Sheffield will see 65 new "affordable" homes built, while Doncaster while get 46, Rotherham 48 and Barnsley 51 as part of the national affordable housing programme.
Rob Pearson, head of area at the HCA, said: "It is excellent news for local residents that we are able to provide funding for 210 new homes.
"They will be provided in 14 different neighbourhoods to be completed over the next two years. We have worked with our partners to identify their housing priorities and to ensure that we are able to give best value for money.
"All the construction work will start this year and includes 170 new homes for rent and 40 for sale that will help meet the different housing needs of local residents."