It is forecast that 1,050 new homes will be delivered to Naas and Sallins by 2021.
The Housing Minister, Eoghan Murphy, says the potential for construction of these homes is being realised through making land accessible.
Local Infrastructure Housing Activation Fund enables the funding, in all or in part, or, for example, roads, to open up existing green or brown sites for housing.
250 homes are to be built on a one hectare site in Sallins,and 800 homes on 6 hectare site in Naas.
34 projects, at a total cost of €226 million, received preliminary approval for funding under the Local Infrastructure Housing Activation Fund