The Hobart City Deal will be signed by Prime Minister Scott Morrison when he visits Tasmania on Sunday. 

Four social housing organisations who are already have proposals in process have been tasked with utilizing this funding to build social homes in the greater Hobart area in order to deliver the housing as soon as possible. 

Clark Independent MHR Andrew Wilkie said the funding would allow for the building of more than 130 dwellings. 

"It will also allow at least some of the organisations to leverage off that investment and go out to the market and get additional funding," Mr Wilkie said. 

"It's going to build dwellings for some of the most disadvantaged members of our community.

"The proposals that have been put forward by the four recipients of the funding are to provide dwellings for people like women and children fleeing domestic violence, the very elderly people, the very low income, people with a disability - these will be dwellings for the most disadvantaged and most needy in our community."

Minister for Housing Roger Jaensch said this is one of many strategies in place to deliver more housing for the state. 

"We see this as very much complimentary to, and additional to, the Hodgman Liberal plan for affordable housing in Tasmania," Mr Jaensch said. 

The state government have committed $200 million over eight years to housing development in Tasmania. 

Tasmanian Liberal senator Eric Abetz said the available funding would help alleviate the housing needs of southern Tasmania and the greater Hobart area.

Senator Abetz said further funding announcements as part of the Hobart City Deal will be revealed in due course. 

"Watch this space," Senator Abetz said. 

"Never is everything on a wish-list delivered. The fact that this has taken some time is indicative the wish-list has been gone through carefully."