The factory-built development at Addiscombe Grove will comprise over 70% affordable housing for first-time buyers to purchase at a discount below the market price.
Developer Pocket Living has agreed in principle to make the remaining homes available for shared ownership, making all 153 homes genuinely affordable.
In 2017, Mr Khan agreed a deal with Pocket Living to provide £25m of City Hall funding to support the delivery of 1,059 new Pocket homes, with a third of them expected to be constructed off-site in a factory.
Pocket has used the funding to construct more high-density flats on brownfield sites.
The developer is responsible for marketing and selling the homes to residents and workers in the borough, and the properties are expected to remain affordable for the lifetime of the building.
“Tackling London’s housing crisis requires bold new approaches,” said Mr Khan.
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“We know turning things round will take time, but off-site construction is an innovative way to speed up building the affordable homes our city needs.
“I invested in Pocket Living to help them build genuinely affordable homes that are sold to local people first.”
Marc Vlessing, CEO at Pocket Living, added: “We’re delighted that the mayor has approved our exciting first scheme in Croydon.
“At Pocket, we always aspire to lead the way.
“Addiscombe Grove is a great example of this, where we are aiming to use modular construction to deliver homes faster and increase the genuinely affordable housing provided from 73% to 100%.
“Once again, the mayor has shown his commitment to tackling the housing crisis through backing innovative solutions that deliver significant levels of affordable homes.
“We are proud to share City Hall’s vision for housing in the capital.
“A vision that we can help realise thanks to the recent £25m investment from the mayor that will see over a thousand genuinely affordable homes for Londoners started within the next three years.”