Roycraft Avenue, Barking; Alderman Avenue, Barking; Maplestead Road, Dagenham; Alfred Gardens, Barking and Thornhill Gardens, Barking. Some of these already have planning consent, at the others planning applications will be made.
The 82 new houses will all be owned and managed by the council and rented out to local families who are on the housing waiting list. The Barking Riverside houses will also be available for social rent.
The vast majority of the houses will be either three or four bedroom houses, two of them will have two bedrooms. These new homes are in addition to the 63 family houses which are now being built by the council at seven different sites across the borough.
Cllr Liam Smith, Leader of the Council, said: "This is a great day for Barking and Dagenham because it means that 106 families are going to get the new houses they so desperately need. Not only that, there will be a knock-on effect because the homes they vacate will go to other families.
"This council is committed to bringing as many council houses to Barking and Dagenham as possible and we have been vigorously pursuing all the funding that's available. We are determined to bring even more council houses to the borough in the future."
Councillor Phil Waker, cabinet member for housing added: "This news, coming on the back of yesterday's announcement of reform of the Housing Revenue Account that gave the borough an extra £2.2 million, means that the future for social housing in Barking and Dagenham is bright.
"We have a long way to go to address the very real social housing need in the borough but this week's announcements are a real boost in the council's bid to increase and improve our housing stock and provide decent homes for local families."