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The Housing Executive's to build nearly five hundred new homes in the Newry, Mourne and Down district.
There will also be a £17m pound cash boost to update over seven hundred council houses.
It will also be used to provide grant aid to the private sector and improve the energy efficiency of many homes.
The plans were unveiled at a meeting with the council last night.
Investment and work is expected to take place over the next three years.
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