Twenty-one local authority homes are to be built in Stranorlar with €2.7m in funding.
The €2,795,310 provisional budget is being approved under the government’s Local Authority Housing Construction Programme.
The homes will be built at Gleann Na Greine in Mullindrait.
Donegal TD and minister for state Joe McHugh announced the funding.
He said he was absolutely delighted that the funding for the project had been approved.
“Approval in principal is being given for 21 homes at Gleann Na Greine at Mullindrait,” he said.
“The development consists of 18 three-bedroom homes and three four-bedroom homes. It’s a turnkey development.
“I was absolutely delighted to confirm the news to my council colleague Martin Harley today as he has been working on this issue with me.”
“Formal notice to Donegal County Council will be made this week,” said Stranorlar Fine Gael councillor Martin Harley.
“I am delighted with this news as it will provide much-needed local authority housing in the area.”