Housing charity, Túath Housing, is to provide up to 190 social homes across the country.
The charity buys the homes from The Housing Agency using funds of up to €15m from AIB.
The first tranche was used to complete the purchase and repair of 21 homes in Donegal, Westmeath, Galway, Kildare and Wexford.
The project is part of the Rebuilding Ireland vacant homes initiative and will be completed within a year.
"What we do and the funding that we get provided with as a housing body is that we get what we call Capital Advance Leasing Facility from the department," explained Bronagh Darcy, Development Officer with Túath Housing.
"It can be a maximum of up to 30%. We also then draw down money from whatever finance lender that we go to but we like anybody else then we have to pay the money back."
Túath Housing have said that the country should be borrowing and building more while we have historically low borrowing rates.
"This proposal is part of the Rebuilding Ireland vacant homes initiative. There are a lot of properties throughout the country that are vacant," said Ms Darcy.
"These properties, a lot of them are former rental properties that are in need of repair. What we are doing is working with the housing agency to bring those properties back into full use as family homes and to provide social housing.
"We are doing that using the funding from AIB and the Department of Housing."