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Ó Cualann Cohousing Alliance is to develop 39 new homes in Ballymun, Dublin.
Last year the firm completed work on 49 new houses in Poppintree.
Labour spokesperson Cllr Andrew Montague welcomed the announcement, however he called for the government to deliver more "affordable" housing.
He said: "There is still a major shortage of affordable homes for purchase or rent in the greater Dublin area. Improved delivery would reduce the pressure on the private rental market and allow families to achieve security in their community.
"The Labour Party has been calling on the Government for some time now to outline a national affordable housing scheme, but the failure to do so is causing families real problems.
"In our alternative Budget we outlined a plan that would see NAMA repurposed into a provider and financier of housing that would see up to 6,000 homes delivered a year. This is the type of solution Ireland needs if we are to deliver the number of homes needed."
(CD/LM)
