The biggest single investment in Newry for ten years is being welcomed as a 'positive first step'.
Carnagat Community Association's vice chair James Trainor says the cash will set them on the road to regeneration.
The Housing Executive announced one point two million pounds earlier this week to improve the deprived area.
James told Q Radio's Iveren McCallion the community's delighted.
He added the welcome but long overdue improvement works will make them proud to live there again.
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