Hundreds of thousands of pounds gained through a change to council tax rules will be used to build almost 80 new affordable houses across the Perth and Kinross Council area.
The local authority agreed to slash the 50% second homes discount to just 10% in 2004.
The reduction covers around 1,800 properties, helping build up a substantial pot of cash from which £750,000 has been earmarked for new housing.
The money will be used on a series of projects, including the conversion of the former Caledonian Road Primary School into flats by Caledonia Housing Association and five new council housing sites.
The plans are expected to be approved when they come before councillors on the influential housing and health committee on Wednesday.
They are part of the council’s three-year Strategic Housing Investment Plan (SHIP), required to show how affordable housing investment policies are being delivered.
The £750,000 includes £200,000 to Caledonia Housing Association for its renovation of the former primary school, the sale of which should be rubber-stamped at a separate council meeting to be held in private on Wednesday.
At £10,000 per house, the remainder of the money will be used for council housing at Auchterarder (12 units), Coupar Angus (nine), Lathro (10), Jeanfield Road, Perth (16) and Inchture (eight).
A paper to be placed before the committee by housing department officials warns the development of some sites will depend on the general housing market picking up and sites being developed through the council’s affordable housing policy.
Housing and health vice-convener Kate Howie said: ”We are already making good progress in implementing our local housing strategy. The provision of affordable housing is still one of the major challenges we face in Perth and Kinross but all of the projects outlined in this plan will represent another step forward.”
It is estimated that a further £1,100,000 will be brought in through council tax on second homes in 2012/13. It is hoped the use of the money will trigger further input from central government with grant funding available for building social housing.
The report to the committee states: ”The use of the fund to contribute to the development of sites for social rented houses for the council or a housing association such as Caledonia Housing Association will lever in considerable investment by the Scottish Government to bring forward a supply of additional social rented housing.”