Prisk said that the investment could unlock up to 38,000 on the stalled development sites as well as creating "thousands" of jobs for the local communities.
The shortlist includes projects at Chilmington Green in Ashford, Kent, the Grantham Southern Quadrant Sustainable Urban Extension in South Kesteven, Kilnwood Vale in Horsham, Parklands Village in Somerset and Waverley in Rotherham.
The schemes will now enter a due diligence process before entering into contract for the funding. This will determine the final investment to be made, the number of homes supported and the terms of any investments.
The Local Infrastructure Fund is administered by the Homes and Communities Agency and provides funding for stalled schemes with outline planning permission, or pending permission, for more than 1,500 homes. It has been set up by the Government to maximise and accelerate the delivery of new homes and creation of jobs.
"This Government is determined to get Britain building again," said Prisk in a statement. "That's why we are working with local housing schemes that have their plans in place, but need help to move forward."
"Our support through the Local Infrastructure Fund will help deliver the homes this country needs, create thousands of jobs and inject millions of pounds of investment into local economies," Prisk said.
"This investment from the Local Infrastructure Fund is about building momentum behind some of those larger locally-backed housing developments to accelerate the supply of new homes," said HCA chief executive Andy Rose.
"There is work to be done to ensure these bids deliver value for money for the taxpayer and fit with local priorities, but I am looking forward to getting out on site and seeing progress on successful bids in the months ahead," he said.
