Housing secretary, Michael Gove, said the grant of more than £2.5m would speed up the redevelopment of 13 ‘underused’ parking areas in the area.
And the council's cabinet member for housing, councillor Darren Sanders, said the project, which includes affordable homes and specialist housing for disabled people, would bring ‘significant benefits’.
‘We are committed to providing good homes local people can afford and moving these plans forward is a big part of that,’ he said. ‘Hundreds of people are set to benefit from the development of these sites, including some specifically to cater for residents with disabilities whose lives will be changed by specialist accommodation.’
Thirteen sites have been identified by the council as being suitable for redevelopment, they are:
Beaulieu Avenue (two sites)
High Lawn Way
The council said these would accommodate 180 new homes, 30 of which would be for affordable or social rent and others which would be built specifically for disabled people.'
Much of the housing in Havant is built and managed by the city council through an arrangement with the borough council.
The money from the government has been awarded through its Brownfield Land Release Fund.
Announcing the grant on Tuesday, Mr Gove said it 'highlights the government’s ambition to support the region'.
'I am delighted that [the area] will benefit from funding to transform underused parking spaces into much needed homes,' he said. 'The government is building more homes and creating greener more beautiful places through the...fund.'
The funding will be used to cover the costs of clearing land ahead of construction work.
Cllr Sanders said it would help the council overcome 'significant' development challenges across the sites.