Lindum has been appointed by Longhurst Group to build affordable homes on a site off Easthorpe Road in Great Gonerby.
They will be available on a mix of housing tenures, including Shared Ownership, Affordable Rent and Rent to Buy.
Building work began at the end of July and the project is expected to take just over a year to complete.
Lindum design co-ordinator Jason Shackleton said initial works included installing site infrastructure.
“The first job is to form the adoptable road and carry out the site drainage,” he said.
“We will then begin to pull in the foundations before eventually beginning construction of the homes.
“The first timber frames are expected to be installed towards the end of October.”
The development will be made up of a mix of two, three and four bedroom homes and will have more than 90 car parking spaces.
Longhurst Group, which owns and manages more than 23,000 homes across the Midlands and East of England, including more than 5,000 in Lincolnshire, purchased the land earlier this year.
Director of Land and New Business, Charlotte Smith, said she was excited to see plans for the site become a reality.
She said: “We’re delighted to have completed the purchase of this site and to finally be able to start work on this exciting development, which will help address the immediate housing needs of the local area.
“It perfectly aligns with our Improving Lives 2025 strategy, in which we’re committed to providing the homes people want, in the places they are needed.
“Along with our partners, we’ve been on a long journey to get to this point, particularly with the recent challenges we’ve had to deal with relating to Coronavirus.
“We’re now looking forward to delivering much needed affordable family homes to the local area.
“As well as this, we believe the development will help support both the social and economic needs of the South Kesteven district and I’d like to thank everyone who has been involved in getting this development to this stage.
“I’m really excited to now see it progress.”
Grant funding was secured from Homes England to help deliver the development.