Fife Council has bid for £2.3m of Scottish Government funding to help build an initial phase of 95 new Council houses which could be started on site by April 2010.
Members of the Housing and Communities Committee heard how a bid for the money had been submitted yesterday in order to meet the necessary deadlines.
If the bid is successful, the money will come from £25m of Scottish Government funding which has been made available to local authorities to encourage new council house building. Fife Council has asked for £25,000 towards the cost of each new property that is built.
There is scope for Fife Council to provide a longer term building programme in the region of 250 new council houses over a five-year period if Scottish Government subsidy is made available for future phases.
Committee Chair Brian Goodall said: "Good progress has already been made in the two months since we first announced our intention to provide new Council housing. I hope we will soon be in a position to confirm what form this will take.
"Improving access to housing is one of our main priorities - and providing new council accommodation will be the best possible way to achieve this."
Head of Housing Derek Muir said: "The Council has already started formal negotiations with the Fife Housing Association Alliance to have them act as the development partners for Fife Council in bringing forward proposals to deliver a new Council house building programme.
"This will optimise the opportunities for procurement efficiencies and provide increased certainty related to the delivery of the Council's programme."
(GK/JM)
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