The one- to three-bedroom homes will be delivered at two sites in Greater Manchester, with 497 homes planned for the Greengate development in Salford and a further 282 homes for Cambridge Street in Manchester city centre.
The UK government set up the Build to Rent fund in 2012 to cut risk for developers looking to invest in homes built specifically for private rent. The scheme gives management companies the chance to invest in new rental developments and developers can then repay the government investment. Chancellor George Osborne increased the fund from £200m to £1 billion in the 2013 Budget.
"Millions of people use the flexible option of renting so I'm determined to create a bigger, better private rental market offering greater choice for tenants," said Lewis in a statement.
"This extra money will not only create 800 more homes for the people of Manchester and Salford, it will also create jobs and security for hardworking people - a vital part of our long term economic plan to secure a better future for Britain," Lewis said.
Work on the sites has already commenced and is expected to be completed by the middle of next year.