Elphin Courthouse is to be converted into a social housing project.
Senator Eugene Murphy has confirmed that the building will be redeveloped for three new social homes.
Two one-bed apartments as well as one two bedroom home are to be developed at the site.
Elsewhere the Fianna Fail Senator has also confirmed funding for an extension at Ballymurray National School has been approved.
The school can now proceed to construction of the 80 metre squared ensuite mainstream facility.