Local authorities across Scotland will get an increase of more than £541 million on the previous five-year allocation – an increase more than 20%.
Housing secretary Shona Robison said: “We have already delivered more than 102,000 affordable homes since 2007.
“Building on this, our aim is to deliver 100,000 affordable homes by 2032, with at least 70% of these for social rent.
“Meeting this ambition will require continued collaboration across the private and public sectors.
“I’m pleased to be increasing significantly the available affordable housing grant funding for council areas to help with this important work.
“The five-year allocations will provide the certainty and assurance the housing sector needs to deliver the ambitious affordable homes target set out in our Housing to 2040 strategy.”
Councillor Gail Macgregor, COSLA resources spokesperson, welcomed the increased funding commitment.
She said: “The priority for councils, and housing associations, is ensuring rent affordability and warm, safe, comfortable homes for current and future tenants.
“As we look to recover from the impacts of the pandemic, councils are working side by side with their communities.
“We maintain a focus on our shared ambitions around tackling child poverty and climate change, alongside building more houses.”
Falkirk Council is currently building, or planning to build, more than 600 new homes for social rent by 2025/26, at sites across the district.
By 2026, it has also pledged to buy back 400 ex-Council properties to help meet the demand for affordable housing.