Housing Minister Jonathan Denis says most of the units are provided at 10 per cent under market value.
The province is contributing $74 million, which is being matched by groups all across the province.
That money, says the government, will build 764 housing units for about 1,500 Albertans.
In 2007, Premier Ed Stelmach called for a task force to recommend how to make affordable housing, both rented and owned, more available and accessible, and to have a positive impact on Alberta's competitiveness.
The province set a target of building 11,000 housing units, and Stelmach says with the funding announced today, the number will be more than 11,600.