AIB Corporate Banking has formed a partnership with Túath Housing Association to fund the acquisition of up to 190 social homes across every county and district in Ireland.
Túath is purchasing homes from the Irish state's housing agency and letting them to families on the local authority waiting lists.
The properties are former rental units that are vacant and in need of repair.
As part of the initiative, Túath is refurbishing the properties and will add the cost of the works to the overall price of purchasing the property.
AIB is providing initial funding of €15m towards the cost of the purchase and the repair bill to facilitate the initial acquisition scheme.
The first phase of funding was used to complete the purchase and repair of 21 homes, with a variety of houses and apartments in the local authority areas of Dublin City, South Dublin, Donegal, Westmeath, Galway County and City, Kildare and Wexford.
Seamus Doherty, chairman of Túath, said: “It is essential that more public and voluntary sector homes are provided for those shut out of the housing market.
“More could be spent – and spent more effectively – by channelling housing expenditure raised via private finance through housing associations.
“At a time when we have historically low borrowing rates, the country should be borrowing and building much more than we currently are.
“The AIB loan facility is an excellent example of how this can be achieved, effectively and efficiently.”
Eoghan O'Neill of AIB Corporate Banking said: “AIB is committed to playing a meaningful role in delivering more social housing in the months and years ahead.
“We are very proud of our involvement in this collaboration with Túath.
“AIB has significant experience in financing the social housing sector and we are currently working with a number of other approved housing bodies on funding for social housing.”
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