"We applied in November when we were offered the ground," he said. "We can really kick on and get the first planting done next month."
The award of £9,949 will pay for a perimeter fence, a shed and pathway edging at the one-acre site, which lies between the Philiphaugh School car park and the Long Philip Burn.
Much of the overgrown land, which is being leased to the association by benevolent neighbour Tony Jackson, in exchange for a single plot, has already been cleared by parks staff at Scottish Borders Council.
It is the first new allotment development in Selkirk for more than 20 years.
Mr Howie paid tribute to BHAA chairman Malcolm 'Beechy' Grieve who prepared the lottery application, saying the award could help net funds from SBC's community grants scheme.
"We have also approached B&Q, which supports community projects with various equipment, such as compost bins, water butts and wheelbarrows," said Mr Howie, who expects the fencing contractor to begin work next week.
There will be 15 plots, each 110 square metres, and all have already been allocated. The majority of allotment holders live in Bannerfield, although four come from other parts of Selkirk. Philphaugh School will also have a plot which will be used by pupils of all ages.
"It will help teach our children where food comes from and how to work together within our community," said head teacher Grace Frew.
Mr Jackson, whose late father-in-law bought the land from Philiphaugh Estate, said the project was "a brilliant community initiative".
"The soil here is perfect for growing, having once been home to pigs and chickens," he said.
Community council chairman Gordon Edgar said: "This is a terrific project and I wish everyone involved all the best."