The nine-storey £32.5m development in Cherry Orchard Road will feature one-, two- and three-bedroom apartments and duplexes.
There will be two linked blocks, with communal resident gardens at ground level and secure cycle and refuse storage.
Some 11 units will be wheelchair accessible.
The homes will be within walking distance of East Croydon station and Park Hill Park.
It follows a revised planning application by Henley Design which optimised the previous submission.
The plan reduced the overall number of units to improve daylight levels, overall building functionality, access, and maintenance.
It will form part of the East Croydon Masterplan, which seeks to make the area a thriving hub for outer London.
Work is due to begin with social distancing measures in place in April 2021, with an estimated completion date of April 2023.
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Richard White, director of land and new business at Optivo, said: “We are really looking forward to building these much-needed affordable homes and doing our bit to tackle the housing crisis.
“We have a proven track record of delivering high-quality developments in Croydon and look forward to moving this exciting project forward.
“This huge investment shows our commitment to delivering homes to the borough.”
Aaron Usmani, director of construction at Henley, added: “Croydon is an area undergoing significant change and we look forward to playing our part by delivering these genuinely affordable homes for Optivo at a time when they are needed most.
“The development is well placed to benefit from the wider infrastructure and public realm changes taking place, meaning that residents will be at the heart of everything Croydon has to offer.
“This builds on our track record of working with housing association partners to unlock and optimise challenging sites, underpinned by our ongoing commitment to design, quality and efficiency.”