The funding is given to support strategic housing schemes in both the public and private sectors, and has increased by£2.5m from last year. It is in addition to the£156.9m already given to local authorities for housing as part of their General Capital Fund, and to the£56.4m available to registered social landlords.
Money invested in the public sector will fund works to improve the condition of homes and the environment on council estates, as well as supporting measures to reduce crime.
Mrs Hart said: 'I am pleased that we have this year again been able to make a significant increase in the money available to support strategic housing schemes in the next financial year.
'This funding will enable local authorities to tackle their housing priorities. The strategies are wide ranging and will not only improve housing conditions but will play an important role in improving and regenerating our communities.
'The assembly's increased support clearly demonstrates our determination to underpin our commitment to improve the lives of the people of Wales and should have a substantial impact in both urban and rural Wales, making them better places in which to live.'
In October 2001 local authorities were invited to submit bids for Supplementary Credit Approval (SCA) to support housing strategies in 2002-2003. Strategies could cover the public or private sector in line with criteria set out by the assembly in its letter inviting bids. All local authorities in Wales have been allocated SCA to support their strategies. Where bids have not been met in full it is for local authorities to determine their priorities for the use of the funding and to decide whether to use other resources they have available, including their General Capital Funding, to provide further support for their strategies.