A build-to-rent complex with 54 units will be built on land owned by the Catholic Church in Curtin, with the project to receive financial backing from the ACT government.
Marymead CatholicCare Canberra and Goulburn will develop the affordable rentals, which will include a mix of one-, two- and three-bedroom homes.
Those with an annual income of less than $100,000 a year will be able to rent the apartments, which will be built near the Holy Trinity Catholic Church.
The money will come from the territory government's $60 million affordable housing project fund, announced in last year's budget, which provides money to shovel-ready affordable rental projects. The government won't reveal how much they will contribute at this stage, saying it was commercial-in-confidence.
Construction is set to begin mid-next year and is expected to be completed by the end of 2026.
Marymead CatholicCare Canberra chief executive Anne Kirwan said the organisation would work with the Catholic Archdiocese of Canberra and Goulburn's North Woden Parish to deliver the development.
"This project has been five years in the making, and we have worked closely with the ACT government to support this initiative and enable the Archdiocese to be able to use its own land to meet a growing need within our community," she said.
Ms Kirwan said she was hopeful more affordable rentals could be delivered on church land over the coming years as planning changes now allow affordable housing.
"It's taken a while for us to get the planning change so that we can actually deliver affordable rentals on church land," she said.
"With the delivery of the affordable housing fund through the ACT government. There's just so much more scope and capacity for ACT community housing providers to step into this space and deliver housing.
"So we're very hopeful we get this one right and more parishes will come on board."
The government has already agreed to support six projects through the fund, totalling about 280 new affordable rentals. New applications from community housing providers will be accepted until next month.
Another project which has received money from the fund is a build-to-rent development by the Canberra Southern Cross Club in Phillip.
ACT Housing Minister Yvette Berry said the government wanted more projects like the one in Curtin and Phillip.
"We've got a project here that is unique to the ACT and we want to see more of it," she said.
"We absolutely welcome and encourage other churches or organisations who have land in the ACT, who want to participate in programs like this to come and work with us so we can achieve those really great outcomes and address the housing crisis together."
