32 social housing units have been proposed in Milford and Kilmacrennan.
Cllr Declan Meehan has welcomed the news, which he says is long overdue.
12 of the units are to be built in the Rossgarrow area of Milford within walking distance of the town.
Meanwhile the remaining will be situated next to the Ard na Glaise estate in Kilmacrenan.
Cllr Meehan says the type of housing that is being built is much needed, which can accommodate those who are downsizing or single and is accessible to people with disabilities: