More than 190 homes will be built alongside a shopping centre, library and community facilities.
Barratt West Midlands has a £21m stake in the development, which will cover 2,000 sq m and incorporate 67 affordable homes.
The HCA provided £4.8m towards the scheme, with £1m coming from Birmingham City Council and £150,000 from the City Housing Partnership through the Working Neighbourhoods Fund.
The demolition of poor quality housing and retail stock will run in parallel to building although the new shopping centre will be built before the existing one is demolished.
New library to be built at Birmingham’s Shard End Crescent