I see that CLG have announced the short listing for the first round of Kick Start.
At the end of June, the HCA press release around Building Britain's Future said: "Up to £500 million to kickstart stalled housing and regeneration schemes [...] In view of the new funding, and the high level of bids already received, the Agency anticipates taking forward more than £400 million worth of schemes from the initial bidding round"
They certainly seem to have managed to do that as they are now talking about spending £925m on the first round alone. The fact that this is more than the £900m allocated in June is explained by the fact that Kick Start accounts for £156m of the £0.6bn that will be spent in 2011/12 (CLG report the split as £572m / £332m / £156m in each of the next three years).
I think it is fair to say that how all of this is funded is still a little unclear.