A planned social housing project in Dungloe is due to be reduced from 45 houses to 43 to meet a smaller budget.
The housing development at Chapel Road has been granted stage 3 approval in advance of the tendering process for the main contractors.
However, Glenties MD councillors were told that a ‘value engineering exercise’ is underway to reduce the project cost estimate to meet a reduced budget granted by the Department.
Glenties MD Mayor Cllr Michael McClafferty said the council should be seeking more funding for more houses, not cutting back.
“I am becoming very concerned about the apparent lack of new housing developments,” Cllr McClafferty said.
“In areas such as Dungloe, where 45 houses were planned, we are now looking at cutting the number to 43 due to inflation-related costs.
“Where will this trend stop?#8221; Cllr McClafferty asked.
“How many families and individuals will lose out on actual homes because this is clearly becoming a reality going forward?
“I will be urging the Council’s housing section to rethink this approach. This is not good enough,” he said.
Meanwhile, Donegal County Council is working with a developer to provide 11 social housing units in Creeslough as part of the response to support the community after the 2022 explosion. The proposal is subject to contract.
A proposed turnkey acquisition of 29 social housing units in Gweedore has obtained final departmental approval and is now at the contract stage.