Property developer ZeroC is working with the South West Regional Development Agency to build 77 low carbon homes on RDA-owned land at Osprey Quay.
The project is the latest step in the South West RDA’s £40 million regeneration of the former Royal Navy Air Station where it hopes to create 1,400 jobs by 2016.
The South West RDA bought the site in 2000. It was subsequently selected as the venue for sailing events at the 2012 Olympic and Paralympic Games.
The Portland development will include 77 homes, new streets and a public square. Nineteen of the units will be affordable houses for local people, varying in size from two to four bedrooms, the South West RDA said.