A fund of €165,000 has been made available for the Clos Delga section of the Saltown housing estate in Dundalk.
The fund is part of a €10 million fund for unfinished housing developments across the country.
Clos Delga was one of 13 estates in County Louth who are were made exempt from property tax payments.
An extension on the planning permission was sought in 2010 but refused as information was not submitted before a defined date.
European election candidate Lorraine Higgins said “This news will come as a relief to the many residents living in these unfinished estates.
“As someone from a small town, I have seen first-hand the blight on rural towns of half-built estates, and footpaths or street lighting in estates left unfinished.
“I understand the frustration of people trapped in homes in negative equity in estates that were abandoned midway through by failed developers.”