East Lindsey councillors have approved a £5 million investment loan into the coffers of the district's social housing provider.
Members of East Lindsey District Council voted in favour of the "innovative" move on Wednesday night, in a bid to see a greater return on taxpayers' money.
The loan will be paid over five years to New Linx Housing Trust rather than traditional investment of the money through high street banks.
The housing trust will be able to use this money to fund the building of new social housing within the district.
ELDC's portfolio holder for finance, Councillor John Upsall, said: "This is another great example where by looking outside the box and thinking differently, we can secure greater benefits for the community both financially and ultimately through the services that we provide, and at the same time allow New Linx Housing to build additional much-needed affordable housing within the district.
"We will ensure adequate security measures are in place before any loan is confirmed, but very much hope that we can work with New Linx Housing Trust to make this happen."
Interest on the secured loan could earn the council in the region of £962,500 over five years.
