Police and Crime Commissioner Katy Bourne has provided funding to support the cross-government programme.
Inmates of Ford Prison in Arundel are being given the opportunity to apply for jobs building the homes.
As part of the scheme, they will be employed and supported by established housing providers in the county.
Last week, Police and Crime Commissioner Katy Bourne visited Boutique Modern – a local contractor and modular manufacturer.
The organisation is one of the providers in Sussex which is employing and supporting prisoners to build the sustainable houses.
The components of the homes are built within the factory and shipped to the construction site for assembly.
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Boutique Modern has recently employed its first two inmates and their work is set to start in the near future.
Police and Crime Commissioner Katy Bourne said: “It was a great day visiting Boutique Modern to understand more about modular construction and why they have chosen to become a partner for this brilliant programme.
“By offering prisoners and ex-offenders employment, research shows that we can reduce re-offending and successfully rehabilitate people back into society.
“This programme will also help to address the housing shortages and high rent prices.
“I’m delighted that Sussex are the first county in the South East to support this forward-thinking, innovative programme – one that provides long-term sustainable solutions with so many benefits.”
Lucas Shone, projects director for Boutique Modern, said: “We’re proud to be supporting the Prisoners Building Homes initiative in partnership with HMP Ford.
“It’s exactly the kind of collaborative, purposeful work that reflects our values as a business. Giving inmates the opportunity to develop real skills in a real working environment not only supports rehabilitation but also strengthens our industry at its core.
“If this pilot proves successful, we’re excited to expand the programme across our factory, sites, and wider business, creating pathways into long-term employment and a more inclusive workforce.”
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