Twenty-two new homes to be built at Father O'Flanagan Terrace in Sligo will include apartments and townhouses.
They will be made up of two 1-bed apartments, nine 2-bed apartments and two 3-bed apartments.
There will also be nine 2-bed townhouses.
The scheme will be built in a single contract in two phases.
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Housing Minister Simon Coveney, who turned the sod for the scheme on Friday, says the progress now being made on housing is just the beginning:
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