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The funding top-up will bring eight new homes up for reduced rent in the Lake County.
A small number of new cost rental homes are set to be built in Westmeath following funding top-up announcement from Government.
The local authority can build eight homes with rents at least 25% below market rates for the area.
The funds come from a national fund of over €156m, announced by the Department of Housing.
Other local authorities to benefit from the spending boost are Galway City, Meath, Louth, Fingal, and South Dublin.
The funding is intended to increase supply of affordable housing for both buyers and renters across the country,