An allocation of almost 11 million euro will see councils in Carlow and Kilkenny in a position to buy and build new homes for social housing.
52 existing houses will be acquired by the local authorities with plans in place to build another 32 by the end of 2017.
Rural Affairs Minister Ann Phelan says this investment will be specifically for special housing needs like the elderly and people with disabilities.
And she says it will mean building jobs too.