The money comes from Community Infrastructure Levy, which developers pay towards local improvements and services when they build in Southwark.
Of the almost £4million, £1.5million will go towards the fit out of the LGBTQ+ space at Bankside Yards. This new space will feature a theatre and workspace and is due to open in 2026.
Also, almost £2.4million is allocated towards the development of a 100 per cent affordable housing scheme at 634-636 Old Kent Road.
The site is above the planned Bakerloo Line extension tunnel and the funding will pay for extra engineering work to reduce vibration and noise, and ensure the tunnel is not affected by the building above.
The Bakerloo Line extension, which would bring huge benefit to people across London and the UK, is a priority for Southwark Council, which also allocated £30,000 towards the Bakerloo Line Extension Funding Study.
Southwark Council’s Cabinet also agreed £50,000 of money from the levy towards design work to improve accessibility at Nunhead Station.
Cllr Helen Dennis, Cabinet Member for New Homes and Sustainable Development said: “These are major project that will directly benefit residents and businesses and help us to build a better and fairer Southwark for all.
“Our LGBTQ+ community will massively benefit from the new space and the facilities on offer, and we’re also investing to make sure that both a new site with 100 per affordable housing and the Bakerloo Line Extension can happen.
“Making sure money from developers is reinvested back into our communities is a vital part of what we do and we’ll keep ensuring that money goes towards making a real difference and improving life for the people of Southwark.”
The funding was agreed at Southwark Council’s Cabinet meeting on 6 January.