The council will provide Argyll Community Housing Association (ACHA) a grant of £890,000 and loan finance of more than £2.3m towards the development. The Scottish Government had earlier pledged a grant of more than £1.7m.
The project, which will invest almost £5m into the local economy, will go on site in April and the contract awarded to M&K MacLeod Construction. It is scheduled to be on site for 18 months while 50 construction workers, including five apprentices will be assigned to the build.
-- Advertisement --
Alastair MacGregor, Chief Executive of ACHA, said: "We have been working for some time to pull this much needed development together. I would like to thank both Argyll and Bute Council and the Scottish Government for their considerable financial contribution. Without their support we would not have been able to take this development forward on our own."
He added: "With 605 applicants on the housing waiting list in Oban these 40 homes will make a huge difference in meeting housing need. There is an added bonus in that the construction work will provide much needed jobs for the building industry."
(JP)
