Dave Taylor Park will be the new home of affordable housing in Griffith as the Griffin Green project gets under way this year.
Earlier in June, the federal government kicked in $6 million from its Building Better Regions Fund into the project.
The first stage - which will cost $12 million - will include 20 affordable homes built around Dave Taylor Park in the city's west.
As part of the project the park will be improved as part of the project.
Federal environment minister and Member for Farrer Sussan Ley said she was looking forward to the development of the site and new play equipment as part of the project.
Ms Ley said affordable housing could sometimes be overlooked but was something that council had highlighted the need for.
"It's been on council's agenda since my very first meeting with them, and it's always been very apparent to me when we have people who come to work here to often make a new life here, that's very much the tradition of this city," she said.
"But housing is just in such short supply and when you're starting out or you're in an entry-level job, there's a significant lack of somewhere to live.
"I think with affordable housing and then with stage two being the state government's social housing, we really are catering to the needs of the city growing in the future."
Mayor John Dal Broi said Griffin Green would help reshape part of the Griffith community, it was a project which was urgently needed.
"We're doing what we can to assist with the provision of affordable housing," Councillor Dal Broi said.
He said council and Argyle Community Housing had a strong working relationship and the project had been driven by councillors and council's staff.
"I must acknowledge the general manager (Brett Stonestreet) and directors, because they really moved the project through with Argyle Housing," Cr Dal Broi said.
The second stage of Griffin Green will be a mix of social and privately-owned housing, with some older properties being renovated and some to be newly built.
Dave Taylor Park is currently Crown Land and will be transferred to Griffith City Council to enable the project.
Council's civil engineers are planning to begin work to build road, water and sewerage connections for the affordable homes in November this year.