A feasibility study by the HA has identified the former Earlston High School site for the potential development, which could be completed in 2019/2020. Other proposals include a new play-park at a nearby site.
The area has been identified by the council as a prioritised affordable housing site in its Strategic Housing Investment Plan (SHIP) 2017-22.
It is estimated in the SHIP that £163m could be invested into affordable housing over five years, with SBC and partners delivering almost 1,200 homes in that time.
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Councillors will discuss proposals for the housing development on Tuesday, 07 March.
Council Leader David Parker said: "Council and partners have an ambitious target for affordable housing over the next five years and by working with Eildon Housing Association it is hoped the former Earlston High School site will make a significant contribution towards meeting this target.
"If this agreement is approved by the Executive Committee, this development would provide vital accommodation for local people and families, allowing them to live and work in their communities, while also providing a welcome boost to the local building industry."
Nile Istephan, Chief Executive of Eildon HA, added: "Delivering record numbers of high quality affordable homes across the Scottish Borders is a key aspect of Eildon's strategy over the next five years. Addressing housing need across our communities, including high demand areas like Earlston, is a vital component in ensuring a thriving Scottish Borders. Eildon, working closely with SBC and other partners, is delighted to continue to play a central role in these efforts."
(LM)
