Community groups around the Elephant & Castle have been invited to apply for a share of a £25,000 fund set up by Lend Lease and Southwark Council.
Last year Lend Lease – Southwark Council's development partner at Elephant & Castle – launched the community fund to support local initiatives.
Now the council has put up a further £25,000 for this year's round of grants.
Recipients of funding last year included the Albert Barnes House Tenants' and Residents' Association who won backing for their plan to install a mosaic at the side of their building.
For round two, grants of between £250 and £5,000 are available and for exceptional projects the panel may consider awarding funds of up to £10,000.
"The council is determined that the regeneration of Elephant & Castle will provide immediate benefits to existing residents as well as longer term improvements to the area," said Cllr Fiona Colley, cabinet member for regeneration.
"Therefore we are delighted to support Lend Lease's community fund initiative. The first round was overwhelmed with applications and demonstrated the demand for small grants to support grass roots projects.
"The projects funded by this programme improve the environment, promote the arts, support young people back into work and help meet the needs of older people. I am sure this round will be just as popular and I am looking forward to seeing the contribution the projects make towards creating a fairer future for all in Southwark."
Community groups, registered charities, tenants' associations, companies limited by guarantee, social enterprises and community interest companies are all eligible to apply to the fund.
Priority will be given to projects rooted in the geographical area and led by local residents.
This year's priorities include further education, skill building, training and entrepreneurship, arts and culture and environment, as well as projects for older residents.
Applications must be sent to the London Community Foundation – which administers the fund – by Friday 31 May.
• Community groups in North Southwark and Bermondsey can also contact the United St Saviour's Charity which is currently inviting applications for small grants of up to £5,000. The deadline for applications is also 31 May.