She said that it will mean 50% more new social houses - 45,000 homes in total - will be built in the year 2010-11 than are being built this year. In all 110,000 more social homes will be built over the next three years.
All regions will receive an increase of at least 15% by 2010-11 compared to this year.
Regional assemblies are now being asked to draw up their own recommendations about how the investment should be spent, with every region expected to deliver significant increases in new social housing.
The Department for Communities and Local Government have allocated the money between the nine English regions by a needs-based formula.
It is made up of indicators including the number of households in temporary accommodation, the number of overcrowded and shared households and the condition of local authority and private sector housing stock.
The allocation to regions is:
North East £283m over 3 years
Yorkshire and Humber £559
East Midlands £437
East of England £790
South East £1,372
South West £789
West Midlands £679
North West £801