A third phase of council house building is planned by South Kesteven District Council.
The move to build 105 homes comes as the council reports the second phase of its affordable housing progrramme will be completed this month.
A report for Wednesday’s meeting of the Growth Overview and Scrutiny Committee says phase three will be built over 10 council-owned sites sites in Grantham, Stamford, Horbling and Market Deeping.
The council is seeking government funding to help with construction as the plans include 56 affordable homes which are intended to be brought into the council’s own housing stock. The homes are expected to cost £120,000 each, excluding land costs, giving a total cost of £12.6m.
In Stamford, planned locations include Kesteven Road, Lonsdale Road, Bonneys Paddock and Trinity Road. Toller Court in Horbling is another proposed site, as is Burside Avenue and Wellington Way in Market Deeping.
Work on the homes is expected to start late next year.