Under a partnership arrangement with Cluid Housing Association, the local authority transferred the entire stock of around 100 houses to Cluid to manage and refurbish.
Minister for Housing and Planning, Willie Penrose announced the move at the launch of the final phase of the regeneration project.
Minister Penrose referred to his close personal and political links with social housing and the fact that he was presented with "a housing budget in a state of serious decline when I took over as Housing Minister - not an ideal start for any new Minister".
"There is only one certainty," the Minister said "the days of large capital budgets for new-build local authority housing estates are gone.
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"Neither can we go to the EU/IMF and increase borrowings to acquire the overhang of good value properties that are available in the private housing market.
"This is a time for fresh thinking, innovative approaches and new ways of getting more for less. I will vigorously pursue the issue of a social dividend from NAMA in the form of housing for people on housing waiting lists."
Minister Penrose complimented the Town Council on the decision to do a 100% stock transfer in respect of St Michael's Estate to Cluid Housing Association.
Cluid has a successful track record in this regard and are currently refurbishing a 75-house rundown estate in Ballina along similar lines.
"With Cluid on board and with the support of the Town Council and the local community, I have no hesitation in approving €6m for this worthwhile project.
"I'm confident that this estate will act as a model for future regeneration projects and singled out as great example of what can be achieved through the combined work and commitment of a very competent and enthusiastic voluntary sector with the assistance of an equally dedicated local authority," he concluded.
This phase of the regeneration project will provide 10 new units of sheltered housing for older persons as well as 27 family units.
(BMcC/GK)
