Dartmoor National Park Authority (DNPA) is to put up to £175,000 into a local needs housing project in Princetown.
The development at Hessary View will provide around ten affordable homes and is being led by West Devon Borough Council. Both authorities own pieces of the land.
The money is half of the £350,000 which DNPA received from developers when 15 specialist homes for the elderly were built in Chagford a decade ago.
It was earmarked for affordable housing and was intended for Chagford. However, officers said there are no options offering value for money or significant social benefits in the parish and the money has to be spent by August 2015.
DNPA members agreed in principle to transfer the sum to West Devon Borough Council.
They want to work with the Chagford community to ensure the remaining £175,000 is used to support affordable housing in the Chagford area and will also look at other ways they can help the community.