The Builders Finance Fund will be used to invest in schemes of between 15 and 250 homes with outline planning consent and the support of local people.
The Department for Communities and Local Government (DCLG) said the fund was aimed at addressing difficulties in accessing development finance faced by some housebuilders, particularly smaller developers, and to help bring forward stalled but viable sites.
The DCLG said that the nature and form of schemes that apply for funding is a local matter. The local authority and community should determine the appropriate level of affordable housing, market housing and other uses as part of their wider aspirations for any site, it said.
Bidders for funding will also need to confirm that homes financed through the fund will be marketed in the UK.
"This government has got Britain building again, and created thousands of jobs in the construction sector," said Hopkins in a statement. "But it has been harder for smaller schemes to come back from the crash of 2008 and, as part of our long-term economic plan, we want them to have a bigger role in building homes for the housing market".
"This funding will get workers back on site, support 15,000 jobs across the construction industry, and build thousands of new homes for communities up and down the country," Hopkins added.
