Blackpool Council has secured £2.7m of Government funding towards the cost of clearing land to make way for the £50m housing development on Rigby Road and Tyldesley Road.
The Homes and Communities Agency (HCA) has confirmed the grant towards the scheme which will see around 410 new homes built.
Coun Gillian Campbell, cabinet member for housing at Blackpool Council, said: “The latest funding from the HCA is the final piece in the jigsaw for our Rigby Road housing scheme and this is great news for Blackpool.
“The first phase of remediation works are now almost complete and preparatory work for building will soon be able to begin on site.
“The first phase of the scheme, which consists of 70 homes, is due to be completed by spring 2015.”
Hollinwood Homes will build a mix of two, three and four-bedroom properties, with the streets due to be named in honour of Blackpool FC’s 1953 FA Cup winning team.
The total cost of clearing the site is £15m with other cash coming from the Government’s New Homes Bonus scheme aimed at encouraging house building.
Most of the land, which includes the site of the former Mecca building, the ex-Illuminations depot and the Blundell Street car park, is owned by the council.