The London Borough of Barking and Dagenham is seeking up to £100 million from private investors to build 600 homes.
Inside Housing magazine said that law firm K&L Gates has put together a funding model which would allow the borough to draw development capital into its housing revenue account without breaching Treasury borrowing limits.
Last year, the council completed a £76 million deal to build 447 affordable homes with institutional fund manager Long Harbour.
The council is running a competition to find backers for the scheme and is looking for an investment of between £80 million and £100 million, the magazine said.
The City of London Corporation is about to buy Barking Power Station site in east London for around £125 million, according to Property Week.
A £25 million grant for Barking and Dagenham Council will help it support new housebuilding over the next four years.
Councillor Darren Rodwell, the leader of Barking and Dagenham Council, has welcomed the decision to approve the proposed Beam Park…