An extra £30m will be spent this year on providing 20,000 new affordable homes in Wales by 2021, Communities Secretary Carl Sargeant has announced.
Labour and the Liberal Democrats pledged themselves to the 20,000 figure in May's assembly election.
It was also in the deal bringing Lib Dem Education Secretary Kirsty Williams into an otherwise Labour Welsh cabinet.
Mr Sargeant's announcement brings ministers' total spending on social housing grants to £98m in 2016-17.
"Alongside the well-documented health and education benefits that good quality housing provides for children and families, building homes of all tenures has a significant positive impact on the Welsh economy and on our communities," he added.
Mr Sargeant signed a pact with the Welsh Local Government Association and Community Housing Cymru committing them to working together to provide the new homes.
Stuart Ropke, chief executive of Community Housing Cymru, said it was an "ambitious" target but also "an important step forward".
"We've only been delivering half the number of homes in Wales that we need," he told BBC Wales.
"We're getting much nearer to that target with the 20,000.
"It's stretching - that's why it's important to have local government on board.
"But it's definitely achievable."