The project for 50 new homes on Golf Course Road will consist of 14 two-bed and 36 three-bed houses.
Construction will commence in the fourth quarter of 2022 with completion expected by the end of 2024.
The Department of Housing, Local Government and Heritage has approved the tender for the construction of the new homes.
Welcoming the approval, Tom Gilligan, Director of Services with Mayo County Council, said: "This funding of over €14 million will provide much needed housing for people with a housing need and will ensure that this Council delivers on its ambitious Housing for All plan."
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The Cathaoirleach of Mayo County Council, Cllr Seamus Weir commented: "The delivery of Housing in Mayo through the 'Housing for All' strategy is the number one priority for the Council and by working with all key stakeholders it is intended to exceed the 'Housing for All' delivery target of 730 Social Housing units by 2026."
Mayo County Council has also confirmed that with over 50 different projects in the pipeline it is pursuing all options in order to deliver on its own target of 1,000 units including further land acquisition and the development of greenfield sites, the acquisition and/or redevelopment of derelict sites and where necessary, utilising Compulsory Purchase Orders (CPOs).
