Chancellor George Osborne and London Mayor Boris Johnson were at a former gasworks which has been deserted for 40 years to launch the scheme. They say the site in Tottenham can now be built on after they removed planning restrictions to get more homes built quickly.
Fifty thousand new homes will be built, 40% of which will be affordable, housing 250,000 people.
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The film had formed part of a commemoration to the Choucair family, three generations of whom died in the fire.
John Nolan, who was found with cigarettes and two lighters, suffered burns on 65% of his body after being alight for around six minutes.
Known as Pily she died in January, seven months after the disaster, having suffered a stroke.