Music and arts venue Cambridge Junction could be upgraded as part of the plans.
It follows a deal between Cambridge City Council's Labour and Liberal Democrat groups.
Plans are approved as one resident urges "we need these council homes in our area".
In one of the UK's most expensive cities, some residents are calling for stricter housing controls.
Researchers hope a new tool will be rolled out to councils across the UK.
A council meeting hears of problems with social housing built over the past decade.
David Hill is the first chief executive of the Greater Cambridge Development Corporation.
It will serve new commercial businesses around Cambridge North Station.
The government says new regeneration body will deliver transport and services "alongside housing".
