Junior Minister John Paul Phelan will officially turn the sod on the project this morning.
Minister Phelan says they'll be looking at the issue next month.
Over the last month, the bed shortage worsened locally because of refurbishment work being carried out
The project which will cost €1.3 million will see the homes to be built on the Old Golf Links road in Kilkenny.
Delegates have gathered in the Newpark hotel for the 54th plenary session.
There's also the long-standing problem of the land aggregation scheme which is costing the council €250,000 a year
Patrick O'Neill hands over the chain of office later
Today the Dail will debate a Fianna Fail bill to bring local governance back to local level.
The announcement was made by Taoiseach Leo Varadkar shortly before 3 o'clock.
He'll be formally elected Taoiseach later.