The money comes from the £55m Innovation and Investment Fund which was set up by the government to provide affordable housing across Scotland.
The 15 new units at Miller Road, will be a mix of flats, cottage flats and semi-detached homes including two wheelchair adapted properties.
It will cost approximately £1.25 million to build, and the rest of the investment will be provided by the local Council.
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Convenor for Housing, Environmental and Economic Development, Councillor William Hendrie, commented: "This is fantastic news for the Haldane area and the wider Council as a whole. It is 23 years since council housing was last built in West Dunbartonshire so I’m delighted that we’ve been able to make it happen.
"Our officers have done a great job of putting together a solid bid that has secured this substantial investment. The construction of these 15 units will transform what had become a derelict site, and contribute to improving the housing options for tenants. It will also assist the ongoing regeneration of Haldane and the Vale.
"It is vital that we build new Council housing to meet the demands of our tenants in West Dunbartonshire. Hopefully we will be able to secure further investment in the future as we have other vacant sites across the authority that would be perfect for social housing."
The bids were considered jointly between the Scottish Government and the Confederation of Scottish Local Authorities (COSLA).
Two other bids for sites in Clydebank and Dumbarton were unsuccessful.
(JG/GK)
