The money will support the construction of enabling infrastructure, paving the way for a planned 2,000 new homes and accompanying amenities over the 307-acre site.
The masterplan also shows 200,000 sqm of employment space, a primary school and a community centre.
The first phase of the scheme set to progress through planning this year will include proposals for 750 homes and infrastructure, such as green spaces and transport links.
Homes England chief executive Peter Denton said: “The creation of Burtree Garden Village will play a transformative role in helping Darlington to achieve its significant growth ambitions, and we’re proud to be able to bring it a step closer to reality through funding vital infrastructure works.
“This is a great example of how we can support places with a clear vision and pipeline of delivery to unlock housing and regeneration opportunities and deliver on the government’s levelling up agenda.”
Hellens Group, which started out as John Hellens (Contracts) Ltd in 1973 in Billingham, specialises in the regeneration of brownfield sites. It is working in joint venture with Homes England and Darlington Borough Council on Burtree Garden Village.